If you’re working out how to finance a used car, you might have a long list of questions about the process. One of the most common questions we get is, “Do you need full coverage on a used financed car?” While lenders generally require full coverage, there are a few considerations to keep mind before you take the next steps. Learn all about financing a used car below, and be sure to reach out to Sterling Automotive Group for more information.
Do you need full coverage on a used financed car the second you drive off the lot? The answer is usually no; most lenders will give you a little bit of leeway. However, lenders want to ensure that their investments are sound, which means you’ll need full coverage eventually.
How long do you need to maintain your coverage? Generally, the coverage period is the same as your loan term. If you have a 36-month loan, you’ll need full coverage for the duration of that 36-month loan. In other words, you’ll need to maintain coverage while the lender still holds the title to your car.
When you’ve found the model that’s right for you, it’s time to start the financing process. Luckily, learning how to finance a used car at Sterling Automotive Group is simple. Just bring the following information with you to one of our locations:
Once you apply for financing and get a few offers, a finance team member will go through your options with you. We’ll talk down payments, interest rates, and of course, loan lengths as well. Once you sign the dotted line, you can drive away with your new dream car!
You may also be wondering how many years you can finance a used car. Typically, there is no set limit on how long you can finance a used car. However, certain lenders may have restrictions. For instance, many banks and auto loan lenders limit used car loans to seven years. Additionally, some lenders may not offer loans for vehicles with more than 100,000 miles.
If you have any questions about the auto financing process, don’t hesitate to ask. Our team is always happy to offer our best car-buying tips and tricks, and we can walk you through the entire process with ease. Contact us to get started. In the meantime, find out what to look for in a used car.