No deposit car finance simply means that a finance company will pay the dealer the full asking price for their car. This means that you wouldn’t need to pay the dealer a down payment and they would be paid in full by your chosen finance provider.
For example, if a car is £7,999, your finance provider would lend you £7,999, which would be paid in full to the dealer, then you would make repayments for £7,999 plus whatever interest rate you are offered over whatever term you choose.
Here is an example of borrowing £7,999 with no deposit for a good credit car finance provider over 4 years:
Payments would be £211.41 per month for 48 months at 12.9% APR representative with a total repayable of £10,147.69
In our experience with the 15 fair and bad credit car finance providers we deal with, 90% of the loans that our customers have been offered have been offered without a deposit.
Since we are not able to see the credit report or credit score of any customers that apply to us, the only way to know whether you would qualify for no deposit car finance, is to apply. Most finance brokers use soft search now (although it is definitely worth checking) so there is no impact on your credit rating if you do apply.
If a dealer has a range of good, fair and bad credit car finance providers at their disposal, this generally makes them a car finance specialist. When a dealer has a panel of lenders offering finance to all credit profiles, they are usually known as a No Deposit Car Finance Dealer as well as a Bad Credit Car Finance Dealer.
There are several benefits to paying a deposit when buying a car on finance:
Of course, paying a deposit out may not always be feasible and these are the potential issues:
So, these factors all require careful consideration so that you can make the best decision for your personal circumstances.
This will vary depending on your personal circumstances and affordability, the best way is to plan ahead and carefully budget for:
Once you have factored all of the above in, you might have a better idea of how much of the money you have right now you can comfortably part with.
So, you are searching for a ‘No Deposit Car Loan Near Me’, but how do you find a dealer that specialises in no deposit car finance?
One way to identify a No Deposit Car Dealer is to search the term in Google and see who comes up on the map. You will then be able to check their star rating, read their recent reviews, and visit their website. You could also ask friends and family for recommendations from when they’ve bought a car on finance in the past.
We provide a Google Map of some of the best rated car finance specialist dealers in the United Kingdom so that you can see which dealers are closest to you.
Yes you can. If you are looking for a No Deposit Car Finance Dealer, you will have a lot of options from brokers to car finance dealers that might be able to help you get no deposit car finance approved.
There is no minimum credit score because fair and bad credit car finance lenders use their own credit scoring system. This means that your score on Experian or Clearscore will be completely different to the score that a bad credit car finance provider will use. Whether you are approved for a no deposit car loan will depend on which finance company approves you and which tier you are approved on.