The pensions in Germany are no longer safe, they should actually rise again every year, but this is not possible. The reason for this is the demographic change that has taken hold in Germany. This means that there will be more and more pensioners and fewer and fewer employees paying social security contributions. This of course empties the nationwide Rententopf enormously fast.
Especially with retirees, who receive very little money, it is difficult to make ends meet and to finance his daily life. The cost of living is not necessarily lower during old age either. In addition, if you have worked all your life, you want to do something special in the last part of your life. Whether it is a holiday trip or a car, retirees have some wishes. Particularly with vehicles here the urge is particularly high, because one assumes also a certain mobility.
Car loan for retirees make mobile
There is therefore a possibility of banks to allow retirees own vehicle. With a so-called car loan for pensioners, this is feasible. However, these types of loans have almost the same conditions that classic loans have. Finally, the bank must secure accordingly, so that the repayments to be made on a monthly basis can be complied with. For example, a retiree can prove that his credit rating exists through his possession (shares, life insurance, real estate).
In addition, there must be no negative credit bureau entry in the nationwide database, otherwise a car loan for pensioners is generally rejected. If you have no own securities, you can outsource them to another person. This works through the guarantor principle. For example, a guarantor may be a spouse or a friend who can provide and prove the collateral. This may then intervene in case of any insolvency of the borrower for its repayments. The basic conditions for a car loan for retirees are discussed below.
Conditions and conditions for a car loan for pensioners
A retiree loan results in possible loan sums of up to EUR 100,000. The repayment term can be between one and ten years. Here, however, the bank has to weigh how long the remaining life expectancy of the pensioner will be. In addition, the effective interest rate plays a crucial role. It is currently around 5 percent and slightly different from offer to offer. Therefore, the offers should be exactly compared beforehand. In general, one can say that a car loan for retirees is a very good thing, so that retirees can come even in old age also to own a car.