Car finance on benefits

At Zuto, we assess each car finance application on an individual basis depending on your personal circumstances. Because being on benefits means you have some sort of income, our panel of lenders takes this into account.

We like to help people find car finance whatever their situation, so here are a couple of key things to think about:

• Can you put down a deposit - if so, how much?While we do offer0 deposit car finance, a deposit can reduce your monthly payments, which makes 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 outhow to improve your credit ratingwith our useful guide.

Find outwhat costs to consider when buying a caror use ourcar finance calculatorbelow to see just how much you could borrow.

Zuto helps people on many types of benefits find car finance. Benefits are seen as your income, with commonly accepted types including:

• Employment and Support Allowance (ESA)– ESA is for those with a health condition or disability, affecting how much they can work. ESA replaced the Incapacity Benefit in January 2011.
• Personal Independence Payment (PIP) –PIP is for those with long-term health conditions or disabilities. It replaced the Disability Living Allowance (DLA) in November 2017.
• Child tax credits –child tax credits are provided to parents with dependent children. Dependent means you are entirely responsible for them and their main carer.

Can you get car finance on universal credit?

Universal credit is a benefit provided to low income households to support standard living costs. It is paid monthly and the amount you receive depends on how much you earn.

At Zuto, we take your personal circumstances into account, on an individual basis, to find you the right lender and car finance solution.

If a benefit isn’t listed above, we might still be able to help.Apply for car financewith no impact to your credit score orcontact usfor morehelp and advice.

We often help people who are on benefits find affordable car finance. However, it’s not always so straightforward, and the following factors could negatively impact your application:

• Bankruptcy– bankruptcy is a declaration that you can’t afford to pay back debts.
• Individual Voluntary Arrangement (IVA) – anindividual voluntary arrangementis a court-approved agreement centred around you paying back debts you already owe.
• County Court Judgement (CCJ)– acounty court judgementis an order that means a person must pay off a debt.
• Bad credit history– late repayments on other credit agreements could be a concern for lenders when applying for car finance on benefits.

If any of these apply to you, it’s still a good idea toget in touchwith us to see if we can help. Apply with no impact on your credit score, and we’ll let you know if you’re eligible forpre-approved car finance.

While it can be difficult to getcar loans for bad crediton benefits, it’s far from impossible.To improve your chances of qualifying for hire purchase financeor aPCP loan, we work with a broad panel of lenders.

If you have any questions about the process, pleasecontact usto talk to one of our team about your circumstances.

If you’re applying for car finance on benefits, it’s important get in touch with our team of experts 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.

If you’re approved, we’ll discuss your available options.