Car finance while on benefits

elaina79

We are currently on benefits as my hubby gets DLA and I am his carer full time. We are looking to buy a car in the near future, but were wondering what finance options were available to us.
We would need a car that could take 3 car seats in the back and still have plenty of room for luggage, shopping etc. We were looking at the grand scenic and they are a about £4,000 - £5,000 ish.

Would we be able to get any kind of finance while being on benefits.

GonzoAston

Does that mean that you would have to pay £4-5k in the difference for a Disability car?

elaina79

We wouldn't qualify for a disability car as the DLA isn't at the higher rate.

GonzoAston

Oh, I see.

Dont know if this is any use to you?

http://www.mobility-centres.org.uk/usefulcontacts1/finance.htm

elaina79

Thank you for the link. Unfortunately for all the mobility schemes you have to be on high rate DLA but we are only on middle. All of the finance options I have found so far reqiure you to be in employment, but this is not possible at the moment.

GonzoAston

I dont know then

What about a personal load instead of a car finance loan?

My mum used to be in the Credit Union. Dont know if they exist anymore, through the church.

harveybobbles

Most finance companies require you to be in employment as they like to see that you have money coming in.
You may end up going with a sub prime company who do this guaranteed finance ect, but you end up paying well over the odds...

Psychobabble

I have been a full time carer for two members of my family for over 8 years and due to this am unable to work.
Both get the higher rate of care, but the lower rate of mobility DLA.
I was in a similar position a couple of years ago when my reliable old banger was written off in an accident and the insurance payout was only a few hundred £.
I was really stuck as I needed a vehicle, went to my bank with very little hope and got a bank loan for £5k with no problem at all, so its not always the case you will be turned down in my experience.

anewman

You can easily buy a car for under £1,000. In many cases £400 is enough. I note your sig says you're already dealing with debts, another loan won't help on that front.

elaina79

I do have other debts but nothing major. I have got a fairly good insurance quote, which is quite high by most peoples standards, but due to our circumstances its quite good.
I have done several quotes for finance with the usual companies and I know that I can afford the repayments, it's just finding a company that will take us on.

anewman

Two options...

Option one.
Buy car for £5000.
Requires loan with regular repayments - with interest which adds to the total cost.
Depreciation - in a year or two you'll have more left to pay off on the finance than the car is worth.

Option two.
Banger for £500.
Requires saving for a bit to cover purchase cost and insurance.
More likely to require repairs but none of these will make it cost as much as option one.
No regular repayments - can take the car off the road.
No depreciation.

This may not be a complete list of pros and cons but it's a start.

Also see http://forums.moneysavingexpert.com/showthread.html?t=1022139