Van Finance on Benefits
Securing van finance while on benefits is more attainable than you might expect. Benefits play a crucial role for many people, assisting with essential expenses like bills and groceries.
However, it’s not uncommon for applicants on benefits to face difficulties in securing a finance agreement. Why is this the case?
At We Finance Any Van, we are committed to breaking down the barriers of traditional van finance. We believe that everyone deserves the opportunity to get a reliable vehicle, regardless of their financial situation. A dependable van is often a necessity rather than a luxury.
Here’s how we can assist:
Whether benefits are your sole source of income or you receive additional financial support, we consider all your circumstances. Our network of lenders includes specialists in various van finance options, ensuring we find a solution that meets your needs.
What you can expect from us:
- A friendly team of experts ready to help
- Benefits acknowledged as a valid form of income
- No deposit required
- Apply without affecting your credit score
- All credit histories reviewed
- Comprehensive support throughout the process
Don’t let benefits hold you back – your ideal van could be just a few clicks away! Apply with We Finance Any Van today.
On Benefits? You can still finance a van
Van finance on benefits – feel empowered with flexible and inclusive solutions
We offer a range of van finance options tailored to different circumstances, including those who receive benefits as their primary or additional source of income. Choosing the right finance deal is crucial to avoid financial difficulties and potential damage to your credit score. That’s where our team of experts comes in—we’ll guide you through the process from start to finish, ensuring you make an informed decision.
Here’s a breakdown of some popular van finance options and how they work for people on benefits:
Hire Purchase (HP)
With Hire Purchase, you make monthly payments over a set period to become the legal owner of the van. This option is accessible if you receive benefits considered a valid income source. The structured repayment plan helps you manage your budget by spreading the cost into smaller, manageable amounts.
Something to consider: The amount of benefits you receive may affect the maximum loan amount you can secure and limit the range of vans available to you.
Personal Contract Purchase (PCP)
Personal Contract Purchase offers flexibility at the end of the agreement. You can choose to return the van, purchase it, or start a new agreement. While this option provides more flexibility, it generally requires a higher creditworthiness level, which can be challenging if you’re on benefits. Demonstrating financial stability and a clear budgeting plan can improve your chances of approval.
Something to consider: PCP often has stricter eligibility criteria and might be more difficult to secure if you’re on benefits. Showing proof of additional income or financial stability can help strengthen your application.
Guarantor Van Finance
If being on benefits raises concerns for some lenders, having a guarantor can improve your chances of approval. A guarantor is someone who agrees to cover the repayments if you default on the loan. The lender will assess both your financial situation and that of your guarantor.
Something to consider: Choose a guarantor who is financially stable and has a good credit history. It’s essential to discuss the responsibilities with your guarantor to ensure they are fully committed before submitting your application.
Submit an application with us to explore the best finance solution for you. Our team is here to help you find an option that fits your needs and circumstances.
Can you get van finance on benefits?
Many people wrongly assume that being on benefits disqualifies them from securing van finance. We’re here to set the record straight! While being on benefits may add a layer of complexity, it shouldn’t be a barrier to buying a van. There are countless reasons why someone might need financial support, from disability and low-income to childcare responsibilities.
In fact, you’re not alone—statistics show that around 23 million people in the UK were claiming some form of benefits in 2021, which is almost half the population. This highlights how common it is and reinforces the importance of making van finance accessible to everyone.
At We Finance Any Van, we’re dedicated to breaking down these barriers and helping you get the van you need, regardless of your circumstances.
What proofs or evidence of benefits do i need to provide?
In most cases, lenders will accept regular benefits payments shown on your bank statements as proof of income when assessing your eligibility for van finance. This provides a clear record of the financial support you receive, helping them understand your ability to manage repayments.
Can you get van finance on Universal Credit?
Yes! If you’re yet to apply for van finance and are on Universal Credit, or have faced rejection from traditional lenders, you’re in the right place.
Universal Credit is one of the most widely received benefits in the UK, supporting individuals and families with their cost of living. Fortunately, many specialist lenders consider Universal Credit a valid source of income. They understand that being on benefits doesn’t necessarily indicate an inability to manage van payments, and can tailor finance deals to fit your unique financial circumstances.
With our help, you can explore options that suit your situation and get closer to securing the van you need.
How much can I borrow?
The amount you can borrow for van finance is influenced by several factors: your credit score, the vehicle’s price, your income and expenses (including benefits and pensions), and the repayment term. To get a clearer idea of what you’re eligible for, the best approach is to use our soft search facility, which won’t impact your credit score. From there, we’ll help you secure approval with the best terms tailored to your needs.
Ready to take the next step? Simply apply here to find the right deal for you!
What other factors do lenders consider when reviewing applications?
When reviewing your application for van finance, lenders consider several key factors to assess your suitability:
Affordability: It’s essential to choose a van that fits your budget. Lenders will evaluate your income, including benefits, and expenses to ensure you can manage the repayments comfortably. Using tools like our free finance calculator can help you explore various payment options and find a plan that works for you.
Creditworthiness: Your credit score plays a significant role in determining your eligibility, though it isn’t the only factor. A history of late payments or defaults can lead to stricter loan terms or higher interest rates. However, even with poor credit, there are still options available.
Employment Stability: Lenders will look at your employment history, how long you’ve been receiving benefits, and any future employment prospects. These factors help them gauge the stability of your finances and your ability to meet repayment deadlines.
Residential Stability: The time you’ve spent at your current address can give lenders a sense of your reliability. Stable living conditions can boost your credibility and improve your chances of being approved.
What types of benefits are accepted as a form of income?
There are several common types of benefits that are considered valid forms of income when applying for van finance. These include:
- Universal Credit
- Working Tax Credits
- Child Tax Credits
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Employment and Support Allowance (ESA)
- Carer’s Allowance
Since the eligibility criteria can vary between lenders, it’s always a good idea to double-check with your account manager once you’ve submitted your application. If you’re unsure about whether your benefits qualify, or if you’d like more details on specific requirements, feel free to get in touch with our team for personalized advice and support based on your unique circumstances.
I have a bad credit score and am on benefits - can I still secure a van finance deal?
Yes, even with a bad credit score, it is still possible to purchase a van through finance. Your creditworthiness is based on a variety of factors, including your credit history and current debt levels. Being on benefits doesn’t automatically give you bad credit, but if you’re dealing with bad credit and receiving benefits, there are still options available.
A poor credit score can make it harder to get approved by mainstream lenders since it’s used as a risk indicator based on your past financial behavior. However, We Finance Any Van partners with a wide range of specialist lenders who are experienced in working with bad credit applicants. This significantly increases your chances of securing a finance agreement.
Our finance solutions for bad credit applicants are designed to meet your specific needs, ensuring we work hard to find you the best deal possible, regardless of your financial circumstances.
Reviews
Try our free finance calculator today!
About Us
If you are looking for van finance, you are in the right place!
We have years of experience in van finance, a very extensive lending panel & a team set up to get you the van you want at the best finance rate possible. If you have already found a van and just need the finance – great! If you need help finding a van then we are there for you as well – in fact, we have access to over 100,000 vans.
Arrange a call back
Opening Hours
Mon to Fri: 08:00 – 19:00
Saturday: 09:00 – 16:00
Sunday: 10:00 – 16:00