Car Loan for Disabled (Unemployed) Person

eddie864

I'm trying to find a safe lender so I can buy a car. I am disabled as is my partner and we both get DLA (Mid rate care but lower rate mobility) and we want to use the mobility element to pay for a car. I think it works out at about £35 pw which should be enough to pay finance or a loan.

We can't get a bank loan as my our credit rating is poor - I've made a lot of late payments on bills (only odd days but still). I've had finance before and paid it back fine (Close Car Finance) but it is a very expensive way to borrow money as the rate is very high. We can't get credit from other companies as we are technically unemployed!

Can anyone suggest anything or recommend a company they've used?

Mart and Sarah.

jason1231972

Sorry, no specific recommendations re: which company is best...but just to say that you may struggle to get anything 'cheap' due to lack of employment and poor credit history. Also, with the whole PIP thing, some lenders may be wary of DLA income, thanks to its new-found insecurity.

Hope you get something decent, but it may not be the most likely scenario. If you're both letting LRM, you should be netting £41.10 per week between you.

As an aside, regarding the MRC, do you also have claim(s) for carer's allowance? (nothing to do with car finance, just checking you've explored your full entitlement).

Curr946

cant you "swap" your LRM for a car instead? My dad get HRM and was given that option, it this not available on LRM?

ILW

Have you looked into Motability?

jason1231972

Motability = HRM only.

[Deleted User]

Being on benefits wont exclude you from a loan especially DLA but OP having a poor credit record will,have you tried your own bank?

eddie864

Yes. Went to Nat West for a £2000 loan and passed the affordability checks but failed the credit check. Looked into it via the £2 credit report and it is just about late payments and one arranged payment. Shame really because I always pay the bills but arranging all the bills to come out at the right date to match benefit money has been tough and I do talk to them when there is a problem. Sorted out now but it will take a while I imagine to filter down. I've never defaulted on a loan and have no outstanding credit that isn't being paid as arranged.

We need a car as we do have real mobility problems that make public transport a difficult option and have had lots of emails from various finance companies offering £1000 pre approved loans. We could manage with an old cheap runabout but I'm wary of these companies.

eddie864

@ Jason. We don't claim carers allowance but we do get ESA. From what I understand the extra money from CA would be seen as increased income over the figure you need to live on so you lose it from your ESA. Probably just ends up costing HM Government more in admin.

broad-sword_2

The cared for person needs to be in receipt of middle or higher rate care for you to qualify for Carers Allowance (CA). If you/your partner did qualify for CA you/your partner could claim Income Support (assuming there is other income or capital in the frame) for both of you as a carer. This would replace ESA (assuming it is the Income Related element and not Conts), but on IS you are not subject to the Work Capability Assessement. CA is taken into account as an income, DLA is not, and you would also qualify for the Carer Premium on top.

jason1231972

eddie864 wrote: »

We need a car as we do have real mobility problems that make public transport a difficult option and have had lots of emails from various finance companies offering £1000 pre approved loans. We could manage with an old cheap runabout but I'm wary of these companies.

You're right to be wary. Your chances of getting a loan from an unsolicited email are very, very slim. Chances of them taking an 'admin fee' from you are very, very high.