Categories: Resources

Can a Person on Disability Finance a Car?

Lenders sometimes discriminate against people with disabilities because social security disability cannot be garnished, meaning if the individual has a deficient loan balance, the lender cannot recoup it or go after them. Therefore, bad credit or special finance lenders require a garnishable income, or an income they can recoup if necessary.

People with disabilities have two main choices when it comes to financing a car:

A co-signer
Another Source of Income

A Co-Signer

People on disability have the option of getting a co-signer with a qualifying loan. Keep in mind this person will have to make payments if the individual with a disability does not. The loan appears on both the person with a disability and the co-signer. Mismanagement of the loan affects both credit scores.

Another Source of Income

If an individual on social security has another source of income that is garnishable, they can finance a car. The other source of income does not have to be full-time. Most special finance lenders have an income requirement of at least $1,500-$1,800 a month. The other source of income can be combined with disability to meet the requirement. That means people on social security disability may only need a part-time time to qualify for a loan.

In order for the social security disability income to count, the individual must provide evidence that they’ve been on disability for at least six months and will continue to receive these payments throughout the loan term. Wages earned through a part-time job need to be verified, as do tax records.

How We Can Help

Are you living with a disability and need assistance financing a car? Do you need help with money management all together? Acumen Fiscal Agent can provide you the support you need to become financially independent. Contact us today and learn how.

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