Many people come to Get Me Car Finance worried that because they are on benefits thats they cant get a car. FCA state that "A firm whose business model is predicated on selling products to customers who can’t afford to repay them is not acceptable, nor is it a sustainable long-term strategy." So come to us and prove you can afford car finance and we can ensure you get the best offer for your circumstance.
We will be honest with you, you maybe able to afford car finance, however you may have a terrible credit record, you would be right to question whether giving a car loan to someone who has a poor credit record would be crazy, however it really depends why its a poor credit record.
If you are sat there with 15 recent missed payments and have become bankrupt, then really, you need to be asking yourself why you would need a car loan and who would honestly lend to someone who has such a poor record of payment.
Back to Car Finance on benefits - the easy answer is yes, we do lend to people on benefits who can afford the payments and have not had too much of a tainted past. So press the apply online button below to start your journey.
Purchasing a car can be a significant financial commitment, and for individuals receiving benefits, the process may seem daunting. However, securing car finance while on benefits is not impossible. With a clear understanding of your options and some essential considerations, you can explore avenues to make car ownership more accessible. In this article, we will provide a guide to help you navigate the process of obtaining car finance while on benefits.
Understand Your Financial Situation:
Before embarking on the car finance journey, it's crucial to have a comprehensive understanding of your financial situation. Evaluate your benefits, income, and expenses to determine how much you can afford to allocate toward car payments each month. This assessment will assist you in setting a realistic budget and avoid taking on more debt than you can comfortably manage.
Research Lenders Specializing in Car Finance for Individuals on Benefits:
While mainstream lenders might have stringent eligibility criteria, there are specialized lenders who cater to individuals on benefits. These lenders understand the unique circumstances and may be more willing to work with you. Research online or contact local financial institutions to identify lenders that offer car finance options for individuals receiving benefits.
Consider Guarantor Loans:
If you face difficulties securing car finance independently, another option to explore is guarantor loans. In this arrangement, a family member or close friend with a good credit history agrees to guarantee the loan on your behalf. This provides added security for the lender and increases your chances of approval. However, it's crucial to maintain open communication with your guarantor and ensure that both parties understand the responsibilities involved.
Explore Motability Scheme:
If you receive specific disability benefits, you may be eligible for the Motability Scheme. This scheme allows individuals to lease a car, scooter, or powered wheelchair in exchange for their mobility allowance. The Motability Scheme offers a range of vehicles to choose from and covers various costs such as insurance, maintenance, and breakdown assistance. Check if you qualify for the scheme and explore the available options.
Improve Your Credit Score:
Having a good credit score can significantly improve your chances of securing car finance on beneficial terms. If your credit score needs improvement, focus on enhancing it before applying for car finance. Pay your bills on time, reduce outstanding debt, and rectify any errors on your credit report. A better credit score demonstrates financial responsibility and may help you negotiate better loan terms.
When applying for car finance, gather the necessary documentation to support your application. This typically includes proof of identity, address, income (benefits statements), and any additional relevant information required by the lender. Being organized and providing complete and accurate documentation can streamline the application process and enhance your credibility as a borrower.
Obtaining car finance while on benefits may present some challenges, but it's not an insurmountable task. By understanding your financial situation, researching specialized lenders, considering guarantor loans, exploring the Motability Scheme, improving your credit score, and preparing documentation, you can increase your chances of successfully acquiring car finance. Remember to carefully assess your budget and choose a vehicle and loan terms that align with your financial capabilities.