Do You Need Full Coverage on a Used Financed Car?
You’ve found the perfect car for your needs and budget, but do you need full coverage on a used financed car? The answer is yes, but that’s not all that you need to consider when you start negotiating your car loan. If you want to know how to finance a used car in the St. Louis area, we’re here to answer all of your questions. Learn your financing options from Florissant to Herculaneum and see how Green Light Auto Credit can help you.
Why Do I Need Full Coverage?
Technically, many used car purchases do not require full coverage under law. But, financiers and lenders almost always require it. They want to make sure that their investment is sound, which means full coverage is crucial. For example, if you get into a serious accident while still making payments on your vehicle, a complete insurance package will prevent you from catastrophe. This includes comprehensive insurance, liability insurance, and collision insurance — or “full coverage.”
How Many Years Can You Finance a Used Car?
So, how many years can you finance a used car? The answer depends on you and your lender. When you agree on a financing package, you’ll negotiate a loan term. Generally speaking, you’ll be required to have full coverage on your vehicle during this time. But your loan term will be based on a number of personal factors: debt-to-income ratio, your down payment, and your relationship with the lender.
How to Finance a Used Car
Now that you know more about the insurance requirements for the financing process, you’re ready to do the paperwork and get the keys in your hand for your new ride! But first, be sure to gather up the appropriate information:
- Valid Car Insurance Card
- Valid Driver’s License
- Proof of Income
- Documentation for any trade-in vehicle
Get Expert Auto Financing With Green Light Auto Credit
Buying a car doesn’t have to be stressful. When you choose experts like Green Light Auto Credit, you’ll get world-class financing service with a smile. Not sure where to begin? Contact us with your questions and we’ll help you find the car that you deserve!
