No deposit car finance
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No deposit car finance
As a young driver, it can be difficult to put together a car deposit, especially if you need to drive to get yourself to a decent-paying job! Fortunately, lenders have listened, and it’s pretty common to be offered a no deposit car loan.
Can I get car finance with no deposit?
Yep! No deposit car finance is a pretty standard car finance option amongst most lenders nowadays. However, it’s not all good news – for the privilege of not paying a deposit, you’ll probably need to pay a higher interest rate than you would if you put a deposit down.
How does no deposit car finance work?
No-deposit car finance can apply for any of the car finance deals: including Personal Loan, Hire Purchase Agreement, Personal Contract Purchase, and a Car Lease.
For a personal loan, a deposit isn’t usually required anyway. For an HP or PCP, you can generally opt not to pay a deposit – just be aware that your monthly repayments will be much higher, though.
Pros and cons of no deposit car finance
The pros and cons of no deposit car finance are straightforward.
Put a deposit down, and your monthly repayments are lower – and you’ll pay less interest over the full contract term.
Take out a no deposit car finance deal, and pay nothing upfront – but pay more in interest.