Car Finance on Benefits
Getting approved for car finance when you’re on benefits might feel like a tough ask - however, it is entirely possible to get credit in such a situation.
There are several reasons as to why a person might receive benefits, and the following are classed as sources of income when you look to apply for car finance:
- Universal Credit
- Housing benefits
- Disability allowance (DLA)
- Carers allowance
- Personal Independent Payment (PIP)
If you receive benefits such as the above, you can see if you’re eligible for car finance with us right here online - and your credit score will not be affected, regardless of the result.
Representative Example
This represents an average of the deals that our customers receive on other vehicles
We are a credit broker and a lender. We can introduce you to a limited number of lenders and their finance products. We will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Lenders will pay commission to us (either a fixed fee or a fixed percentage of the amount you borrow) for introducing you to them, this may be calculated in reference to a variable factor such as (but not limited to) the vehicle age, your credit score and the amount you are borrowing. Different lenders may pay different commissions for such introductions. Offers available to everyone over the age of 18, subject to credit approval.
How do I get car finance with benefits?
At Stoneacre, we work with a number of flexible lenders who can often help those on benefits obtain car finance.
They look at more than just credit scores, with overall affordability a big factor taken into consideration, and the benefits you receive seen as your income.
Our dedicated, in-house finance team will look to pair you with such a lender, and work towards an acceptance for credit.
A pre-approval for car finance not only streamlines the process ahead of any dealership visit, but also gives you the knowledge that you’ve been accepted for credit before you’ve even seen a car.
Car finance on benefits in the UK
Around 6.1 million people were on Universal Credit as of July 2023, with many others receiving benefits of another type - so if you’re in such a position, you’re not alone.
Each month, we assist hundreds of customers in buying a car on finance, with many examples of those receiving benefits of some kind.
The car finance calculator is an indication of cost. Your chosen Stoneacre dealership will clarify any final details.
Car finance for people on benefits with bad credit
While bad credit and being on benefits can seem like a bad mix, it’s not necessarily the end of the road when it comes to getting car finance.
Just as with anyone with bad credit, those on benefits are treated the same in so much that affordability is such a key factor - not just what your credit report might say.
Yes, instances of CCJs, IVAs, and even a previous bankruptcy will make obtaining car finance notably harder, but there are situations involving such factors where getting credit is possible.
If you’re unsure if you’ll get accepted, completing our online eligibility form is a great way to get started to see if you can get car finance without hurting your credit score.
What can help me get car finance when on benefits?
Here are some important tips to consider that might help you get car finance when on benefits:
Put down a deposit if you can - while it’s possible to get finance with no deposit, having a part exchange or cash to put down as a deposit will help with both your acceptance and affordability of monthly payments.
Maximise your affordability - if you're looking to open a new line of credit by getting car finance, then it can be prudent to consider increasing your ability to afford the payments by paying off existing loans and store cards.
Build up your credit score - as we’ve already mentioned, your credit score isn’t everything when it comes to getting car finance, but it certainly doesn’t hurt for it to be as strong as possible, strengthening your chances of being accepted.
Be wary of those offering ‘guaranteed finance’ - no one can guarantee acceptance for car finance, so if you see anyone offering such a product, it’s likely that they’re out to scam you in some way.
