Can I get a car loan with Washington ESD unemployment benefits as income?

I went through this exact situation about 6 months ago when I was on unemployment. Most traditional lenders won't accept UI benefits as income, but there are some options. Credit unions are usually more flexible than big banks. You'll need your Washington ESD benefit statement showing your weekly amount and remaining weeks of eligibility. Some dealerships have special financing programs for people in unique situations too.

Unfortunately most mainstream lenders consider unemployment benefits temporary income and won't approve loans based on them. However, you might have better luck with buy-here-pay-here dealerships or looking into certified pre-owned vehicles with in-house financing. The terms won't be great but it could get you transportation while you find work.

I'm dealing with something similar right now. Been trying to get through to Washington ESD for weeks to get a letter confirming my benefits for a lender but their phone lines are always busy. It's so frustrating when you need documentation but can't reach anyone. Has anyone found a way to actually talk to someone at ESD lately?

Do you have any family or friends who could cosign? That would probably be your best bet for getting decent terms. Otherwise you're looking at subprime lending which gets expensive fast.

what about those rent-a-car places that do weekly rates? might be cheaper short term while you find work than getting stuck in a high interest loan

The whole system is messed up. You need a car to work but can't get a car loan without work. I went through this when I was laid off from Boeing. Ended up having to borrow money from family and buy something cheap off Craigslist.

Have you looked into Washington state programs for job seekers? I know there used to be transportation assistance but not sure if it's still available. Might be worth calling WorkSource to ask.

Try Navy Federal if you have any military connection - family member who served, etc. They're more flexible with unusual income situations. Also USAA if you qualify.

Whatever you do, read the fine print carefully. Some lenders will approve you but then repo the car the minute you miss a payment. Make sure you understand all the terms before signing anything.

I used Claimyr too when I needed to get my benefit verification letter faster. The Washington ESD phone system is absolutely terrible. Spent maybe $20 or whatever it was and had my call answered within 30 minutes. Way better than wasting entire days trying to call.

Check with local dealerships that advertise 'bad credit ok' or 'we finance anyone.' They usually have relationships with subprime lenders who might consider unemployment income. Just be prepared for high interest rates and possibly a larger down payment requirement.

another option is peer to peer lending like LendingClub or Prosper. they might be more flexible about income sources than traditional banks

Don't forget to factor in your job search requirements for Washington ESD. You need to show you're actively looking for work so having reliable transportation is pretty important for that. Document any job interviews you miss due to transportation issues in case ESD asks about your search activities.

My brother went through this last year. He ended up getting a personal loan from his bank instead of an auto loan. The rate was a little higher but they were more willing to work with his unemployment situation. Used the cash to buy a reliable used car outright.

Just want to echo what others have said about credit unions. They're non-profit so they're more likely to work with you on unusual situations. Plus their rates are usually better than banks even when you do qualify.

UPDATE: I actually got approved at a credit union today! Had to put down $2000 and the rate is 12.9% but I got a 2018 Corolla with 60k miles. Thanks everyone for the advice about trying credit unions first - it definitely paid off. Now I can get to job interviews without worrying about transportation.

I'm in a similar situation - been on Washington ESD benefits for about 6 weeks now and really need a reliable car for job interviews. Reading through all these responses is super helpful. I'm planning to try the local credit union first since so many people had success there. Also going to look into that Navy Federal option since my grandfather was in the military. One thing I'm wondering about - has anyone had luck explaining to lenders that unemployment benefits are actually pretty stable income for the duration you're approved for? Like, I know exactly how much I'll get each week for the next several months, which seems more predictable than some jobs. Anyway, thanks for posting this question OP, the responses have given me a much better roadmap for approaching this.