After you retire, you might think that it will be difficult to get a car loan. While retired people may not enjoy incomes from working, it is still possible for them to get auto loans based on their retirement income sources such as Social Security, IRAs, pensions, and others.

If you do some research, getting a car loan for retirees may be easier and cheaper than you might think. Here are some tips to consider when you are preparing for a car loan as well as some potential auto loan sources that can help seniors who have bad credit.

Tips and Tricks

Gather documentation of your income sources and debts

Lenders will want to see your sources of retirement income and your debts to make certain that you will be able to afford the monthly loan payments. So, make sure to gather documentation of all your income sources, including your Social Security, investment income, retirement accounts, and pensions.

You should then gather documentation of all your debts. Lenders will want to make sure that you have a sufficient income to repay your loan and that your debt-to-income ratio is low. They will also want to see that you have a history of making on-time payments.

Get a copy of your credit scores

On top of income sources and debts, lenders will want to see your credit score and credit reports. You are able to get one free credit report from each of the three major credit reporting agencies each year by going to

If you have a high credit score, you are much likelier to secure a loan with lower interest rates and favorable payment terms.

When you find a loan, negotiate its length

Once you are approved for a loan, you might want to negotiate its length. Depending on how old you are, some lenders may try to get you to accept a shorter term than the standard five years. A shorter-term loan will mean that your payments will be higher. However, it might also allow you to enjoy a lower rate of interest, making it a cheaper option in the long run.

Best Auto Loan Companies for Seniors

If you are a senior citizen who has bad credit, here are three auto loaners that might be able to help you to secure a loan for your next car.

1. Lending Tree

Lending Tree offers you access to many different types of loans, including auto loans. The company allows you to search for the type of loan that you want, and you can compare five different loans at a time. So, you will need to gather your sources of income and your debts as mentioned above.

You can apply online and you are not charged any fees. Plus, Lending Tree will match you with loan offers according to your income and your credit score.

A few pros of using Lending Tree to find an auto loan include:

  • Lenders available for all credit scores
  • A huge national database that allows you more options
  • Can compare five loans at a time
  • No cost to apply

2. Auto Credit Express

Auto Credit Express specializes in helping people with bad credit to find auto loans. Unlike some companies, Auto Credit Express will work with you even if your credit score is lower than 625. If your score is lower than 625, you will need to have a minimum monthly income of $1,500.

Auto Credit Express also allows you to seek financing for an older car, which many companies will not do. However, it will not allow you to get a loan to use to purchase a vehicle from a private seller.

Plus, you do not have to pay a fee to apply for loans through Auto Credit Express.

Some of the pros of using Auto Credit Express to find your next auto loan include the following:

  • Offers numerous options
  • Can help you find a loan for an old or new car
  • Works with both special finance and traditional dealers to find financing for your credit score
  • Allows you to obtain financing for an older car that has high mileage

3. is a good option for you if your credit score is low. The application process takes as little as two minutes and you will be able to compare four different offers from lenders regardless of how low your credit score might be.

To be eligible for financing from a lender through, you must have a minimum income of at least $1,800 per month or a total annual income of $21,600. You also cannot have an open bankruptcy and you will be limited to purchasing a car that is 10 years old or newer.

Some of the pros of include the following:

  • No fees and 100 percent free
  • Can view four offers simultaneously
  • You can receive your financing within 24 hours
  • The loan application process takes two minutes or less


Finding an auto loan as a retiree is not as difficult as you might think. If you follow these tips and conduct some research, you could obtain financing for your next auto loan much faster than you might imagine. To learn more, you might consider conducting additional research online.

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This article was worked on by a variety of people from the Autoversed team, including freelancers, editors, and/or other full-time employees.