Photo of Ray Ferrara CFP Ray Ferrara CFP Apr 28, 2021

Typically, when applying for a car loan, financiers will consider your down payment, income, and credit score. However, if you are retired and do not have an active income source, you may be wondering if it is possible to get a new car financed. In short, it is possible, but you have to take some different steps than you would if you were actively employed.

Gather documentation of your income and debts

While you may no longer be actively employed, your retirement income does count as an income source. Financiers will want to see your sources of retirement income and will also want to review your debts to decide whether they trust that you can make your monthly loan payments.

Obtain your credit score report

You can obtain one free copy of your credit report from each of the three major credit reporting agencies each year. Financiers will want to see this too in order to help them make a decision. To obtain your free copy of your credit report, visit

Negotiate your loan length

If a financier decides you are a good candidate for a loan, they will offer you a loan length. For many retirees who are older, financiers offer short-term loans. This may not be ideal for you, though, because short-term loans mean you will need to make higher monthly payments.

Depending on your circumstances and how much you are able to put down for an initial down payment, you may be able to negotiate a different loan length or interest rate that makes it more ideal for you.

Talk to a ProVise CFP® professional about financing your car if retired

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance, and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about financing your car if you retired? Contact ProVise today to schedule a complimentary consultation.