Proof of Residence Required at Buy Here Pay Here Car Dealerships
When purchasing an automobile from any buy here pay here car dealership, proof of residence is usually required. Why is this required?
When you get financing for a car, the car is collateral. So, a car loan is a secure loan, secured only by the collateral on the loan. In the case of auto financing, the car is the collateral and the loan would not be made if it were not so.
So the dealership needs to be able to know where that collateral is, should you default on the auto loan. Knowing where the vehicle is garaged allows the dealer to easily reclaim or repossess the vehicle in the event of loan default.
Proof of residence is usually acceptable if you have two forms of proof. This can be a current utility bills, such as a light bill or a phone bill, both of which should be address to the loan applicant showing the current address and postmarked by the post office.
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