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Car finance when some or all of your income is from benefits
Income from benefits is not automatically excluded from a car finance application. Some lenders on our panel can consider certain benefits as part of your income, particularly long-term ones such as PIP or DLA, alongside earnings. Others will not. What every lender does is test whether the payment is genuinely affordable, and that is where the honest conversation starts.
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We will not pretend every lender says yes here. What we can do is tell you quickly which ones might, and what a realistic monthly figure looks like.
What lenders may consider
- Long-term disability benefits such as PIP or DLA are the most widely accepted, because they are stable and not tied to a job.
- Benefits alongside earnings, for example Universal Credit topping up part-time work, are considered by some lenders as part of total household income.
- Child benefit and tax credits may be counted by some lenders and ignored by others.
What is harder
Applications where the whole income is Jobseeker's Allowance or the standard Universal Credit allowance are difficult, because most lenders need to see income that will comfortably cover the payment for the full term. If that is your position we will say so rather than run an application that is likely to be declined.
Motability
If you receive the enhanced mobility component of PIP or the higher-rate DLA mobility component, the Motability scheme may be a better route than finance. We will point you there if it fits; it is not something we arrange.
Affordability is the test
Whatever the source, the lender wants to see that the payment fits after rent, bills and food. A modest car with a modest payment is the realistic starting point, and a deposit or part-exchange helps.
Finance is subject to status, affordability and lender approval. Over 18s, UK residents only. We only run a soft-search eligibility check after we have spoken to you and you have agreed to it. A soft search does not affect your credit score and is not visible to other lenders. We are a credit broker, not a lender.
Three straightforward steps
No pressure at any point, and you are free to stop whenever you like. A hard credit search only ever happens at full application, and we will tell you before it does.
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Tell us where you stand
A short form, about two minutes. Sending it does not run any credit check by itself and puts you under no obligation.
No credit check at this stage -
We call you before anything is searched
A person reads your enquiry and phones you. Only once you have agreed do we run a soft-search eligibility check with lenders on our panel who consider adverse credit. A soft search leaves no footprint and other lenders cannot see it.
Invisible to other lenders -
We come back with honest options
Real figures on real cars from our Kirkham forecourt, or a straight explanation if we cannot help right now. You choose whether to go ahead.
Collect from Kirkham or ask about delivery
Work out a monthly figure you are comfortable with
£250.96 / month (illustrative)
These figures are illustrative only and not an offer of finance. They use the representative APR; your rate and payment depend on your circumstances and the lender's decision. Finance is subject to status, affordability and lender approval. Over 18s, UK residents only.
Cars available on finance
*Estimated monthly figures are illustrative, based on the representative example in the footer.
Can I get car finance if I am on Universal Credit?
It depends on what else you have coming in. Universal Credit alongside earnings may be considered by some lenders as part of your income. Universal Credit alone is difficult for most lenders. Any approval is subject to status and affordability.
Does PIP count as income for car finance?
Some lenders can treat PIP or DLA as income because it is long-term and not tied to employment. Not every lender does, and the payment still has to be affordable. We will tell you which lenders on our panel may consider it.
Is this the same as Motability?
No. Motability is a separate scheme for people receiving certain mobility benefits, leasing a car in exchange for part of the allowance. We do not arrange Motability, but if it suits you better than finance we will say so.
Our promise: we will tell you if we cannot help, and why. No one can guarantee car finance, and anybody who says otherwise is selling you something.
Two minutes. Soft search. Straight answer.
Tell us where you stand. It takes about two minutes, sending the form does not run a credit check by itself, and there is no obligation.
Finance is subject to status, affordability and lender approval. Over 18s, UK residents only. Credit broker, not a lender.