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Car Finance for Pensioners: How It Works

June 20, 2016

Finding car loans for pensioners can be a little different to your typical search for a finance deal – and it’s important to understand the ins and outs, as well as the unique challenges, of this route before you apply. Buying your new car on finance comes with a number of considerable benefits, especially during your retirement years – namely that you’ll have the chance to drive your dream car without breaking the bank, repaying your loan through a series of manageable monthly instalments.

Loans for pensioners are very easy to arrange, assuming you have a good credit history, possess all of the relevant documents and are financially able to pay back your loan. In today’s post, we’ll guide you through everything you’ll need to know about this type of car loan before you embark on an application – from the benefits of this route to purchase to actionable tips for retired bad credit holders looking for car finance.

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Benefits of car loans for pensioners

When you’re a pensioner, car loans can become a little more difficult to find – but this shouldn’t discourage you from applying, as finance deals offer drivers an affordable long-term solution to buying their ideal model. On top of helping you to bypass a sizeable upfront payment (something you’ll likely want to avoid as a new pensioner), loans like these allow you to buy a car that might typically be out of your price range – with a fixed APR% so that you don’t have to worry about an increase in interest.

Car loans often prove the most affordable way to finance a car – and when you’re looking to celebrate your newfound freedom with a hard-earned holiday, this can present a practical and economical option.

Finding car finance for pensioners

At The Car Loan Warehouse, we’re committed to helping customers of all kinds find a suitable finance deal regardless of their current circumstances. Our friendly team of finance experts can help you to gather all of the relevant information you’ll need before you start your application. In order to validate your identity, you’ll need your driving licence, proof of address (ideally having lived there for at least three years) and proof of income. Assuming you have this information and a good credit score, getting approved for a loan should be a piece of cake.

If you’re wondering how much you could borrow and would like to weigh up your options before taking the next step, you can try our online car finance calculator for an instant estimate right now.

Car loans for pensioners with bad credit

Finding car finance for pensioners with bad credit can be a challenge – and it’s recommended that you take some simple, actionable steps towards improving your credit rating before applying. Be particularly wary of lenders or brokers claiming to offer ‘guaranteed car finance’ or ‘no credit check’ loans, as this is illegal and typical of exploitative lenders looking to take advantage of vulnerable applicants who’ve been refused car finance in the past. Responsible lenders will conduct extensive checks to give both parties total peace of mind that your monthly repayments are affordable in the long term.

Read more: guaranteed car finance

If you’re suffering from a bad credit score, there are a number of ways you can rebuild your credit rating and improve your chances of acceptance, including:

● Repaying any existing debt in full and on time to demonstrate a history of responsible borrowing
● Getting yourself on the electoral register, if you aren’t already
● Avoiding a succession of credit applications within a short space of time. If you need to apply more than once, make sure to stagger applications so that your credit rating isn’t affected

Read more: improving your credit rating

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If you’re a pensioner looking for the ultimate retirement treat, buy your dream car on finance with The Car Loan Warehouse. Our team of expert finance advisors are fully versed in the criteria surrounding car loans, and always happy to assist with any queries or concerns our customers have. If you’re not quite ready to apply, you can give us a call today on 0800 066 2888 for more information.

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About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.