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0% car finance deals for unemployed - is it possible?

edited 30 November -1 at 1:00AM in Motoring
17 replies 3.2K views
GeraltGeralt Forumite
5 posts
edited 30 November -1 at 1:00AM in Motoring
Hi all,

I'm looking to buy a second hand car and my situation is that I'm currently unemployed - and not expecting to be for the foreseeable future.

I'm looking to buy a second hand car in the region of £10-15k, I have the savings to pay in cash but I'd rather not pay a lump sum.

I'm wondering if its possible to get a car finance loan of the 0% or low variety, without stating a regular income?

I checked my experian credit score recently, and I scored 990 - I believe its out of 1000, so my credit score is near perfect.

Has anyone got any advice or has managed to get a finance loan without a job?

Thanks!
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Replies

  • LumLum Forumite
    6.5K posts
    I assume you are in the catch 22 situation of needing a car to actually be able to commute to any possible new job?

    Why not buy a banger (or spend 2 grand on something like an old Mondeo which is a decent, but unwanted, car) and then trade up onto a finance deal once you can truthfully claim to be employed? You should get better rates.

    Also look into unsecured personal loans, they are often better rates, and lower risk, than car finance deals. Again, it may be prudent to wait until you start your new job.

    You should also consider the horrific insurance rates they give to unemployed people before you buy a new car.
  • GeraltGeralt Forumite
    5 posts
    Lum wrote: »
    I assume you are in the catch 22 situation of needing a car to actually be able to commute to any possible new job?

    Why not buy a banger (or spend 2 grand on something like an old Mondeo which is a decent, but unwanted, car) and then trade up onto a finance deal once you can truthfully claim to be employed? You should get better rates.

    Also look into unsecured personal loans, they are often better rates, and lower risk, than car finance deals. Again, it may be prudent to wait until you start your new job.

    You should also consider the horrific insurance rates they give to unemployed people before you buy a new car.

    I actually already have a car, I'm looking to upgrade to something much nicer!

    I'm in a fortunate situation where I don't need to find work right now, and can take some time off to enjoy life and decide what I want to do in the near future.

    My insurance right now is quite low, I don't think it'll change too much given that I'm unemployed.

    What I do want to know though, is that by having a 990/1000 credit rating, surely that should offset the need to have a regular income? I mean, its prudent if you have the cash to keep it earning even 2% interest, if its possible to get financing for 0% for a few years?
  • edited 25 May 2012 at 3:37PM
    LumLum Forumite
    6.5K posts
    edited 25 May 2012 at 3:37PM
    it would probably work out cheaper in the long run to just spend the savings.

    Interest rates are below inflation at the moment and finance is difficult to obtain and at rates above interest.

    I doubt you'll find may people here rich enough to live off savings tbh. Congrats though :)

    I guess your plan is to find new employment way before the end of the finance period, so this is about smoother cash flow rather than blowing all your savings on a nice car?

    Since you're debt free, how about funding some or all of your car purchase with a 0% credit card or two, then switching to some other form of finance when you're ready to return to work.
  • GeraltGeralt Forumite
    5 posts
    seems like I will have to just take the plunge and spend!

    I'd never put myself into a situation where'd I'd have no savings at all, so yes I'm trying to just limit my exposure by smoothing my cash flow, as you have put it!

    Thanks for your help!
  • Geralt wrote: »
    Hi all,

    I'm looking to buy a second hand car and my situation is that I'm currently unemployed - and not expecting to be for the foreseeable future.

    I'm looking to buy a second hand car in the region of £10-15k, I have the savings to pay in cash but I'd rather not pay a lump sum.

    I'm wondering if its possible to get a car finance loan of the 0% or low variety, without stating a regular income?

    I checked my experian credit score recently, and I scored 990 - I believe its out of 1000, so my credit score is near perfect.

    Has anyone got any advice or has managed to get a finance loan without a job?

    Thanks!

    What's experians score got to do with getting car finance out, a lender wouldnt know or care less what those experian guys score you as lenders will do their own credit score.

    Forget about experians scores as they are not a true reflection on your actual credit score which is only viewable by a lender.
  • LumLum Forumite
    6.5K posts
    I'm not an expert, so still try the finance options, just means you're going to have to look yourself.

    The 0% credit card option still feels like a good choice to me though.


    To be perfectly honest, in your situation, I'd be tempted to buy an older, cheaper car that offers a more raw or fun experience, maybe even a classic car. I guess it depends on what you want from a car though.
  • Lum wrote: »
    I'm not an expert, so still try the finance options, just means you're going to have to look yourself.

    The 0% credit card option still feels like a good choice to me though.


    To be perfectly honest, in your situation, I'd be tempted to buy an older, cheaper car that offers a more raw or fun experience, maybe even a classic car. I guess it depends on what you want from a car though.

    The OP won't get a 0% card being unemployed.
  • sunshinetourssunshinetours Forumite
    2.9K posts
    ✭✭✭✭
    I would very much doubt any sensible lender would entertain a loan to someone with no regular income to service that loan

    Far better to try and get a discount off your purchase by paying "cash" if possible

    Finally if the £15k or so is actually wiping out your savings i would not do it. As Lum says find something that fits your criteria for much less money?
  • There is no such thing as a free lunch. A 0% finance deal will be loaded on the price you pay better paying less for the car (in most cases).
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