4 Documents You Need for Your Car Loan

Happy car buyer-1.jpg


You've taken the test drive, fallen in love, and negotiated a great deal at the car dealership.  What documents do you need to get your loan and drive away happy?  

Even when you're pre-approved for a car loan, you need four documents complete your loan and get your money.

    1. Purchase and Sale Agreement (P&S) 

When attempting to register and title a vehicle in Massachusetts, you need to have a bill of sale showing where and when you purchased the vehicle, whom you purchased it from, and how much you paid for the vehicle.
For a bill of sale to be legal in Massachusetts, it must include the following elements:

  • Name, signature and address of the buyer
  • Name, signature and address of the seller
  • Date of purchase
  • Purchase price
  • Vehicle identification information (VIN, make, model, and year)

   2. RMV1 Form (in Massachusetts) 

(The form can be found here.)

This is a two-page document.  Both pages must be completed in full, stamped by your insurance company or agent (registration transactions only), and submitted with all proper documents to the RMV branch office for processing.  The purchaser(s) signature is required on line 50 / 51.  A Massachusetts dealer signature is required on all Massachusetts dealer sales. Make sure you've followed the instructions when filling out the form because it will be rejected by the RMV for any of the following reasons:

  • The form is not printed on 8 ½ x 11 white paper
  • The form is printed on color paper
  • The form is printed on card stock
  • The form is not signed in the appropriate places by the registered owner(s)
  • The form is not legible due to ink smears or low toner marks

   3. Insurance Binder

An insurance binder is a legal agreement issued by either an agent or an insurer to provide temporary evidence of insurance until a policy can be issued.  The binder can be faxed directly to the financial institution.

    4. Certificate of Origin (New) or Copy of Title (Used)

NewWhen a vehicle is first manufactured, there is no "title" issued to identify ownership of the vehicle. Instead, manufacturers create documents known as "certificates of origin" to identify that the product is a newly manufactured vehicle. The certificates of origin are intended to serve as temporary ownership documents.  When you purchase a new vehicle, the vehicle will be titled for the first time.

Used - If the vehicle is already owned, the title will be signed over to you and then titled in their name.  You will then bring the title to your lender.

If the vehicle is not paid off, a copy of the title need to be provided.  The loan will be paid off in the transaction and title sent to your financial institution.

If you've found that right vehicle, come in with these four documents and you will get your money the same day!

To learn more about the in's and out's of purchasing a vehicle, click on the link below and download your free Car Buying e-Book.

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About Author

Bill Burpeau
Bill Burpeau

Bill Burpeau is a relationship manager at Hanscom FCU. As a Credit Union Certified Financial Counselor, he is an enthusiastic advocate of financial literacy and education. He constantly studies and is up to date with the latest financial management concepts and technology. Bill is a graduate of Texas A&M University with a BBA in Business Management and served in the U.S. Navy as a Supply Officer.

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