Car Finance on Benefits

Rates from 29.7% APR
40.9% Representative APR -
Subject to status and affordability

Can I use my benefits as income for car finance?

Being on benefits doesn’t mean you can’t get car finance.

Many people think that if you are receiving benefits, your income is not credible when getting a car loan.

We understand that some people receiving benefits have a steady income, and we welcome those people to apply for car finance on benefits with us.

Here at Go Car Credit, we could provide car finance for people on benefits. Unlike some other lenders, we take benefits into account when calculating your income, and we can also help if you have experienced bad credit.

All circumstances are considered – benefits, CCJs, defaults, arrears, self-employment – and we can also offer car finance for the unemployed. Whatever your situation, we can help, and you can choose from a wide selection of quality used cars from our list of approved dealers throughout the UK.

car finance calculator

application tracker

Representative example – Total amount of credit £9,000, annual interest rate 21.75% (fixed), charge for credit £10,092.32 (£9,787.32 interest, £295 admin fee and £10 option to purchase fee), total amount payable £19,092.32. Loan term of 60 monthly instalments, 59 payments of £318.04 and 1 final instalment of £328.04. 40.9% Representative APR – Subject to status and affordability

The Application Process

When you come to us to apply for car finance on benefits, after passing initial checks, a decision will be made by a real person, not solely based on a computer score. Which means we can look at your current financial situation and take into consideration any benefits that you may receive.

Repayment plans are worked out on affordability, after all other outgoings have been accounted for, and every case is dealt with on an individual basis.

So, if you’re wondering about how car finance on benefits works, if you’re eligible and how you can apply, look no further! At Go Car Credit, we’re committed to delivering a friendly, professional and helpful service, which is why we’ve endeavoured to answer any questions you might have about car finance for people on benefits right here.


Can you get car finance on benefits?

Being on benefits does not exclude you financially from receiving a car loan.

Statistics show that about 20 million people were claiming benefits from the Department of Work and Pensions as of August 2023, which is a sizeable chunk of the country’s population.

So, if you are claiming benefits, you’re certainly not alone. At Go Car Credit, we believe that you shouldn’t be denied the chance to get behind the wheel of your dream car due to your financial situation or credit history.

That’s why we could offer car finance on benefits to a range of people, including those who receive disability allowance, carers allowance and personal independent payment. The process of buying a new car ought to be exciting, which is why we’re here to try to help make your life as simple and as stress-free as possible.

How can you get car finance on benefits?

With Go Car Credit, applying for car finance for the unemployed or those on benefits couldn’t be easier. You can fill out your application online in a matter of minutes — all we need is a few basic personal details. Once that part is complete, you’ll be able to keep an eye on the progress of your application via our tracker. After we’ve given you a decision, we’ll then require details on your vehicle of choice before we reach the e-signing and completion phases of the process. However, please note that if we approve you for finance, you are under no obligation to accept — there’s no pressure, it’s entirely your decision.

If you want to work out how much your monthly payments might be, you can head to our online car finance calculator. Simply adjust the loan amount and the length of time, and we’ll let you know how much you can expect to pay out each month. Obtaining car finance on benefits with Go Car Credit really is a breeze!


How does car finance for people on benefits work?

Our finance for people on benefits is designed for those who want to purchase a vehicle but might have a poor credit history and therefore cannot secure funds through more traditional sources. Once your application has been completed and approved by us, we’ll provide you with an affordable monthly payment plan – a straightforward and convenient method of financing your car in line with your budget.

We would recommend thinking carefully about all the costs associated with owning a car – from tax and insurance to fuel and general maintenance. All of these things will have a direct impact on the affordability of your vehicle, so it’s worth careful consideration before you set your heart on a certain make or model.

Car finance on Universal Credit

6.4 million people were on universal credit in January 2024.

Many people who are claiming this benefit may need a car, but might not be able to afford buying a car outright with cash.

Car finance could be a suitable alternative, but if you find you are struggling to secure car finance, this could be due to other lenders strict income eligibility criteria.


Can you get car finance on Universal Credit?

Yes, as car finance on benefits specialists, we have the flexibility to include your universal credit as income when reviewing your finance application.

We will ask you to provide breakdown of your universal credit benefits and we will take this into consideration apart from housing benefits which we exclude as income.

What type of benefits do we accept as income?

The following will be classed as sources of income when you apply for car finance on benefits:

  • Income support
  • Child tax credits
  • Working tax credits
  • Housing benefits
  • Disability allowance (DLA)
  • Carers allowance
  • Personal Independent Payment (PIP)
  • Universal Credit

What will affect your eligibility for car finance on benefits?

We are happy to consider providing car finance for people on benefits, but the following factors could impact your ability to successfully apply:

  • Late repayments: If you have fallen behind your repayment schedule on other credit agreements, this could harm your chances of making a successful application. It could be worth doing everything you can to get back on track quickly and making sure your instalments are being paid on time.
  • Having an IVA: If you have an IVA (individual voluntary agreement), we are unable to help you secure finance at this time. If you’ve previously had an IVA which has now been settled, that will not affect your chances of securing car finance on benefits with us.
  • Bankruptcy: If you are in bankruptcy, we will be unable to approve your application. If you were in bankruptcy previously, and it has since been discharged, you are welcome to apply for finance with us.
  • Having a CCJ: If you have an outstanding CCJ (county court judgement) against you, that does not necessarily prevent you from applying for car finance with us. We will still review your application.
  • Unemployment: We do offer car finance for the unemployed, but please note that if that applies to you, you must receive DLA or PIP to be considered.

For anyone who wants to know more about how to handle your finances, manage debt or improve your credit rating, why not head over to our guides section. It contains plenty of useful information relating to the process of applying for car finance on benefits, so why not check it out and perhaps edge yourself one step closer to getting a new set of wheels.

Why choose Go Car Credit?

Here are just half a dozen reasons to consider Go Car Credit when seeking car finance on benefits:


We are fully regulated by the Financial Conduct Authority (FCA), which means we must abide by their stringent rules when providing our customers with finance, so you can be sure that with Go Car Credit you have come to a wholly trustworthy and reliable company.


Our ethical philosophy is the underlying factor that runs through all of our dealings with our customers. We have a duty of care, and we do everything in our power to uphold that at all times. We are professional, experienced and accomplished in this industry, so you can rest assured that you’ll receive a premium service when coming to us for your car finance on benefits.


We appreciate that applying for finance needs to be a two-way conversation, which is why we offer you as much help as possible while encouraging our customers to provide feedback on anything we might be able to improve on in the future.

Excellent reviews

A huge part of that process is receiving comments from consumers on Trustpilot, where we have been praised for our “amazing service” which was “very clear-cut, and easy to understand” – just two examples of our superb customer testimonials.


We do not discriminate when it comes to considering applications for car loans for people on benefits. Treating everybody equally is central to our philosophy, and we deal with all our customers on an individual basis, doing all we can to meet their specific needs.


We understand that, for some people, applying for car finance on benefits can feel like a daunting and complicated process. That’s why we’ll communicate in plain English, without any technical jargon, to help ease you through.

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