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101 No Deposit Car Finance Deals

Can I apply for car finance with bad credit history? Yes. Why not apply for a NO obligation Quote with NO Impact on your Credit Score and find out?

Rates from 8.9% APR. Representative APR 19.9%

What is 0 Deposit Car Finance?

Typically when buying a car on finance, you’ll either want no deposit car finance or to make an upfront payment.

A deposit can be cash or, more likely, the value of a vehicle if you part exchange.

On the plus side, paying a deposit will increase your chances of getting approved for finance and reduce the overall amount of your loan and the monthly repayments.

However, no car to trade in or money available for an initial deposit is the bonus of 0-deposit car finance deals.

Can I get a Zero Deposit Car Finance Deal?

Yep! No deposit car finance is a standard option among most lenders nowadays.


It’s time to swap your car in for something newer, or perhaps you’ve just passed your test and looking to get your first car. Anyhow, those savings you have tucked away can pay for the deposit.

But hang on!

Maybe you don’t want to splurge your hard-saved cash on a deposit for the car.

Good news! You probably won’t have to because most lenders now offer No deposit car finance, even to new and younger drivers.

However, there is a catch. For the privilege of not paying a deposit, you might need to pay a higher interest rate than you would if you put a deposit down.

Read on to find out everything you need about zero-deposit car finance!

Car Finance Calculator

5 years
Total cost of credit1,686.40
Total repayment8,186.40
60 monthly
payments of

Which No Deposit Car Finance Deals are available?

When choosing car finance with 0 deposit, you have several types of finance available.
PCP car deals

  • Usually for new cars and those up to five years of age.

HP Finance

  • Not normally associated with a new car purchase.

Another option is a Personal Loan (cash advance) for a car. No deposit is necessary here because you receive all the money upfront and own the vehicle outright as soon as you pay the dealer.

Pros and Cons of No Deposit Car Finance

As with everything in life, the No deposit car finance deal has pros and cons. However, we can’t think of many!


  • The positive of 0-deposit car finance is you buy a vehicle without stomping up a hefty deposit. If you have the deposit money in the bank, it can remain there, and if you don’t have the cash for an initial payment, it doesn’t matter.


  • However, swings and roundabouts, the negative of taking out a No deposit car finance deal, you’ll have more to pay back each month. And you’ll end up paying additional interest charges. Check out our car finance calculator to see how much you can afford.

We recommend deciding on a monthly car budget you will be happy with over the contract term. If you cannot reach this on a no-deposit car finance deal, you might consider saving for a deposit, which will lower your monthly repayments.

Rates from 8.9% APR. Representative APR 19.9%

Am I Eligible for No Deposit Car Finance with Bad Credit?

Owning a bad credit profile can be frustrating, especially when you see that stylish-looking car sitting on the forecourt, winking its lights back at you.

You don’t have the cash to buy the vehicle outright. Most people don’t. However, even raising a deposit is a non-starter at the moment.

It is all very frustrating. You can afford the repayments. If only you did not have to pay a deposit. You need a No deposit car finance arrangement.

Many lenders, including online car finance brokers, specialise in providing bad credit car finance deals.

However, suppose you have financial difficulties, such as a CCJ or IVA. In that case, you could struggle to find a No deposit car finance deal.

Potential lenders will conduct an affordability check comparing your monthly Income v Outgoings. To satisfy themselves, they have the means to make monthly repayments on a No deposit car finance deal.

Work out your affordability before you apply. Consider that although you are not paying a deposit, that might initially make the deal more affordable. Your monthly payments are more for a zero-deposit agreement. Also, with No deposit deals, APR Interest rates are higher.

Representative Example of a No Deposit Car Finance Deal

Representative example of how a No deposit HP finance deal works

We have picked a popular new driver’s car from the Autotrader website. A Renault Clio 1.2 16V Dynamique MediaNav 5dr 2015 White with 66,000 miles on the clock.

Car priced at £6,000 May 2023

Deposit: £ ZERO

Option to purchase fee (to transfer ownership to you at the end of the term): £100

APR: 6.9%

48 Monthly HP payments: £143.40

Total Interest charged: £883.20

Total amount payable: £6983.20

Figures from the moneycalculator.com – 05/2023

It must be said. If you deposit, the lender will view you as a less risky proposition: you’re effectively borrowing less from them. You are more likely to get finance with a bad credit score when you put down a deposit.

Why Use Us for your Car Finance?

We can find you a quote with no impact on your credit score.

Whatever used car you’re searching for, be it a Citycar, Supermini, Hatchback, Mini-MPV or something else! We help you find the best No deposit car finance deal. We work with Carfinance247, whose large panel of Lenders cater for all types of credit profiles. You’ll get your manager to explain your options.

Rates from 8.9% APR. Representative APR 19.9%

FAQs - No Deposit Car Finance

Rates from 8.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed), and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.

We look to find the best rate from our panel of lenders and offer you the best deal you’re eligible for. We don’t charge a fee for our service, but we earn a commission. This does not influence the interest rate you’re offered in any way.

Autedia Limited is a credit broker and not a lender, authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 948436). You can check the authorisation on the FCA Financial Services Register.