Buying a Car When Retired: 4 Helpful Tips For a Quick Process

Buying a Car When Retired: 4 Helpful Tips For a Quick Process

Posted on March 10, 2023

A question we are often asked is whether you can get car loans for retirees. The short answer is, yes you can. The longer answer, is well, longer.

Your eligibility for an auto loan after you have retired depends on your income. If you have sufficient income from pensions or other sources, you should have no problem qualifying for an auto loan.

You will need paperwork to prove your income and a sufficient credit score to qualify for the loan though.

Here are a few tips for financing and applying for car loans for retirees.

Gather Your Documentation

Any lender will want to see proof of income and savings. If you have debt, they will also want to see that. Their aim is to ensure you can afford to pay off the loan, both for your benefit and theirs.

That means bank statements, pension or income statements, debt statements if you have debt, and proof of all your income and outgoings.

Check Your Credit Score

If you qualify for a standard auto loan, your credit score will determine how much you can borrow and your chances of being accepted. If you’re looking at a bad credit car loan, lenders can look further at affordability and other criteria.

Either way, checking your credit score ahead of time should give you an idea of what kind of auto loan you could qualify for.

Get Pre-Approved

Pre-approval is a useful way to see how much you are likely to be able to borrow. It’s just an estimate, but pre-approval is a fairly accurate way to see how much you could potentially borrow and what interest rate you’re likely to pay.

Car Loan Terms For Retirees

One area a retiree may need to use their negotiation skills is in the loan length. Depending on your age, longer-term loans may not be suitable for your needs and some lenders will be reluctant to lend over longer periods.

That should be fine for most situations but might not suit everyone. Most lenders are open to negotiation so if you need something specific, discuss it with us or with the lender in question.

buying a car when retired is not difficult. If you have a good credit history and a sufficient credit score, most lenders will work with you. As long as you can prove your income and can afford repayments, there should be no problems accessing the loan you want at the rate you need.

If you're ready for a car loan in Southern Ontario, we'd love to help! simply fill in the form below to get started.

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