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Is it possible get car finance when on a low income?

Here at Refused Car Finance, we can’t emphasise enough how important affordability is when getting approved for car finance. In fact, your ability to meet your monthly repayments is the most critical factor in qualifying for car finance. With that said you’re probably left wondering ‘how much do I need to earn to get approved for car finance’ and is it even possible to get approved if you have a low income?

How much must you earn to qualify for car finance?

Financial institutes have a moral responsibility to ensure that you can afford to repay your car finance. As a result, there isn’t an exact cut-off. Each lender has its own minimum requirements and car finance criteria. That said, we generally advise you’ll need a monthly gross income of at least £1,000.

This income can be made up of your wage and any additional benefits you receive. For example, if you work part-time and receive child tax credits, then the combination of these can be used as your income value.

I have £1,000, will I get approved?

Lenders will not approve your application on income alone. Credit scores also play a factor as do elements such as your age, how long you have lived in the UK, whether you have any CCJs or defaults, your current outgoings, and if you already have a car on a hire purchase agreement.

Even if you earn well above the £1,000 figure there is still no guarantee of getting that car finance approval. Although you are drastically increasing your chances with a higher income.

Do car finance lenders verify your income?

Once you declare your income on the application form, we can try and get the finance approval in place based on this information. Before the car finance can pay out and be used to purchase a vehicle, the lender will verify your income. They usually do this in the form of a banking link or bank statements which allows them to confirm your income.

You must bank your income for at least three months prior to applying to ensure that lenders can see proof of your income status. Often low-income earners and self-employed people struggle to get car finance due to a lack of proof of their income due to being paid cash in hand. If your income is in cash, you should deposit it into your bank account in full, (even if you immediately withdraw it), so a lender can see the proof this money existed.

With low income and bad credit, can I still apply for car finance?

It is the combination of your credit file and affordability that is your ticket to car finance. If you’re a low-income earner and have a bad credit score it is still possible. Many of our customers who fall into the ‘bottom’ band of credit scoring systems still get approved and take out finance.

We are dedicated to helping people with bad credit obtain car finance and have put together a specialist panel of lenders who offers finance packages for situations just like this. Most customers that seek our help have the combination of a poor credit score and low income. Therefore, when we say we specialise in helping customers with bad credit get approved, we also mean we help those with a lower income too.


If you feel ready, then we would love the opportunity to help you too. For any further questions hit that chat box and speak to a real person for some great advice. Otherwise, jump on to our application form, and let’s get the ball rolling.