While it can be possible to get car finance if you’re unemployed, finding a loan can be more challenging if you don’t have a reliable income. It all depends on your circumstances, you may be able to get car finance if you have a good credit score and receive benefits, are a full-time student, have a part-time job, or work a side hustle.
Can I get car finance on benefits?
Receiving benefits doesn’t stop you from applying for car finance but, in some cases, you might need an additional source of income.
Some benefits are considered a primary income source including:
- Disability Living Allowance
- Carers Allowance
- Personal Independence Payments
With other types of benefit, you’ll also need to have a job or other type of income to qualify for car finance. These additional income benefits include:
- Child Tax Credits
- Housing Benefits
- Income Support
- Universal Credit
- Working Tax Credits
Can I get car finance if I’m employed part-time?
If you work part-time, you might be worried that you won’t qualify for car finance but the hours that you work don’t matter, lenders only care about your income and affordability. If you choose a car that you can afford and you have a good credit score, there’s no reason why you won’t qualify for a deal.
Can I get student car finance?
If you need your own set of wheels to get to and from lectures, travel to your placement, or visit friends and family on the weekend, you’ll be pleased to learn that student car finance does exist. It can be tough as many students don’t have much of a credit history and may have a low income. Getting a part-time job and saving a larger deposit could help improve your chances of securing a loan.
Can I get car finance if I’m self-employed?
Yes, if you’re self-employed you can qualify for a car finance loan. That doesn’t mean it’s always easy – being your own boss has a lot of perks, but a reliable income isn’t always one of them. That’s why lenders can be more cautious and might offer you a higher interest rate. But one in five people in the UK now work for themselves so lenders have become much more comfortable with the idea of offering loans to freelancers, small business owners, and gig workers.