Car finance for people on benefits in 2021

At Refused Car Finance we are dedicated to helping people get car finance on benefits. In 2021, on the back of the COVID-19 outbreak, many of us Brits have found ourselves furloughed or even made unemployed. The Bank of England is expecting unemployment to continue to rise to 7.75% should the Government not extend job support into the summer.
With so many of us seeing a cut to our income and an increase in our benefits more and more people are looking to get car finance on benefit-only income. How does this impact your chances of getting approved?

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Car finance on benefits

Car finance on benefits explained

If you’re wondering if you can get car finance on benefits, then the simple answer is ‘yes’! We can help you obtain car finance by matching you up with our panel of specialist lenders. Whether you are claiming child tax credits or disability allowance, we can get you the best car finance deal.

We make the process super simple. Just visit the apply page and fill in our short form. From there we will work hard to get you the best car finance deal. As a broker, we have put together a panel of lenders who we think are best positioned to help you get the car finance deal you want with your benefits. Once you have chosen which lender you want to proceed with then you could be driving your car away the same week!

Get Car Finance on Benefits Today

Applying does not impact your credit score as we use a soft search.

What forms of benefits does Refused Car Finance accept?

We accept car finance applications from people on the following forms of benefits:

Disability Allowance

You can get car finance on disability benefits. If you are in receipt of Disability Living Allowance (DLA),  then this can be used as a form of income which is accepted by a lot of our car finance lenders. 

Carer’s Allowance

If you receive carer’s allowance then we have got a a fantastic panel of car finance experts here at Refused Car Finance who can match you up with the most suitable car finance lenders. 

Child Tax Credits

If you receive child tax credits and are wondering if these can be used towards your car finance application then we are delighted to tell you – yes! 

Working Tax Credits

Working tax credits are accepted by our car finance lenders. If you are in receipt of this form of benefits then you can absolutely include them on your application and have a great chance of being approved. 

Personal Independent Payment (PIP)

We often get asked whether PIP is included in the types of benefits that can be used when applying for finance. The answer is yes!

How it works

Applying for car finance on benefits is super simple!

apply for car finance with benefits

Send your application

Fill out our application form entering your benefit incomes as a full sum in the “income” box. This is your income after tax, including and wage and benefits you receive.

relaxing car finance

Sit back and relax

Put your feet up as our team of car finance experts work to find you the most suitable deal. We have chosen a specialist panel of lenders who have a great track record of approving applicants with benefits, so we are confident we’ll find you a great car finance package.

benefit income piggy bank

Choose your deal

Once we have found you the best car finance packages for you we will let you know. From there you just have to pick which deal is the most suitable for you. You may be looking for a no deposit option, or after a certain loan value. 

What about benefit income and bad credit?

car finance with benefits and bad credit

As bad credit car finance specialists we’re no strangers to helping people with a less than perfect credit score get approved.

If you’re in receipt of benefits and are looking at a bad credit score you may be worried, but we can help!

Due to our wide panel of specialist lenders we’re able to help you if you want car finance on benefits and have a bad credit score. Not only do we have a fantastic panel of lenders but our in house team of car finance experts are incredibly skilled at matching you up to the perfect lenders and getting you that approval you need. We don’t have a 98.4% approval rate for nothing.

This includes if you are on benefit only incomes and have been refused car credit elsewhere. We are able to do this because we offer customers car loans based on affordability and not a credit score alone.

How much can I borrow?

When you are unemployed and in receipt of benefits it can alter the amount you can borrow. One of the most important factors for getting car finance is your affordability. All car finance providers will want to ensure you can afford to meet your repayments. If your benefit income is substantial enough to cover your expenses and allow you to still cover the monthly repayments comfortably then there should be no issue.

For the actual amount you can borrow, this changes on an individual basis, and unfortunately, we can’t give you exact numbers. When you apply on our site, our car finance experts will be able to look over your specific situation and advise which finance packages you would likely qualify for and how much this would be a month.

You’re not alone

We have helped thousands of people just like you who are looking to get car finance with benefit income. Why not join them and get into your next car in a matter of days? 

Within 4 minutes of speaking with his personal car finance expert he got approved with not one, not two but three of our lenders! Read Darren’s car finance story


Liverpool, Volkswagen Passat

“I wanted a Zafira 7 seater as I needed the room for the kids and a reliable car.” After reading up on ourselves and our competitors Sally decided to go with Refused Car Finance “because they offered me the best APR compared to other finance companies”. Read Sally’s car finance story


Wirral, Vauxhall Zafira

If you meet the following criteria then we can get you car finance with benefits!

Been a UK resident for three or more year
Are 18 or older
Are able to prove you can afford car finance
Are not bankrupt
Have a full UK driving licence

Refused Car Finance Reviews

4.87 Average

236 Reviews

Alex S

Fantastic service! Dan was really helpful and found me the exact car I wanted! The whole process was really simple and fast. I would definitely recommend them, 100%!

Rosie Henderson-Gaines

Great service!


Isaac was fabulous right from the initial enquiry until the completion. Kept in touch every step of the way and nothing was too much trouble

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