While a lot of people assume that you always need a deposit when buying a car on finance, this isn’t always the case! We work with various direct lenders who will help you purchase a car without needing to pay anything upfront. It’s not always possible to save up for a deposit, especially if you need to buy a new vehicle quickly. Many people need a car in order to get to work - public transportation isn’t an option for everyone! So a number of lenders provide car financing deals that don’t require a deposit, to help you get back on the road that much faster.

Types of No Deposit Car Finance

There are two main types of car financing available - Personal Contract Purchase (PCP) and Hire Purchase (HP) deals. With the former, you pay towards the depreciation of the vehicle, which is the difference between the worth of the car at the start and end of the contract. If you then want to purchase the vehicle at the end of the term, you’d make what is known as a balloon payment. PCP agreements are more likely to be offered with no deposit than hire purchases. 

HP deals work in a similar fashion, in that you make monthly payments to the lender. But instead of paying the depreciation, you’re covering the cost of the vehicle, alongside interest, so that at the end of your agreement you’ll own the car. This does mean that the monthly instalments are typically higher with hire purchases than PCP arrangements.  

How to Get a No Deposit Car Finance Deal 

If you are able to put down a deposit on a vehicle, it can sometimes reduce the amount you pay overall and the cost of your monthly repayments. A deposit can also improve your chances of approval with certain lenders. But in many cases, having no deposit won’t make too much of a difference, and is much the same as taking out any other form of vehicle finance.

We’ll compare our panel of lenders offering no deposit car finance options. Once approved, you can find your perfect car with any reputable dealer, and confirm all the details with your finance provider. Then we’ll arrange for the funds to be sent to the dealer, and you can drive away happy!

What Type of Car Can I Get With No Deposit? 

It’s important to note that some lenders have minimum requirements on the type of car you’re looking to purchase on finance, such as the age of the vehicle and the mileage. But whether you’re looking for a family sized car or a sleek city runaround, you should be able to get a no deposit option. It’s all about finding the right lender, which is what we're here to assist you with!

The duration of your agreement will also depend on the finance provider, as well as how much you can comfortably afford to pay each month. A longer arrangement tends to mean smaller instalments, but due to the interest applied, this may cost you more in the long run.

How Much Can I Borrow Without a Deposit?

When it comes to how much you’re able to borrow with no deposit, there’s no set limit. Every application is assessed on an individual basis, so we’ll factor in things like how much you wish to borrow, the amount you’re able to pay each month, and your credit rating. 

Once we’ve searched our network of reputable lenders, we’ll do our best to put you in touch with the lender that offers the best rates for your situation. They’ll be able to confirm the maximum amount you’re able to borrow without a deposit.  

Things to Consider With No Deposit Car Finance

Perhaps the main thing to think about when searching for a no deposit deal is finding the right lender! Luckily, we are here to help. We’ll work with you to find a suitable car finance provider who meets your needs and requirements.

It is also important to weigh up the pros and cons of buying a vehicle without paying a deposit. We’ve explored some of these below:

Advantages of No Deposit Car Finance

  • You don’t need to save up for a large down payment
  • You may be able to part exchange your current vehicle instead of paying a deposit
  • As you don’t need to save up, you can usually get a new car faster

Disadvantages of No Deposit Car Finance

  • As the total amount to repay will be higher without a deposit, you’ll pay more interest
  • The duration of the loan will typically be longer, as you’ll be paying back more overall
  • If you have bad credit, you may find it more difficult to get a no deposit car finance agreement

What are the Eligibility Requirements?

In terms of eligibility, to take out no deposit car finance, you’ll need to be aged 21 or above, have a regular income, and live in the UK. You’ll also need to be able to afford the agreed monthly repayments, as well as cover the cost of running your car.