Get behind the wheel on a budget with no deposit car finance. 

By Jill Gourlay May 20, 2024
no deposit car finance

Driving gives many people freedom and independence, but their budget doesn’t always allow it due to the upfront costs involved. Obtaining car finance in the UK without a deposit is possible, but the decision will be based on your creditworthiness and the lender’s terms. Although some lenders may offer finance without a deposit, you should be prepared for the possibility of higher monthly payments to compensate for the lack of a deposit.  

Our guide provides detailed information on car finance with no deposit, including what it entails and how to obtain it. So, keep reading to learn more! Need information on the types of car finance available? Read our comprehensive car finance guide

What is no deposit car finance?

how to get car finance Car finance without a deposit is a financing option that allows you to purchase or lease a vehicle without paying an upfront payment. Instead, the cost of the car is spread out over the finance term, which usually involves monthly payments. This type of financing can be a great option if you don’t have the funds to make a substantial down payment. 

However, it is crucial to review the terms of the financing agreement carefully before deciding to take out car finance with no deposit. This includes understanding the interest rates and repayment plans, as well as any additional fees and charges that may be involved. It’s essential to ensure that the payment schedule fits your budget and that the financing meets your financial goals. 

Overall, car finance with no deposit can be a helpful financing option for those who don’t have the funds to make a large upfront payment. However, it’s essential to carefully consider all of the terms and conditions of the financing agreement before making any decisions. 

How can you obtain car finance without making a deposit? 

If you are not sure where to start when it comes to getting car finance with no deposit, then let us point you in the right direction! 

Explore the finance options that suit your current situation. Once you’ve chosen a vehicle that meets the lender’s requirements, double-check with them about the possibility of no deposit finance before finalising the deal. If you have found your car of choice, working with a broker may be a good option as they work with a group of lenders and can negotiate terms on your behalf to get zero deposit car finance 

Can you get car finance with no deposit if you have bad credit?

Car finance without a deposit is possible, even with a poor credit history. However, this may be more challenging. Lenders usually assess your creditworthiness by reviewing your credit score, income, employment record, and debt-to-income ratio. If you have bad credit, lenders may consider you a higher risk, which can result in higher interest rates or stricter loan terms. Therefore, bad credit car finance with no deposit may have specific difficulties. 

bad credit

CarMoney LIMITED is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activity and our registration number is 674094. Representative 17.9% APR. Over 18’s only. CarMoney IS A BROKER NOT A LENDER.

REGISTERED ADDRESS: Pioneer House, 2 Renshaw PL, Motherwell, ML1 4UF, Scotland.Company Number: SC467274.

All finance is subject to status and income. Written Quotation on request. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions.