Can I Apply for Car Finance with Low Income?

Tim Carpenter
Written by Tim Carpenter

Income is just one of the factors that lenders look at when you apply for car finance.

There is no set amount that guarantees you’ll be approved for car finance or that means you’ll be refused. A range of factors are considered when you apply including your credit score, borrowing history, loan type, loan amount, and type of vehicle that you’re looking to finance.

What is affordability?

However, income is important when it comes to affordability. Affordability checks are quickly becoming an important step in the car finance process and part of being a responsible lender. Lenders will look at your monthly income as well as your outgoings to work out your disposable income – that amount you have left over once all your essential bills have been take care of. The more disposable income you have, the more likely it is that you’ll be able to afford a car payment.

Proof of income

Lenders will also ask for proof of income when you apply. Typically, this will be copies of your latest payslips or bank statement, but you might also be invited to use 247 Connect – our open banking service - to confirm your income.

Your income doesn’t have to come from full-time employment either. We work with a panel of lenders and can help find finance for people with variable incomes through being self-employed, an agency or temp worker, retiree, or claiming benefits.

No matter whether your income is low or high, the lenders we work with have finance options available to suit all circumstances. You could have had a CCJ, default or IVA in the past, be looking to refinance an existing loan, or have been refused elsewhere.

And you can choose a vehicle from any reputable dealership. We don’t just find finance for cars either – we can help you find and finance a van, motorhome, motorbike, or caravan too!


Get a quote
No impact on your credit score
Rates from 7.9% APR. Representative APR 20.7%

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Tim Carpenter
Tim Carpenter Car Finance Expert
5 years
Total cost of credit £ 2000
Total repayment £ 2000
48 monthly
payments of
£ 245 98

Rates from 7.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 20.7%, an annual interest rate of 20.7% (Fixed) and a deposit of £0.00, the amount payable would be £168.48 per month, with a total cost of credit of £3,608.67 and a total amount payable of £10,108.67. 

We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We don’t charge a fee for our service, but we do earn a commission. This does not influence the interest rate you’re offered in any way.

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96% of our customers recommend us: † Based on feedback left on independent review site Reviewcentre. May 2019.

CarFinance 247 is a trading name of CarFinance 247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525).

CarFinance 247 is authorised and regulated by the Financial Conduct Authority for insurance distribution and credit broking (Firm Reference Number: 653019). CarFinance 247 is registered with the ICO (Registration Number Z1897658).

Finance is subject to status and is only available to UK residents aged 18 and over. Written quotations are available on request.

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