Is it mandatory to purchase insurance from a 4S store for a loan-financed car?
2 Answers
It is not mandatory to purchase insurance from a 4S store for a loan-financed car. You can make a choice based on your own situation. Generally, there are two scenarios when buying a car with a loan: Using a car consumer finance company that cooperates with the 4S store to finance the car purchase; or obtaining a loan from other bank financial institutions and then purchasing the car from a 4S store. Below are some considerations when buying a new car: Check the car paint: Look for scratches or dents on the body surface. Check if the paint thickness is uniform. Inspect the engine compartment and the edges of the underbody for any signs of touch-ups. Check the gaps: Examine the gaps between the front hood, doors, and surrounding frames for uniformity. Ensure that the gaps on both sides of the front hood are symmetrical.
In the financial sector, I've come across many cases involving financed vehicles, and I've noticed that banks or lending institutions typically require insurance to be bundled when purchasing a car, especially at 4S dealerships. This helps mitigate their risks, such as protecting the lender in case the vehicle is accidentally lost. However, this isn't absolutely mandatory—it ultimately depends on whether the loan contract explicitly states that you can choose an external insurance provider. I recommend carefully reviewing the agreement. If there are no restrictions, you can opt for more affordable insurance online or through personal recommendations, as 4S dealerships often charge higher premiums. Comparing options can save you hundreds of dollars. Additionally, ensure your coverage is adequate, and don’t overlook the deductible settings, as they directly impact your out-of-pocket expenses in the event of a claim.
