Car finance with a disability
Car finance is an accessible and helpful option for many people, including those with disabilities, who are looking to buy a car without paying for the whole vehicle outright. If you're wondering whether you can get car finance while on disability benefits, or by using your PIP payment or mobility allowance, we’ve filled this guide with lots of helpful information about disability car finance and how it works in these circumstances.
Can you get car finance on disability?
Yes, it is possible to obtain car finance if you are living with a disability and receiving disability allowances or benefits. Lenders consider various factors such as income, credit score, and expenses when assessing applications. Some lenders may take disability benefits into account if they are regular and reliable, but approval will depend on the lender’s criteria. Here at Car Finance 247, we work with a panel of lenders, some of whom consider car finance for people on benefits. While we can explore potential options, approval is subject to lender criteria and individual financial circumstances.
Do benefits count as income for car finance?
Yes, certain types of benefits, such as disability benefits, Personal Independence Payment (PIP), or mobility allowance, can be counted as part of your income when applying for car finance. Lenders will want to see a steady and consistent source of income, so these benefits can contribute positively to your application.
Can I get car finance with a DAS?
If you are on a Debt Arrangement Scheme (DAS), getting car finance might be more challenging. Lenders often view a DAS as an indicator of financial stress, which could affect your ability to pay back a loan. However, there are lenders who might consider your application depending on your overall financial situation. Here at CarFinance247 we also work with a large panel of lenders, some of which specialise in bad credit car finance, as well as car finance with CCJs and defaults, so we may be able to help if you reach out and apply with us.
Can I get a car with my PIP payment?
Some lenders may consider Personal Independence Payment (PIP) as part of your income when assessing a car finance application. However, approval will depend on lender policies and your overall financial situation. Some schemes, like the Motability Scheme in the UK, allow you to lease a car using your PIP or other disability benefits. This could be an option worth exploring if you receive these benefits.
Can I buy a car with my mobility allowance?
Your mobility allowance can be used to lease a car through the Motability Scheme. This scheme offers a range of vehicles that are accessible and suited to your needs. It works by using your mobility allowance as a form of payment for leasing a car, and you may also be eligible for adaptations to the vehicle if you need them.
Can you get car finance when on benefits?
Some lenders may consider benefits as part of your income when assessing a car finance application. However, approval will depend on lender criteria, credit history, and affordability assessments. The key is to provide proof of steady income from your benefits, which lenders can take into consideration when evaluating your application.
Can I use my benefits as income for car finance?
Yes, you can use your benefits as income when applying for car finance, so long as they are regular and reliable. This includes disability benefits, PIP, and other similar sources of income. Make sure to have documentation ready to prove your income and benefits when applying, as lenders will ask to see these to prove you have a steady and reliable income.
How does car finance for people on benefits work?
Car finance for people on benefits works similarly to other car finance applications. You will need to provide proof of income, including benefits, and you may need to demonstrate a stable financial situation. Lenders will evaluate your application based on your income, credit history, and other expenses. If approved, you may be able to secure a loan or lease a car through special programs such as the Motability Scheme.
Hopefully this guide has been helpful in answering your questions about car finance for disabled people and those receiving disability benefits. Car finance may be an option for people with disabilities and those receiving benefits, provided they meet the lender's criteria. Some specialist lenders may consider applications from people on benefits, but approval is based on individual financial circumstances.