Do You Need Full Coverage on a Used Financed Car?
Whether you’re shopping for a used Honda Civic or a used Chevy model for your Queens commute or a used Toyota Tacoma, you might start wondering just what you need to make a successful purchase. For example, do you need full coverage on a used financed car or not? For the most part, yes. Your lender will require that you have full coverage for as long as they hold the title! Let’s get into the basics of car insurance!
Why Does Full Coverage Matter?
Most states require full coverage insurance on your financed vehicle. That’s because purchasing a car is a big investment and if anything goes wrong, the lender wants protection against losses. However, there is a limit to this requirement. You only need full coverage while the lender still holds the title to your vehicle. That’s why it’s so important to pay attention to factors like your loan term when you’re signing the paperwork for your vehicle – but Major World will detail everything that you need to know!
How Many Years Can You Finance a Used Car?
Your loan term is customized for you, which means that the answer will vary from person to person. The experts at Major World will work hard to find the right loan term. Ideally, we want to make sure that you can pay off your car as soon as possible. However, the shorter the term, the bigger the monthly payments. The longer the term, the bigger the interest rate. That’s why it’s so important to work with a team that can find just the right balance for your needs.
So when you visit us in Long Island City, be sure to bring the following documents to get the process started:
- 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)
How to Finance a Used Car with Major World
Located in the Bronx area, Major World is here to make the auto financing process easy. Follow our 10 steps to buying a used car, whether you can finance a car with no credit, or learn which questions to ask before you buy a used car to find that perfect sedan, SUV, truck, or minivan and we’ll be happy to get the keys in your hand! Want to learn more? Find out all about trading-in your car and contact us with any questions or to learn the difference between used or certified pre-owned!
