Do You Need Full Coverage on a Used Financed Car?

Many drivers in the Buffalo area dread the used car financing process, but it does not have to be a hassle when you choose to do your shopping at Basil Ford. From search to signature, we are with you every step of the way to ensure you are one-hundred percent satisfied with your purchase.

A common question we hear from our customers is, “Do you need full coverage on a used financed car?” Our finance team discusses this and more in the guide below. 

How to Finance a Used Car

In most states, full coverage is not required to drive home from the showroom, regardless of whether you purchase a new or used car. However, if you are financing a vehicle, lenders want to feel confident that their investments are sound. Most financial investors or banks require you to have full coverage until the car is paid off. 

How many years can you finance a used car? When financing any vehicle, there are term agreements that cover how long you’ll be paying back the lender until you’re able to receive a title. For example, if the loan term on your vehicle is 36 months, your lender will hold the vehicle’s title for that duration of time.

Generally, full coverage insurance is contingent on the full term of the finance period. If we use the same example of 36 months above, you would have to have full coverage on your used car for 36 months. 

How Many Years Can You Finance a Used Car? 

Have you found a pre-owned vehicle at Basil Ford that checks all of the boxes on your wishlist? If so, you are now ready to move on to the financing process. First, you’ll provide some information to our finance team so that they may contact lenders on your behalf to start the car buying process. Here is what they may need from you:

  • 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 applying for financing and being paired with a lender, our finance experts will discuss the terms the lender will offer you in order to finance your used car. Your finance period is determined by factors such as your down payment amount and your credit score. 

    Finance a Used Car at Basil Ford

    Now that you know how to finance a used car and that full coverage insurance is required for the duration of the loan, we can help you get started with the car shopping process. Visit our showroom today, or contact us with any questions you may have. We look forward to helping you find the car of your dreams around Cheektowaga and West Seneca.