No Deposit Car Finance

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Rates from 7.9% APR. Representative 21.4 APR

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
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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

How No Deposit Car Finance Works?

  • 1. Get a quote With no obligation, We’ll then look to find a car finance option that’s right for you from our panel of lenders.
  • 2. Find a car Buy from any reputable UK dealer or choose over 140,000 cars on our car search. Your account manager will take care of the checks and make sure there are no red flags.
  • 3. Pick up the keys We’ll sort out the paperwork. Simply sign, pick your keys and drive away
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.

Securing a no deposit agreement when you have bad credit

Having bad credit can make it feel like a lot of doors are closed to you. A poor credit rating, whatever the cause, can make it more difficult to secure funding from potential lenders and to make important purchases such as that of a car. But having bad credit doesn’t exactly mean that you don’t still need a car to get around for your work and home life.

Fortunately, you have come to the perfect place here at ChooseMyCar. We are car finance experts who specialise in delivering our clients bad credit car finance deals that work for them. And if you are looking for the a no deposit car finance arrangement when you have bad credit, then good news: the team of experts here are ready to help you out.

We understand that it’s not always possible to maintain a good credit score – and there are a lot of different things that can negatively affect your rating. And the truth is that if you have bad credit because of financial difficulty, such as having an IVA (individual voluntary arrangement), a CCJ or anything else, then it might also be the case that you will struggle to afford a hefty fee as an upfront deposit.

We pride ourselves on being a non judgemental provider here at ChooseMyCar, and we have years of experience working with customers across the UK who have bad credit ratings to help find them a manageable and affordable car finance agreement – including no deposit car finance arrangements.

We have a full panel of lenders dedicated to making sure that you get the best car finance deal for your personal circumstances.

Because no deposit car finance arrangements often come with higher monthly payments than other finance deals, it’s important to consider how you will prove your eligibility and the affordability of the rates before you apply. While having zero deposit to pay upfront will make the deal more affordable initially, any potential lenders will want to see that you have the monthly budget to afford the higher rates through an affordability test.

If you want to apply for a no deposit finance deal and you are worried about your credit, we are the people to help. As experts in bad credit car finance, we will work with you to arrange your no deposit car loan, help you to understand the total amount of the finance deal, negotiate on your behalf, and generally guide you every step of the way. Our personalised service is designed to help you find the ideal car finance arrangement for you and your individual circumstances.

What are my options for a no deposit car finance deal?

The good news is that choosing to apply for a no deposit car finance deal won’t restrict your options when it comes to the kind of payment terms you can agree. Most forms of car finance work with no deposit, but the two most popular and common options are certainly the hire purchase (HP) and personal contract purchase (PCP) options.

Securing a hire purchase (HP) deal with no deposit

The hire purchase car finance arrangement is excellent for anyone hoping to make an investment for the future and to own the car at the end of your finance. With a hire purchase deal, the total price of the car and the finance is divided into monthly repayments. At the end when the total charge of the finance deal has been met, the car will officially change ownership into your hands. You can then do whatever you want with the vehicle at the end of your car financing term.

It’s worth considering, however, that most standard hire purchase deals are arranged with a small deposit at the start. The monthly finance rates for a hire purchase arrangement are generally higher – especially with no up front payment made. You won’t actually own the car until the total charge of the arrangement has been met
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Consider a personal contract purchase (PCP) deal for no deposit finance

Another very popular option for no deposit car finance is the personal contract purchase (PCP) route. In this kind of deal, the repayment options can be much more flexible than those on a hire purchase deal which has higher monthly rates. This can improve the affordability of the monthly finance rates and make the deal more manageable. Much like a hire purchase deal, in a no deposit PCP finance deal you will make monthly payments while on the finance arrangement.

However, the big difference between hire purchase and personal contract purchase is that of the final payment. In a personal contract purchase deal, there is a large payment (known as a balloon payment) to be made at the end of the term in order to own the car outright. If you want to keep costs low this is an excellent choice as you are only really paying for the depreciation of the car. But it’s important to note that will either need to give the car back or part exchange it at the end of the term if you cannot pay the balloon payment in a new PCP arrangement.

Is a personal contract hire (PCH) arrangement good for no deposit deals?

The personal contract hire (PCH) deal is a little different to other car financing solutions. For affordable monthly payments, this is an excellent choice – however, it’s important to know that under this arrangement you will never actually own the car. This is essentially no deposit car leasing deals in which you simply pay for the use of the car over a fixed loan term. The amount paid is based around the expected depreciation of the vehicle and these deals often come with mileage restrictions.

Because of this, the monthly payments for your agreed loan period are very much dependent on the kind of personal choice of car you are hoping to lease. Lease deals like the personal contract hire arrangement are incredibly appealing for anyone who needs the use of a car but is struggling to secure the budget and spare cash for a purchase agreement – making it also a good choice for anyone hoping to avoid making an initial deposit.

Check Your Eligibility!

No impact on your credit score

Rates from 7.9% APR. Representative 21.4 APR

Your seven quick steps to getting a car on a no deposit finance deal

Applying for car finance with no deposit – and potentially bad credit too – can seem like a huge mountain to climb. But by choosing the expert team here at ChooseMyCar as your provider, the experience could not be any easier or more simple. To apply for no deposit car finance with us today, all it takes is following seven incredibly quick steps:

Make sure you know what you can afford

Knowing exactly what your monthly budget is is always the first step in applying for car finance. To make the process easier, just use our excellent online car finance calculator here at ChooseMyCar. This will give you a representative example based on your own information that you can then use as a guideline. Of course, you’ll need to take into account the fact that you won’t be making a deposit too.

Apply with us here

Know what your budget and affordability is? Brilliant, let’s get started! Just apply with us online here at ChooseMyCar to get things underway immediately. It’s a simple process – you’re already on your way to your ideal used car.

Get your decision back quickly

We are incredibly responsive, and you’ll be getting your decision back in absolutely no time at all. We’ll let you know if you’ve been approved for no deposit car finance – often on the very day that you apply.

Find your ideal used car for sale

We have over 100,000 cars available on a daily basis, so whatever it is that you are looking for, we’ll be able to help. Everyone is looking to get something slightly different out of their vehicle, so browse the amazing range on our website to find an ideal used car for sale that suits your budget.

We have over 100,000 cars available on a daily basis, so whatever it is that you are looking for, we’ll be able to help. Everyone is looking to get something slightly different out of their vehicle, so browse the amazing range on our website to find an ideal used car for sale that suits your budget.

At this point in the process, you’ll be ready to purchase your used car from any dealership. Simply agree to your finance repayments and the loan amount that have been approved and you are ready to go ahead and buy your used car from any dealership.

Sign the paperwork

Our professional and friendly team of experts is around whenever you need us for insight and guidance. We can help you to complete all the necessary paperwork, allowing you to finally confirm things, putting them to paper and signing an official agreement.

Get driving!

You’re good to go! It’s time to hit the road, so grab your new keys and begin enjoying your new car straight away.

Get in touch with the experts here at ChooseMyCar

Finding and buying a used car for sale on a no deposit finance deal could not be easier with ChooseMyCar. We’re ready to help you today, so simply apply with us online now to get the process started and take one step towards your ideal new car. Want to chat with one of our experts? Simply get in touch with us today for advice, guidance and assistance on all things regarding no deposit car finance.