Car Finance on Income Benefits
Your income source can often be a major barrier when looking for car finance approval; especially when some or all your income is from benefit’s. You may have been refused finance in the past from other lenders; at Red Potato we could help.
Car Finance with Benefit Income
Many people on long term benefits assume that they will not get approval for car finance. At Red Potato, we believe that you should have the opportunity to buy a quality used car even if you are on long term benefits. We specialise in providing car finance for people who have a poor credit history; even if you are on long term benefits.
Our car loan criteria
If you are on long term benefits and are looking for a car loan, Red Potato can help, even if you:
- Have no deposit
- Have no income from employment or self- employment
- Are in a Debt Management Plan (DMP), Trust Deed or Individual Voluntary Arrangement (IVA)
- Previously declared bankrupt
- Have any loan defaults due to missed payments
Although we will try to help anyone in any financial situation, approval for car finance is subject to status and income; unfortunately, we are unable to accept applicants receiving Job Seekers Allowance (JSA) or Employment Support Allowance (ESA).
Applying for car finance
When you apply for car finance with Red Potato, we will take your credit score into consideration but also base our decision on your current financial circumstances and your ability to repay the loan.
Although we can’t guarantee car finance approval, we will always try our best to help, regardless of your financial situation. Customers who have previously been denied car loans may find that Red Potato can still help them with securing finance. Red Potato will also consider your application if you are currently in a debt management plan or IVA.
Our easy application process
Applying for car finance through Red Potato is quick and easy!
- Submit your application online and we will work with our panel of lenders to see if we can secure a finance offer.
- One of our team will contact you to discuss your application and to request and supporting documentation which may include;
- Your latest full months bank statement
- A copy of your full UK driving licence
- A months’ worth of payslips to prove income (A unique tax reference number if self-employed)
Our finance experts will guide you through the lenders process to secure the best finance offer.
- If your application has been successful, our experts will help you find your new vehicle in line with the chosen lenders car criteria (age and mileage).
- Once you have decided on your vehicle, you can digitally sign your finance agreement quickly and easily through the lenders e-sign process.
- You are ready to get your new car! We will help to arrange everything with the dealer for you, including a date of collection or delivery to your door where possible.
If your application is approved, you will borrow the money from us to purchase the car and pay the total cost back over a period of 3-5 years. The type of finance agreement we offer is hire purchase and throughout your contract, we will own the car. Once you have made all payments due under the agreement then full ownership will transfer over to you.
What information is on your credit file?
You may be unaware of what information is held about you on your credit file. Your credit report holds personal information about you including your address and previous addresses, your electoral roll information as well as financial information including credit cards, loans, mortgages and overdrafts. Missed or late payments are also shown on here.
Your credit file will also hold any public records such as County Court Judgements (CCJs), bankruptcies or insolvencies. In addition, your credit file also includes your financial associates. This might be someone you have a joint mortgage or bank account with. You should be wary that your partner's financial behaviour can be taken into consideration when applying for credit.
We’re here to help
We understand that there are many reasons why you have bad credit. We aren’t here to judge and will work to help you get car finance whatever your situation.
A member of our team will provide continued help and support during each stage of your car finance application. We will take a look at your credit score, and perhaps your current situation, including your income and expenditure and what you can realistically afford. As a car dealership, we can also recommend what car types and models would be a suitable option for you, whilst introducing you to some of our latest deals.
Our car dealership
Sourcing a reputable car dealer is especially important. Having access to a reliable, affordable car can be essential to your daily life.
Red Potato can also help you find the right car to suit your needs, as well as providing affordable bad credit car finance to purchase it.
We have over 4,000 used vehicles from dealers nationwide. Have a look at our available cars and provide your details if you find something you like.
Finance only options
If you've already found a car elsewhere, we can still help you find affordable car finance. All we need is basic details of the car and dealer as part of your application. We will then take care of the rest!
What does it cost?
We offer finance from 19.9% APR to 29.9% APR. We will confirm the APR you are eligible for when we provide you with a lending decision. The APR you are offered is subject to our underwriting checks once we have received your documents and completed our affordability checks.
Representative example: Loan amount of £7,500 with a monthly repayment of £191.63 over a term of 60 months at a rate of 10.66% interest per annum (fixed). This is equivalent to 19.9% APR representative. Interest repayable is £3,997.80 with an option to purchase fee of £10.00. Total amount repayable is £11,507.80.