Can you finance a car with Washington ESD unemployment benefits?
I've been receiving unemployment benefits from Washington ESD for about 2 months now and my car just broke down completely. The repair estimate is more than the car is worth so I need to get something else. Has anyone been able to get a car loan while on unemployment? My weekly benefit amount is $487 and I have decent credit (around 720) but no other income right now. I'm worried dealerships won't approve me since my only income is UI benefits. Any advice or experiences would be helpful!
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Dmitry Popov
most traditional lenders won't consider unemployment as stable income unfortunately. tried this myself last year when my transmission went out
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Sofia Ramirez
•That's what I was afraid of. How did you end up getting around?
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Dmitry Popov
•had to borrow money from family for a cheap used car from craigslist. not ideal but got me through until i found work
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Ava Rodriguez
You might have better luck with credit unions or smaller local banks. They sometimes look at the whole picture rather than just income source. Also consider a co-signer if you have family or friends with good credit who would be willing to help.
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Sofia Ramirez
•Good idea about credit unions. I'll check with mine tomorrow. Don't really have anyone who could co-sign though.
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Ava Rodriguez
•Even without a co-signer, credit unions are often more flexible. Your credit score is solid which definitely helps your case.
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Miguel Ortiz
Have you considered getting a secured credit card or personal loan instead? Sometimes it's easier to get approved for a personal loan and then buy a car outright from a private seller. Plus you avoid the dealership markup.
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Sofia Ramirez
•I hadn't thought about a personal loan approach. What kind of interest rates are we talking about though?
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Miguel Ortiz
•Depends on your credit union or bank, but probably 8-15% for unsecured personal loans. Auto loans would be lower but harder to qualify for on unemployment.
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Zainab Khalil
I was in a similar situation last year and actually used Claimyr to get through to Washington ESD faster when I had questions about reporting car expenses. The service helped me reach an agent quickly instead of waiting on hold forever. You can check out their demo at https://youtu.be/7DieNd3C7zQ. Might be worth it if you need to clarify anything about transportation costs with your claim. The site is claimyr.com.
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Sofia Ramirez
•Interesting, I didn't know you could report transportation costs. What kind of expenses qualify?
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Zainab Khalil
•Job search related travel mainly. But the agent I spoke with through Claimyr was super helpful explaining all the different expense categories.
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QuantumQuest
•never heard of claimyr before but might be useful. the washington esd phone lines are absolutely impossible to get through to
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Connor Murphy
DONT EVEN BOTHER WITH DEALERSHIPS!!! They'll just waste your time and do a hard credit pull for nothing. I spent 3 hours at a Toyota dealership only to be told my unemployment doesn't count as income. Such BS.
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Sofia Ramirez
•Ugh that sounds frustrating. Did you end up finding anything that worked?
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Connor Murphy
•Yeah finally got a small loan from my credit union for $8000. Bought a 2018 Honda Civic from a private seller. Much better deal than any dealership was offering anyway.
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Yara Haddad
Look into buy here pay here lots. They don't care about income source as much, just that you can make the payments. Interest rates are higher but might be your only option.
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Ava Rodriguez
•Those places are predatory though. Interest rates can be 20-30% and they'll repo your car if you're even a day late on payments.
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Yara Haddad
•true but sometimes you gotta do what you gotta do to get transportation
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Sofia Ramirez
•I'd rather explore other options first before going that route if possible.
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Dmitry Popov
what about those apps like carvana or vroom? do they have different requirements than traditional dealerships?
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Miguel Ortiz
•They still go through traditional lenders for financing, so same income requirements unfortunately. The online part is just the shopping experience.
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Dmitry Popov
•ah gotcha, thought maybe they had their own financing
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Sofia Ramirez
UPDATE: Went to my credit union today and they said they might be able to work with me! They want to see 3 months of Washington ESD payment history and bank statements. Fingers crossed!
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Ava Rodriguez
•That's great news! Credit unions really are the way to go for situations like this.
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Zainab Khalil
•Make sure you have all your Washington ESD documentation organized. If you need to contact them for anything, Claimyr made it so much easier for me to get through to an actual person.
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QuantumQuest
•good luck! let us know how it goes
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Keisha Robinson
Another option is to check with family or friends about borrowing a car temporarily while you save up cash. I know it's not ideal but unemployment doesn't last forever and you'll be in a better position to buy once you're working again.
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Sofia Ramirez
•I've thought about that but really need my own reliable transportation for job searching. Hard to depend on others when you're trying to get back on your feet.
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Keisha Robinson
•totally understand that. just throwing it out there as a backup plan
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Paolo Conti
if the credit union thing doesn't work out, try capital one auto finance. they sometimes approve people with unemployment income if your credit is good enough
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Sofia Ramirez
•Thanks for the tip! I'll keep that in mind if the credit union falls through.
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Ava Rodriguez
One more thing to consider - make sure you understand how a car payment might affect your job search requirements. Washington ESD expects you to be actively looking for work and available for interviews. Having reliable transportation actually helps with that requirement.
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Sofia Ramirez
•Good point. I've been taking the bus to interviews and it's been a nightmare with scheduling and being late.
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Ava Rodriguez
•Exactly. Having your own car will make you more available for work, which is what Washington ESD wants to see anyway.
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Amina Sow
my cousin was on unemployment last year and got approved for financing through santander consumer. might be worth checking them out too
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Sofia Ramirez
•I'll add them to my list to check out. Thanks!
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Miguel Ortiz
Whatever you do, don't let them talk you into a payment you can't afford. Your unemployment benefits won't last forever and you don't want to be stuck with a huge car payment when you're starting a new job.
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Sofia Ramirez
•Definitely keeping that in mind. I'm looking at cars under $15k and want to keep payments under $300 if possible.
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Miguel Ortiz
•That sounds reasonable. Just remember to factor in insurance, registration, and maintenance costs too.
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GalaxyGazer
this whole situation is why the unemployment system is broken. you need a car to find work but cant get a car loan because youre unemployed. makes no sense
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Connor Murphy
•EXACTLY! It's like they want to keep you trapped in the system.
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Ava Rodriguez
•It is frustrating, but there are options if you're persistent and look beyond traditional dealership financing.
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Sofia Ramirez
FINAL UPDATE: Credit union approved me for $12,000 at 9.5% interest! Found a 2019 Corolla with 45k miles for $11,500. Thanks everyone for the advice, especially about trying credit unions first!
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Ava Rodriguez
•Congratulations! That's a great outcome and a reliable car choice too.
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Dmitry Popov
•awesome! good to know it can work out. might try this route myself if my car situation gets worse
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Miguel Ortiz
•9.5% isn't bad at all considering your situation. Corollas are super reliable too, good choice!
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QuantumQuest
•congrats! hope this makes the job search easier for you
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Oliver Wagner
for anyone else reading this thread, i had success with navy federal credit union even though i was on unemployment. they looked at my whole financial picture not just current income
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Ava Rodriguez
•Navy Federal is great but you need military connection to join. Good option for those who qualify though.
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Natasha Kuznetsova
just remember that once you get back to work you'll need to report your new income to washington esd immediately. dont want any overpayment issues later
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Sofia Ramirez
•Definitely. I've been super careful about reporting everything correctly on my weekly claims.
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Zainab Khalil
•Smart approach. If you ever have questions about reporting requirements, that Claimyr service I mentioned earlier can help you get through to Washington ESD agents quickly to clarify anything.
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Javier Mendoza
glad this worked out for op. gives me hope since i might need to replace my car soon too. thanks for sharing your experience
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Sofia Ramirez
•No problem! Definitely start with credit unions if you're in the same situation.
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Emma Thompson
one more tip - if you're using the car for job searching, keep track of your mileage. you can deduct job search expenses on your taxes even while on unemployment
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Sofia Ramirez
•Good to know! I'll start keeping a log of job search related driving.
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Malik Davis
this thread has been super helpful. bookmarking in case i need this info later
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Ava Rodriguez
•Happy to help. These situations are more common than people think, especially in today's job market.
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