Where can I get car finance if I’m unemployed?

Approved by the Car Finance Advisory Board

Qualifying for car finance when you're unemployed can be difficult. When making a decision on a finance application all lenders will want to ensure that the person they are lending the money to is able to repay the car loan as agreed in the finance schedule. Having a regular income is a big part of this and, for a large part of the UK, this is achieved by employment.

In the past if you had a Good credit rating, but were unemployed, the lenders for people with Good credit ratings wouldn't look for proof of income. However, the changes that the FCA are introducing means that even these lenders will want to see a form of income. This makes it very difficult for people who are unemployed to be accepted for car finance.

If you're unemployed and have a Good credit rating, we may be able to help you if you're able to get a Guarantor to make the application with you. When a lender looks at your application they'll also assess the Guarantor; if they're in a strong financial position, you may be accepted for finance.

Unfortunately most lenders will not accept Jobseekers Allowance as a form of income and therefore when applying for a car loan, being unemployed is not the strongest position to be in.

Please read our income section for more information.

Can I get car finance with no employment history?

If you have no employment history you're likely to struggle to be accepted for car finance. Most lenders will struggle to lend you money as they'll be concerned about the car loan being repaid without the borrower having a regular source of income.

Additionally we don't currently have any lenders that accept Jobseekers Allowance as a form of income. This is because Jobseekers Allowance is meant to be a temporary support tool, meaning the lender will not see this as a long term source of income.

If you're in your first job with no previous employment history, you'll need to wait between three and six months before applying for finance as the lender will want to see that you're employed in a secure job.

Can you offer guaranteed car finance for the unemployed?

Unfortunately there is no way that we can guarantee a car finance acceptance for someone who is unemployed. If you've found sites that do promise this, we would advise you to carefully research the product they are offering before making an application.

The only companies that truly guarantee a car loan are those that insist on selling you one of their vehicles at the same time. You will also be charged incredibly high interest rates for the privilege of being accepted. Even with these companies there are still cases where they will not provide finance options if your credit history is very poor.

We have the widest range of lenders in the industry and are able to help most customers obtain finance. What we won't do is guarantee that we'll get you an acceptance, as we don't feel that it's fair to mislead anyone into a finance application on false pretences - we firmly follow our Ethical Lending policy.

If you can’t find the topic you’re looking for here, please take a look at the rest of our Help section on employment or speak to one of our Customer Advisors today by using our LiveChat service.

Published: 16/05/2016
Last Updated:31/01/2019
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