What documents are required to finance and purchase a car in Chicago?

There were times when horse-drawn carriages made a statement. Today, cars are in fashion. And as it stands, cars will be here forever. Chicagoans are car crazy like everyone else in America. Driving a car provides a big adrenaline rush. The city with the big shoulders is best explored in a comfortable car.

Don’t you want to drive through the streets of Windy City in your dream car? When it comes to buying your favorite car, do you suffer from a perfect case of ambivalence? Do you love cars but detest the car buying process? If so, you’re not alone, many Chicagoans feel the same way. There are so many things to do. You need to provide financing, and then you need to look for the perfect car. There is no getting around here. There is the car registration, the car title and the procedure for obtaining a parking ticket sticker. All these processes have made you sit on the fence for a long time, but no more. Here’s an article to prepare you for the grueling task. Buckle up because we’ll walk through the fast lane and understand what documents are required in Chicago to buy your dream car.

Several documents are required to bring your favorite car home. If you live in the city that works, you’re constantly on the move. So you need to be prepared all the time. Here’s your checklist for buying a car in Chicago.

Lenders are ready for credit, let us get you ready for documents

No car dream will be fulfilled without a car loan. With the rising cost of cars, car financing has become inevitable. You can get a car loan in Chicago for almost all situations, bad or worse. Chicago is a large city and offers many opportunities to get affordable car loans.

Bad credit and not credit car loans are easier if you have what lenders charge. You also can’t take out money-down car loans or the difficult ones can’t take advantage of co-sign loans. Yes, any loan is possible if you have all the documents ready.

1. Proof of income

A minimum income of $1,000 is required by almost all Chicago lenders. You want to make sure you can make regular monthly payments. And so you need to submit your payslips as proof of income. If you have your own business, specify your IT returns.

You’ll also need to mention other additional income such as rental income, alimony, child support, Social Security income, etc.

2. Credit/bank history

Lenders will ask for personal information such as your full name and SSN. This allows them to get your credit report. Your credit history determines your credit score.

Also, lenders need a banking history to understand your banking operations and calculate your debt-to-income ratio. They don’t want to lend money to anyone who is risky. So get ready with copies of your bank statements, leases, and mortgage contracts.

3. Proof of residence

Your lender needs to know where you live so they know where to contact you. Your proof of residence can be anything from a driver’s license to a utility bill to your monthly rent.

4. Vehicle information

Lenders want to be sure you’re buying a car and nothing else. So you need a purchase contract / purchase contract. The purchase price should also be clearly indicated with the chassis number, make, model, condition of the vehicle and mileage.

Also, the lender will ask for a copy of the car title just to convince himself of outstanding liens. If you buy a used car, it will need a copy of the odometer disclosure.

5. Proof of insurance

Lenders use car as collateral and want to be insured all the time. So they will ask for comprehensive insurance coverage. However, you can negotiate and buy the insurance only as required by Illinois’ mandatory insurance law.

No driving before registration

Documents and paperwork will not leave you even after using the car loan. Instead, the real work begins now. You must register your car in the office of the Secretary of State. Now you can read all the documente to the main office in Springfield or go to your local SOS office and get your work done. Here are the addresses of your local offices:

Office in Chicago
17 N. State of St.
Room 1100
Chicago, IL 60602, USA
(312) 793-1010.

Chicago Central (0.4 miles)
100 W. Randolph
Chicago, IL 60601, USA

Chicago West (6.5 miles)
5301 W. Lexington St.
Chicago, IL 60644, USA

Chicago North (9.5 miles)
5401 N. Elston Ave.
Chicago, IL 60630, USA

Chicago South (11.3 miles)
9901 S. Dr. Martin Luther King Jr. Dr.
Chicago, IL 60628, USA

Lombard (18.7 Miles)
837 p. Westmore B27
Lombard, IL 60148, USA

Naperville (29 miles)
931 W. 75th St., Ste. 161
Naperville, IL 60565

Documents for the registration of your dream car

Here is the list of documents required to register your dream car in the city that works.

Application for vehicle transaction(s) (VSD 190) – This is the application for transferring the title and registering the car in your name.

Car Title – Have the car title ready and make sure there are no outstanding liens on it.

Form RUT-50 – Fill out this form if you bought your car from a private party (it doesn’t matter if it’s an in-state or out-of-state purchase).

Tax form RUT-25 – Use this form in case of buying a car outside the state.

ST-556 – This form is most common because it is used when you buy your car from a dealer in Illinois.

Since Chicago falls under Cook and DuPage County, you must undergo the smog test mandatory. Also pay the required usage tax.

Stickers for your car

The City of Chicago requires that you receive a vehicle badge within 30 days of the date of the vehicle. You will need a valid purchase contract/title of the car to get the sticker.

If you park your car in the resident parking permit zone, you must also purchase an annual resident parking permit. You will need to show your photo ID and proof of residence.

Once you are done with all the legal documents, you can drive your perfect car freely. All this paperwork may be a bit cumbersome, but they guarantee safe and unpunished driving.

So, now that you’re document-ready, get ready to drive your car on the streets of Chicago.

Best wishes!

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wendy encarnacion

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