Many lenders offer car finance without you putting down a deposit. Check what you could be eligible for in minutes.
Soft search with no credit impact*
No deposit required on many agreements
HP and PCP options available
Representative 19.8% APR. No impact on your credit score. Our partner uses a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score. ?We're partnered with Car Finance 24/7. As an Introducer Appointed Representative of Carfinance247 Limited (FCA FRN: 653019), we receive a commission if you purchase finance products through the link above. We do not provide advice or make recommendations.
*A soft search has no impact on your credit score. If you choose to proceed with a full application, a hard search will be carried out which may impact your credit score.
No deposit car finance means you borrow the full value of the car without paying anything upfront. Your monthly payments cover the entire amount, spread over an agreed term, typically between one and seven years.
Both HP (Hire Purchase) and PCP (Personal Contract Purchase) can be set up with no deposit. With HP, you pay off the full value of the car in monthly instalments and own it at the end. With PCP, your monthly payments are lower because they only cover the depreciation, but there is a larger balloon payment at the end if you want to keep the car.
Not every agreement requires a deposit. Many lenders offer zero deposit or 0 deposit options, though whether you are offered one depends on your individual circumstances, credit history, and the car you are looking at. All applications are subject to status and affordability.
In most cases, yes. Without a deposit, you are borrowing a larger amount, which means your monthly payments will typically be higher than if you had put money down. You will also pay more interest over the full term because the total amount financed is larger.
For example, financing a £10,000 car with no deposit means borrowing £10,000. Putting down a £2,000 deposit means borrowing £8,000 instead. The monthly payments and total cost of credit would be lower on the smaller amount.
That said, for many people the flexibility of getting a car without needing to save a lump sum first is more important than the difference in total cost. Only you can decide whether the trade-off works for your budget.
The rate you are offered depends on your individual circumstances. Rates start from 9.9% APR, subject to status.
Even a small deposit could make a noticeable difference. It reduces the amount you need to borrow, which lowers your monthly payments and the total interest you pay. It could also improve the terms you are offered, as lenders may view a deposit as a sign of financial commitment.
If you have bad credit, putting down a deposit could improve your chances of being approved. It reduces the risk for the lender because they are financing a smaller portion of the car's value.
However, a deposit is not always necessary. If saving up would delay getting a car you need for work, family, or other commitments, a no-deposit arrangement could be the more practical option. The key is making sure the monthly payments are affordable within your budget.
It may be possible. Some lenders offer no-deposit options to applicants with lower credit scores, though the range of options may be more limited and the APR higher than for someone with good credit.
Using a broker means your application can be matched against a panel of lenders, including some who specialise in bad credit car finance with no deposit. This saves you from making multiple applications yourself.
A soft search lets you check what you could be eligible for without any impact on your credit score. If you decide to proceed, a hard search will be carried out by the lender. Subject to status and affordability.
If you receive benefits or have a CCJ or IVA, no-deposit options may still be available depending on your circumstances.
If you already have a car, you may be able to use its value as a deposit on your next finance agreement. This is known as part exchange. The value of your current car is deducted from the price of the new one, reducing the amount you need to finance.
Part exchange can be a practical way to avoid paying a cash deposit while still reducing your monthly payments. The amount you get for your current car depends on its age, mileage, condition, and market value.
If your current car is on finance with outstanding payments, the settlement figure needs to be cleared before you can part exchange it. If the settlement amount is more than the car is worth, this is called negative equity. Some lenders can roll negative equity into your new agreement, but this increases the total amount you owe. Our main car finance page has more details on how this works.
Wondering how much car finance you can get on your salary? Use our calculator to estimate monthly payments based on the car price, your credit grade and preferred term length.
Check your eligibility for both HP and PCP deals in minutes (Representative 19.8% APR) - with no impact on your credit score. Our partner uses a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score.
Check Your EligibilityNot the right fit? Check out the other car finance options we cover.
If you are already paying for a car on finance, make sure you are not overpaying on your car insurance too. Comparing quotes from multiple insurers is the easiest way to check you are getting a competitive deal.
Thinking of selling your car? Get a free valuation via our partnership with Motorway.
Common questions about no deposit car finance.
No, a deposit is not always required. Many car finance options are available with no deposit, for both HP and PCP. Whether you are offered a no-deposit option depends on your individual circumstances, including your credit history and the car you are looking at. Subject to status and affordability.
Your monthly payments will typically be higher without a deposit because you are borrowing the full value of the car. The exact difference depends on the car price, term length, and APR. You can use the calculator on this page to compare payments with and without a deposit.
Not necessarily, but a deposit can help. Putting money down reduces the lender's risk and could improve the terms you are offered. Some lenders are comfortable with no-deposit applications, particularly if your credit history is strong. Subject to status.
Once your finance agreement is in place, you cannot add a deposit to reduce future payments. However, some agreements allow you to make overpayments or early settlement. Check the terms of your specific agreement, as early settlement fees may apply.
Yes, this is called part exchange. The value of your current car is deducted from the price of the new one, reducing the amount you need to finance. If your current car is on finance, the outstanding balance needs to be settled first.
Keeping the amount you borrow as low as possible is the best way to reduce the total cost. Choose a car that is comfortably within your budget rather than stretching to the maximum. A longer term will reduce monthly payments but increase the total interest paid. HP is usually cheaper overall than PCP if you plan to keep the car.
It may be possible. Some lenders offer no-deposit options to applicants with lower credit scores, though the options may be more limited and the APR higher. A soft search lets you check what could be available without any impact on your credit score. Subject to status and affordability.
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