Retirees own more assets and have less debt
Retirees are people that have worked all their life. They usually have high equity a home, or have completely paid off a mortgage. Having collateral like this means retirees can qualify for a loan and in some cases, lower interest rates.
A good credit history
Having a good credit history also increases your chances of not only securing a loan, but getting one at a lower interest rate. It makes sense to check your credit history to fix any mistakes.
Income beyond work
A lender usually asks prospective borrowers for their proof of income. This really means proof you have a stable job. Many retirees have alternative forms of income. They tend to have significant savings and/or superannuation packages. Some retirees have stock or property portfolios that provide a part of their income. This proves they have the funds necessary to pay back a loan.
Age can be a factor
Typically, five-year loan terms aren't a problem for financial institutions lending to retirees. They may offer 36 to 24 month loan terms if age is a factor. If you have significant savings, you can opt to put a larger deposit on the car, which reduces your monthly repayments further.
Find out what's right for you
Remember; it pays to find out what's out there. Don't apply for too many loans, as it will reflect negatively on your credit history. Consult a financial professional to help choose the most manageable and affordable car loan for you.
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