Once I pay off a car loan, do I have to reapply if I want to buy a new car?
I've paid off my car loan, but I'm not the best driver. If I happen to get into an accident, will I have to reapply for a loan to get a new vehicle?
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Answered on Apr 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Yes, you’ll have to apply for a new car loan for several reasons.
First, you’re buying a different car, so all the paperwork is different. Second, other circumstances might have changed. Your credit score could have gone up or down and interest rates could have shifted.
More importantly, if you’re worried about your driving skills, you should probably get collision coverage. This type of car insurance will pay to repair your vehicle if you get in an accident and give you peace of mind.”
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