How to get a car with no money

You don’t have any money but you want to buy a car? Some might say that’s an impossible mission.

After all: You can not buy anything without paying for it. And last time we checked, banks were no charitable institutions.

With lots of confusion around credit unions and current auto loan rates, how are you meant to navigate the world of car finance payments?

Luckily, we have the solution.

With endless experience in car finance to our credit, we’ve helped many UK drivers who thought they could never ever get a vehicle – even those with poor credit history.

Can we help you, too? Read on to find out.

First up…what’s your financial situation looking like?

Let’s approach this a bit more systematically.

When you say that you don’t have any money, but would like to buy a car, this doesn’t completely explain your situation. Essentially, there are three different scenarios:

• You don’t have a job, but you do have some savings.
• You have a low income, but no savings.
• You don’t have an income or savings

Let’s take a closer look at each of these to find out how best to approach the situation.

Scenario 1: You Don’t Have An Income or Savings

Okay, so you have neither any savings nor any income. This would also assume you don’t have any securities to speak of – if you did, you could simply sell those off instead of reading this article.

If you’re in this situation, you need to keep a few things in mind.

Even if you could get a car, how would you pay for it? The cost of insurance, petrol, road tax, and the occasional maintenance visit at your garage make this a pretty challenging wish to come true.

You will likely receive some sort of benefit payment. But no lender will agree to set up a loan based purely on those. And the fact that you don’t have any savings means that even if they did, the risk of a default would be far too high.

A co-signer might work.

What to Consider

But, if you really need a car without any money at all, the only realistic strategy is to:

• Pick the cheapest car you can find that will satisfy your needs.
• Borrow the entire sum you need from friends and family.
• Pay for the car in cash.

Many people dislike borrowing from family. That makes sense. But in this particular case, it has many advantages. If you really keep the purchasing price down, the plan might just work.

Scenario 2: You Don’t Have A Job Or An Income, But Some Savings

Savings are not necessary for car loans and finance deals, but they do come in handy. Of course, any bank or dealer would prefer it if you actually had some money coming to you at the end of the month. But if you have secure money in your account, they have something to rely on for the monthly payments.

On top of your savings, you might be getting an income through your benefits. Without any savings, this might not be of interest. But the combination is a lot more attractive since you’ll use the savings to pay off the loan, and the benefits to pay for your daily requirements.

So, this situation isn’t as desperate as you might think.

Key Points You Should Consider:

• If your savings are very low, consider asking friends and family for a little help, similar to scenario 1.
• Sell as much stuff as you can. Even small amounts can make the difference between a positive response and a rejection.
• Reduce your monthly payments to the absolute minimum. Lenders need to be convinced you’ll be able to cover all your costs using just the benefit payments.
• Apply for jobs now. Even if your chances are not very high, making an effort shows the lender you’re being proactive about improving your income and credit score.
• In this case, we advise against making a down payment to keep your savings as high as possible. You may still get a job in the future or manage to get money some other way. But until then, your deposits are all you have.

Scenario 3: You Don’t Have Any Savings But You’re On A Low Income

This is the most likely situation for many UK households. Often, this scenario will also include a bad credit rating, which can also make it harder to get a good deal.

For us, this is the situation where we can most likely assist you. You’ll probably need most of it to pay for your expenses. But as long as there’s a tiny cushion there, we can more often than not make it work.

Your credit rating will usually not be of interest to us. From our point of view, whatever happened in the past is usually not particularly relevant to the present and shouldn’t stop you from getting a car.

The decisive number is the relationship between your income and your outgoings. The higher this ratio, the more disposable income you have, the more realistic it is to get a loan. This is why reducing payments and cancelling all non-mandatory recurring payments is a powerful step towards a loan.

What to Consider:

• Really do the maths. Will you be able to afford not just the loan repayments, but petrol, insurance and road tax as well?
• Create at least a little nest egg. One way would be to put aside your hypothetical loan payments for three months. You can use this money either as a safety cushion or to …
• … make a down payment. Although this isn’t mandatory, it can help you pay the loan off faster, and get a better interest rate.
• Keep monthly payments as low as possible. On a low income, any expense will hurt your cash flow. Low payments may be more expensive – but they are safer.
• The more you can reduce your monthly payments, the better.

Pay off your car loan with affordable monthly payments

If you’re interested in car finance plans without worrying about your credit report or saving up to pay for a new car outright, you’re in the right place.

Our unique and stress-free approach means we can create a bespoke finance plan based on your needs, lifestyle and budget.

Spending over ONE MILLION POUNDS since we were founded in 2017, we ensure every available model is up to scratch and safe for you to drive the day you apply.

We have helped over 30,000 customers get behind the wheel of their chosen model. Will you be the next?

Car Finance At Concept Car Credit

At Concept Car Credit, we love challenges. So if you come to us with no money but the desire to buy a car, we’ll do everything in our power to make it work.

As we’ve outlined above, solutions depend on your current situation, so give us a call and talk to us – we’ll come up with a plan that matches your financial capacities.

Get in touch, we look forward to hearing from you!