A pre-owned vehicle can make for a fantastic value, but when you buy a used financed car, will you need to purchase full coverage car insurance, too? While legally, the answer is almost always “No,” practically speaking, the answer winds up being “Yes” most times, simply because of the desire on the part of financiers to cover the amount they’ve lent to a borrower. In other words, when you finance a used car, the lender will often require you to maintain full coverage. Read on to learn more, or contact us at Mercedes-Benz of Portland with additional questions.
The vast majority of U.S. states do not require you to carry full coverage insurance. That’s just as true if you’re buying a used vehicle as it were to be if you were buying a new vehicle. It’s the lender, on the other hand, that matters. Because a lender provides money to someone with some risk inherent in the transaction, it wants to be sure that it can recoup said money in the event that a total loss were to occur.
When you finance a vehicle, your finance agreement will generally detail how many payments you need to make. Generally, this agreement stipulates that you must continue to maintain full coverage, per the lender’s requirements, until the end of these payments. Once you stop paying off your car, you can usually stop carrying full coverage. Just remember that doing so, while cheaper on a monthly basis, could leave you without protection if you get into an accident.
Most used vehicles can be financed for a similar amount of time as new vehicles, especially if they’re newer in age. Here’s some documentation you’ll want to bring with you when financing a vehicle at the Mercedes-Benz of Portland finance center:
Here at Mercedes-Benz of Portland, we’re happy to explain further aspects of what the financing process entails. Financing your next used vehicle or new vehicle in Vancouver with the help of our finance professionals takes the guesswork out of the entire process. Why? Because Lithia cares!
Ready to get behind the wheel of a used vehicle that works for your unique needs? Check out our money-saving pre-owned specials and then apply for financing online. We look forward to meeting your automotive needs.
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