Possibility: car loan for pensioners
Retirees also need a mobile base
Is a car loan wise for retirees?
Many retirees today are still brought up in such a way that they would not take out a loan anyway because if they bought a car they would use their savings, but on the other hand there are modern seniors who go with the times and say that they are cheaper Credit is also a way of financing the new car, so if retirees want to take out a car loan, the priority for them is to find a bank that also lends to senior citizens and has set the age limits accordingly.
The question of the level of interest and loan costs then loses importance, but in most cases the car loan for retirees is approved if a younger family guarantee is included in the contract. This can be the son or the daughter and also a grandson. In order not to overload the guarantor too much, the loan-financed vehicle can be transferred. This means that if the pensioner dies as a borrower during the term, the guarantor can either replace the vehicle or continue to pay the installments and then either use or sell the vehicle himself.
Caution with the residual debt insurance
In the case of pensioners over the age of 70, it is usually no longer possible to take out residual debt insurance that covers the borrower’s death. Nevertheless, there are banks that offer retirees, if possible, a residual debt insurance as a security or make the conclusion of the RSV a condition for lending. However, pensioners should not get involved in this. The cost of residual debt insurance depends on the age of the borrower and increases with each year. The residual debt insurance for a car loan can be more expensive for pensioners than the cost of interest and fees.
Pensioners should finance through the car bank
Car loan from the car bank can also be a better choice for pensioners. A deposit is normally required for car loans for new cars at attractive conditions. Pensioners who not only have a good pension, but also have corresponding savings should increase the down payment and thus override any age restrictions. Hardly any car bank refuses a car loan if a down payment of 40 or 50 percent is made on the vehicle price.
Since pensioners have a lot of time, if they want to buy a new car that is to be financed, they should deal with the matter in advance and look for suitable financing options. In most cases, despite the initial apparent difficulties, an acceptable solution can be found with which even a pensioner can get a car loan.