Being retired can mean leaving money worries behind along with your day job. It doesn’t have to be that way though as retirement means different things to different people. My grandfather worked until into his late seventies and I expect I’ll do the same.
Just like work and life continues after retirement, so can enjoying a new car.
Car loans for retirees
Car loans for retirees are actually very similar to a car loan for an employed person. As long as you can demonstrate you have sufficient income to cover loan repayments and your credit score is okay, you can usually qualify for a loan.
You will need to:
Prove your income
Retirees are regarded in exactly the same was as younger borrowers. You have to prove your income, demonstrate you can afford the loan and have documentation to prove it.
The main difference is the source of that income. Rather than a salary, it is likely to come from social security, IRAs, pensions or investments.
As long as you have the paperwork to demonstrate your income, you should have no issue qualifying for a car loan.
Manage your credit
Your credit report remains relevant to your finances forever. Manage them well and your credit score will reflect that.
An issue with some retirees is lack of credit activity. If the house is paid off, the college funds all spent and personal loans all paid, you may have minimal activity to retain a healthy credit score.
Check your credit report before you apply for a car loan so you can see where you’re at and check for any mistakes or inaccuracies. They will be much easier to address before your application than during!
Depending on your age, some lenders will be reluctant to offer longer car loans. They mean no offence, but it is a practical consideration. If you know your desired term for the loan, make sure to factor that in.
If it’s a longer term than usual, fewer lenders may be willing to work with you. It’s something we can help you with though.
Do you need a car loan?
Finally, you need to ask yourself the question of whether you want to be tied down with a car loan right now. This is supposed to be your opportunity to enjoy life. To kick back and relax and enjoy the freedom retirement brings.
Is now the right time to be looking for a car loan?
If you are retired and need a car loan, our expert team are always on hand to help. Contact us to learn more about what we can do for you!