Can you get car finance when on benefits?

Yes, it is possible to get car finance while receiving benefits, but it can be more challenging than if you have a regular income from employment. Some specialized lenders and finance companies offer options for individuals on benefits. However, it's important to note that not all lenders will consider benefits as a source of income, and those who do may have specific criteria and limitations. Additionally, the type and amount of benefits you receive may influence your eligibility for car finance. It's advisable to research lenders who cater to individuals on benefits and to be transparent about your financial situation when applying for car finance.

Does universal credit affect car finance?

Universal Credit, as a form of government assistance, can impact your eligibility for car finance. Some lenders may consider Universal Credit as a source of income, but it may not be viewed as favorably as traditional employment income. The amount of Universal Credit you receive, along with other factors such as your credit history and overall financial stability, will influence how lenders assess your application for car finance. It's recommended to discuss your specific situation with potential lenders or seek advice from financial experts who specialize in car finance for individuals on benefits.

Can I get car finance if I don't work?

Yes, it is possible to get car finance if you don't have traditional employment. Lenders consider various sources of income, which may include: Self-Employment: If you're self-employed or run your own business, you can use your business income to qualify for car finance. Retirement Income: Pension income, including state pensions, private pensions, or annuities, can be considered as a source of income for car finance. Investment Income: Rental income, dividends, or interest from investments can sometimes be used to qualify for car finance.

How long do you have to work to get car finance?

The length of time you need to have been employed to qualify for car finance can vary depending on the lender's policies and specific loan criteria. Some lenders may have a minimum employment requirement, such as three to six months of continuous employment, while others may be more flexible. Additionally, if you're self-employed, some lenders may require a certain period of established business operation and may ask for additional financial documentation.

Car finance on benefits

Name: car finance on benefits
Brand: Quick Car Finance
SKU: 4-BC-CF-2023
Rating: 5 (3306 reviews)

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Rates from 9.9% APR.
Representative APR of 21.9% APR

APR Example

Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0.00, the monthly would be £178.52, with a total cost of credit of £3711.20 and a total amount payable of £10,711.20. Rates may differ as they are dependent on individual circumstances'. Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Quick Car Finance are a broker not a lender.

Why car finance on benefits?

Tailored Searches
Inclusive Options
Reliable tansportation
Suits your needs

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Increase your chance of ownership

Here at Quick, we understand that financial circumstances can vary, and we believe in providing inclusive options for car finance. We recognise that individuals receiving benefits may also have the need reliable tansportation. That's why we offer the possibility of obtaining car finance while on benefits. We consider a range of factors beyond traditional income sources, including benefits, when evaluating loan applications.

Our aim is to make car ownership accessable and affordable for everyone, ensuring that your financial situation doesn’t limit your mobility. Our dedicated team will work with you to understand your specific circumstances and tailor a financing solution that suits your needs.

Our lenders accept

ESA Employment and Support Allowance is support for those with a disability or health condition that affects how much they can work.
PIP Personal Independence Payment can help to cover the cost of everyday tasks or getting around for those with long term conditions.
Child Tax Credits Child Tax Credit is a benefit that helps with the costs of raising a child if you're on a low income.

How to apply

It's important that you get in touch with our team of experts so we can explain how we could help.

Speak Speak to us about your current situation
Listen Our team of experts will explain the best way to proceed.
Search We can run a tailored search across our variety of lenders. If you're approved, we'll discuss your next steps with you.

Can I apply for car finance whilst on benefits?

If you're on benefits, in the UK, and apply for car finance, the lender will take into account your income and financial situation. When deciding whether to approve your application. While being on benefits may affect your chances of being approved for car finance, it is not an automatic disqualification.

It's important to note that not all lenders will consider applicants who are on benefits. Some may have specific criteria that applicant must meet, such as being employed or having a certain level of income. It's always a good idea to check the eligibility requirements of any lender you are considering before applying.

Car Criteria

If you already have a car in mind, you'll need to make sure it meets our lending criteria

Value We can only finance cars from £4,000 - £15,000 if you're are in receipt of benefits benefits.
Mileage In order for us to arrange finance the vehicle must have a maximum of 100,000 miles on the clock.
Age The car must be no older than 15 years at end of the agreement.

Lending criteria

Lenders will use certain information to assess your ability to make repayments on the loan. They will also look at your credit history to see if you have any missed or late payments, defaults, or CCJ's on your record. You'll also need:

Monthly earnings over £1000 (after tax).
To be aged between 21- 70.
2 consecutive months of payslips or bank statments.
A full valid UK driving license.

You will need...

1. Personal Information: You will need to provide your full name, date of birth and contact details.
2. Employment Status: Even if you are on benefits you will need to disclose your employment status, which in this case would be receiving benefits. Some lenders may require you to provide evidence of your benefits, such as letter.
3. Income and Expenses: You will need to provide details of your income and expenses, including any benefits you receive and any other sources of income, This will help lenders determine whether you can afford the car loan payments.
4. Your Credit History: Lenders will want to check your credit history to assess your creditworthiness.
5. Indentification Documents: You will need to provide identification documents, such as a passport or driving license, to verify your identity.

Take it directly from the people who know!

I have never done car finance before so didn't know what to expect. I dealt with Ollie, he was brilliant. He always sound so cheery and happy. He wasn't pushy, but he kept in regular contact by phone or text. Whenever I phoned up he always knew it was me (which was a lovely personal touch). He was very informative and helpful.Would definitely recommend this company.... and Ollie

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Car Finance when on Benefits FAQs

Can you get car finance when on benefits?: Yes, it is possible to get car finance while receiving benefits, but it can be more challenging than if you have a regular income from employment. Some specialized lenders and finance companies offer options for individuals on benefits. However, it's important to note that not all lenders will consider benefits as a source of income, and those who do may have specific criteria and limitations. Additionally, the type and amount of benefits you receive may influence your eligibility for car finance. It's advisable to research lenders who cater to individuals on benefits and to be transparent about your financial situation when applying for car finance.
Does universal credit affect car finance?: Universal Credit, as a form of government assistance, can impact your eligibility for car finance. Some lenders may consider Universal Credit as a source of income, but it may not be viewed as favorably as traditional employment income. The amount ofUniversal Credit you receive, along with other factors such as your credit history and overall financial stability, will influence how lenders assess your application for car finance. It's recommended to discuss your specific situation with potential lenders or seek advice from financial experts who specialize in car finance for individuals on benefits.
Can I get car finance if I don't work?: Yes, it is possible to get car finance if you don't have traditional employment. Lenders consider various sources of income, which may include: Self-Employment: If you're self-employed or run your own business, you can use your business income to qualify for car finance. Retirement Income: Pension income, including state pensions, private pensions, or annuities, can be considered as a source of income for car finance. Investment Income: Rental income, dividends, or interest from investments can sometimes be used to qualify for car finance.
How long do you have to work to get car finance.: The length of time you need to have been employed to qualify for car finance can vary depending on the lender's policies and specific loan criteria. Some lenders may have a minimum employment requirement, such as three to six months of continuous employment, while others may be more flexible. Additionally, if you're self-employed, some lenders may require a certain period of established business operation and may ask for additional financial documentation.