Representative 30.9% APR
Yes, you can get car finance if you're on benefits but it all depends on your wider financial situation and the lender you apply with. Some finance providers, like banks, don't accept benefits as a valid source of income. But we're proud to say that we do! If you rely on a Disability Living Allowance (DLA), Personal Independence Payment (PIP), or another form of recurring, long-term financial support, we're happy to help if we can.
At First Response Finance, we look at your full financial picture to work out what you can comfortably afford - whether you're receiving benefits, employed, or both. We'll look at your income, but also other factors like your credit history when reviewing your application. We try to be flexible, so you can get the car you need.
The car finance loans we offer are all Hire Purchase (HP) agreements. We'll consider your application like any other, taking into account your regular income (from benefits and/or employment), credit history, and a number of other factors.
If we're happy to approve your car finance application while you're on benefits, the next steps look like this:
Just so you know... you might not need to pay a deposit depending on the car you're buying and your credit limit.
It's different for each person and every application. Generally, the total cost of car finance depends on factors such as:
Car finance for someone on benefits doesn't automatically mean they pay a higher interest rate. But if you also have bad credit or another factor that increases the risk for the lender, it may cost more to borrow the money. Use our calculator tool below to get a better idea of monthly payments and total amounts payable.
There's no commitment if you get a quote and no hard credit search that could impact your credit score at this stage.
Select the option that best describes your credit rating.
There are no additional fees
Representative
28.9% APR
We use Experian, one of the UK's top credit reference agencies, to run our credit checks. This helps us to understand your credit history, which is one of several factors we take into consideration when making a decision on your approval for vehicle finance.
It all depends on your situation and your choice of lender. Our Head of Underwriting, Craig, shares his perspective:
"You might think being on benefits means that lenders will always turn you down. This is true with some car finance providers. They'll likely be hesitant to take on the risk of missed payments with a more unstable or lower income. But we take a different approach at First Response Finance. We know that being on benefits doesn't mean you can't afford a car or afford the repayments for a car finance loan. So long as you can comfortably afford the repayments with a steady source of income, we'll do what we can to make sure you get the car you need."
Applying for car finance if you're on benefits is quick and easy. Just follow our usual application process:
Complete our quote form online. You'll hear back instantly about your eligibility and get an idea of how much your repayments might be. There's no commitment and no impact on your credit score here.
We’re authorised and regulated by the Financial Conduct Authority (FCA).
We're committed to treating customers fairly and giving clear, honest information so you can trust us to put your best interests first every step of the way!
'Benefits' is the term used to describe financial assistance or support provided by the government to individuals or families who need it. They're designed to make sure that everyone can maintain a basic standard of living, regardless of their circumstances.
They generally help cover essential living costs for people who are looking for work, on a low income, or unable to work because of a disability or health condition. But there are many different types of benefits for specific needs and purposes.
Most benefits are paid directly into your bank account. Some, like Council Tax Reductions, are taken off your usual Council Tax bills. You can receive them weekly, bi-weekly, or monthly, depending on the type.
The latest figures from the Department for Work and Pensions (DWP) suggest that 24 million people claim one or more DWP benefits in 2025. That's around a third of the UK population and includes people of all ages.
There are several types of benefits available to people in the UK. These include:
Universal Credit: a monthly payment to help with living costs if you're on a low income or out of work. This scheme replaced some older benefits such as the Housing Benefit, Income Support, and some forms of Jobseeker's Allowance and Employment and Support Allowance.
Jobseeker's Allowance (JSA): this can give you some level of income while you're actively looking for work. If eligible, you can get Universal Credit and JSA at the same time.
Employment and Support Allowance (ESA): financial support available if you have a disability or health condition that limits how much you can work. You can apply whether you're employed, self-employed or unemployed.
Personal Independence Payment (PIP): for individuals with long-term mental or physical health conditions or disabilities. You're more likely to get a PIP if you have difficulty doing everyday tasks or getting around because of your condition. This type of benefit is replacing the Disability Living Allowance (DLA) for most adults.
Child Benefit: financial support for those responsible for raising children under 16 (or under 20 if in full-time education or training). This is just one type of support given to families and parents.
Carer's Allowance: you can get financial support if you care for someone at least 35 hours a week and they also get certain benefits. You don't have to be related to the person or live with them to claim this.
Pension Credit: separate from the basic State Pension, you could get this if you're over state pension age with a low income.
There are many more types of benefits for different people and circumstances. Check Citizens Advice to see what benefits you could be eligible for.
In most cases, you don't have to pay benefits back. Most are designed as financial support rather than loans or credit. But certain benefits may be subject to repayment if you were overpaid because of an error or if you were ineligible but received payments.
For example, overpayments from Universal Credit usually need to be repaid, but this may just be deducted from future payments. If your circumstances changed and you didn't report it, you may need to repay money if the change made you ineligible for a certain type of support. You do have the right to challenge a decision of overpayment, though.
Benefits generally aren't permanent. Some are designed to provide short-term support, such as Jobseeker’s Allowance or Universal Credit during a period of unemployment.
Others, like Pension Credit, Disability Living Allowance, or Personal Independence Payment, can continue for a longer period. These are reviewed periodically to ensure eligibility. If your circumstances change, you may need to reapply or update your claim to reflect those changes.
Receiving benefits doesn't mean you can't afford car finance - we get that. Our car finance agreements for someone on benefits could help you get on the road.
Some lenders may automatically reject an application with benefits listed as income. But not us. We take the time to look at the bigger picture, considering all your income sources and what you can actually afford. Whether you're living on disability benefits, a Personal Independence Payment (PIP), or another form of steady, long-term financial support, we may be able to help.
There are plenty of other reasons to choose us, too:
We're SAF Approved by the Finance & Leasing Association (FLA), which means that all of our customer-facing employees have passed the Specialist Automotive Finance (SAF) Expert test. This ensures our team members have all the relevant knowledge to advise you on available finance products and help find the right one for you!
Receiving benefits doesn't mean you can't get the car you need! Get a quick and free quote today - it won't affect your credit score.
This page was last reviewed in August 2025.
First Response Finance is a responsible vehicle finance lender, and all decisions are made in the best interests of the customer; based on credit scores, status, and income at the time of application. We'll never approve an application if we believe you might struggle with repayments.
Get independent advice on money, finance products, debt management, and budgeting through Citizens Advice and MoneyHelper.
