Do You Need Full Coverage On A Used Financed Car?

2018 Toyota Corolla LE and XSE

Budget-conscience drivers in the Long Branch area often try to get by with as little insurance as the law will allow as a way to cut costs. This is understandable, especially if money is tight. But insurance isn’t always something that can be skimped on. If you find yourself asking “Do I need full coverage insurance on a used car?” We have the answer! Usually, the needed insurance when buying a used car will depend on how much the car is worth and your lender. Galaxy Toyota of Eatontown wants you to be fully informed, so follow along as we discuss whether you need insurance on a used car and other things you may be wondering about, like how to finance a used car, and how many years you can finance a used car.

Do You Need Full Coverage on a Used Car?

Whether you need full coverage insurance on a used car that is already paid off depends on how much your car is worth, and whether you’d be in a position to replace your car if you had a sudden need to (like if you got into an accident or your car was stolen, etc.). Could you come up with a down payment for another car if you had to? Go over your budget to see what you can afford in the case of sudden car loss. If you cannot afford a new car payment or have the cash to pay off what you still owe on your vehicle when it was stolen or totaled, then a comprehensive insurance plan may be in your best interest.

What if you’re financing a used car though? If you find yourself asking “Do I need full coverage insurance on a used car?” it’s important to know that many lenders will not approve a loan unless you get full coverage. This is because they want to protect their assets. However, this could work to your advantage if your car is ever stolen or totaled. Before you sign the paperwork finalizing your new car purchase, take the time to find out whether you need insurance when buying a used car and if it’s required by your lender.

How to Finance a Used Car

Galaxy Toyota makes financing simple. When you purchase a car from us, our finance department will work with you to find the best loan available, even if you feel you have bad credit. You can even apply for financing online. Don’t forget to take advantage of our finance specials.

man in drivers seat of 2018 Toyota Camry

How Many Years Can You Finance a Used Car?

Generally, the longest term a lender will approve for a used auto loan is seven years, or 82 months. Of course, how many years you can finance a used car depends on your personal financial circumstances and credit. Our finance department will let you know what’s available to you.

Finance Your Next Used Car at Galaxy Toyota

The helpful finance managers at Galaxy Toyota will help you understand everything you need to know to finance and insure your next car. While you’re here, make sure to see how to get a good car loan rate, and to check out our pre-owned vehicle specials. We’re conveniently located near Freehold, so drop by or contact us today!