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Retiree Auto Loan, Is it possible?

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Retiree Auto Loan, Is it possible?

Recently retired with an income from Social Security and pensions of about $3000 per month. Existing car and house are fully paid. My FICO auto score 8 is EQ=675, TU=669, EX=677. I'm trying to get it higher by paying off some credit card debt. I would like to buy a Ford Edge or Subaru, with MSRP of around 40k. I can easily put 25% down with trade-in and cash and I'm hoping for 0% interest. I read that Ford will not accept anyone that does not have a regular job. Is this true? Any tips or advice before I, as a 68 year-old retiree, head to the dealers? With appreciation, J

3 REPLIES 3
Super Contributor

Re: Retiree Auto Loan, Is it posible?

I don't know about Ford directly, but if you have stable income, and enough of it, you will be approved by someone. We did it at Chase all the time.







Message 2 of 4
Established Contributor

Re: Retiree Auto Loan, Is it posible?


@Brian_Earl_Spilner wrote:

I don't know about Ford directly, but if you have stable income, and enough of it, you will be approved by someone. We did it at Chase all the time.


+100,  Have been retired for about 12 years and have never had a problem.

If you have stable income, and enough for the DTI  figures with a new loan you should be fine.

With 20+ % down,  I don't see any problem.

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Message 3 of 4
Frequent Contributor

Re: Retiree Auto Loan, Is it posible?

Pension's/Social security income would be considered stable income. Being retired and having retirement income should have absolutely no bearing on your ability to get approved for an auto loan. The only downside to a lender extending credit to someone on fixed non-taxable income, is the inability to garnish in the event of default. However, I think the flip-side of guaranteed monthly income is more enticing to a lender than the possibility of future job loss for a typical W2 employee.

 

You should qualify based on your scores, down payment, and income, for the type of loan you are looking for. I am unsure of the scores required for 0% financing, you would be best to call a local dealership and ask the F&I guy specifically what bureau Ford Motor Credit pulls in your region, and what score is required to obtain 0% financing.

AMEX BCE ($39,500) CITI AAdvantage ($20,500) Region's Platinum Card ($14,400) Discover IT ($23,000) Macy's ($7,000) Chase FU ($10,000) Barclay's Aviator ($22,000) TU:778 EX: 781 EQ:791
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