What car dealerships accept unemployment benefits as income proof in NY?
I'm currently receiving unemployment benefits from NYS Department of Labor and my old car just died. I need reliable transportation to keep up with my job search requirements but most dealerships I've contacted won't consider UI benefits as qualifying income. Has anyone had success getting approved for car financing while on unemployment? Which dealerships in NY actually work with people receiving benefits? I have about $1,200 coming in monthly from my weekly claims and decent credit but keep getting turned down.
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Mateo Martinez
honestly most traditional dealerships wont touch unemployment income since its temporary. try looking at buy here pay here lots or credit unions instead of regular banks
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Nia Wilson
•Are credit unions really more flexible with unemployment income? I hadn't thought of that option.
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Aisha Hussain
You'll need to provide documentation showing your unemployment benefits are stable. NYS Department of Labor sends benefit verification letters that some lenders will accept. I'd recommend getting that letter first, then trying dealerships that work with subprime lenders. Also consider that unemployment benefits have a time limit - most lenders know this and factor it into their decision.
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Ethan Clark
•This is good advice. The benefit verification letter from my.ny.gov portal really helps establish legitimacy. Some dealerships that specialize in people with credit challenges are more understanding about temporary income situations.
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StarStrider
I went through this exact situation last year! CarMax was actually pretty understanding about my unemployment situation. They looked at my whole financial picture not just current income. Also had luck with a local Honda dealer who worked with a credit union that considers government benefits. Don't give up - there are options out there.
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Nia Wilson
•That's encouraging! Did you need a co-signer or were you able to get approved on your own?
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StarStrider
•I got approved on my own but had to put down about $3000 and the interest rate wasn't great. Still better than having no car though!
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Yuki Sato
this is SO frustrating!! been dealing with the same thing and its like they dont understand that unemployment is REAL INCOME from the government. how are we supposed to find jobs if we cant even get to interviews???
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Aisha Hussain
•I understand the frustration, but from a lender's perspective, unemployment benefits are temporary by design. They typically last 26 weeks in NY, so lenders see it as higher risk than permanent employment income.
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Carmen Ruiz
Have you tried reaching out to NYS Department of Labor directly about this? I had trouble getting through their phone system when I needed documentation for a similar situation. I ended up using this service called Claimyr (claimyr.com) that actually got me connected to a live agent who helped me get the right paperwork. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Might be worth checking out if you need specific documentation for lenders.
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Nia Wilson
•Interesting, I hadn't heard of that service before. Did it actually work for getting through to someone at NYS Department of Labor?
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Carmen Ruiz
•Yeah it did! Saved me hours of trying to call on my own. The agent was able to explain exactly what documents I needed and how to get them from the system.
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Andre Lefebvre
Look into Santander Consumer or Capital One Auto Finance - they sometimes work with non-traditional income sources. Also check if you qualify for any first-time buyer programs that might be more flexible.
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Anita George
Try looking at smaller, independent dealerships rather than big chain lots - they're often more willing to work with unique situations. I'd also suggest getting pre-approved through a credit union first before shopping. Navy Federal and SEFCU (if you're in the Capital Region) have been known to consider unemployment benefits. Having that pre-approval letter in hand gives you more negotiating power with dealers. Also, consider certified pre-owned vehicles instead of new ones - lower payments might make lenders more comfortable with your temporary income situation.
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