Is there any way to get a car loan with no income?

I'm currently unemployed and have little income, but I want to get a car to find a job. Can I get a car loan if I have no income?

In general, lenders will not approve you for a car loan if you have no income. Unemployment income can’t be used as earnings on a car loan, and—unless you have other sources of income—you won’t be approved.
The reason that lenders won’t approve your application is that you don’t demonstrate the financial means to make payments. This puts you in a high-risk category and more likely to default on your loan.
While subprime lenders and buy here pay here dealerships may be willing to work with you, these businesses have an unsavory reputation of predatory lending practices. Tread lightly around these lenders and always look at the interest rate before you sign a loan.
As an alternative, you might be able to buy a cheap car with cash to get you to job interviews. Or, you can take public transportation or a bicycle until you have the money to purchase a vehicle.
If you have the funds to purchase an affordable car, don’t forget to budget for car insurance. Use the Jerry app to compare car insurance rates to get the insurance you need at the best price possible.
Eric Schad
Answered on Nov 08, 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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