Do You Need Full Coverage On a Used Financed Car?

December 3rd, 2018 by

Photo of hands holding pencil and pressing calculator buttons over documents

Looking to finance a new Volkswagen car but are unsure about how to do it? At Reeves Volkswagen, we work hard to make sure all of our drivers, whether they are from Brandon, Wesley Chapel, or elsewhere, are taken care of. From search to signature, we want to keep you excited about the car buying process. You may be asking “do you need full coverage on a used financed car?”, but we have you covered. Check out our finance calculator to get started, and our finance team will help you with the rest.

Financing a Used Car: The Facts

Most states don’t require you to drive your car off the lot with full coverage, no matter if the car is new or used. However, finance lenders want to ensure their investments are sound. Most financial investors or banks require you have full coverage regardless of whether your car is gently used or new.

When financing any vehicle, there are term agreements that spell out how many years you’ll pay a lender until you’re able to receive a title. This means if you apply for financing and obtain a loan for the used vehicle for a term of 36 months, your lender will hold the vehicle’s title for that period of time.

In most cases, full coverage insurance is contingent on the full term of the finance period. In the example given above, that would mean your used car would have full coverage insurance for the 36 month period.

How Many Years Can You Finance a Used Car?

Once you’ve found your dream car, you’ll need to provide some basic information so our finance team can help you get the best possible deal. 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, your finance team member at Reeves Volkswagen will explain the terms the lender will offer you in order to finance your used car. Factors like credit and what you’re able to put as a down payment on your vehicle will affect how short or long your finance period can be. Financing your next vehicle in Clearwater with the help of our finance professionals takes the guesswork out of how long you’ll finance your used car for.

Finance Your Next New Car with Reeves Volkswagen

For more information on financing a used car, take the trip from Clearwater to Reeves Volkswagen! While you are here, be sure to check out our many used and certified pre-owned Volkswagen models so you can be sure you’re getting the right vehicle for your needs. Contact us for more information, and be sure to check out the differences between used vs CPO.

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