car on finance

[lasthope]

me mate is looking to get a car on finance but has bad credit he has just been giving pip of  £333 a month but does not want to get one  on disability in case car is took away after 3 years so any one no any car place were he might get finance

[TomsFocus]

He won't get a better deal than Motability.  Nothing even close.

There are some places offering finance for disabled/low income/benefits online but they take the mick with the prices tbh.  

Personally I'd go with Motability and enjoy a new car for the next 3 years...if he doesn't get PIP next time cross that bridge when you get there.

 

I'd also double check that £333 amount, enhanced mobility rate (Motability qualifier) is only around £250 a month.

[lasthope]

he says he gets 2 lots of pip don't no the ins and out of it lol

 

£23.60
£59.70

[TomsFocus]

1 hour ago, lasthope said:

he says he gets 2 lots of pip don't no the ins and out of it lol

 

£23.60
£59.70

Ok...he's not eligible for Motability anyway in that case.

That's standard rate care component (£59.70) and standard rate mobility (£23.60). 

Need to have enhanced mobility (£62.25) to qualify for the Motability scheme.

[Nick Y]

7 hours ago, TomsFocus said:

Ok...he's not eligible for Motability anyway in that case.

That's standard rate care component (£59.70) and standard rate mobility (£23.60). 

Need to have enhanced mobility (£62.25) to qualify for the Motability scheme.

Yes, but if he does get a car, he'll qualify for the 50% discounted rate on VED (tax) as he gets standard rate mobility component but that would change the class from PLG (private light goods) to disabled. 

As Tom said above, there are companies that do offer finance for those on low incomes, on benefits or with bad credit history but they do charge a lot and the repayments often outweigh the price of the loan and vehicle. 

[jmurray01]

I take it leasing a car would be out of the question?

[The Finance Guy]

Regardless of the method, any lender will have to stringently assess affordability before lending. With the limited info available it looks likely that the person in question would not manage to prove affordability for even the cheapest car.