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?

Getting car finance while unemployed can be challenging, as 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?

You can apply for car finance with a low income, but approval will depend on affordability checks and lender policies. Some lenders may consider lower-income applicants, but securing finance may be more difficult, and interest rates may be higher.

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?

You may be able to get car finance while receiving income support. Some lenders may consider applications from individuals on income support, but policies vary. Approval will depend on the lender's criteria, affordability checks, and additional sources of income.

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 a panel of lenders who consider car finance for people on benefits and other challenging financial situations. However, approval depends on lender criteria, affordability checks, and individual circumstances.

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?

If you're on benefits and have bad credit, car finance options may be limited, and interest rates may be higher. Some specialist lenders may consider applications based on affordability and other financial factors.

At Car Finance 247, we also work with a panel of 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 and your circumstances.

Do you accept DLA as guaranteed income for car finance?

Some lenders may consider Disability Living Allowance (DLA) as part of your income when assessing a car finance application. However, policies vary, and approval depends on the lender's criteria, so be sure to check first.

Providing other documentation, like bank statements or proof of benefits, may also help your application.