Do You Need Full Coverage on a Used Financed Car?

Woman with clipboard evaluating a car

With Don Franklin Auto, financing a used car has never been more convenient. We have a team of finance experts who will help you through every step of the process and have you on the Louisville, KY roads in your new car before you know it. You can even apply for financing right from our website! 

Part of the financing process is determining whether you need full coverage insurance on your used car. This is a bit of a tricky question to address, because finance lenders have different rules than the state government. Don Franklin Auto has put together a handy guide about the financing process and whether you’ll be needing full coverage when you leave the dealership. If you find yourself asking, “Do you need full coverage on a used financed car,” read on! Our finance center has all the information you need below.

Financing a Used Car: The Facts

As we said above, the states usually have different rules about full coverage than the finance lenders. While most states don’t require full coverage insurance on used cars, finance lenders want to protect their investments no matter what. Therefore, if you choose to finance your car — whether it’s new or used — it’s very likely that the bank or lender will require you to get full coverage before leaving the dealership.

When you apply for financing, your term agreement will dictate the length of time that you’ll be paying the finance lender before the car’s title is yours. For example, if you obtain a loan for a term of 24 months, then the bank or lender will hold your car’s title for 24 months while you pay it off. Since most full coverage insurance is contingent on the term, this means that your full coverage insurance will also last for 24 months.

How Many Years Can You Finance a Used Car? 

Now that we’ve talked about full coverage insurance, let’s talk about the financing process itself. When you’ve picked out the perfect pre-owned car at Don Franklin Auto, there are a few more steps before you can take it out for a spin in Russel Springs, KY. We’ll ask you for some basic information so we can negotiate with finance lenders on your behalf and kick off the buying process. Be sure to have the following on hand when you apply for financing:

  • 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 we pair you with a finance lender, your finance team member will explain the terms that they have offered in exchange for financing your car. This is often affected by factors like down payments and credit scores. These factors will also determine how many years you can finance your used car, which varies heavily from case to case.

Financing a Used Car with Don Franklin Auto

When you buy a used car with Don Franklin Auto, you’ll be hitting the streets of Somerset, KY in a stylish ride in no time! We’re here to help you through every step of the buying process, whether you’re wondering how to finance a used car, or what your coverage options are for your financed vehicle. Contact our office today if you’d like to know anything else about the finance process.

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