Do You Need Full Coverage on a Used Financed Car?

A used Chevy Silverado driving on a dirt road near a lake

For many Minneapolis drivers, financing a vehicle can seem like an overwhelming task. However, at Cornerstone Plymouth our team works diligently to ensure that your used car buying process is smooth and hassle-free. We will guide you every step of the way to help you find the car that checks every box on your wishlist.

A common question we hear at the dealership is, “Do you need full coverage on a used financed car?” With tools like our payment calculator and car buying tips, our finance team can help you learn how to finance a used car and whether full coverage is necessary.

Financing a Used Car: The Facts

In many states, the law does not mandate that you obtain full coverage before you head off the lot towards home in Maple Grove. However, many financial lenders will require full coverage as a way to protect their investment regardless of whether your car is new or pre-owned.

If you are a new driver, learning how to finance a used car is crucial if you want to stick to your budget. When you apply for financing and get approved, you agree to certain terms that will determine how much you pay your lender and for how long.

If you agree to a loan term of 36 months when financing a used car, you will pay the lender the agreed-upon amount for the duration of the term until you become the titleholder. Reaching terms with a financial lender is often contingent upon acquiring full insurance coverage for the duration of the loan term.

How Many Years Can You Finance a Used Car?

When you have found the perfect model on our lot, our finance team will gather some information to contact lenders on your behalf. Our experts will start the car buying process for you so you can cruise home to Minnetonka in your new-to-you car in no time! Some information our team may need from you 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)

Once you’re paired with a lender we will walk you through the entire finance offer so you know what you are signing up for. Down payment options and your credit score can impact the duration of your finance agreement. We offer great tips on how to improve your credit score so you can be better prepared to finance a vehicle.

Finance a Used Car in Plymouth Today!

Shopping with %di_name%% makes the car buying process simple. We offer a wide selection in our used vehicle inventory and our team is here to help you learn how to finance a used car. Learn how to buy a car out of state and more with our online car buying tips. Contact us today if you have any financing or insurance question and we will be happy to help.

Contact Us
Cornerstone Plymouth 45.0272529, -93.4508119.