If you’re worried that being on benefits means you can’t get a car on finance, don’t be. You could still get approved. We help people on Universal Credit, PIP, DLA, Carer’s Allowance and more get the car finance they need.
Getting a car to manage everyday life, whether it’s picking the kids up from school, driving to the supermarket or driving to care for a family member is a practical need, and our specialist panel of lenders take this into account.
Being on benefits doesn’t automatically disqualify you from car finance.
What matters most is the affordability in your specific case. The lenders we work with look at your income and outgoings to see if your expected monthly payments are manageable, not just if your income is from state benefits or what your credit score is.
With Concept Car Credit your application is assessed fairly, and as a whole, not just on your credit file and income source.
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Most benefits count towards your income assessment and fall into two categories for how they’re assessed by lenders.
You can apply for car finance on these benefits on their own:
These count towards your income, usually alongside a primary source:
If you’re not sure whether your specific benefits qualify for car finance, either on their own or with another source of income, give us a call or use our car finance calculator to see what your payments could look like.
More than eight million people in the UK claim Universal Credit, and if you’re one of them, you could still be eligible for car finance.
Universal Credit is usually treated as an additional income source, so lenders will typically look for another qualifying income alongside it (which could include another type of benefit payment).
The specific details of your Universal Credit payments will be assessed by our panel of lenders. If you’re not sure how your payments are broken down we can help you during your application.
PIP and DLA are among the most commonly accepted primary sources of income for car finance when on benefits, so if you receive this type of payment you’re in a good position to apply.
Although DLA has mostly been replaced by PIP for new working age adults, you might still be in receipt if you’re an older claimant or were claiming before the changes to PIP came in. Our panel of lenders accept both PIP and DLA and will be looking more at your affordability.
Carer’s Allowance is widely accepted as a qualifying income source. Some lenders treat it as a primary income source, others as an additional source, our lenders will confirm when you apply.
Our specialist lenders also take into account that being a responsible carer can impact your ability to work the same hours as others, which can limit your income. Again this is why they look at your overall affordability to make sure your monthly payments are manageable for your situation.
Getting car finance on benefits is the same process as applying for car finance when you’re not claiming benefits. You agree to pay a fixed monthly amount over the term of your finance agreement.
The only difference is our lenders are looking more at your affordability than your credit score to make sure you can keep up with the monthly payments. If your income covers the cost of your car comfortability then you’ve got a good chance of being approved.
At Concept Car Credit we offer finance on Personal Contract Purchase (PCP) agreements, which can work better for applications with benefits because your monthly payments are usually lower.
Whatever your situation, you can be assured your application will be assessed as a whole and we’ll do what we can to help you secure your car finance.
What documents will you need?
Having bad credit along with an income from benefits can make your application more difficult, but it’s not impossible. You’ll just need to set your expectations.
We work with specialist lenders who’ve approved car finance for thousands of applicants on benefits and with poor credit histories. If your benefit income is stable and any car payments are manageable within your budget then our lenders will consider your application carefully.
Whatever your situation or whichever type of benefit you’re in receipt of, get in touch and we’ll go through your circumstances and advise on the best steps to take.
Many lenders use automated systems that flag benefits income and reject applications before a person has even looked at your information. Our lenders take the time to understand your current situations, what you earn and spend, and what you can realistically manage.
If the numbers don’t work for you, we’ll tell you honestly. We’d rather help you find a car finance option that fits your situation than leave you stretching to keep up with your payments.
If you have a question within six months of signing your agreement, or your circumstances change, we’re still here to help you.
Browse our range of cars in our online showroom, or give us a call to arrange an in-person meeting and test-drive some of our models.
You don’t need a perfect credit score, or be in full-time employment to apply for used car finance with us. You just need a reliable income and a realistic target of what you can afford every month. Checking your eligibility takes a few minutes and won’t affect your credit score. Concept Car Credit is a credit broker, not a lender.
Yes.
Benefits income alone does not determine whether you are approved. These other factors also come into the picture.
Credit history
A poor credit score makes approval harder, but it does not make it impossible. Lenders who work with benefits applicants understand that financial difficulty and credit history are often connected. What they want to see is that you can manage the payments now.
CCJs and defaults
A County Court Judgement or a default on your record will be considered, but it does not automatically disqualify you. Specialist lenders assess these on a case-by-case basis, particularly if they are older or already satisfied.
IVAs
If you are currently in an Individual Voluntary Arrangement, some specialist lenders may still consider your application. If your IVA is completed, your options are broader.
Bankruptcy
Active bankruptcy means you cannot legally enter a credit agreement. If you have been discharged from bankruptcy, lenders will assess your application individually. The longer ago the discharge, the better your position.
Affordability
This is the most important factor. Lenders want to see that your income, after your existing commitments, leaves enough for reliable monthly repayments. Benefits count toward that income calculation.
These steps will not guarantee approval, but they give your application the best possible foundation.
Monthly payments are lower because you are not paying off the full value of the car.
At the end of the term you choose to pay a final balloon payment and keep the car, hand it back, or use any equity toward a new agreement. PCP is less commonly available to benefits applicants because the credit criteria tend to be stricter.
Possibly, depending on which benefits you receive.
Some lenders will consider applicants on PIP or DLA even if they are not working, because these are long-term disability payments rather than temporary income. Universal Credit alone is unlikely to be sufficient as a primary income source without employment alongside it.
The amount depends on your income after existing commitments and what the lender considers affordable. There is no single figure. The eligibility checker will give you a clearer indication based on your actual situation without affecting your credit score.
No. Concept Car Credit offers 0% deposit car finance. A deposit will reduce your monthly payments and can improve your approval odds, but it is not a requirement. If you have savings you can put toward a deposit, it is worth considering. If you do not, you can still apply.
Once you submit your application, we will review your details and contact you to talk through your options. If we can match you with a suitable lender, we will explain exactly what the agreement looks like before you sign anything. There is no obligation at that stage.
Yes. Applying for joint car finance with a partner can combine your incomes and strengthen your application. A guarantor arrangement is also available for applicants who cannot qualify on their own. Ask our team about both options when you get in touch.
No. The eligibility check is a soft search. It gives you a clear indication of your options without leaving any mark on your credit file.
