Buying a car is one of the most expensive purchases you will ever make in your lifetime, so it's important that you strategically plan how you are going to pay for it before committing to a particular make or model.
Car finance is a great option for anyone looking to buy a new or used car. Over 90% of new cars get bought using some form of a finance plan, helping to spread out a large expense into many smaller monthly payments.
Not only that, but car finance allows you to plan your budget ahead of time, so you know exactly how much you'll be spending now and in the future. It means that you can prioritise other expenses in advance too.
Do you have a car on finance and would like to reduce your monthly repayments? Sign up with Car Credible today; we could help you save money on your deal.
For many people, a car is a necessity to be able to complete their everyday tasks. For example, taking children to school, picking up groceries from the supermarket, getting to work and caring for older or more vulnerable friends and family.
Unfortunately, for some, it can be more difficult to own a car due to personal circumstances that cause financial issues. Government benefits exist to help those that need them the most, and if you or someone you know is on benefits and would like to finance a car, it can be hard to know where to go or how to do it.
In this article, we look at whether it's possible to get car finance on benefits, everything you need to know and do to be eligible and how to apply if it's something you wish to pursue.
Can I get car finance on benefits?
Anyone can have their circumstances change at any moment due to the unpredictability of life, particularly with inflation, cost of living and energy prices going through the roof.
There are many different benefit options in place to help the most vulnerable in our society afford to live; they can range from helping unemployed people, those with a disability or people that have taken on childcare or other care work, among others.
If you are on benefits and looking to get a car on finance, we are here to do everything to make that happen. While it may be a little more challenging to find the perfect lender for your situation, we do work with finance companies and lenders that specifically work with those on benefits and with lower income to ensure you can get to job interviews, care for relatives and do all the things you want to do in your life that is not possible without a vehicle.
Can I get car finance on benefits with bad credit?
Anyone with poor credit can get car finance, provided they apply for finance with a lender specialising in loans to people with bad or no credit. There are other criteria you need to meet, but that shouldn't stop you from applying.
If you are on benefits, we understand that you may have been unable to make payments before and therefore have a poor credit history detailing when you couldn't make repayments.
However, that doesn't necessarily mean that you can't afford to repay now, and we work with lenders that can work with you to identify your needs and budget to help get you the best possible deal.
Am I guaranteed to get car finance on benefits?
Unfortunately, there is no guarantee and lenders will ask you questions regarding your income, address history, employment history, and more to get a better idea of the type of borrower you are.
As we have previously said, we work with lenders that help those on benefits and with a poor credit history, but they need to be confident that they will get their money back when they lend it to you.
Be prepared to do your research before applying for car finance. Discover lenders that work with people on benefits and poor credit. That way, you can apply to lenders you will have a better chance of being approved.
You should be realistic about the type of vehicle you want and the repayments you're physically able to remake. A brand-new BMW might look appealing, but it's likely too expensive for your budget.
You'll have a much better chance of being approved if you stick to a budget and length of agreement that you can manage. If you can put down money as a deposit, this will also help your application.
Can I get car finance if I'm unemployed?
If you are unemployed, that doesn't necessarily mean you have bad credit or can't make repayments. At Car Credible, we work with people of all circumstances to achieve their car finance goals.
Although it may be harder to get car finance while out of work due to not having a steady income, if you can prove that you can make the repayments, you will have a good chance of being approved.
If you need a vehicle but don't have a good credit score, it will be tougher to be approved. You could look into appointing a guarantor, who will step in and make repayments if you can't.
Can I get car finance on disability benefits?
If you are disabled and are on disability benefits, there's no reason why you can't get a car finance loan, provided you can prove to the lender that you can make your repayments.
Like the unemployed and those on benefits, we work with a panel of lenders that work directly with people on disability benefits to help those that need a vehicle to achieve that.
Apply for finance
Applying for a finance loan can be scary, but it doesn't have to be. At Car Credible, we make it as simple as possible for people in all circumstances to apply for finance and get into the car of their dreams.
Use our car finance calculator before applying for finance to establish the amount you will need to borrow and the time you will need to repay.
By doing that, you gain an advantage before applying as you'll know what you want and your budget, so it can help your dedicated account manager understand you and your requirements.
You can get your free, no-obligation quote that in no way impacts your credit score today, and you can see the offers available to you before you officially apply for them. Good luck!