Do You Need Full Coverage on a Used Financed Car?

Used cars on a lot

 

If you’re in the market for a used vehicle for your Weaverville commute, you may be wondering how to finance a used car. Learning how to finance a used car is easy when you talk to the team at Hyundai of Asheville! We’ll go over each step in the financing process and answer questions like, “Do you need full coverage on a used financed car?” Read below for more information, then browse our other car buying tips for information on how car financing works and what credit score you need to finance a car!

The Facts About Financing a Used Car

When you buy a used vehicle from a Hendersonville dealership, most states won’t require you to drive off the lot with full insurance coverage. However, your lender might require you to purchase full coverage insurance for the duration of your loan. Finance lenders are known for requiring full coverage insurance to protect their investment. Additionally, the state of North Carolina also requires drivers to have liability insurance coverage for their vehicle to drive on Black Mountain streets.

When you finance a vehicle — whether it’s new or used — there are term agreements that discuss how many years you’ll pay a lender before you’re able to receive a title. This means if you apply for financing and receive a loan term of 36 months, your lender will hold the vehicle’s title for that period of time.

In most cases, full coverage insurance coverage will be required for the duration of your auto loan. If we use the example above, that would mean your vehicle would need full coverage auto insurance for 36 months — or until your loan is paid off.

How Many Years Can You Finance a Used Car?

When you finance a used vehicle from Hyundai of Asheville, your loan term will depend on a number of factors, such as your credit score and how much you’re able to put down as a down payment. When you submit your loan application to Hyundai of Asheville, we’ll collect some of your information to present to lenders on your behalf. This information includes:

  • 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)

When you’re paired with a lender, our finance team will explain the terms the lender is offering in order to finance your used car. Depending on your credit score and down payment amount, your loan term may be a year or a few years. Whichever loan term you settle on, the finance team at Hyundai of Asheville will be here to help you every step of the way.

Finance a Used Car at Hyundai of Asheville

Find your perfect vehicle and see how many years you can finance a used car when you visit our Asheville showroom! Our team will take you on a test drive of your favorite pre-owned model, then we’ll help you find the right loan term for your budget. Contact us today if you have any questions or browse our car buying tips for more information on the car buying process!

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