No Deposit Car Finance

Car finance with no deposit is an easy way to spread the cost of your car over time.

  • No Broker Fees. No Deposit
  • Free Car History & Dealer Check
  • Compare Best Car Finance Deals
Get a Quote No impact on your credit score

Rates from 9.9% APR. Representative APR 19.9%.
ChooseMyCar is a credit broker, not a lender.

Trustpilot TrustScore 4.9 out of 5

Car Finance Without the Upfront Cost -No savings, No Panic, No Pressure

Ever wish you could buy a car without all the faff? The monthly payments are affordable, it fits your budget but scratching together a deposit? That’s the tricky bit.

Not Any More. We work with Lenders who could offer you Car Finance without a Deposit, putting you in the driving seat without emptying your savings account.

See what you could afford today.

How Does it Work?

  • 1. Get A Quote

    Just fill in our online form – tell us your budget and your income, and we’ll check your eligibility. If you fit the bill for one of our No Deposit Lenders, one of our Personal Car Buyers will let you know, without obligation.

  • 2. Find A Car

    Just fill in our online form – tell us your budget and your income, and we’ll check your eligibility. If you fit the bill for one of our No Deposit Lenders, one of our Personal Car Buyers will let you know, without obligation.

  • 3. Pick Up the Keys

    Just fill in our online form – tell us your budget and your income, and we’ll check your eligibility. If you fit the bill for one of our No Deposit Lenders, one of our Personal Car Buyers will let you know, without obligation.

Use our Finance Calculator to see what you could afford. Click the button to get a quote. We’ll start the ball rolling.

Remember: there’s no obligation at this point – just options.

Finance Calculator : How Much Can You Afford to Spend on a Car?


4 Years

48 monthly repayments

Best available rate 6.9%

Total cost of credit £1,140.16

Total repayment £9,140.16

Get a quote No impact on your credit score

Representative example:

Borrowing £6,500 over 48 months with a representative APR of 21.4%, an annual interest rate of 21.4% (Fixed) and a deposit of £0.00, the amount payable would be £196.24 per month, with a total cost of credit of £2,919.52 and a total amount payable of £9,419.52

No Deposit Car Finance Explained

Lenders like Deposits because it shows your commitment. If you’ve laid down a chunk of cash up front, you’re more likely to pay the rest without any problems. That’s the thinking, at least.

Deposits also lower your monthly repayments – spreading less cash over the full term of your Loan.

You might imagine that securing Car Finance without a Deposit is difficult – there are certainly fewer Lenders who work without one.

If your Income and Credit Score are good enough, however, securing Car Finance without a Deposit is possible. Many of our Lenders specialise in offering Car Finance without Deposits, opening up options to buyers without savings.

If you can prove your Income and prove your Credit History, they’ll consider your application.

Pop in a few details and see what you could be offered.

Pros and Cons of No Deposit Car Finance

Pros of No Deposit Car Finance

  • No Upfront Cash! If you don’t have a few thousand squirreled away (have you checked behind the sofa?) then you can still buy your car with finance.

  • Get Your Car Sooner. If you’re not spending months saving up for a deposit then the car you want can be yours much sooner.

  • Savings. If you need your deposit for something else – you’re getting married or saving for a house, for example – that cash is still yours to spend.

Cons of No Deposit Car Finance

  • Higher Monthly Costs. When you pay a deposit, that money is deducted from the full cost of your repayments and each monthly chunk is lower. Remove the deposit and that money goes back in, costing you more every month.

  • Harder to Secure. While not an impossible task by any means, securing finance without a deposit does tend to come with more strings attached. Lenders will need more persuasion, and that means better Credit Scores and a more secure income.

  • Higher APR. APR is a combination of Interest and Charges. Deposits don’t attract these. If that money is put into your monthly payments it will attract these, meaning you might pay more APR over your whole loan, costing you more overall.

How to Get the Best No-Deposit Car Finance Deal

  • APR (Annual Percentage Rate)

    No Deposit Finance may attract slightly higher rates but remember: APR is negotiable. See which Lender offers you the lowest rate.

  • Total Amount Payable

    Without a Deposit, more of your loan will attract Interest and Fees. This means your overall total may be different than if you had paid a Deposit. Use online calculators to see what that difference might be.

  • Monthly Payments

    Your Lender should be able to give you a solid look at your monthly payments before you sign on the dotted line. It’s vital that these fit your monthly budget – don’t sign up until you know you can afford them.

  • Term of the Loan

    You might be tempted to lower your monthly payments by stretching your total repayment period. This might make up for your lack of deposit. Remember, however, that the longer your term, the more APR payments you’ll make, and the more expensive it might be overall. Keep this in mind.

Money Saving Tips When Taking out Car Finance

Check and Double Check

Nobody likes paperwork: it’s dull and full of technical jargon. We understand the urge to skim it. DON’T. The devil is always in the details so run through that paperwork with a fine tooth comb. Know what you’re signing up to.

Watch Your Budget

Are you certain you can afford it? Missing payments could put your car at risk and dent your Credit Score, making it harder for you to buy everything from fridge freezers to houses. Spend what you can afford and drive happy.

Save Any Excess

If you have spare money every month after paying your repayments, save it. You can put this towards your next car, your next home or even the balloon payment for your Car Finance, if you’re buying on a PCP deal.

Pay More

Paying off your loan quicker will save you money. You’ll pay less in APR over the length of the loan and pocket the difference.

Pay On Time

Paying regularly and reliably will boost your Credit Rating. The longer you can demonstrate trust, the better your rating will become and the less Finance will cost you in the future.

Frequently Asked Questions

Yes. Lenders can offer car finance without requiring a deposit. While this may make the upfront cost more affordable, it may also raise the monthly amount you pay. Keep this in mind.
Lenders are more likely to offer no deposit deals to borrowers with better credit scores. You are also most likely to be accepted for a no deposit arrangement if you opt for a PCP finance deal rather than Hire Purchase.

Yes you can. Be aware, however, that being unemployed might make your lender wary about offering you finance and may increase the amount they charge for that finance (your APR).
It is possible to gain No Deposit Finance with income from a pension or from some, but not all, benefits. It is also possible to secure No Deposit Car Finance if you are self employed.

£0 Deposit Car Finance is a car loan where you are not required to pay a deposit or down payment in advance. The missing deposit is typically spread into the loan, increasing monthly repayments.
£0 Deposit Finance deals can be very useful if you need a vehicle but you don’t have savings but can cost more over the full term of the loan, and are likely to cost more every month.

Yes, you can arrange finance with a Joint Purchase Agreement, where two people agree to buy a car together. This decreases the risk for the lender and can make it more likely for you to be accepted for Car Finance.
In these arrangements, the car becomes the property of both signatories once the finance is paid off. You need to keep this in mind when it comes to selling or modifying the vehicle.

A deposit will bring down the monthly cost of buying or leasing a car but it isn’t essential. It can also make the finance you want easier to secure.

If you don’t have enough money set aside for a deposit and you need a car quickly, No Deposit Car Finance can be a practical choice. It depends on your needs. It’s worth assessing the pros and cons carefully in advance, however.

Essentially, a car finance with no deposit deal works exactly the way that it sounds. Any car finance deal that doesn’t include an upfront payment is considered a no deposit car finance agreement. This can save you from having to pay a hefty sum at the beginning of your finance agreement, making the entire process of applying for car finance more accessible and manageable right from the get go. And if you are worried that a no deposit deal will limit your choice on the type of car you obtain, rest assured this is not the case when you work with ChooseMyCar.

It’s important to understand, however, that due to the lack of a deposit, these finance deals often involve higher monthly repayments than other finance arrangements in which a deposit is agreed upon and paid upfront. In no deposit finance cases, it is also the case that a dealer may need some money in order to secure the vehicle – showing that you are a serious buyer.

After that, however, the car will be arranged either for pick up or delivery and you won’t need to pay anything further for the first 30 days of any new no deposit car finance deals. From this point forward, the regular monthly repayments of the agreed upon amount will begin and it will function just like any other car finance arrangement – albeit with higher monthly payments to be made.

Getting approved for no deposit car finance most often revolves around having a credit check performed. All lenders will need to perform credit checks and affordability checks before approving you for a no deposit finance deal.

It might go without saying that lenders are more likely to approve your no deposit finance application is you have a good credit rating and credit score, but it’s worth bearing in mind when choosing to apply for car finance. If you can take steps to improve your credit rating, it is certainly valuable to consider doing this before and during an application. A strong credit profile showcases to potential lenders that you are capable of paying off your debts on time and efficiently – any car finance lender will look at this in a positive light.

Why exactly is this a particular point of interest for no deposit finance car deals? It’s mostly around the face that your monthly repayments are gong to be higher on this kind of finance deal compared to other car finance options – raising the question for potential lenders of whether or not you will be able to meet these payments regularly. A lender will need to check the affordability and your reliability to make these monthly instalments in order to waylay these concerns and to avoid difficult situations further into your finance agreement.

The other requirements for a no deposit car finance deal are actually fairly straightforward. The main requirements include things such as being at least over the age of 18, being able to provide basic proof of address, driver’s license and financial supporting documents, and showing that you will be able to keep up with the repayments.

If you have an imperfect or bad credit score, it can be more difficult to have credit deals approved for purchases such as for a car or a home. Securing funds for these purchases is affected by your credit score, and when a potential lender runs a credit check on you it will inform on things such as:

  • Whether to actually lend you money for a car finance agreement at all
  • How much money they will be willing to lend you if approving your application
  • The interest rate that will be applied to the full amount lent to you
  • Perhaps the best way to think of it is to imagine your credit score as a kind of financial footprint. Your credit report and credit history will provide a record to car finance lenders as to your suitability for a new car finance agreement. This tells them how safe it is to lend you money.
  • Missed payments, late payments and bankruptcy will all show on your credit history.

But what else affects your credit score? Things such as:

  • Your current financial situation and personal circumstance regarding your debts
  • Your active credit availability
  • Your history of making credit payments and repayments
  • Your presence on the electoral role
  • Your past credit searches

When improving your credit score for a no deposit finance deal, consider the following:

Register to vote
There’s no reason not to do this one. Any finance company will run a credit check before making a decision. By registering on the electoral role you will make your name, address and other details more easily found – making their life a bit easier.

Make repayments on time
When avoiding a hefty deposit with no deposit car finance deals, your lenders will want to know that you can keep up with the higher monthly repayments and loan amount. By making sure that you aren’t missing current repayments and accumulating more debt, you can better prove your reliability and eligibility for these higher monthly costs.

Address any outstanding issues with your credit rating
The financial advisors here at ChooseMyCar always recommend that you review your credit score regularly and keep on top of things proactively if you are applying for a car finance plan. This gives you the opportunity to make sure that there aren’t any mistakes or errors on your record while taking steps to pay off current credit debt.

Not opening too many new loans
If you are planning on applying for no deposit car finance, it’s a good idea to carefully consider whether you are going to open any other new loans too. Opening a lot of loans at the same time can signal to car finance lenders that you may be in financial difficulty. Alongside this, consider closing unused credit accounts to clear them from your history and to increase finance provider confidence.