Do You Need Full Coverage on a Used Financed Car?

Financing a Used Car: The Facts

Most states don’t require you to drive your car off the lot with full coverage, no matter if the car is new or used. However, finance lenders want to ensure their investments are sound. Most financial investors or banks require you have full coverage regardless of whether your car is gently used or new.

When financing any vehicle, there are term agreements that spell out how many years you’ll pay a lender until you’re able to receive a title. This means if you apply for financing and obtain a loan for the used vehicle for a term of 36 months, your lender will hold the vehicle’s title for that period of time.

In most cases, full coverage insurance is contingent on the full term of the finance period. In the example given above, that would mean your used car would have full coverage insurance for the 36 month period.

How Many Years Can You Finance a Used Car?

When you’ve found your next used and reliable Honda near Warwick, you’ll offer some information to our finance team so that they may contact lenders on your behalf to start the car buying process. Some information they may need from you is:

• Valid Driver’s License
• Valid Car Insurance Card
• Any supporting financial documentation (i.e. last two pay stubs)
• Any existing vehicle documentation for your current vehicle (if applicable)

When you’re paired with a lender, your finance team member at Middletown Honda will explain the terms the lender will offer you in order to finance your used car. Factors like credit and what you’re able to put as a down payment on your vehicle will affect how short or long your finance period can be.

Financing your next vehicle in Goshen with the help of Middletown Honda’s finance professionals takes the guesswork out of how long you’ll finance your used car for.