Can I get a cheap car loan if my only income is unemployment?

I was laid off from my job and my car died a few days ago. I need a car to look for jobs. Can I still get a loan?

Answer
Sorry to hear about your current situation, but hopefully you can find a solution to get you back on the road!
Unfortunately, most lenders will not approve a car loan for someone who only has unemployment income. Unemployment income is temporary, so lenders are leery of extending a loan to a person without consistent income.
However, you have another option. If you just need a small loan to get a car, you may want to consider a personal loan, also known as a signature loan. If you have solid credit and unemployment income, you might be able to get a loan for a few thousand dollars. This should provide you with enough money to buy a decent used car.
Make sure that you also budget for car insurance when you buy the car by shopping quotes for liability insurance. Use the Jerry app to compare quotes so you’re always getting the best rate possible. The average Jerry user saves $879 per year on car insurance!
Eric Schad
Answered on Oct 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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