Can You Get Car Finance Without a Deposit?

When it comes to buying a car, many people worry that they need a large upfront payment to get started. But what if you don’t have savings to put down as a deposit? The good news is that yes, you can get car finance without a deposit — and it might be easier than you think.

At carloans 365, we help drivers across the UK find flexible car finance options, including no-deposit deals. In this post, we’ll explain how no-deposit car finance works, the pros and cons, and how to apply.

What Is No-Deposit Car Finance?

No-deposit car finance is exactly what it sounds like: a car finance agreement that doesn’t require you to pay anything upfront. Normally, lenders ask for a deposit (often around 10% of the vehicle’s value) to reduce their risk and lower your monthly repayments. But with a no-deposit deal, you can spread the full cost of the car over the length of your agreement.

This can be available with various types of car finance, including:

• Hire Purchase (HP)
• Personal Contract Purchase (PCP)
• Personal loans

Who Can Get Car Finance Without a Deposit?

No-deposit finance is available to a wide range of applicants, including those with good, fair, or even poor credit. However, lenders will still assess your ability to repay the loan by looking at factors like:

• Your credit score
• Your income and employment status
• Your existing financial commitments
• Your affordability based on monthly budget

At carloans 365, we work with a wide panel of lenders, which increases your chances of being approved — even if you’ve been refused elsewhere.

What Are the Benefits?

There are a few reasons why no-deposit car finance might be the right choice for you:

Drive away without saving up – Get the car you need now without waiting to build a lump sum.
Flexible finance options – Spread the full cost across manageable monthly payments.
Access newer vehicles – A larger selection of newer, more reliable cars may be within reach.

What Are the Drawbacks?

While no-deposit finance is a great option for many, it’s important to consider a few key points:

Higher monthly payments – With no deposit, the total amount borrowed is higher, which means monthly payments could be larger.
Interest costs may be higher – You may end up paying more interest over the term.
Stricter eligibility – Some lenders might be more cautious and require stronger credit profiles.

Can I Get No-Deposit Car Finance With Bad Credit?

Yes, it's possible. While having bad credit may reduce the number of lenders available to you, we work with specialists in poor credit car finance. You may face slightly higher interest rates, but our team can help you find the most affordable and realistic option for your circumstances.

How to Apply for No-Deposit Car Finance

At carloans 365, applying is simple. You can complete our quick online application in just a few minutes. Here's what you’ll need:

• Your basic personal information
• Employment and income details
• Your UK driving licence

Once you apply, we’ll carry out a soft search (which won’t affect your credit score) and match you with suitable lenders. If approved, you can choose a car that suits your budget and needs.

Ready to Get Started?

If you're ready to explore car finance without the need for a deposit, we’re here to help. At carloans 365, we make the process quick, transparent, and stress-free — so you can get behind the wheel sooner than you think.

Apply now or contact our team for expert advice.