Help & Advice

Car Finance on Benefits

Hi Rachel, i'm currently not employed and am on benefits. Can i still apply for car finance? I am confident of getting a new job soon and my credit history is ok.

Ellis Frampton


Answer

Hi Ellis, thanks for using the Q&A. We may be able to get you car finance even though you're on benefits and not employed.

As long as you can prove your income via your bank statements, you have a UK driving licence and some current clean credit history we should be able to get you accepted as you say your credit history is ok. If you have any recent bad credit we may struggle though as you'd need to be employed for some of our bad credit lenders to be able to help.

If approved we provide a no obligation quote and you can choose a car from any reputable UK dealer. Please make an application when you're ready so that we can get working on an approval for you. Kind Regards, Rachel

Answer correct as of September 2016

Rate our advice

Liked by 249 People

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Hitatchi

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender

More related questions

Hi i am on benefits (jsa) my parents are giving me £1000 deposit my credit rating on experian is good can i get accepted for a car loan?

Answer

Hi Ali, Here at CarFinance 247 we deal with the majority of lenders on the market, some of which will lend to people who are claiming benefits. It does limit the number of lenders we can get an approval with but it is not out of the question. It is worth making an application so we can see what we can do for you. Alternatively it may be worth putting a joint on the application (if you have one) who is employed as this will strengthen the application. - Rachel :)

Rate our advice

Liked by 3 People

Im in receipt of low rate dla, can i be accepted for finance with this as an income aswell as my partner working.Thanks

Answer

Hi Rob. We can help people in receipt of DLA however it would need to be permanent and at least £800 per month. However we may be able to do something with your partner on the application. Please put an application through so we can look into your credit a little further and see what the best option for you would be. Thanks, Rachel

Rate our advice

Liked by 7 People

I have a very poor credit record and will need to buy a car in the next few weeks because I am coming to the end of my Motability contract. I work for Sandwell Metropolitan Borough Council in a school and also receive Disability Living Allowance of £298.40 every 4 weeks (13 times a year). The nature of my permanent spinal injury means that I need a reliable car that I can slide In to as opposed to going down in a normal saloon. I currently drive a Motability Ford S-Max and ideally would like to purchase the newest vehicle I can afford. I am currently looking at VW Tiguans or something similarly high off the ground. Ideally I would like to borrow a maximum of £15000 over either 48 or 60 months. I am not going to make multiple applications as I am impressed with the details on your web site but I would appreciate your absolute honesty if I ask you 'What are my chances?' I don't want to make multiple applications as I believe this will further affect my already poor credit history. Thanks in advance for your help and guidance

Answer

Hi Ian, Well you have come to the right place. We deal with most lenders currently on the market and some of these lenders will help customers who have experienced bad credit. At this stage I can't really say too much without looking at an application and your credit profile but we should be able to help get you into the car you desire.

Unlike many dealers we won't send your application to all of our lenders with the hope one will approve you, we will only send it to the ones our experienced underwriters believe you will be approved with and those which best suit your circumstances. I hope this helps and look forward to recieving an application from you. Kind regards, Rachel

Rate our advice

Liked by 6 People

Hi, i work part time and I have bad credit but I haven't been in the job long I have a deposit of about 500/600 could I get car finance for about £4000? Thanks

Answer

Hi Ian, we could potentially help as you are employed and have a 10% deposit approx.

We can't guarantee an approval at this stage and the outcome of your application will be dependent upon your personal circumstances however, we do have lenders on our panel that help people with past credit issues.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Rate our advice

Liked by 6 People

Hi, I am working part time, earn £800 per month and I receive WTC, CTC and LHA.

My credit score on Equifax is 487. I would like to buy a car worth £8000 and I can make a deposit of £3000. Will I get approved? If so, at what rate?

Answer

Hi Karen, thank you for your question.

As you have a large deposit, a fair credit score and a decent income from your part time work i am reasonably confident that we can get you approved for the £5000 that you need on finance.

Most lenders that we deal with do also take benefits into account when calculating your affordability. If approved the rate you receive will be determined by your credit circumstances and the lender we get you accepted with. Please make an application when you get chance and if approved we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

Rate our advice

Liked by 8 People

Hello, I work full time and i also receive benefits, my monthly income is about £1200. My Credit Rating isn't the best as I had few missed payments so it should be average.

How much should I be able to get with about £700 deposit? Thank you.

Answer

Hi Lolita, thank you for your question.

With fair credit, an income of £1200 and a £700 deposit i'd be reasonably confident of securing you in the region of £5000 - £6000. Obviously, we can't guarantee an approval at this stage and the decision will be dependent upon your credit circumstances.

Once approved we provide a no obligation quote and you can buy a car from any dealer. Please make an application when you're ready. Kind Regards, Rachel

Rate our advice

Liked by 7 People

Hi,I am on JSA at the moment but, I have a part time job which brings in about £300 per month which I declare. I don't have any deposit for a loan. Would I still qualify? Thanks, Brian

Answer

Hi Brian, thank you for your question.

We do have lenders that help people on job seekers allowance get car finance. The fact that you have some part time income too is great news. We obviously can't guarantee an approval at this stage but we'll certainly try our best for you.

Having a deposit isn't mandatory so don't too much worry about that. Please make an application when you're ready and if approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Rachel

Rate our advice

Liked by 7 People

Hi, I am currently on incapacity, DLA and i also have a private pension with a car to part ex (around 300/400).

I have a monthly income of £1200 so, is it likely that i would be able to get car finance for £2500 - £3000?

Answer

Hi Connie, thank you for your question and apologies for the delayed response.

We can help people on DLA get car finance and as you have a good income and a deposit in your part exchange i'm reasonably confident we can get you approved for £3000.

Please make an application when you're ready to do so and if approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Rachel

Rate our advice

Liked by 6 People

Hi, I'm a single parent on ESA due to minor health problems.

I'm not sure what my credit rating is - whether its good, average or bad. I have a Vanquis credit card which i pay off in full every month.

My income is £950 a month and I moved into my council property in Feb this year. Before that i moved a few times due to being in private rental accommodation. I'm only wanting around £3000 finance - what would my chances be?

I wouldn't be able to add a co-signer or guarantor as I don't have any family where i live. Also i'm originally from Australia and have lived in the UK for 6 years. Thanks

Answer

Hi Julie, Thank you for your question.

The good news is that we do have lenders that help people on employment support allowance get car finance. Also, you have an income which is larger than our minimum requirement and have been in the UK for more than 3 years.

I wouldn't worry too much about not having a guarantor and as you have a Vanquis credit card which is cleared monthly this will help us when getting you accepted. Please make an application when you're ready and if approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Rachel

Rate our advice

Liked by 8 People

Hi, I'm a volunteer and student at collage and i look after my son who receives high rate care component disability allowance and low rate mobility allowance.

However, i have a poor credit history and i need a car. My income is £1900 pcm and i have £1000 deposit. Can you help?

Answer

Hi Nicole, thank you for your question.

We can indeed help people who have poor credit and are in receipt of benefits get car finance. You have a good income and a large deposit so that's great news. We can't guarantee an approval but i'm reasonably confident that we have a chance of helping.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Rate our advice

Liked by 6 People

Hello, I have a 487 credit score, (defaults and two fully paid CCJ's) am a full time Mum and receive a healthy £1000 family allowance each month. I was looking for £3000 over 3 years but I don't think my chances are high.

Answer

Hi Lucy, thank you for your question.

Obviously we can't guarantee an approval at this stage however, we do have a handful of lenders on our panel that help people with past credit problems and who are on benefits.

The amount you can borrow if approved will be dependent upon your income but £3000 over 3 years shouldn't be a problem with £1000 monthly income.

Please make an application if you'd like to do so and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Rate our advice

Liked by 4 People

Hi, I'm in receipt of benefits and my credit history has been poor but, I do have a deposit of £2000 plus a guarantor. Would I get finance? Thank you

Answer

Hi Denise, thank you for your question.

As you have a large deposit and a guarantor this will certainly help our chances. We do also have lenders on our panel that help people with poor credit and who are on benefits. We can't obviously guarantee an approval at this stage but we'll certainly try our best.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Rate our advice

Liked by 5 People

Hi there, I have really good credit but am on Benefits. I want a car in my name but it will be driven by someone else - can you help?

Answer

Hi Lauren, as you have a good credit score we should be able to help even though you're just on benefits. Please make an application and we'll have a decision within the hour. Regards, Rachel

Rate our advice

Liked by 5 People

Hi, I was about to apply and i forgot to ask, if we get accepted we're not sure how much we would need to ask for as were not sure about the smallest amount the car would cost if its from car dealers we haven't looked at,hope you can help.

Answer

Hi Stephanie, we just need an approximate amount - £5000-£6000 tends to be the norm. But if you need more don't be afraid of asking. The minimum we lend is £1500. Obviously the amount you can borrow depends upon your income. Kind Regards, Rachel

Rate our advice

Liked by 6 People

That's great thank you :)

Answer

Hi Stephanie, we just need an approximate amount - £5000-£6000 tends to be the norm. But if you need more don't be afraid of asking. The minimum we lend is £1500. Obviously the amount you can borrow depends upon your income. Kind Regards, Rachel

Rate our advice

Liked by 5 People

Hi Rachel,I should also mention my partner had to pay something off and they said he should see his feedback on his credit feedback in the next month so he's not sure if that would effect him or not,should we wait the month before applying? Also should mention he is looking to open his own business in march-April 2013

Answer

Hi Stephanie, we just need an approximate amount - £5000-£6000 tends to be the norm. But if you need more don't be afraid of asking. The minimum we lend is £1500. Obviously the amount you can borrow depends upon your income. Kind Regards, Rachel

Rate our advice

Liked by 5 People

Hi Rachel, me and my partner are on benefits, have 2 kids and at the moment running about in a car that's ready to be skipped. I don't drive but its my partner who does, we both have good credit in the green on credit expert and looking to get a cheap car. Can you help? Also we stay in Scotland so not sure if there is anywhere here you know.

Answer

Hi Stephanie, please get your partner (who has a licence) to apply and we'll go from there. If he has good credit we shouldn't have any issues getting him accepted. When approved you can choose your car from any reputable dealer :-)

Rate our advice

Liked by 5 People

I am 27 bringing up two young children on my own. Can i have any credit for a better car? I do have one at the moment but it is too expensive to run. It is a ford focus 1.8.

Answer

Hi Danny, thank you for your question.

I'd like to think that we can help secure you a finance deal for a better car but this does all depend upon your credit circumstances. As you can imagine we can't guarantee anything at this stage but we'll certainly try our best.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Rate our advice

Liked by 4 People

Hi Rachel, my wife hasn't worked and is on benefits. Can she have car finance?

Answer

Hi Daniel, very simply we do have lenders on our panel that help people on benefits. Would you be able to act as a co-hirer to strengthen the application?

Please discuss this and make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Rate our advice

Liked by 4 People

I'm a single parent working part time. I've only just started and am earning approx £5k pa. The job is on a permanent contract. I also have income from working and child tax credits, child benefit and child maintenance payments totalling approx £18k. What would be the chance of obtaining car finance. I've previously had some late payments and a CCJ, all of which have been paid and no longer show on my credit reports. I can't remember what my actual score is but 1 company said i was fair and another average. I've got a deposit of £500 and am looking to borrow a further £3-4k. I have uk driving licence and am on electoral roll. thanks

Answer

Hi Debbie, apologies for the late response. You tick a lot of the boxes and we do have lenders that take benefits into account. As you have bad credit i have 2 lenders in mind that may be able to help as you have a deposit of £500 and only need £3000 to £4000 which isn't to much to ask for. Please apply when you get 5 minutes on our site and i'll look out for the application :-)

Rate our advice

Liked by 8 People

I have been turned down by sub prime lenders. What chance do i stand of being able to lease a decent car please? I am self employed and do my own accounts tax returns etc. Thanks in advance.

Answer

Hi Mandy, what lenders have you been declined by already? If you let me know i'll then be able to tell you whether we can assist. The likelihood of getting a lease are incredibly slim to be honest however, we may still be able to obtain car finance for you in the form of hire purchase. Regards, Rachel

Rate our advice

Liked by 6 People

No, we don't at the moment and that is the problem. But, someone said to us that if you are securing the loan on your house then we should be okay. But we are not sure so hence the reason we are asking you. As they said you are guaranteeing them you will keep up with the payments as you are using your house as security if that makes sense?

Answer

Hi Brian, thank you for the swift response. Unfortunately, we wouldn't be able to help as you're after a secured homeowner loan to help buy a car. We only offer hire purchase and can't take your house into consideration. Good luck in your quest though. Regards, Rachel

Rate our advice

Liked by 5 People

Hi there, Can i get credit if i'm on benefits? My credit rating isn't the best but we are homeowners so could we guarantee the loan on the house?

Answer

Hi Brian, apologies for the delayed response. This may well be possible but as you have average/poor credit the lenders we may get you accepted with may well want to see proof of income & employment even if it's just a part time job. Do you or your partner work at all? Regards, Rachel

Rate our advice

Liked by 5 People

Thanks for your fast reply. Actually, I just checked my score and it went under 900. It's now is 856 which is fair. The only negative factor is the several credit agreements and the high outstanding balances. So, I have to start paying back some of my credit cards to get a higher score again and as soon as I have a good credit rating am I likely to get approved? Do you have an online form or do I need to phone someone when I decide to apply? I do not want a bad credit car finance because the apr is very high. I would like to trade in my old car worth around £3000 as a deposit.

Answer

Hi Alexandrosz, you need to apply on our website when you're ready. You may even get approved now as your credit score is fair and you have a large deposit in your part exchange. Regards, Rachel

Rate our advice

Liked by 3 People

Hi there, I would like to buy a new car. I can afford to pay even £2000-3000 as a deposit, but I am on benefits at the moment during my disability. My credit score is around 900. Can you help me to finance a car worth around £9000?

Answer

Hi Alexandrosz, thank you for submitting your question. As you have a good credit score we may be able to get you car finance for £9000 as you also have a good deposit. The lenders we need to get you approved with are prime lenders. If you get declined by our mainstream lenders we will struggle as some of our poor credit lenders all need to see proof of employment unfortunately. Do you have lots of credit in your name that is paid on time? Regards, Rachel

Rate our advice

Liked by 4 People

I have an account with next and a credit card but I haven't used that much. But yes, I always make the minimum payment!

Answer

Hi Callie, please apply and we'll see what we can do. In the employment status of the application place down that you're on benefits. Kind Regards, Rachel

Rate our advice

Liked by 3 People

Hi, i'm a single mum of one on imcome support, i dont have bad credit rating, would i be appected for car fiance? many thanks

Answer

Hi Callie, as long as you have a good credit history we may be able to help you out as you can prove your benefit income with bank statements.

What credit do you have already and have you made all minimum payments on time? Regards, Rachel

Rate our advice

Liked by 5 People

I am on benefits (DLA) and I would like a cheap car. Would you be able to help?

Answer

Hi Andrew, thanks for using the Q&A. In answer to your question the answer is as follows: we should be able to get you approved for car finance as long as you have a good credit history.

If we get you approved with one of our prime lenders we only need a copy of your driving licence to get the deal funded. If you have bad credit we'll struggle as most of our non-status lenders (that we work with) need you to be employed unfortunately. But we'd love to help so please apply and hopefully we can get you accepted. Kind Regards, Rachel

Rate our advice

Liked by 24 People

i have around £300 deposit but my credit rating is poor, i could add my dad as co-hirer but he's credit rating is the same as mine

Answer

Hi Kirsty, We can't guarantee anything but we have access to many lenders so i remain hopeful.

Please make an application and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Rachel

Rate our advice

Liked by 13 People

Hi, I am a single parent I have bad credit but receive £953 PCM in benefits for me and my children. Would I be able to get finance?

Answer

Hi Kirsty, we'll certainly try - do you have good credit or poor credit. If you have poor credit we may struggle not unless you can add a co-hirer or guarantor. Do you have any deposit? Thanks, Rachel

Rate our advice

Liked by 10 People

Rachel Wilson, Underwriting manager

Asset 1 Just get in touch,

we'll try to help Asset 2

Rachel Wilson, Underwriting Manager

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Hitatchi

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender