Car finance calculator for bad credit

Good credit
Bad credit
Amount to borrow:
£
To repay over:
5 Years
Car finance rate XX% APR
Cost of credit £ XXX
Total repayment £ XX,XX.XX
48 monthly payments of
£ 245 /mo

Representative example - Borrowing £5,500 over 4 years with a representative APR of 19.8%, and a deposit of £0, the amount payable would be £162 per month, with a total cost of credit of £2,282 and a total amount payable of £7,782.

Carplus will find the best car loan rate from our panel of lenders and will offer you the best possible deal. We don’t charge fees, but we earn a commission. This does not influence the APR you’re offered in any way.

We compare car finance deals for you

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As of August 2020, over 22.8 million people claimed benefits from the Department for Work and Pensions in the UK. Over 9.5 million of those were of working age, which is a rather large percentage. However, for many of those who dream of getting a car, it is unclear how receiving welfare benefits affects an individual’s eligibility for car financing. If you are still unsure whether it is possible to receive car finance for people on benefits.

Can you get car finance on benefits?

The short answer to the question of whether car finance for people on benefits is available is “yes.” Receiving benefits is a common practice that won’t be able to stop you from fulfilling your dream of getting a car but may complicate the process of financing it.

At Carplus, we strive to provide every person with an opportunity to get car finance. That is why we handle car finance cases for clients who have bad credit, no guarantor, disability allowance, and other complex life circumstances. Therefore, we certainly can help you get car finance on benefits - read ahead for all the details!

How does car finance for people on benefits work?

Even though qualifying for car finance on benefits is typically trickier than for an employed individual, there is a way to make it possible. Carplus selects reliable lenders for you that are ready to provide you with car credit even if you are receiving benefits. We will provide you with the best car finance deals and a transparent monthly payment plan appropriate for your budget.

Can I Get Car Finance If I Am on Benefits and Have Bad Credit?

Absolutely! Receiving car finance on benefits or when having a bad credit history is possible with Carplus. Our professional team understands that even if you have been in a difficult financial situation before, it doesn’t mean that your budget is not suitable for a car purchase now.

We cooperate with more than ten reliable lenders that are willing to provide bad credit car finance and financial solutions for those on benefits. For more information on your specific case, do not hesitate to request a quote.

How much can i borrow?

There is no unified allotment of car finance available to all. Since every client has a unique story and personal goals, the loan amount will vary from customer to customer. Therefore, a good practice is to come to a clear understanding of how much money you need and request a quote from our professionals. The form on our website enables you to request a sum anywhere from £3,000 to £50,000.

We will then review your application and come up with an estimate that matches both your requirements and the lenders’ policy. The moment your request is processed, you will receive a personalized quote that contains an exact estimate of the car finance amount you qualify for.

How can you get car finance on benefits?

If you have been denied of the traditional ways of getting car finance on benefits, don’t despair. Carplus has years of experience in assisting clients in finding the best offers and achieving their car purchase goals.

All you have to do is have an idea of what kind of vehicle you would like to obtain, how much it costs, and what additional expenses you may need to bear. Those may include tax, insurance, and maintenance costs and can affect the vehicle’s affordability drastically.

After you have those details set in your mind, you can apply for a free quote on our main page.

You will need to state the following information:

  • The sum of the car finance loan that you require
  • The type of vehicle you would like to obtain
  • The driving licence you have
  • Your marital status
  • Your ID type and age

After you provide all the basic details about yourself, you will be asked to select the type of income you are receiving. Select “Benefits” if it is applicable to you and proceed to the next step so that Carplus can start handling your request and get back to you within the shortest time frame. Therefore, applying for car finance on benefits can be a fast and simple process if you choose the right provider.

What type of benefits do we accept as income?

Carplus is a versatile company that offers flexible solutions to clients with varying financial circumstances. We have experience working with customers receiving the following benefits:

These benefits will be counted as your income when you fill out your application for car finance.

What will affect your eligibility?

We only do a “soft” credit check on every client, which does not have any impact on the credit rating and increases the chances of having the car finance request approved. However, there are several critical circumstances that may put your eligibility for car finance on benefits at risk, such as:

  • Bankruptcy. Unfortunately, we cannot proceed with the applications of those clients who are currently in a state of bankruptcy. However, if the bankruptcy title was discharged, we will gladly process your request.
  • Being unemployed. Even though we deal with car finance for unemployed people, we can only approve those applicants who are receiving PIP or DLA.
  • Having a County Court Judgement (CCJ). A CCJ will not always prevent the acceptance of your application, yet the chance is still there. We recommend that you submit your request so that we could review it and make a decision based on your individual case.
  • Overdue repayments. Failing to cover your instalments on time may result in a challenge when it comes to your car finance application. A lot of lenders avoid borrowers who fail to make timely monthly payments, so it is best if you fix any outstanding instalments as soon as possible.
  • Having an Individual Voluntary Agreement (IVA). Having an IVA that was settled in the past has zero influence on you getting car finance. However, applicants having an IVA at the moment will have to provide us with official written permission from their insolvency practitioner before their request is approved.

If you are still not sure about your eligibility for car finance on benefits, reach out to us for more information!

Do we offer guaranteed car finance on benefits?

No finance company can guarantee car finance on benefits, as the decision-making process in every case depends on a variety of factors. Besides, it is against the law to advertise guaranteed car finance.

However, what we can guarantee is that our team at Carplus puts maximum effort towards helping every customer achieve their car credit goals. As long as you fulfil all the necessary criteria, you are highly likely to receive the funds you need to finance the purchase of a vehicle.

How can i boost my chances of approval?

Even if it seems that your request for car finance on benefits will not be approved due to previous negative experience with traditional financing methods, we do recommend you submit your application at the Carplus website. Besides, there are things you can do to improve your chances of getting car finance by doing the following:

  • Join the electoral roll (which is easy to do online in just five minutes). Not only does this suggest that you are an active citizen, participating in democracy; it also verifies your identity and details in the eyes of the authorities. Not being on the electoral register will can’t doubt in the minds of lenders and significantly harm your credit score.
  • Improve your credit score. The higher your credit rating, the higher the probability of you receiving car financing. Cover all outstanding debt, make timely payments on existing loans, and build your credit file.
  • Joint loan application. This type of loan enables you to divide the expenses between two people. Joint loans are typically more affordable, as you share the payback responsibility.
  • Guarantor car finance. Having a person who takes the responsibility of paying back the loan if you fail to do so makes you more attractive as a borrower for many lenders.
  • Pay-as-you-go car finance. With PAYG finance, you will be required to make an initial payment, alongside monthly payments. Besides, you will have a box that prevents you from driving if the instalments are overdue. This type of car finance is fairly easy to avail of.
  • Borrow a smaller amount. Small sums of money are easier to pay off, which makes lenders give them out more willingly.

Thus, there are plenty of ways to boost your likelihood of getting your car finance on benefits application approved!

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