Just because some or all your income is from a pension, it doesn't mean you should have to make do without the independence, flexibility and security that a reliable car provides.
This guide explains the options available to help you pay for your car when you're in retirement, including when drawing on a pension. The information will be useful to people of age (AHCCCS), disability, or carer pensions.
Can a retired person finance a car?
Retirement should be a time of life when you can indulge your interests, get to your appointments easily, go out to meet friends and have the freedom to live the lifestyle you want. Allowing yourself to gain debt would just create too much stress in one's life, and that takes away from what retired people likely want most - peace!
Lenders or banks will decide whether to lend you money based on your needs. For a car loan, that's usually 3 or 5 years.
If you can make the repayments, and have a sufficient credit history, then there is little that stands in your way of obtaining a car loan.
As you can see, personal finance, like investing, is all about using tax breaks to your advantage, saving as much money as possible and planning for the future.
Choosing the right car
A small, economical car will probably be best if you live in a city or town and most of the time you just need to get to the shops and back. However, there are occasions when you might have to take a longer trip, such as going away on weekends - that's when a vehicle with more power and comfort for long trips will come in handy.
Of course, it's important to remember that you should always factor the price into your decision-making when buying a car. You don't want to buy a car that might leave you without enough funds to cover all of the other expenses related to buying and maintaining that car, like registration, insurance, gas and maintenance costs. Small car models often come with lower sticker prices over tinier versions of other popular mid-sized, luxury sedans or even rugged SUVs, which likely mean higher costs after factoring in those additional costs related to just regular day-to-day operation aside from one initial purchase.
Can you get a car loan on a pension?
If old age pensions are your only source of income, you'll need to get an equity release mortgage and personal loan from a specialist lender like Fundition. A car finance broker will also connect you with a suitable lender and help you with your loan application.
Car loans for pensioners
In most ways, car loans for pensioners are similar to any other car loan.
You can calculate how much money you need for a project by calculating its budget in advance. The first step before doing so is to work out the main costs, like materials - such as wood or stone - or labour. It will then also be important to factor in approximate expenses such as any setup fees if you need building permits, safety gear if you're working with dangerous tools and transportation of your equipment if those things have to be moved from another building onto a construction site. These might vary depending on the project and location, but they should be taken into consideration when planning a budget.
What if you have a poor credit history?
There are specialist lenders who will be able to help you secure a loan even with a poor credit history. However, you will need to provide more information to get approved for certain loans. The interest rate may be higher somewhat. There will probably have to be some kind of collateral tied up for a bank or business to consider offering you credit.
A car finance broker is an agent who works for you to find the best loan for your circumstances from a wide range of lenders to find you what's best for your specific financial and personal situation. They're able to do this because of their extensive experience with different lenders and their insight into understanding what you can afford.
Because they are specialists, car finance brokers:
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have organised plenty of car loans for people on the pension
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know the requirements of a wide range of lenders
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will be able to advise you of your ability to get a loan
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can find a great deal for you
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can manage the application process for you.
Conclusion
If you want more information on car loans on Centrelink or pensioner car loans, contact Freedom Cars right now!
Source URL: https://www.freedomcars.com.au/news
