How an Unemployed Person Can Finance a Car in Ireland

Majority of the lenders factor in your day job while assessing your car finance application. For them, it is an assurance of affordability and timely repayment of the loan. On the other hand, unemployed people are on the back of the priority list for them as the risk of default is too high.

You cannot blame those lenders for not trusting the unemployed population with their money. Nevertheless, there are always some alternatives for people who don’t have a job but some income. Many other factors can be used to create a strong profile for the finance application.

Here, we will discuss some tips to avail car finance for unemployed in Ireland.

1. Other Sources of Income

Lenders will consider the other sources of income equivalent to a regular job if the cash flow is consistent. You don’t need a 9-5 job to get an approval if you are currently earning from a side hustle. Business owners and sole-traders can take benefit to finance a car.

The lenders will ask for the account statement of the past few months. People using government benefit schemes can also apply car finance after checking the eligibility. Freelancers need to build credibility with some stable income from some clients.

2. Good Credit History

Even without a job, perfect credit history may land you in the approval list of lenders. You are a responsible borrower because of the credit history and somehow manage the payments on time. Therefore, it is important to have a good credit history of increasing the chances of approval.

Timely payments of debts with only a few liabilities are enough to get a good credit rating. Check the credit history for errors at least a month before the loan application. Some direct lenders will still approve your application if you have enough inflow of cash to manage the instalments.

3. Find the Right Lender

Not every lender will approve your application because of the unemployment phase. Therefore, it makes no sense to waste time waiting for the rejection from them. You need to check the eligibility criterion for each lender before posting a query.

Narrow down the list of lenders that offer car finance to the unemployed people. You can then negotiate the terms and interest rates based on different offers. Add the additional charges such as processing fees to the overall cost of the loan.

4. Get a Co-Signor

A simple alternative to boost your profile is to co-sign the car finance. Take help from your family or friends with a good profile. They need to have a perfect credit score and regular income to qualify as a guarantor or co-signor.

The lenders will offer better interest rates if you have someone to back your application. However, it is never easy to find a guarantor because of the risk involved. They are liable to repay the loan if you default on the instalments.

5. Repay the Other Debts

Car finance providers check the credit history to make sure the borrower is not buried under debts. Some perform the hard enquiry that leaves a trail on your credit history as desperation for funds. You should clear some debts from the list to increase your chances of approval.

Your budget needs some space for repayment and savings. It is common for people to get more debts after car finance if they are living on paycheque-to-paycheque. Take help from a financial advisor to create a repayment strategy to get a loan at lower interest rates.

6. Increase the Down Payment

A down payment is critical for your application approval and debt management. Increase the down payment if you have a subpar credit profile. It will increase your equity over the vehicle and reduce the risk for the lender.

The instalments will be easier to manage, and the interest on the loan amount will also reduce. You can leverage the equity to get better interest rates with the refinancing option.

7. Explain the Situation

Private lenders don’t have the same stringent policies and norms to approve car finance. You may convince them to provide the funds if you have a solid repayment plan. There is always some flexibility in their eligibility criterion for the loans as they serve different credit profiles.

8. Use a Collateral

Car finance is a secure loan since the lender can repossess the vehicle if the borrower cannot make payments. But lenders prefer to get their money back since the repossession process can cause some loss on the deal. The money they get back depends on the condition of the vehicle.

To avoid the loss, lenders may ask for some additional collateral to recover the loan amount. You can use some asset for the collateral if you believe in your repaying ability. The involvement of another collateral increases the mental stress of the repayment during financial instability.


To sum up, people still get car finance in Ireland in the absence of a regular job. Your credit profile is determined by the net inflow of cash and total liabilities. Therefore, make sure you have a repayment plan to manage different liabilities with the limited income.

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In this article, some tips are mentioned for unemployed people to get car finance in Ireland.

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