Car finance on benefits
Being on benefits doesn’t mean you can’t get car finance. We are specialists in helping those with bad credit, including those looking for car finance on benefits.
Car finance on benefits
Being on benefits doesn’t mean you can’t get car finance. We are specialists in helping those with bad credit, including those looking for car finance on benefits.
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Can you get car finance on benefits?
A common misconception about car finance is that you won’t be approved if you’re on benefits. However, it’s still possible to get benefit car finance.
Getting a car is an important part of many people’s lives. At Moneybarn, we believe that just because you are claiming benefits, you shouldn’t be denied access to getting a car on finance.
How does car finance for people on benefits work?
You’re still eligible to apply for car finance if you claim benefits, but you must fit within the lender’s criteria. If you chose to apply with us, your monthly income must be £1,000 or more (after tax).
Do benefits count as income for car finance?
The following benefits are classed as primary sources of income:
- Disability Living Allowance (DLA)
- Carers Allowance (CA)
- Personal Independence Payment (PIP)
Can you get car finance on benefits?
A common misconception about car finance is that you won’t be approved if you’re on benefits. However, it’s still possible to get benefit car finance.
Getting a car is an important part of many people’s lives. At Moneybarn, we believe that just because you are claiming benefits, you shouldn’t be denied access to getting a car on finance.
How does car finance for people on benefits work?
You’re still eligible to apply for car finance if you claim benefits, but you must fit within the lender’s criteria. If you chose to apply with us, your monthly income must be £1,000 or more (after tax).
Do benefits count as income for car finance?
The following benefits are classed as primary sources of income:
- Disability Living Allowance (DLA)
- Carers Allowance (CA)
- Personal Independence Payment (PIP)
Other benefits will only be accepted as an additional income. This means that you must have an income, pension, or one of the three benefits listed above for it to be accepted.
Benefits that we accept as sources of additional income include:
Other benefits will only be accepted as an additional income. This means that you must have an income, pension, or one of the three benefits listed above for it to be accepted.
Benefits that we accept as sources of additional income include:
- Universal Credit
- Employment and Support Allowance (ESA)
- Child Tax Credits
- Working Tax Credits
- Child maintenance payments
- Housing Benefit
- Child Benefit
- Guardian’s Allowance
- Industrial Injuries Disablement Benefit
- Bereavement Support Payment
- Attendance Allowance
- Constant Attendance Allowance
- Armed Forces Independence Allowance
- War Widow’s Pensions
- Reduced Earnings Allowance
- Universal Credit
- Employment and Support Allowance (ESA)
- Child Tax Credits
- Working Tax Credits
- Child maintenance payments
- Housing Benefit
- Child Benefit
- Guardian’s Allowance
- Industrial Injuries Disablement Benefit
- Bereavement Support Payment
- Attendance Allowance
- Constant Attendance Allowance
- Armed Forces Independence Allowance
- War Widow’s Pensions
- Reduced Earnings Allowance
If your benefit isn’t listed, we might still be able to help. Contact our team to discuss your options, or if you’re ready, you can get a quote.
Can you get car finance on Universal Credit?
Yes, if you are looking for car finance on Universal Credit then we may be able to help. If you claim Universal Credit then we class this as ‘additional income’. This means that you need an income, pension or another type of benefit (either DLA, CA, or PIP) to be accepted for car finance with Universal Credit.
If you’re ready, you could get a quote today. It’s simple and should only take you 5 minutes to find out if we can help you into the car you need.
What do you need for benefit car finance?
If you already have a car in mind, great! But even if you don’t, we understand that getting a new car can be a stressful time. Our team would be happy to guide you through the process, so you can find the car that is right for you.
If your benefit isn’t listed, we might still be able to help. Contact our team to discuss your options, or if you’re ready, you can get a quote.
Can you get car finance on Universal Credit?
Yes, if you are looking for car finance on Universal Credit then we may be able to help. If you claim Universal Credit then we class this as ‘additional income’. This means that you need an income, pension or another type of benefit (either DLA, CA, or PIP) to be accepted for car finance with Universal Credit.
If you’re ready, you could get a quote today. It’s simple and should only take you 5 minutes to find out if we can help you into the car you need.
What do you need for benefit car finance?
If you already have a car in mind, great! But even if you don’t, we understand that getting a new car can be a stressful time. Our team would be happy to guide you through the process, so you can find the car that is right for you.
To apply for car finance with benefits, you must:
- Have monthly earnings over £1,000 (after tax)
- Be aged between 20 and 75
- Have a full valid UK driving licence
- Be able to provide 2 consecutive months of payslips
We can provide car finance to people on benefits. If you already have a car in mind, you’ll need to make sure it meets our lending criteria:
- Financing a car from £4,000 – £35,000
- Maximum of 100,000 miles on the clock
- No older than 13 years at the end of the agreement
To apply for car finance with benefits, you must:
- Have monthly earnings over £1,000 (after tax)
- Be aged between 20 and 75
- Have a full valid UK driving licence
- Be able to provide 2 consecutive months of payslips
We can provide car finance to people on benefits. If you already have a car in mind, you’ll need to make sure it meets our lending criteria:
- Financing a car from £4,000 – £35,000
- Maximum of 100,000 miles on the clock
- No older than 13 years at the end of the agreement
When you make an application, you will be asked for some personal details, such as your income, address history, and financial circumstances.
If your application is successful, you might be asked to provide further documents to prove your identity and income. If this is the case, our team would be happy to guide you through this process.
Depending on which benefits you receive, you could help to speed up your application by having your awards letter(s) ready. If you don’t have a physical copy, you may be able to provide screenshots. If that is the case, screenshots of your award letter(s) must not be cropped or edited. Make sure your screenshots include the website address and your details.
Don’t worry if you don’t have these to hand! When you’re ready, see if we could help you by getting a quote today.
When you make an application, you will be asked for some personal details, such as your income, address history, and financial circumstances.
If your application is successful, you might be asked to provide further documents to prove your identity and income. If this is the case, our team would be happy to guide you through this process.
Depending on which benefits you receive, you could help to speed up your application by having your awards letter(s) ready. If you don’t have a physical copy, you may be able to provide screenshots. If that is the case, screenshots of your award letter(s) must not be cropped or edited. Make sure your screenshots include the website address and your details.
Don’t worry if you don’t have these to hand! When you’re ready, see if we could help you by getting a quote today.
What your car finance could look like
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What your car finance could look like
There has been an error and we are unable to provide you with a quote. Please click here to continue with your application.
Bad credit car finance on benefits
Just because you claim benefits doesn’t mean you have poor credit, but even if you do, we could help. We understand that your current financial situation or difficulties making payments in the past might have left you with bad credit. You might have found it difficult to get finance or may even have been declined by mainstream lenders.
That’s where we could help. We’re bad credit car finance specialists who can help people get finance when refused. Even if you’ve been declined by mainstream lenders, or if you have a CCJ or IVA. We could help you get benefit car finance.
The first step is to try out our car finance calculator above to see what your car loan could look like. Once you’re happy, submit an online application for a quote and we will tell you if you’re accepted, accepted in principle, or declined.
Can I get car finance on benefits with very bad credit?
Yes, you can still get car finance on benefits even if you have very bad credit.
You can check your credit score with each of the three credit reference agencies (CRAs).
Even if you have bad or very bad credit, we could still help. We are proud to have over 30 years of experience helping people up and down the UK onto a better road ahead. You might have been rejected by other lenders, but we still might be able to help.
When you’re ready, our online application should be quick and easy to fill in and tells you whether we could help.
If you’re still not sure whether you might be accepted, we’ve written some guides that you might find helpful:
Car finance on benefits near me
We help thousands of customers into a car each month, so we understand that getting a car on finance with benefits isn’t always easy. We offer vehicle finance across the whole of the UK, including Northern Ireland, so we could help get car finance near you.
We finance a range of car brands, not just those included on our car finance brands page, but many more. We also can help you get a car loan for electric cars and hybrid cars.
Bad credit car finance on benefits
Just because you claim benefits doesn’t mean you have poor credit, but even if you do, we could help. We understand that your current financial situation or difficulties making payments in the past might have left you with bad credit. You might have found it difficult to get finance or may even have been declined by mainstream lenders.
That’s where we could help. We’re bad credit car finance specialists who can help people get finance when refused. Even if you’ve been declined by mainstream lenders, or if you have a CCJ or IVA. We could help you get benefit car finance.
The first step is to try out our car finance calculator above to see what your car loan could look like. Once you’re happy, submit an online application for a quote and we will tell you if you’re accepted, accepted in principle, or declined.
Can I get car finance on benefits with very bad credit?
Yes, you can still get car finance on benefits even if you have very bad credit.
You can check your credit score with each of the three credit reference agencies (CRAs).
Even if you have bad or very bad credit, we could still help. We are proud to have over 30 years of experience helping people up and down the UK onto a better road ahead. You might have been rejected by other lenders, but we still might be able to help.
When you’re ready, our online application should be quick and easy to fill in and tells you whether we could help.
If you’re still not sure whether you might be accepted, we’ve written some guides that you might find helpful:
Car finance on benefits near me
We help thousands of customers into a car each month, so we understand that getting a car on finance with benefits isn’t always easy. We offer vehicle finance across the whole of the UK, including Northern Ireland, so we could help get car finance near you.
We finance a range of car brands, not just those included on our car finance brands page, but many more. We also can help you get a car loan for electric cars and hybrid cars.
Our simple 5-step application process
Our simple 5-step application process
Get a quote using our online application form. This should take less than 5 minutes.
We run a soft check to check your eligibility. This will not impact your credit score.
If you’re approved, browse vehicles within your budget with our vehicle finder tool.
A member of our team will help you with any paperwork and search for your new car.
Once your agreement is signed, we’ll pay the dealer and you can collect your new car!
How Moneybarn can help
As one of the UK’s leading lenders of specialist car, van and motorbike finance, we’ve been supporting thousands of people up and down the country with bad credit car finance for many years. We’re motivated by our focus on to put our customers on a path to a better everyday life, and aim to make financing a car as simple and seamless as possible.
Our hard work has earned us many major industry awards over the years. Most recently we were awarded ‘Sub-Prime Lender of the Year’ and ‘Independent Finance Provider of the Year’ at the Motor Finance Europe Awards 2021, and ‘Responsible Lender of the Year’ at the Credit Awards 2022.
We only use a soft search at application, which means it won’t affect your credit score. As a vehicle finance company who want to help all their customers onto a better road ahead, we accept applications when other lenders might not.
- Specialise in poor credit
- We accept IVAs
- We accept CCJs
We understand the importance of having a reliable car whether it’s getting to work, doing the school run or going about your daily lives. Our broad finance option should help you find the right car for you.
- Financing a car from £4,000 - £35,000
- Maximum of 100,000 miles on the clock
- No older than 13 years at the end of the agreement
How Moneybarn can help
As one of the UK’s leading lenders of specialist car, van and motorbike finance, we’ve been supporting thousands of people up and down the country with bad credit car finance for many years. We’re motivated by our focus on to put our customers on a path to a better everyday life, and aim to make financing a car as simple and seamless as possible.
Our hard work has earned us many major industry awards over the years. Most recently we were awarded ‘Sub-Prime Lender of the Year’ and ‘Independent Finance Provider of the Year’ at the Motor Finance Europe Awards 2021, and ‘Responsible Lender of the Year’ at the Credit Awards 2022.
We only use a soft search at application, which means it won’t affect your credit score. As a vehicle finance company who want to help all their customers onto a better road ahead, we accept applications when other lenders might not.
- Specialise in poor credit
- We accept IVAs
- We accept CCJs
We understand the importance of having a reliable car whether it’s getting to work, doing the school run or going about your daily lives. Our broad finance option should help you find the right car for you.
- Financing a car from £4,000 - £35,000
- Maximum of 100,000 miles on the clock
- No older than 13 years at the end of the agreement
Car finance on benefits FAQs
Can I get car finance on disability benefits?
Yes, you can get a car loan with disability benefits, however it depends on exactly which benefits you receive. Only an income, pension, Disability Living Allowance (DLA), Carers Allowance (CA) or Personal Independence Payment (PIP) will be accepted as your main source of income when applying for car finance.
Other disability benefits such as Industrial Injuries Disablement Benefit are classed as additional income. This means you must have an income, pension, or one of the three benefits listed above for it to be accepted.
If you’re still not sure if you’re eligible, contact us and our team will be happy to discuss your situation.
Can I get car finance with a low income?
Yes, you can apply for car finance with a low income. As long as your monthly income totals £1,000 after tax, we could help. See what sources of income we accept.
If you are concerned that your monthly income might not quite be enough, or if you’re looking for car finance without a job, you could always consider making a joint application for car finance.
A joint application is when you apply for finance with another person, using both your details and the other person’s to support the application. Please note that your combined monthly income must total £1,300 after tax. If you’re interested in making a joint application, or would like to discuss it further, please contact us.
Can I get a car on finance with low rate PIP?
If you claim the lower rate of PIP, you might still be eligible to apply, as long as your monthly income is over £1,000 after tax.
Can I get guaranteed car finance on benefits?
Guaranteed car finance on benefits is a myth. No responsible lender will claim to offer guaranteed car finance to people on benefits, because it doesn’t exist. It is unethical to claim that you can guarantee it because everyone’s eligibility for benefit car finance is different. A responsible lender would run affordability and credit checks before saying whether or not you could get car finance on benefits.
The Consumer Credit (Advertisements) Regulations 2010 protects car finance customers from false or misleading claims, such as ‘guaranteed car finance on benefits’. That’s why you should be wary of any lender claiming to offer this.
For a full explanation, please see our guide on guaranteed car finance.
Can I get car finance on benefits with no deposit?
Everyone’s circumstances are different, and you might be looking for car finance on benefits with no deposit. Whether or not you would be approved for no deposit car finance depends on a number of personal factors such as affordability and credit score.
Car finance on benefits FAQs
Can I get car finance on disability benefits?
Yes, you can get a car loan with disability benefits, however it depends on exactly which benefits you receive. Only an income, pension, Disability Living Allowance (DLA), Carers Allowance (CA) or Personal Independence Payment (PIP) will be accepted as your main source of income when applying for car finance.
Other disability benefits such as Industrial Injuries Disablement Benefit are classed as additional income. This means you must have an income, pension, or one of the three benefits listed above for it to be accepted.
If you’re still not sure if you’re eligible, contact us and our team will be happy to discuss your situation.
Can I get car finance with a low income?
Yes, you can apply for car finance with a low income. As long as your monthly income totals £1,000 after tax, we could help. See what sources of income we accept.
If you are concerned that your monthly income might not quite be enough, or if you’re looking for car finance without a job, you could always consider making a joint application for car finance.
A joint application is when you apply for finance with another person, using both your details and the other person’s to support the application. Please note that your combined monthly income must total £1,300 after tax. If you’re interested in making a joint application, or would like to discuss it further, please contact us.
Can I get a car on finance with low rate PIP?
If you claim the lower rate of PIP, you might still be eligible to apply, as long as your monthly income is over £1,000 after tax.
Can I get guaranteed car finance on benefits?
Guaranteed car finance on benefits is a myth. No responsible lender will claim to offer guaranteed car finance to people on benefits, because it doesn’t exist. It is unethical to claim that you can guarantee it because everyone’s eligibility for benefit car finance is different. A responsible lender would run affordability and credit checks before saying whether or not you could get car finance on benefits.
The Consumer Credit (Advertisements) Regulations 2010 protects car finance customers from false or misleading claims, such as ‘guaranteed car finance on benefits’. That’s why you should be wary of any lender claiming to offer this.
For a full explanation, please see our guide on guaranteed car finance.
Can I get car finance on benefits with no deposit?
Everyone’s circumstances are different, and you might be looking for car finance on benefits with no deposit. Whether or not you would be approved for no deposit car finance depends on a number of personal factors such as affordability and credit score.
Refused car finance
We might be able to help if you’ve been refused by other lenders. We’re specialists in providing vehicle finance to those with bad credit.
Our application process
We know that buying a new car can be a stressful process. There are lots of important factors to consider, so it can be daunting. That’s why we’ve put together a helpful guide.
Car finance explained
Our guide explains how car finance works and the different types of car finance available, so you can choose the option that’s right for you.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
