No Deposit Car Finance

If you’re looking to buy a car but don’t have the cash for a deposit, no-deposit car finance may be the solution for you. But what exactly is no deposit car finance, and what are the benefits and risks?

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What Is No Deposit Car Finance?🤔

No deposit car finance allows you to purchase a car without an upfront deposit. Instead, you pay off the cost of the vehicle over a fixed period, usually between 12 and 60 months.

It’s a popular option for people who don’t have the cash for a deposit or who would prefer to keep their savings for other purposes.

With no deposit car finance, you can spread the cost of the car and make manageable monthly payments. However, it’s essential to consider the interest rates and any fees involved in the finance agreement before committing to a no-deposit option.
 

Types Of Car Finance You Don't Need A Deposit For👇

Personal Loan

With a personal loan, you can borrow a lump sum and use it to purchase your car outright.

Hire Purchase

Hire Purchase allows you to finance the cars full cost. You'll make monthly payments of between 12-60 months.

Personal Contract Purchase

PCP offers lower monthly payments than HP but requires a balloon payment at the end of the term.

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Is No Deposit Car Finance Right for Me?🚘

  • Faster Access To A Car: By eliminating the need to save for a deposit, you could be driving away in a new car sooner.
  • More Financial Freedom: Use your saved funds for essentials, a down payment on other needs, or unexpected expenses. 
  • May Be Suitable For Those With Lower Savings: No deposit car finance can be an option for those with limited savings who still need reliable transportation.
  • Higher Monthly Payments: While you avoid a large upfront cost, your monthly payments might be higher because the loan is stretched over a longer term.
  • Extended Loan Term: Spreading the loan over more years means you'll be paying interest for a longer period, potentially increasing the total cost of the car.
  • Risk of Negative Equity: If the car depreciates in value faster than you pay it down, you could owe more than the car's worth, making it difficult to sell or trade in later.

Find Your Budget🔍

 Try out our car finance calculator! It can help you estimate your monthly repayments. Keep in mind that choosing no deposit might mean slightly higher monthly payments.

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Don't forget! This is for illustrative purposes only and is not an offer of finance.

Have a Question About No Deposit Car Finance?

What eligibility criteria do I need for no deposit car finance?

While no deposit can make car finance more accessible, qualifying still requires meeting some key criteria. Here's what lenders typically consider:

 

  • Credit Score: A good credit score shows responsible borrowing habits and can influence the interest rate you're offered.
  • Affordability: Lenders assess your income and expenses to ensure the monthly payments fit your budget comfortably.
  • Employment Status: A stable job and income demonstrate your ability to make repayments.
  • Age: You'll need to be over 22 years, or have a previous mortgage or hire purchase agreement.

Strong overall financial health increases your chances of approval, even without a deposit.

Here are some additional things to keep in mind:

 

  • Interest rates might be higher: Since there is no down payment to offset the loan amount, interest rates for no-deposit car finance can be slightly higher than with a deposit.
  • Larger loan amount: Financing the full car value means a bigger loan and potentially higher monthly payments.
Can I get no deposit car finance with bad credit?

Getting no deposit car finance with bad credit can be challenging. Here's why:

 

  • Higher risk for lenders: Without a deposit, lenders consider the loan riskier. They might be less likely to approve you or offer a higher interest rate to compensate for the increased risk.
  • Higher monthly payments: No deposit means borrowing the full car value, which can lead to higher monthly payments that might be difficult to manage with bad credit.

Don't give up, though! Here are some options:

  • Improve your credit score: While it takes time, consider ways to improve your credit score before applying.
  • Consider a smaller, cheaper car: A less expensive car will mean a lower loan amount and potentially lower monthly payments.

We can still help! While we may be able to offer no deposit finance in this case, we can explore other options to find the right car finance deal for you.

How do I apply for no deposit car finance?

Applying for no-deposit car finance is the same process as any car finance agreement.

  1. First, budget and ensure you can afford the car and finance you want.
  2. Then, collect all the necessary documents and ensure your credit score is as strong as possible.
  3. Applying is easy; fill out an application form and wait for a decision.

Here at Marsh Finance, we have a simple one-page application form that can see you receive a decision the same day.

Interested in applying? Click here to apply for no deposit car finance quickly and easily.

Do I need a good credit score to apply for car finance?

Not necessarily! While having a good credit score can certainly make it easier to get approved for car finance, there are lenders out there who are willing to work with borrowers who have a poor credit history. Even if your credit score isn’t great, you still have options available to you. With a little bit of effort, you could be driving away in your new car in no time!

It only takes 30 seconds to submit a car finance application with Marsh Finance, get started today.

Does 0% deposit car finance exist?

It does, and you can get it here at Marsh Finance. If you would rather save on a deposit, or simply don’t have the funds available to place down a large amount, you can use no deposit finance to get you on the road. Apply for finance with us and find out if you're pre-approved without impacting your credit score!

What does 0% deposit car finance mean?

Zero deposit car finance is simple: financing without placing down a deposit. You choose not to place down a deposit, and instead make slightly higher repayments over a 12 – 60 month period, in order to cover what would have been the initial deposit.

Can you get car finance with no deposit?

You can, and even better, you can get it right here! At Marsh Finance we are proud to offer no deposit car finance, as we continue to support customers of all financial circumstances.

Is zero deposit car finance worth it?

Zero deposit car finance can be a great option if you aren’t in a position to commit a massive sum as a deposit. If you are feeling the pinch financially, or simply want to use the money elsewhere, no deposit car finance can provide you the means to take control of your finances. It is important to note however that no deposit car finance will likely require higher monthly payments in order to account for the absence of a deposit.

What is pre-approval in car finance?

Pre-approval is an important part of the car finance process. It shows that you could be someone eligible for finance, but more needs to be done to get your dream car. At the point of pre-approval, a soft credit check takes place. This doesn't affect your credit score, but going through with finance will mean a hard credit check. Pre-approval isn't a guarantee of a loan, but it's a really important start. If you are looking to get pre-approved for finance, we can help. 

Don't Just Take Our Word For It🌟

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Complete our 30-second form for a quick decision from our dedicated team. What's stopping you? Finance your dream car today 👇.
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