Car finance
on benefits

With millions of people in the UK receiving benefits, we assure you that car finance on benefits is indeed possible. At CarFinance, we are dedicated to helping you unlock the path to affordable car ownership. We are here to help you secure car finance while on benefits.

Can you get car finance on benefits?

Yes, you can get car finance on benefits with our panel of lenders. With 22.4 million people in the UK claiming benefits as of August 2022, you're not alone. Financial situations or credit history shouldn't be barriers to car ownership. We offer car finance to a broad range of individuals, including those receiving disability allowance, carers, and personal independence payment beneficiaries.

At CarFinance, we ensure that everyone, regardless of credit history or life's complexities, has the opportunity to get car finance on benefits. We assist those with bad credit, no guarantor, or disability allowances, making car ownership accessible to all.

Can you pay for car finance with benefits?

Absolutely! We understand that when you're on benefits, managing your finances is essential. That's why we have tailored options to help you comfortably pay for your car finance through your benefits.

Our goal is to make the process of getting car finance for someone on benefits as straightforward and worry-free as possible.

How does car finance for people on benefits work?

Getting car finance on benefits is straightforward with CarFinance. Our user-friendly website allows you to start your application with just a few clicks. Our experienced team will guide you through each step, helping you select the right car and finance deal for your needs.

Bad credit car finance on benefits: Is it possible?

At CarFinance, we consider your unique circumstances. Even with a less-than-perfect credit history, our team will work with you. Bad credit doesn't have to block your car finance with benefits.

We specialise in car finance on benefits, even for those rejected by mainstream lenders or facing challenges like CCJs or IVAs. Our process is designed for your convenience. Use our user-friendly car finance calculator to glimpse your potential car loan. If it meets your expectations, submit an online application for a quote. We promptly evaluate your eligibility.

At CarFinance, we believe car finance on benefits is within your grasp, regardless of past financial hurdles. Our network of reliable lenders offers tailored solutions for individuals with bad credit who are on benefits. Your unique situation is our priority, and we make exploring the possibilities as easy as requesting a quote.

What will affect your eligibility for car finance on benefits?

Obtaining car finance while on benefits is possible, but several crucial factors can influence your eligibility. At CarFinance, we are dedicated to helping you buy a car on benefits. Here are the key variables to consider:

• Late Repayments: Falling behind on repayments for other credit agreements can affect your chances. Ensure you make timely payments to demonstrate financial responsibility.
• Having an IVA (Individual Voluntary Agreement): If you currently have an IVA, we cannot assist you. However, if you've settled a previous IVA, it won't impact your eligibility.
• Bankruptcy: Current bankruptcies will not be approved. If your bankruptcy has been discharged, you can apply.
• Having a CCJ (County Court Judgment): An outstanding CCJ does not necessarily disqualify you. Each application is reviewed individually.
• Unemployment: We offer options for the unemployed, but you must receive DLA (Disability Living Allowance) or PIP (Personal Independence Payment).
• Income: Your income is a primary factor. Lower income from benefits may affect your ability to qualify for certain types of car finance.
• Credit Score: A poor credit score can make approval challenging and may lead to higher interest rates. CarFinance conducts a "soft" credit check, which doesn't impact your credit rating.
• Employment Status: While benefits don't disqualify you, some lenders may prefer stable income from full-time employment.
• Expenses: Lenders consider your expenses. Significant debts or expenses can affect your ability to make car finance payments.
• Join the electoral roll: Registering on the electoral roll can enhance your creditworthiness by verifying your address.
• Improve your credit score: Work on repairing your credit history by managing existing debts and making payments on time.
• Joint loan application: Applying for car finance with a co-applicant can increase your chances of approval, as their creditworthiness may strengthen your application.
• Guarantor car finance: Consider having a guarantor with a strong credit history co-sign your car finance agreement, providing extra security to lenders.
• Black box car finance: Opting for pay-as-you-go car finance arrangements can be a more flexible and accessible option.
• Borrow a Smaller Amount: Requesting a smaller loan amount may make your application more manageable and increase the likelihood of approval.

CarFinance is committed to providing car finance for people on benefits. We understand financial situations vary. Explore your options and take the first step toward securing the car finance you need. For more information on managing your finances, dealing with debt, or improving your credit rating, visit our guides section for valuable insights and tips.

How can I increase my chance of approval for car finance on benefits?

To boost your chances of car finance approval:

• Late Repayments: Falling behind on repayments for other credit agreements can affect your chances. Ensure you make timely payments to demonstrate financial responsibility.
• Having an IVA (Individual Voluntary Agreement): If you currently have an IVA, we cannot assist you. However, if you've settled a previous IVA, it won't impact your eligibility.
• Bankruptcy: Current bankruptcies will not be approved. If your bankruptcy has been discharged, you can apply.
• Having a CCJ (County Court Judgment): An outstanding CCJ does not necessarily disqualify you. Each application is reviewed individually.
• Unemployment: We offer options for the unemployed, but you must receive DLA (Disability Living Allowance) or PIP (Personal Independence Payment).
• Income: Your income is a primary factor. Lower income from benefits may affect your ability to qualify for certain types of car finance.
• Credit Score: A poor credit score can make approval challenging and may lead to higher interest rates. CarFinance conducts a "soft" credit check, which doesn't impact your credit rating.
• Employment Status: While benefits don't disqualify you, some lenders may prefer stable income from full-time employment.
• Expenses: Lenders consider your expenses. Significant debts or expenses can affect your ability to make car finance payments.
• Join the electoral roll: Registering on the electoral roll can enhance your creditworthiness by verifying your address.
• Improve your credit score: Work on repairing your credit history by managing existing debts and making payments on time.
• Joint loan application: Applying for car finance with a co-applicant can increase your chances of approval, as their creditworthiness may strengthen your application.
• Guarantor car finance: Consider having a guarantor with a strong credit history co-sign your car finance agreement, providing extra security to lenders.
• Black box car finance: Opting for pay-as-you-go car finance arrangements can be a more flexible and accessible option.
• Borrow a Smaller Amount: Requesting a smaller loan amount may make your application more manageable and increase the likelihood of approval.