Do You Need Full Coverage on a Used Financed Car?

Financing a used car is less of a hassle than many Marshalltown drivers think. At Thys Automotive Family, our experts are here to walk you through the entire process and answer any questions that you may have. We want to ensure you find a vehicle you love at a price that falls within your budget.

One question we hear quite often is, “Do you need full coverage on a used financed car?” Our finance team would be more than happy to discuss your insurance options so you can have the right amount of coverage.

The Basics of Financing a Used Car

In most cases, it is not a state requirement to have full coverage insurance on a new or used vehicle. If you decide to finance with an investor or bank, full coverage insurance could be a necessity. Lenders want to protect their investment, which means you could be required to have full coverage insurance even if it is not mandated by the state you live in.

As part of the financing process, you will have to agree to terms that outline how many months it will take for you to pay off the vehicle and receive the title. For example, if you choose a 36-month term when you apply for financing and obtain a loan for the used vehicle, the lender is in possession of the vehicle’s title during that time.

In most cases, full coverage insurance is contingent on the full term of the finance period. In the example given above, you would need to have full coverage insurance for those 36 months.

How Many Years Can You Finance a Used Car?

After you have found a used car that meets your needs and budget, you can begin the used car financing process. To get started, you’ll need to provide some information to our finance team so that they may contact lenders on your behalf. Some of the information that may be required can include:

• 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)

After you are paired with a lender, a member of our finance department will explain the terms the lender will offer you in order to finance your used car. When determining the length of your finance period, the lender will look at factors like your credit score and the amount of your down payment.

Enjoy Stress-Free Financing at Thys Automotive Family

Used car financing is quick and easy when you choose to shop with Thys Automotive Family. If you have any questions, do not hesitate to contact us at your convenience. In the meantime, be sure to take a look at our used car specials to help you save even more.