Do You Need Full Coverage on a Used Financed Car?

Insurance Agent Examining Car After Accident

 

While many Amherst drivers dread the used car financing process, that does not have to be the case at Basil Resale Sheridan & Basil Resale Transit. When you shop with us, our experts are here to guide you through every step of the process, from search to signature. Car shopping is fun again at Basil Resale Sheridan & Basil Resale Transit, and the financing process is stress-free.

A common question we hear from Clarence drivers is, “Do you need full coverage on a used financed car?” Our finance experts explain this and more below.

How to Finance a Used Car and Select Coverage

In most states, full coverage insurance is not required to drive off the lot in a new or used car. However, finance lenders often require full coverage to secure their investment. If you take out a loan, there is a good chance that you will need full coverage until the loan is paid off.

When financing a new or used car, you are bound by term agreements that determine how many years you’ll end up paying back a lender before you receive the title to your vehicle. In most cases, full coverage insurance is contingent on the full term of the finance period. So, for example, if you took out a 36-month loan, you would need to have full coverage insurance for those 36 months.

How Many Years Can You Finance a Used Car?

Once you have found a pre-owned vehicle at Basil Resale Sheridan & Basil Resale Transit that checks all of the boxes on your wishlist, we’ll hand it over to our finance experts. During the financing process, you’ll provide a bit of information to our finance team so that they may contact lenders on your behalf. You will likely need the following:

  • 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, we will go over the terms of the offer so you can finance your used car in no time. The length of your loan term may be affected by factors like your credit score and the amount of your down payment.

Used Car Shopping is Stress-Free at Basil Resale Sheridan & Basil Resale Transit

At Basil Resale Sheridan & Basil Resale Transit, it is our goal to get you behind the wheel of an affordable pre-owned vehicle in pristine condition. Contact us today for more information or if you have any additional questions about the financing process or your insurance options.

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    Basil Resale Sheridan & Basil Resale Transit 42.977871, -78.779841.