Rates from 8.9% APR. Representative Example: Borrow £12,000 over 5 years with a £0 deposit. Representative 19.5% APR fixed rate. Monthly payment: £304.38. Option to purchase fee £10 payable. Total cost of credit: £6,272.80. Total amount repayable: £18,272.80.
Car Finance 247 Limited is a credit broker, not a lender.
No deposit car finance is a type of car finance that lets you buy a vehicle without paying a deposit upfront.
With standard Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements, a deposit is usually paid. This reduces the amount you need to borrow and could therefore lower monthly your payments and the amount of interest you pay. But with no deposit finance, the full vehicle value is financed. This means monthly payments can be slightly higher, but you don’t need to put down any big savings upfront.
No deposit car finance could be useful if you don’t have savings readily available. You might have recently had unexpected expenses pop up, you’re in between jobs, or simply haven’t had time to save but need a vehicle for work or everyday life. Whatever the reason, no deposit car finance could suit many people who want to get behind the wheel without a large upfront payment.
No deposit options could be available across a range of credit circumstances, including if you have bad credit or haven’t had a chance to build up a credit history. However, approval and the terms offered are subject to status and lender criteria.
No deposit car finance follows the same straightforward process as applying for standard car finance. The main difference is that you skip the deposit step, so you can apply without paying anything upfront towards the cost of the car.
Zero deposit car finance could be available to a wide range of applicants through our lender panel, subject to status. While we can’t guarantee approval, we’ll do our best to help you find a suitable lender for your circumstances. You could be eligible for 0 deposit car finance if you:
Lenders may also consider factors like your income, affordability, credit score and current financial circumstances when assessing your application. It’s also worth noting that some lenders may have vehicle age limits, so the age and type of car you choose could also affect your options.
If you are unsure whether you qualify, you can apply online for a decision in minutes to see what options could be available to you.
No deposit car finance may be available when looking to finance your car.
With a personal loan, you won’t normally need to pay a deposit. Once you’ve received the loan and paid the seller, the car will be all yours. All you’ll need to worry about is keeping up with your monthly repayments.
PCP agreements typically require a deposit, but you'll have lower monthly repayments and more options when your agreement ends. With a personal contract purchase, you’ll typically pay fixed monthly repayments until the end of your loan period. You can then either return the car, buy it by paying the one-off balloon payment, or use any positive equity as a deposit in a new deal.
Terms and conditions will apply. You might have an annual mileage limit and you’ll need to make sure you don’t damage the car to avoid extra charges.
A HP loan with no deposit will usually have higher monthly repayments than PCP, but if you keep up with your repayments and pay the ‘Option to Purchase’ fee, you’ll own the car at the end of your agreement.
“Choosing a no deposit option is great because it allows you to get behind the wheel of your new car without having to pay a hefty upfront cost. It's perfect for those who want to keep their savings intact while still enjoying the convenience and freedom of a new car.”
For illustration purposes only. The rate and payment you may be offered will be based on your individual circumstances.
If you’re accepted for no deposit car finance, you don’t need any savings to get started with your car finance agreement. Without a large upfront sum to worry about, getting a car can be a lot more accessible.
You have the same fixed monthly payment structure as a standard finance agreement. This is agreed at the beginning of the term, so you know exactly what you’ll pay and when.
No deposit finance is accessible to applicants across all credit circumstances, including those with bad credit or a limited credit history. But, eligibility and the loan terms available will depend on your individual circumstances and the lender's criteria.
Monthly payments may be higher than a deal with a deposit. This is because the full vehicle value is being financed. A deposit reduces the amount you need to borrow, which in turn reduces the size of your monthly repayments.
Interest accrues on the full amount from the start of the agreement because you are financing the full vehicle value. Paying a deposit means you borrow less, so you pay interest on a smaller amount.
With these two factors combined, your total cost of credit will be higher than if a deposit had been paid. This means you could pay more overall across the full term of your finance agreement than if you’d paid a deposit upfront.
Yes, it is possible to get no deposit car finance with a bad credit history. Some of our lenders specialise in bad credit car finance, and look at more than just your credit score. They also factor in things like your income and general affordability, how you have managed credit in the past and your current financial circumstances.
Because Car Finance 247 is a broker, we can give you access to a wide panel of lenders, rather than limiting your application to a single lender. Different lenders have different lending criteria, so searching across the panel can help identify lenders who are the best match for your circumstances and could therefore improve your chances of approval.
However, approval is not guaranteed and applicants with a poor credit history may be offered higher interest rates than those with a stronger credit history.
If you are looking for no deposit car finance with bad credit, apply online with no impact on your credit score, to see what options may be available to you. We use a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score.
Getting no deposit car finance through Car Finance 247 is simple. Once you've applied, we'll search our panel of lenders and help you find a finance option suited to your circumstances.
At Car Finance 247, used car finance is all about helping people improve their everyday lives. We believe that everybody deserves a feel-good car buying journey. We’ll use our experience to find the best deal from our wide panel of lenders. Because when it comes to finding car finance, we go the distance.
Plus, you’ll have a dedicated account manager on hand to help guide you through the process, so there’s nothing to worry about.
Whether it’s sorting out the school run, getting that big boot for the big shop, or a car you’re proud to park outside the office, we’ll work to find you the best deal from our panel of lenders, even if you have bad credit. Credit is subject to status.
We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We will be paid a commission for providing our services and this commission may be a fixed amount or a percentage of the amount borrowed. The interest rate you pay is directly linked to the amount you are borrowing and your individual credit status.
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