Can You Get a Car Loan When Retired?

Can You Get a Car Loan When Retired?

Posted on March 4, 2023

We get a lot of questions from older folks asking if they are able to car a car loan when retire. Just like anyone else, qualifying for a loan is more about affordability rather than age. If you can afford the repayments, you can usually get an auto loan in Mount Hope.

There are a couple of limitations though.

Car Loan When Retired

Canada is a car-centric country and if you live outside the city, public transport can be limited. That means having a car is an essential part of life here, which is where auto loans come in.

As someone who has retired, you will often have significant advantages over younger applicants when it comes to car loans.

You will likely have little debt, no mortgage, a high credit score, and few excess outgoings. Of course, that isn’t always the case but, in our experience, older Canadians are generally fiscally aware.

This is fertile ground for an auto loan.

Applying for an Auto Loan

The application process for a retired person is the same as for anyone else. It’s just the paperwork that will be different.

You will still need to:

Check your credit score: Auto loan applications are dependent on your credit score so knowing where you are can set the scene for everything you do. Click here to check your credit score.

Compile your income: Whether it’s a pension, rental income, investments, work, or something else, collecting the paperwork to prove your income will help lenders check affordability.

List all your debts: If you still have a mortgage or other debts, collect all the details ready for the application. This also contributes towards affordability.

Consider the loan length: Depending on your age, some lenders may have an upper limit by which time the loan needs to be paid off. Some lenders may recommend a shorter loan while others won’t. There will be pros and cons to a shorter term so you should calculate accordingly.

Use Auto Loan Experts for Full Market Coverage

The internet is amazing but can also be confusing. Finance is one of those areas of life where expert advice can more than pay for itself. If you’re looking for a great deal on an auto loan, using experts can help identify a good deal, help you decide what makes sense and what doesn’t, and what type of auto loan would work best for someone in your situation.

All so you can make an informed decision about what direction to take.

We can also outline any risks, conditions and costs involved in a particular car loan so you have the fullest possible picture of what’s available.

As we are part of a trusted Canadian car dealership network, we can even help you find a car!

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