Normally, getting a car loan for retirees is not a major problem. Nevertheless, some banks are having a hard time with it. They fear that the retiree may soon die, and thus be unable to fully repay the loan.
Requirements for a car loan for pensioners
In principle, all retirees who want to take out a loan, have to meet approximately the same conditions as other people. This means first of all that the credit bureaumust be in order. A fixed income is usually given to retirees, but this raises the question of whether the pension is sufficient to pay regular loan installments. Sometimes a car loan for retirees is also tied to a certain maximum age. This maximum age varies from bank to bank. In some cases, it is around the age of sixty or sixty-five and in some other cases it is sixty-five.
However, those who have already completed their 75th birthday will find it very difficult to get a car loan for retirees. Here then other collateral would have to be found. It would be ideal if a younger family member would agree to take over the guarantee for the car loan for retirees. If they are suitable, for example, the children or the grandson of the pensioner could take over this task. A residual debt insurance, which also protects the death, however, is usually no longer in question. Here, the maximum age is usually 65 years.
Car loans from the bank
Retirees who are interested in a car loan can either contact their house bank or any other bank. Both variants have their advantages and disadvantages. The house bank is often already a long-standing relationship of trust between the bank and the customer, which is very important, especially for pensioners. Nevertheless, a credit agreement should not be prematurely signed here.
Other banks often offer significantly better terms and lower interest rates, which saves you money. Therefore, it would be very important for retirees to compare the individual loan offers very accurately and only then to make a decision.
Who takes a car loan from a bank or savings bank, always has the great advantage that he can act as a cash payer with his car dealer. As a result, not infrequently very significant discounts on the purchase price are possible. This applies to both new and used cars.
A car loan for retirees can be recorded not only at the bank, but also at almost every car dealer. The conditions for this are roughly identical to the requirements for bank loans. As a matter of principle, traders always decide themselves up to which age they would like to get involved in lending. In general, however, it can be said that the chances of getting a car loan always increase when retirees are willing to pay a certain amount for the car.
The same applies in case the children or grandchildren take over the guarantee. If the borrower then dies before the repayment phase, the guarantor would have to pay for the remaining loan amount. Alternatively, it would also be possible to sell the car and then use the proceeds from it to pay off the loan.