Can You Get Car Finance Without Proof of Income?
Whether you’re unemployed or have a low income, if you want to apply for car finance, we’re here to help! We’ve answered all your questions around payslips, proof of income and more.
Can I get car finance if I am unemployed?
Yes, it's possible to get car finance even if you don’t have a job, but it may be more challenging. Lenders look at your ability to repay the loan, and being unemployed could raise concerns about your financial stability.
However, some lenders offer finance options even if you don’t have a current job. They take into account other factors such as your credit score and savings.
Having a large deposit can help, and getting a guarantor loan with someone with a steady income might also help you get approved.
Can I apply for car finance with low income?
Yes, you can apply for car finance with a low income. Income is just one of the factors that lenders look at when you apply for car finance. There is no set amount that guarantees you’ll be approved for car finance or that means you’ll be refused.
A range of factors are considered when you apply, including your credit score, borrowing history, loan type, loan amount, and type of vehicle that you’re looking to finance.
And, while a low income might make it more challenging to get a loan, some lenders offer finance options for people with low incomes.
It’s important to ensure that the monthly repayments fit within your budget. To get a good idea of what your loan would look like, use our quick and easy car finance calculator.
What documents do you need for car finance?
The documents needed for car finance may vary by lender. But, common documents include:
Proof of identity (such as a passport or driver's licence)
Proof of address (utility bills or bank statements)
Proof of income or benefits
If you're self-employed, you might need to provide tax returns or business financial statements. Some lenders may also request a copy of your credit report to assess your creditworthiness.
Do you need to show payslips for car finance?
While many lenders request payslips as proof of income, not all lenders do.
If you don't have payslips to show, you might still secure car finance by providing other documents.
For example, some lenders accept bank statements showing regular deposits. They might also accept tax returns if you're self-employed, and proof of benefits if you're receiving government aid.
What counts as income for car finance?
Income in the UK includes various sources of regular income, including:
Wages from employment
Self-employment income
Pensions
Benefits (such as Jobseeker's Allowance, Disability Living Allowance and Universal Credit).
Rental income
Investment income
Lenders may have their own criteria for valid income, so it's important to check with them first.
How long do you have to be in a job to get car finance?
There isn't a fixed duration you need to be in a job to get car finance, as requirements vary among lenders. However, having a stable employment history can strengthen your application.
Some lenders prefer applicants with a consistent job history of at least six months to a year. But others may be more flexible.
If you've recently changed jobs, it may help your application if you can provide proof of employment. This can be an employment contract or offer letter.
Can you get car finance with income support?
Yes, you may be able to get car finance while receiving income support. Some lenders accept income support as a valid source of income when evaluating loan applications.
But remember, not all lenders may have the same policy, so check with individual lenders to confirm their criteria.
At CarFinance 247, we know how important a car is for getting around. That’s why we work with lenders who offer car finance for people on benefits and other challenging financial situations.
I am on Jobseekers Allowance, can I get car finance?
Again, while you might struggle with traditional lenders, specialist lenders may offer you a loan if you’re on Jobseeker’s Allowance. To boost your chances of approval, the best thing you can do before you apply is to try and improve your credit score where you can.
We're on benefits and have bad credit. Can we get a car loan?
Yes, you may still be able to get a car loan if you're on benefits and have bad credit. But it might be more challenging, and you might find interest rates are higher.
Some specialist lenders can offer car finance options for individuals in your situation. At CarFinance 247, we also work with trusted lenders who specialise in bad credit car finance. They look at more than just your credit score and could help you secure a deal that works for you.
Do you accept DLA as guaranteed income for car finance?
Some lenders may accept Disability Living Allowance (DLA) as guaranteed income for car finance. However, not all lenders may have the same policy, so be sure to check first.
Providing other documentation, like bank statements or proof of benefits, may also help your application.