Senior citizens and retirees make up an enormous portion of the driving population. Many want to spend their retired years traveling and need a car or RV that can meet their leisure needs. Others simply want to reward themselves with a new vehicle after 40+ years of hard work. However, since they are no longer working, retirees face unique challenges when it comes to acquiring a new or used auto. Although many retirees have substantial savings, they also have fixed incomes, which can make financing a new or used car difficult. But there’s good news: we can help you find an auto loan that suits your needs.
Credit Situations that Apply to Seniors/Retirees
Usually, when someone applies for an auto loan, the applicant must provide the lender with paystubs, income tax returns, and allow a credit check to be performed. However, retirees do not have paystubs; instead, most retirees will have to provide a lender with copies of pension income, other retirement income, and sometimes a list of assets. Retired borrowers also must agree to a credit check. But here’s the good news: since a borrower’s credit score is weighed heavily on length of credit history and payment history, many retired individuals have fantastic credit scores. This is a strength that may allow you to negotiate low-interest loans, which can be extremely advantageous when shopping for a new or used car.
Loan Tips for Retired Auto Loan Borrowers
The average loan repayment period for a used or new vehicle is 5 years, (60 months). For some seniors, this payment period may be too long of a commitment to make. However, some lenders will allow retirees to negotiate a much shorter repayment period based on their individual needs, and the type of car they are trying to purchase. Another way to shorten the length of repayment on a car loan is to make a substantial down payment. This will lower the amount owed on the car, and allow the senior to attain a payment that fits their needs.
Here at Keystone Auto Loans, we can help you get approved for financing from the comfort of your home. We have provide an online auto loan application, and we have banks, credit unions, dealers, and auto finance companies across the nation that want your business. Please note: we are not a loan originator; we place your application with a lender who approves auto loans for seniors and people with fixed income. This can save you a lot of time and effort, as you won’t have to drive down to your local bank or credit union and apply in-person. It also maximizes your chances of getting approved.