Car finance on benefits

Free eligibility check with no impact on your credit.

Bad credit & no deposit deals.

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Get a car finance quote

Check eligibility with no impact on credit score

At CarFinance, we want to make car ownership a reality for you, even if you're receiving benefits or have a challenging credit history. We understand that your benefits are a valuable part of your income, and we take them into account when assessing your eligibility for car finance. We're here to help you get car finance for people on benefits

Our network of approved dealers across the UK offers a wide selection of quality used cars, giving you the freedom to choose the vehicle that suits your needs. With millions of people in the UK receiving benefits, we want to assure you that car finance on benefits is indeed possible. At CarFinance, we're dedicated to helping you unlock the path to affordable car ownership. Get started today and turn your car dreams into a reality.

Car finance calculator

  • 36months
  • 42months
  • 48months
  • 60months

This helps you get a more accurate finance estimate

Not sure about being approved?

Check finance eligibility

Won't affect your credit score

Your estimated examples

These estimates are subject to credit checks, and may change if you do apply for finance.

Loan amount£7,500
Length of Loan60 months
Monthly payment£0
Interest rate9.9% APR
Optional final payment£0
Amount of interest£0
Total payment£0

Can you get car finance on benefits?

Yes, it is possible to get car finance on benefits with our panel of lenders. Yes, car finance for people on benefits is not just a possibility any more. With 22.4 million people in the UK claiming benefits as of August 2022, it's clear that you're not alone in your circumstances. We believe that financial situations or credit history shouldn't be barriers to car ownership. We offer car finance to a broad range of individuals, including disability allowance recipients, carers, and personal independent payment beneficiaries.

At СarFinance, we're dedicated to ensuring that everyone, regardless of their credit history or life's complexities, has the opportunity to get car finance on benefits. We assist those with bad credit, no guarantor, or disability allowances, making car ownership accessible to all.

Can you pay for car finance with benefits?

Absolutely! We understand that when you're on benefits, managing your finances is essential. That's why we have tailored options to help you comfortably pay for your car finance through your benefits.

Disability Living Allowance (DLA)Carers Allowance (CA)Personal Independence Payment (PIP)
Universal CreditEmployment and Support Allowance (ESA)Child Tax Credits
Working Tax CreditsChild maintenance paymentsHousing Benefit
Child BenefitGuardian’s AllowanceIndustrial Injuries Disablement Benefit
Bereavement Support PaymentAttendance AllowanceConstant Attendance Allowance
Armed Forces Independence AllowanceWar Widow’s PensionsReduced Earnings Allowance

Our goal is to make the process of getting car finance for someone on benefits as straightforward and worry-free as possible.

How does car finance for people on benefits work?

Getting car finance on benefits is a straightforward process with CarFinance. Our user-friendly website allows you to start your application with just a few clicks. Our experienced team will guide you through the steps, helping you select the right car and finance deal for your needs.

How to get a car on benefits

To make the application process smooth, here's a checklist of what you need for someone getting car finance on benefits:

  • Proof of your benefits: Ensure you have documents supporting your benefit claim.
  • Proof of identity: Typically, a UK driving license or passport.
  • Proof of income: Whether through benefits, part-time work, or other sources.
  • Address history: Details of where you have lived for the last few years.

Apply for car finance on benefits

Looking for a car finance for someone on benefits to buy a car of your dream? See if a car loan could be an option for you.

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Bad credit car finance on benefits: Is it possible?

At CarFinance, we consider applications on an individual basis, which means we take into account your unique circumstances. Even if you have a less-than-perfect credit history, our team is here to work with you. Bad credit doesn't have to be a roadblock to your car finance with benefits.

We specialize in facilitating car finance on benefits, even for those who may have faced rejection from mainstream lenders or encountered challenges like CCJs or IVAs. Our process is designed for your convenience. Utilize our user-friendly car finance calculator to get a glimpse of your potential car loan. If it aligns with your expectations, proceed to submit an online application for a quote. We promptly evaluate your eligibility.

At CarFinance, we firmly believe that car finance on benefits is within your grasp, irrespective of prior financial hurdles. Our network of reliable lenders collaborates closely with us to offer tailored solutions for individuals with bad credit who are on benefits. Your unique situation is our priority, and we make exploring the possibilities as easy as requesting a quote.

What will affect your eligibility for car finance on benefits?

Obtaining car finance while on benefits is indeed possible, but there are several crucial factors to consider when assessing your eligibility for this financial opportunity. CarFinance is dedicated to help people to buy a car on benefits, but it's essential to understand the variables that can influence your application:

  • Late Repayments: Falling behind on repayment schedules for other credit agreements can adversely affect your chances of securing car finance. It's imperative to ensure that you get back on track promptly and make timely instalment payments to demonstrate your financial responsibility.
  • Having an IVA (Individual Voluntary Agreement): If you currently have an IVA, we are unable to assist you in securing finance at this time. However, if you've had a previous IVA that has since been settled, rest assured that it will not negatively impact your eligibility for obtaining car finance on benefits with us.
  • Bankruptcy: Individuals who are currently in bankruptcy will not have their car finance applications approved. However, if your bankruptcy status has been discharged, you are welcome to apply for car finance with us.
  • Having a CCJ (County Court Judgment): Possessing an outstanding CCJ does not necessarily disqualify you from applying for car finance with us. Each application will be reviewed individually to assess your specific circumstances and financial situation.
  • Unemployment: We do offer car finance options for the unemployed; however, it's important to note that to be considered, you must receive DLA (Disability Living Allowance) or PIP (Personal Independence Payment).
  • Income: Your income is one of the primary factors that lenders consider when determining your eligibility for car finance. If you are on benefits, it's likely that your income will be lower compared to someone who is employed full-time. This difference in income can affect your ability to qualify for certain types of car finance.
  • Credit Score: Your credit score is another significant factor that can impact your eligibility for car finance. If you have a poor credit score, you may find it more challenging to get approved for car finance, and you may also face the prospect of higher interest rates. It's important to note that CarFinance conducts a "soft" credit check, which does not have any impact on your credit rating, increasing your chances of having your car finance request approved.
  • Employment Status: While being on benefits does not necessarily disqualify you from getting car finance, some lenders may prefer borrowers who are employed full-time or have a stable source of income.
  • Expenses: Our panel of lenders will also consider your expenses when determining your eligibility for car finance. If you have a significant amount of other debts or expenses, this could affect your ability to make your car finance payments.

CarFinance is committed to providing car finance for people on benefits, and we understand that financial situations can vary widely. We encourage you to explore your options and take the first step toward securing the car finance you need. For more information on managing your finances, dealing with debt, or improving your credit rating, we invite you to visit our guides section for valuable insights and tips.

How can I increase my chance of approval for car finance on benefits?

To boost your chances of car finance approval:

  • Join the electoral roll: Registering on the electoral roll can enhance your creditworthiness by verifying your address.
  • Improve your credit score: Work on repairing your credit history by managing existing debts and making payments on time.
  • Joint loan application: Applying for car finance with a co-applicant can increase your chances of approval, as their creditworthiness may strengthen your application.
  • Guarantor car finance: Consider having a guarantor with a strong credit history co-sign your car finance agreement, providing extra security to lenders.
  • Black box car finance: Opting for pay-as-you-go car finance arrangements can be a more flexible and accessible option.
  • Borrow a Smaller Amount: Requesting a smaller loan amount may make your application more manageable and increase the likelihood of approval.

Why Choose CarFinance?

Get your car finance online

Get car finance options with no impact on your credit score. Rates starting from 9.9% APR.

Buy a car from any dealer

Once approved, collect or get your car delivered to you.

Car-finance quality assured

We’ll do a thorough vehicle HPI, full-service history and MOT check. Buy with confidence.

Meet our car finance lenders

We work with over 15 lenders offering 100+ HP and PCP deals so that you could have the best offer.



  • Do benefits count as income for car finance?
    Yes, benefits can be considered as part of your income when applying for car finance. Many car finance providers, including CarFinance, take benefits into account when assessing your eligibility, as they understand that these payments can be a stable source of income.
  • Do we offer guaranteed car finance on benefits?
    While we don't offer guaranteed car finance, we do provide car finance options for people on benefits. Your eligibility depends on various factors, and we consider applications on an individual basis, taking into account your unique circumstances and financial situation.
  • Can you get car finance on Universal Credit?
    Yes, it's possible to secure car finance while receiving Universal Credit. CarFinance and many other lenders take Universal Credit into consideration when assessing your eligibility, making car finance accessible to those on this benefit.
  • Can i get car finance on PIP?
    Yes, you can get car finance while receiving Personal Independence Payment (PIP). CarFinance, along with other lenders, often considers PIP as part of your income when evaluating your eligibility for car finance.
  • Can I apply for car finance with low income?
    Yes, you can apply for car finance with a low income. Lenders, including CarFinance, understand that income levels can vary, and they assess applications on an individual basis, taking into account your unique financial situation and ability to make repayments.
  • Can I get car finance on disability benefits?
    Yes, it's possible to obtain car finance while on disability benefits. Lenders, including CarFinance, often consider disability benefits as part of your income when determining your eligibility for car finance, making it accessible to those on disability benefits.