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Car Loans for People on Social Security – Possible?

Yes, it is possible to get a car loan with social security. Several factors will be considered when your loan application is being considered.

Income versus Existing Debt

First in the mind of most lenders will be how much you owe on a monthly basis. In auto finance parlance, this is known as your debt-to-income ratio, or DTI. Their concern will be whether the loan payment will be too much of a financial burden. If so, you application will be denied. If you pass this hurdle, they are going to look at you credit history. What is your credit score, do you have a history of paying your bills on time, etc. All standard stuff. Many lenders have a minimum income requirement, often $1250, $1500, $1800, or $2000 per month. You will need to be receiving at least this much in social security benefits to be considered.

Down Payment Amount

The next consideration is your down payment. Unfortunately, some lenders may require a larger down payment because of your limited income. It is a sign that you will be vested in the loan, and that you have been able to save money in the past – and therefore, have not been strapped for cash. The more you can put down, the better your chances are of getting the auto loan that you need. Twenty percent is the ideal amount.

If your local lenders do not want to offer you an auto loan, you might want to consider online services that specialize in high risk lending. Do your best to avoid buy-here-pay-here loans. These are often predatory, and the interest rates are exorbitant. We encourage you to apply online for financing through our service. We have helped many people with SSA income get approved.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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