Do You Need Full Coverage on a Used Financed Car?

Learning how to finance a used car may feel daunting, but the process is well within your grasp. And luckily, the team at Sussex Honda is here to help every step of the way. Get answers to common questions like “Do you need full coverage on a used financed car?” and “How many years can you finance a used car in Sparta Twp?” Let’s get started!

Financing a Used Car: The Facts

So, do you need full coverage on a used financed car? Most states don’t legally require you to have full coverage the second you drive home with your new car. However, lenders want to protect their investments. Therefore, most lenders and banks require full coverage immediately – whether you have a new or used model.

How many years will you need to have full coverage? That depends on the length of your loan. Let’s say you apply for financing and receive a 36-month loan. That means you’ll need to maintain your coverage for 36 months because that’s how long the lender will hold the vehicle’s title. 

How Many Years Can You Finance a Used Car? 

After determining how long you’ll need full coverage, you might wonder, “How many years can you finance a used car?” That will depend on your lender. Some cap your loan term at 72 months, while others can extend to 84 or even 96 months. That’s why it’s important to talk to your lender before committing to a contract.

Once you’ve found your perfect car and your ideal lender, you’re ready to start the financing process. You’ll need to bring the right documentation to your appointment, including:

• 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)

Your finance team member at Sussex Honda will then run through how to finance a used car like a pro. They’ll explain your credit score and how that affects your insurance rates and down payments, as well as explain the pros and cons of different loan terms.

Learn How to Finance A Used Car with Sussex Honda

We’ve been over the basics of how to finance a used car, so are you ready to put your skills to work? Feel free to stop by Sussex Honda and chat with our experts about all things automotive, or just contact us for more information. We’re located in Newton, near neighboring Hackettstown and Denville, so reach out to us at any time.