Handing over car keys

Car finance on benefits

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    Apply today with no impact on your credit score
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    All credit histories considered
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    Benefits seen as part of your income

Zuto is a credit broker, not a lender. Our rates start from 10.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £6,500 over 48 months with a representative APR of 19.9%, the amount payable would be £192 a month, with a total cost of credit of £2,712 and a total amount payable of £9,212.

Can I get car finance on benefits?

Yes you can. It depends on your personal circumstances, but being on benefits means you have some sort of income. Zuto and our panel of lenders take this into account.

We like to help people find car finance whatever their situation. There are three key things to think about:

  • Can you put down a deposit? If so, how much? A deposit can reduce your monthly payments and make them more affordable.
  • Do you have a good credit score? The better your credit score, the more likely it is you’ll get approved for car finance. You can find out how to improve your credit rating with our guide.

Find out how much it costs to run a car or use our calculator below to see how much you could borrow.

Car finance calculator

See how much you could borrow

What type of benefits are usually accepted?

Zuto helps people on many types of benefits. Benefits are seen as your income and common types include:

  • Employment and Support Allowance (ESA) – for those with a health condition or disability, affecting how much they can work. ESA has replaced Incapacity Benefit.
  • Personal Independence Payment (PIP) - for those with long-term health conditions or disabilities; replacing Disability Living Allowance (DLA)
  • Universal Credit - support to cover living costs. 

If your benefit isn’t listed, we might still be able to help. Apply for a quote or contact us for more help and advice.

What could affect my eligibility?

We often help people who are on benefits but the following factors could negatively impact your application for a car loan:

  • Bankruptcy – a declaration you can’t afford to pay back debts.
  • Individual Voluntary Agreement (IVA) – a court-approved agreement to paying back debts.
  • County Court Judgement (CCJ) – a court order that means a person must pay off a debt.
  • Bad credit history – late repayments on other credit agreements could be a concern.

If any of these apply to you, it’s still a good idea to get in touch with us to see if we can help.

Car finance on benefits with bad credit?

It is difficult – but possible - to get car finance with bad credit and on benefits. You can find out more about getting a car loan with bad credit with our guide.

We work with our panel of lenders to find the best deal for everyone, whatever their personal circumstances. Please contact us to talk to one of our team about your circumstances.

What happens next

Get in touch to find out what we can do for you.

  1. Speak to us about your situation over the phone.
  2. Our team can discuss with you the best way to proceed.
  3. We can run a tailored search across our panel of lenders.
  4. If you’re approved, we’ll discuss your available options.

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