Carers play an essential role in society, providing crucial support to those who need it most. But, when it comes to getting car finance, some carers may face challenges due to their income structure, benefits, or employment status.
At Car Finance 247, we understand these difficulties and believe that being a carer shouldn’t stop you from getting the vehicle you need. In this guide, we’ll talk you through everything you need to know about car finance for carers.
Can I get a car on finance as a carer?
Yes, it can be possible to get car finance as a carer. Whether you’re a full-time or part-time carer, employed or receiving benefits, there are lenders willing to consider your application.
When applying for car finance, there are various factors that lenders assess to determine your eligibility. For example, these can include your income and expenses, credit score, address score, age as well as identity and security checks - criteria varies by lender, so meeting one requirement does not always guarantee an approval.
At Car Finance 247, we work with lenders who consider different sources of income, including Carer’s Allowance and other benefits. Plus, you’ll have a dedicated account manager to help you through the process, helping you find the right car finance deal for your situation.
Why might carers struggle to get car finance?
Carers may find it difficult to secure traditional car finance due to several reasons:
1. Irregular income – Many carers don’t have a fixed salary and instead receive income from multiple sources, including Carer’s Allowance, part-time wages, or other benefits. Some lenders prefer applicants with a steady, predictable income.
2. Reliance on benefits – If you’re receiving Carer’s Allowance, some finance providers may not accept this as a primary income source. However, at Car Finance 247, we work with some lenders who can consider benefits as part of your affordability assessment.
3. Credit history concerns – Some carers may find they have a limited or poor credit history, which can make lenders hesitant to approve their application. If you’ve missed payments in the past or haven’t taken out credit before, this could impact your options. But don’t worry – we work with lenders who might be able to offer bad credit car finance. Credit is subject to status.
4. Self-employment complications – Some carers work on a self-employed basis, which can make proving income more complex. Some lenders may prefer applicants with payslips and a stable job history, but we may have finance options for self-employed applicants as well.
What types of car finance are available for carers?
When applying for cars for carers finance, you could have three main options:
Hire purchase (HP) – With HP finance, you may or may not need to pay an initial deposit. You’ll then spread the cost of the car over fixed monthly payments. At the end of the agreement, once all payments are made, you’ll own the car outright.
Personal contract purchase (PCP) – PCP finance could allow you to make lower monthly payments compared to HP. You may or may not need to pay an initial deposit, followed by fixed monthly payments. At the end of the term, you’ll have three options: pay the balloon payment to own the car, hand the car back or trade it in for a new finance deal.
Personal loan – Whilst we don’t currently offer this at Car Finance 247, a personal loan would allow you to borrow money to buy a car outright. You would then repay the loan in fixed monthly instalments.
Tips for getting car finance as a carer
If you’re a carer applying for car finance, here are some tips to improve your chances of approval:
Check your credit score – A better credit score can improve your eligibility. You can check and improve your score before applying.
Consider a joint application – Applying with a partner or family member with a stable income could boost your chances.
Choose a realistic budget – Opt for a car and finance deal that fits comfortably within your financial means.
Save for a deposit – A deposit can reduce the amount you need to borrow and make lenders more willing to approve your application. Some of our lenders could offer no deposit car finance options if you’re struggling to save for an up-front payment.
Can I get car finance with bad credit as a carer?
Even if you’ve had credit issues in the past, that doesn’t mean you can’t get car finance. We work with specialised lenders who could offer finance to people with poor or limited credit history.
Some of our trusted lenders offer bad credit car finance deals, and look at more than just your credit score when assessing your application. While you may face higher interest rates, we could help you find the best deal available for your circumstances. Credit is subject to status and eligibility.
How Car Finance 247 helps carers get car finance
At Car Finance 247, we believe that everyone should have a feel-good car buying journey – including carers. That’s why we could offer:
A dedicated account manager
From the moment you’re approved in principle, you’ll be assigned a dedicated account manager who understands your unique circumstances. They’ll answer any questions you have and try to help find a lender that suits your situation.
Lenders who consider benefits
Some traditional lenders may not accept applications from those who rely on benefits, but we work with a panel of lenders who may consider Carer’s Allowance and other forms of income.
Flexible car finance deals
We know everyone’s finances are unique. So, we’ll try to help you find options that suit your needs and budget. The terms available to you will depend on your individual circumstances and the lender’s criteria. Get a quote today and take the first step towards getting your next car!
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What can carers get for free?
Carers may be eligible for various forms of support and assistance, although specific offerings can vary depending on where you are and your individual circumstances. Some common examples of what carers may access for free or at a reduced cost include respite care services, counselling or support groups, equipment and aids to assist with caregiving duties, and access to certain healthcare services. Additionally, some local authorities or charitable organisations may offer discounts or subsidies for leisure activities or transportation costs.
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What else does carers allowance entitle you to?
In addition to the financial support provided by the carer's allowance, individuals receiving this benefit may also be entitled to other forms of help. This can include access to additional welfare benefits such as income support, housing benefit, or council tax reduction, depending on individual circumstances. Carers may also receive support from local authorities or social services, such as assistance with arranging respite care, accessing training or support services, or getting more practical help with caregiving responsibilities.
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What extra benefits can I claim as a carer?
Carers may be eligible for various additional benefits and forms of support to help with the costs and challenges of caregiving. Some examples of additional benefits that carers may be entitled to claim include carer's premium or addition, which provides extra money on top of other benefits, additional payments or allowances for carers who care for more than one person, and eligibility for other benefits or tax credits based on individual circumstances. You can always reach out to relevant government agencies or organisations to ask questions and find out about your eligibility for specific benefits.
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Can Universal Credit help with a car?
Universal Credit is designed to provide financial support to individuals and families on low incomes or who are out of work. While Universal Credit can help with general living costs, including housing, food, and utilities, it may not directly assist with purchasing or running a car. However, Universal Credit may count towards your total income in the eyes of lenders, so it’s possible it could be used towards car finance repayments if the lender feels you can afford the repayments.
If you are receiving Universal Credit, you may also be eligible for other forms of support or assistance, such as access to affordable credit or loans, help with childcare costs, or assistance with transportation expenses through local schemes or charitable organisations. Reach out to your local authorities or council to find out what you are eligible for.
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What is carers credit?
Carer's Credit is a National Insurance credit designed to help carers protect their entitlement to the State Pension while they are not able to work or are earning below the threshold to qualify for National Insurance contributions. Carer's Credit is available to carers who spend at least 20 hours per week caring for one or more disabled people, and who are not already receiving National Insurance credits through other means, such as receiving Carer's Allowance or Income Support for carers.
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What is Carer's Grant?
Carer's Grant is a one-off payment available to carers in certain circumstances to help meet the costs of caring. Carer's Grant is intended to provide financial assistance for carers who face unexpected or significant costs related to their caring responsibilities, such as purchasing essential equipment or making adaptations to their home. The availability and criteria for Carer's Grant can vary depending on where you are, so it's important to check with local authorities or agencies for more information on your own personal eligibility and how to apply.