Can you buy a car with Washington ESD unemployment income - lender questions

Good to know! I can get my benefit award letter from my SecureAccess Washington account. Do you know if they care about the weekly amount or just that I'm getting something?

They'll definitely look at the weekly amount to calculate your monthly income. Make sure you have several weeks of payment history too.

That's encouraging! Did you go through the dealership financing or get pre-approved at a bank first?

I went through the dealership first but they couldn't get me approved. Then I tried a credit union and they were much more flexible with unemployment income.

Credit unions are definitely the way to go. They're more understanding about temporary income situations.

That's what I was thinking too. I just need something reliable for about 2-3 years until I'm back on my feet.

Definitely go used. New cars depreciate too fast and you don't want to be upside down on a loan when you're already dealing with unemployment.

Wow, that sounds too good to be true. How much does it cost?

They don't ask for any personal info upfront and it's way cheaper than the time I was wasting trying to call myself. Totally worth it when you need documents fast.

I've heard of Claimyr too. My sister used them when she had issues with her weekly claims and said they were legit.

Good point. I'm definitely still doing my job searches and keeping my log updated. The car is actually necessary for me to get to interviews.

Having a car actually helps with the job search requirement since you can apply for jobs in a wider area.

Thanks for the heads up! I'll stick to just the basic loan and maybe get my own insurance quotes.

Actually gap insurance might not be a bad idea if you're putting little money down. Just shop around for it instead of buying from the dealer.

What was your credit score if you don't mind me asking? Mine's around 650 so I'm hoping that's decent enough.

Mine was around 580 at the time. 650 should be much better for getting approved.

650 is definitely workable. You might not get the best interest rate but you should be able to get financing.

I thought about that but I'm worried about spending all my emergency fund on a car. What if I need that money for rent or other bills?

That's a valid concern. Maybe look for something around $5k so you still have some cushion left over?

I'd keep some cash for emergencies too. Unemployment doesn't last forever and you never know what might come up.

Good point. I should probably get insurance quotes before I even start shopping for cars.

Definitely shop around for insurance. Rates can vary a lot between companies.

That's scary. What kind of clauses should I watch out for?

Things like acceleration clauses that make the full loan due if you miss payments, or requirements to notify them if your income situation changes.

That's really helpful to hear from someone on the inside! Do you think it matters if I'm still in my first few weeks of unemployment?

Not really, as long as you have the documentation. We're more concerned about your ability to make payments than how long you've been collecting.

Interesting strategy. Should I just focus on the fact that I have steady income coming in?

Exactly. Emphasize that you're receiving regular government benefits rather than dwelling on the temporary nature.

That seems a bit dishonest though. The lender is going to see it's unemployment income anyway.

How quickly did they get you through? I might need to call about getting my benefit verification letter expedited.

It was super fast. They called me back within like 15 minutes and had me connected to someone at Washington ESD right away.

Good reminder. I've been having taxes taken out of my weekly benefits to avoid a big bill later.

Smart move. Better to pay as you go than get hit with a big tax bill.

I might have to ask my brother about that. I hate to involve family in financial stuff but it might be necessary.

It's not ideal but sometimes you need to do what you need to do. Just make sure you can make the payments so you don't mess up their credit.

I hadn't thought of that. I'll check with my local WorkSource office to see what might be available.

WorkSource sometimes has emergency assistance funds for things like car repairs or transportation needs.

How much did you put down? I was hoping to keep it around $2,000 to preserve my emergency fund.

I ended up putting down about 30% of the car's value. It was more than I wanted but it got me approved with a decent rate.

That's great advice. I'll make sure to try at least 3-4 different places before I give up.

Absolutely. What one lender won't do, another might be happy to approve.

I should have about 20 more weeks of benefits left, assuming I don't find a job before then. Hopefully that's enough time.

That should be plenty. Most car loans are 3-5 years anyway, so they're not expecting your unemployment to last that long.

Good idea! I already have my unemployment benefits on direct deposit so adding another automatic payment shouldn't be a problem.

Just make sure the payment date aligns with when you get your unemployment deposit so you don't overdraft.