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?
“Yes, you’ll have to apply for a new car loan.
Since you’re buying a different car, all the paperwork is different.
It also works in your favor to apply for a new loan. Your circumstances might have changed since you applied for your first loan. Your credit score could have gone up or down and interest rates have likely shifted.
While it’s not related to car loans, if you’re worried about your driving, 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 additional peace of mind.
Extra peace of mind can cost more, but it doesn’t have to break the bank. Jerry is your ultra-talented car insurance broker for life, found right in the palm of your hand. It takes less than a minute to sign up and have competitive rates from up to 50 top providers delivered to your phone.”
MORE: Types of Insurance
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