Representative Example: You could borrow £10,699 over 60 months with an initial payment of £495.89 (including £199 Admin Fee) followed by 58 monthly payments of £296.89 with a final payment of £495.89 (including optional £199 Option to Purchase Fee). Total amount repayable will be £19,012,40. 26.1% APR, annual interest rate (fixed) 13.3%.
Can you get zero deposit car finance options?
If you're thinking about buying a car but haven’t saved up for a deposit, zero deposit car finance could be the right option for you. This type of car finance allows you to get a used car without paying anything upfront, making it easier to get on the road. In this guide, we explain how no deposit car finance works, the pros and cons, and what to consider before applying.
With no deposit car finance, you don’t pay a lump sum at the start of the agreement. Instead, the full cost of the vehicle is spread across fixed monthly payments over a set period.
Because you're borrowing more (the full price of the car), the monthly payments will usually be higher than if you'd paid a deposit. For example, if you finance a car worth £10,000 with no deposit, you’ll be borrowing the full £10,000, not a reduced amount.
Before you apply for car finance, check your monthly budget to make sure the repayments are manageable. It’s also worth checking the total amount you’ll repay over the term, including the interest rate and any extra fees.
You can get zero deposit car finance with both Hire Purchase (HP) and Personal Contract Purchase (PCP) agreements. These are two of the most popular ways to finance a car, and both are available with or without a deposit, giving you more flexibility when it comes to your budget.
Both finance types are commonly used for used car finance, and with AutoMoney Motor Finance, you can choose to pay a deposit, or not. The choice is completely yours. Whether you want to reduce your monthly payments by putting down a deposit or prefer to keep your savings for other expenses, we’ll help you find the option that works best for you.
Choosing car finance with no deposit has a few clear advantages, especially if you need a car quickly or don’t have savings set aside. It can be a practical way to spread the cost of a vehicle without the delay of saving for a large upfront payment. Whether you're looking for your first car, replacing your current one, or upgrading to something newer, a zero deposit option could help you get started.
This flexibility makes it easier for more people to get behind the wheel, but always consider the total cost of the loan, as no deposit agreements can be more expensive overall than deals where a deposit is paid upfront.
While zero deposit car finance can make it easier to get a car without saving for a lump sum upfront, it’s important to look at the full picture before deciding. Taking out a finance agreement is a long-term commitment, so thinking through the costs and whether the deal suits your circumstances is essential. Here are a few things to consider before applying:
Thinking about your long-term financial situation can help you make the right decision. If you’re unsure whether zero deposit finance is the best option for you, our team is here to help.
Whether zero deposit car finance is the right choice for you depends on your personal circumstances. For some drivers, it offers a convenient way to get a new car. For others, it might be better to save up a deposit first to reduce the overall cost. Consider how each option fits your current financial situation and future plans.
Car finance with no deposit could be a smart choice if:
However, if your budget is smaller or your credit profile makes it harder to get approved, saving for even a small deposit could be a better option. It can reduce your monthly payments and help you pay less interest over the course of the agreement.
Yes, it’s possible to get zero deposit car finance with bad credit, but your options may be more limited depending on your credit history and current financial situation. Some lenders specialise in helping customers with low credit scores, missed payments, or little to no credit history.
To be considered, you may need to provide extra details such as proof of income, recent bank statements, or employment information. Lenders will also carry out affordability checks to make sure the monthly payments are manageable for you over the full term of the agreement.
If you are approved, it’s important to know that the interest rate may be higher compared to applicants with a stronger credit profile. This means you could pay more in total over the life of the loan, so always review the full cost of the agreement, including fees, APR, and repayment terms, before signing.
Even with bad credit, there are still used car finance options available, and choosing a zero deposit option can help you get back on the road. Just be sure the monthly repayments fit within your budget, and don’t be afraid to ask questions if anything is unclear.
At AutoMoney Motor Finance, we consider your full circumstances, not just your credit score. We may still be able to help if you’ve been refused car finance elsewhere.
You can apply for car finance online or speak to our team to find out what works best for your budget. Deposits are optional, so you can get started without paying anything upfront if that suits your situation better. Or, if you do have money saved, you can put down a deposit to lower your monthly payments. The choice is yours.
