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Can I Obtain A Car Loan While on Disability Benefits?

Hello, If I apply for finance and get approved do I have to buy a car from you or can I buy from other dealers or a private people? I would like to borrow around £8000. Is it possible to get approved if my credit score in the fair category (750 on Experian)? The only negative factor being my total credit card outstanding balance is a little high at present.

The other problem is that I am not working and my only income are the benefits i receive during my illness. I can go back to work for my previous employer within three months, but I would like my car a bit sooner. I may get someone as a guarantor if required but this would be the last option. How likely is it that i'll get approved and what are the requirements if I need a guarantor? What are the applicable interest rates under my conditions roughly? Thank you

Asked by Gabriella

Hi Gabriella, than you for your detailed question and for using our Q&A.

With a credit score of 750 i am confident we can get you approved for car finance without a guarantor however, adding one onto your application would strengthen your chances. The only issue i can foresee is the £8000 that you require. I'm not saying that we can't get you the £8000 but £5000 to £6000 may be more realistic. If however, you have a deposit or part exchange to place into the deal we may well be able to secure you the funds required.

When approved you can indeed buy a car from any dealer in the UK and we provide a no obligation quote. The only thing holding us back is the fact that you're not currently receiving a wage from your employer. Some finance companies need to see proof of income & employment to go ahead with the deal and others don't so i'm just hoping that we can get you approved with a good credit lender who won't require proof of income. Please make an application when you feel ready. Kind Regards, Rachel

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 17 People

5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9% APR: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.

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