When entering retirement, this new stage of life often brings a desire to hit the open roads and explore Canada. While only a small percentage of Canadians have the opportunity to explore their country during their working lives, retirement presents the perfect time to begin this adventure. Offering Auto Financing in Toronto, our dealership at Good Fellow’s Auto Wholesalers has compiled this guide to review and provide tips for securing approval for a car loan in retirement.
Get Approved for Car Financing As a Retiree
While most individuals tend to feel uneasy regarding inquiring about an auto loan while in retirement, we are here to remind you that being in retirement does not prevent you from getting accepted for a used car loan. When seeking financial assistance, a lender typically only cares to see that you have some source of legal income. A pension, for example, that can cover your regular expenses as well as your potential loan payments puts you in a good position to proceed as it acts as a salary.
The Application Process as a Retiree
The application process for a car loan remains largely unchanged for retirees, with the main difference lying in the offered loan terms. While the entire loan market will be accessible, the offered loan terms may be shorter than what is typically offered. Ranging from 3-5 years, this term is shorter to mitigate potential risks associated with age.
Retiree Tips for Car Loan Approval
To have your best chances for car loan approval as a retiree, follow along with the tips outlined below.
- Prove Income. Similar to young borrowers, retirees must demonstrate their ability to afford the loan through various income sources such as social security, pensions, or investments. As long as there is paperwork showing proof, there should be no issue.
- Plan for a Down Payment. Gather a down payment of 10-20% of the car’s value to enhance your loan approval chances and decrease the amount to be borrowed.
- Review Your Credit Score. To better understand where you sit financially, it’s best to have accurate knowledge regarding your credit score. Good standing can play an important role in loan approval – whether you are retired or not.
- Try a Car Loan Calculator. To make an informed financial decision, it’s best to try an online loan calculator to determine your borrowing and repayment capabilities.
- Consult with Experts. Seek assistance from auto loan experts who can guide you through the pre-approval processes, tailored to your financial situation.
How Our Used Car Dealership Can Help
In conclusion, securing car loans in retirement is a manageable process with the right approach and guidance. By proving income, planning for a down payment, reviewing credit scores, utilizing loan calculators, and consulting with experts, retirees can navigate the car loan process with confidence. Whether you are looking to obtain a good credit or Bad Credit Auto Loan in Canada, our team at Good Fellow’s Auto Wholesalers is ready to assist you. Contact our team at 1 (855) 581-9590.