Car finance on benefits

Being on benefits doesn’t mean you can’t get car finance. Moneybarn 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. Moneybarn are specialists in helping those with bad credit, including those looking for car finance on benefits.

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?

To apply for car finance on benefits, your monthly income must total £1,000 or more after tax. If you are making a joint application, then your combined monthly income must total £1,300 or more after tax.

The following benefits will be 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:

  • Universal Credit
  • Child Tax Credits
  • Working Tax Credits
  • Child maintenance payments
  • Housing Benefit
  • Child Benefit
  • Guardian’s Allowance
  • Industrial Injuries Disablement Benefit

If your benefit isn’t listed, we might still be able to help. Contact our team for help and advice, or if you’re ready, you can get a quote.

What do you need for benefit car finance?

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 – £25,000
  • Maximum of 120,000 mileage on the vehicle
  • No older than 15 years at the end of the agreement

  • Monthly earnings over £1,000 (after tax)
  • To be aged between 21 and 70
  • A full valid UK driving licence
  • 2 consecutive months of payslips or bank statements

If you’re not sure which car you’d like, don’t worry! We can help guide you through the process.

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?

To apply for car finance on benefits, your monthly income must total £1,000 or more after tax. If you are making a joint application, then your combined monthly income must total £1,300 or more after tax.

The following benefits will be 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:

  • Universal Credit
  • Child Tax Credits
  • Working Tax Credits
  • Child maintenance payments
  • Housing Benefit
  • Child Benefit
  • Guardian’s Allowance
  • Industrial Injuries Disablement Benefit

If your benefit isn’t listed, we might still be able to help. Contact our team for help and advice, or if you’re ready, you can get a quote.

What do you need for benefit car finance?

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 – £25,000
  • Maximum of 120,000 mileage on the vehicle
  • No older than 15 years at the end of the agreement

  • Monthly earnings over £1,000 (after tax)
  • To be aged between 21 and 70
  • A full valid UK driving licence
  • 2 consecutive months of payslips or bank statements

If you’re not sure which car you’d like, don’t worry! We can help guide you through the process.

What your car loan could look like

Summary

  • Monthly payment: £000.00
  • Total to repay: £00,000.00
  • Calculated APR: 00.0%

Representative 31.9% APR

What your car loan could look like

  • Monthly payment: £000.00
  • Total to repay: £00,000.00
  • Calculated APR: 00.0%

Representative 31.9% APR

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.

If you’re still not sure whether you might be accepted, we’ve written a guide if you’re looking for car finance without a job.

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

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.

If you’re still not sure whether you might be accepted, we’ve written a guide if you’re looking for car finance without a job.

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

Get a quote using our online application or speak to our expert Direct Sales Team.

We will then run an initial soft credit check to see if we can offer you car finance. This will not impact your credit score.

If you’re provisionally accepted, we’ll be happy to discuss your options and monthly budget that you can afford based on your personal circumstances. 

We will tell you what paperwork we need from you. If you’re still looking for a car, we can help you with your search.

Once the car loan is approved, we’ll pay the dealer and you can collect your new car!

Get a quote using our online application or speak to our expert Direct Sales Team.

We will then run an initial soft credit check to see if we can offer you car finance. This will not impact your credit score.

If you’re provisionally accepted, we’ll be happy to discuss your options and monthly budget that you can afford based on your personal circumstances. 

We will tell you what paperwork we need from you. If you’re still looking for a car, we can help you with your search.

Once the car loan is approved, we’ll pay the dealer and you can collect your new car!

How Moneybarn can help

As one of the UK’s leading lender 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 achieving great customer results, 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 the Feefo Platinum Award 2021 and most recently we won ‘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 - £25,000
  • Maximum of 120,000 mileage on the vehicle
  • No older than 15 years at the end of the agreement

How Moneybarn can help

As one of the UK’s leading lender 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 achieving great customer results, 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 the Feefo Platinum Award 2021 and most recently we won ‘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 - £25,000
  • Maximum of 120,000 mileage on the vehicle
  • No older than 15 years at the end of the agreement

Car finance on benefits FAQs

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.

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 Universal Credit car finance.

If you’re ready, you could get a quote today – its simple and should only take you 5 minutes to find out if we can help you into the car you need.

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.

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.

There is a lender out there for everyone, no matter what their credit score is, or even if they have no credit history at all. At Moneybarn we can help you with car finance even if you have a bad credit score.

Many different factors can affect your credit score and result in poor credit. We’ve put together a handy guide on how to improve your credit score.

Car finance on benefits FAQs

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.

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 Universal Credit car finance.

If you’re ready, you could get a quote today – its simple and should only take you 5 minutes to find out if we can help you into the car you need.

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.

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.

There is a lender out there for everyone, no matter what their credit score is, or even if they have no credit history at all. At Moneybarn we can help you with car finance even if you have a bad credit score.

Many different factors can affect your credit score and result in poor credit. We’ve put together a handy guide on how to improve your 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.

Buying your next vehicle

We know that buying a new car can be a stressful process. There’s 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.