Car Finance without Deposits

Get your dream car home today with no-deposit car finance deals.

  •  Affordable and flexible terms
  •  Decision in minutes
  •  Zero impact on credit score
  •  Free eligibility check
  •  No deposit for new and used cars

Representative Example: Credit Amount - £7,000 for 12 months at £752.73 per month. Total loan repayment amount of £9032.80. Interest Amount: £2032.80. Interest rate: 49.9% pa (fixed). 49.9% APR Representative.

What to define as no deposit car finance?

It works as it seems. It is a car finance arrangement where you do not have to pay anything upfront to get the car home. The payments begin after a month of having the car at your doorstep. The facility helps you avoid exhausting your savings.

Instead, you can spread the costs of the car price in small repayments after approval. By the end of the loan period, you can either return the car or buy it with a one-off payment.

As this arrangement includes no deposit, the repayments could be higher. It implies you will have to pay more by the end of the agreement. Still, you may get a new car at £99 a month with no deposit. All you need to do is have a reliable provider like Advanceloanday. We offer this facility as a long-term loan ideal for individuals with bad credit and low income.

You may spot different providers when you search by mentioning as cars on finance with no deposit near me. You can find affordable deals for new and used car finance.

Analyse your income and outgoings before signing up a final agreement. It helps us tailor the loan agreement to your budget and term. For that, there may be a few checks. The initial credit check would not down your credit score.

Here is an example of a new car on 0% car finance with no deposit:

  • Fixed interest rate: 5%, first-repayment-£140
  • Monthly repayments: £120
  • Total amount to pay: £23700

*You can risk losing the vehicle if you are unable to keep up with the repayment.

car finance without a deposit

Who is eligible for car finance for bad credit and no deposit?

No deposit car finance is for individuals who want to purchase a car on finance without paying anything upfront. Individuals with good credit scores qualify quickly, but here are the criteria to qualify for the same on a low credit score:

What to know before getting car finance without a deposit?

While you may find no-deposit car finance on a bad credit score, there are certain things that you should be mindful of while applying. Personal Contract Purchase, a form of car finance, grants you the flexibility to change your car after the term end. It becomes cheaper in the long run. Here are other things to know:

features of car finance without a deposit
  • Total amount will be higher to borrow

    The total amount you pay on a 0% deposit car lease is more than what you have got by paying the deposit. The reason is the interest rate on this arrangement is high.

  • Higher monthly instalments to pay

    If you do not pay a deposit on car finance, the monthly repayments will be higher. You would be subjected to a longer term. Alternatively, a deposit reduces the amount on the loan and helps clear it early.

  • Switching repayment term will be after one month

    Whether you own the car by the end of the agreement is based on the type of car finance agreement you are on. For example, Hire Purchase allows you to own the car after the term end, while Personal Contract Purchase does not. You can only switch to a better repayment term after one end.

How to boost your credit score with no deposit car finance?

If you have poor credit and have been declined car finance, you can still get car finance without a deposit. However, before finalising a deal, you have to ensure the following:

How to apply for 0 deposit car finance without a credit check?

While applying for no-deposit car finance for bad credit, search for the best options that provide a quote without hard checks. It also implies no credit check.

You can opt for pay monthly or pay weekly car finance with no credit check. It helps us analyse your affordability without impacting your credit score. You have the same credit score at the time of application.

Here is how to get car finance without a credit check at a low credit score:

  • Explore car finance options for used and new cars

    Identify the best options considering APR, total repayments, monthly repayments, and interest rates on used and new cars. You can also use the car finance calculator to know the costs.

  • Pick the car you want

    Choose a car by analysing the purpose and your finances. Check it for the accessories. If you find it in good condition, you should apply online as soon as possible. There will be a one-page application form requiring only a few details. Submit it after checking everything is fine.

  • Start driving

    We will conduct a few checks and draft an agreement about your finances and budget. Once you consent to the terms, you can drive the car until the agreement.

Lowest Rate of Interest

At Advanceloanday, we strive hard to ensure you buy your dream car without disturbing your monthly budget. We pursue the modern-day approach while offering zero-deposit car finance. Our lending service provides the following:

  • You can purchase the right car to enhance your lifestyle and fulfil your family's needs.
  • A positive shift from traditional lending to the new age one where no deposit is needed.
  • Providing a reliable platform where you can avail of specialised deals with poor credit.
  • Easy access to cheap car finance deals with no deposit despite bad credit scores.


Here are some common questions you may benefit from while applying for car finance with no deposit and bad credit. Have a glance:

How to get a no-deposit car finance with no credit history?

Every lender checks the credit history before providing the loan. You may not get a deposit in car finance without a credit history with every lender. But you can still qualify for car finance if:

  • You have a guarantor to finance
  • Search for lenders providing car finance at low or no credit history
  • Open a bank account and manage it by paying bills timely
  • Register on an electoral roll

Is 0% deposit car finance a good idea?

Yes, if you are confident about making payments as per the loan schedule. It is ideal for individuals having good incomes and balanced outgoings. If you can manage car finance for bad credit and budget for essentials, 0% deposit car finance is good.

Alternatively, you may want to reconsider if you have too many debts to manage and cannot save for the monthly payments. The interest on the loan may increase, and you eventually pay more on the loan.

How to know you have a bad credit history?

Bad credit prevents one from qualifying for a loan at better interest rates and terms. If your credit profile reveals the below signs, you have bad credit:

  • Pending utility bill payments
  • Missed payments on existing loans
  • Loan defaults
  • Currently on an Individual Voluntary Agreement
  • You have no record of credit score or no credit cards/ loans in your name
  • Pending credit card debts

What are the different types of car finance to get?

There are mainly 4 types of car finance:

  • Hire Purchase (HP)

    You pay a higher monthly payment but can own the car after the loan tenure. It is ideal for large families and businesses.

  • Personal Contract Purchase (PCP)

    It is ideal for individuals seeking new car finance. You can own the car or switch to a new agreement by returning the car after the term ends.

  • Personal Contract Hire (PCH)

    It is where individuals can get a car on finance cheaply with no intention of owning it. It comes with restrictions on miles one can cover.

  • Personal loans

    Personal loans are a facility where an individual can own a car by paying the money in instalments. It is long-term finance.

Out of these types of car finance, PCP is the most preferred among individuals.

What should I consider while buying a used car without a deposit?

While exploring used cars on finance with no deposit, check:

  • If you want a cheaper model, choose one with a small engine
  • Pick a car that emits less CO2 as it adds to the road tax you pay
  • Check for the discounted cars on the display
  • Buy the car in cheaper months – March, June, September, and December

What does Finance Deposit Allowance mean?

Finance Deposit Allowance is the money contributed by car finance dealers to the deposit a car finance buyer pays.

For example, if you buy a car through Hire Purchase, you pay £1300 as a deposit. The dealer will subtract the money from the overall car price. Here, if the dealer adds £2500 out of his pocket, it also adds to the initial deposit. Your total deposit becomes £3800 (1300+2500).

You pay the lower interest and total loan amount if the deposit is higher.

Can I get £200 monthly instalment on car deals with no deposit?

Yes, you can get £200 a month car deals with no deposit with many car dealers. You must check the dealer’s authenticity and years of operation while applying.

Moreover, you may ultimately be paying for a longer time with this arrangement. If you want to own a car within 6-7 years, it may not be ideal. The longer repayment means higher overall loan costs.

How to get a new car at 0% finance and no deposit?

It is a rare situation. Finding a car dealer providing a new car at 0% finance with no deposit is challenging. The option is only for individuals with excellent credit ratings. As you do not pay a deposit, you borrow an increased sum. Here, a car dealer may not lend a large sum of money to individuals with a low credit score. It entails risks. However, we can help you find the best cars and loan arrangements if you have a recurring income source.

What does a 0% APR car finance imply?

O% APR car finance helps a customer spread the loan cost throughout the loan term. Here, one pays a fixed amount/per month until the loan agreement without incurring interest costs. It is a loan without any interest fee.

What are the possible risks of no-deposit car finance?

Though 0 deposit car finance is helpful for young drivers and those seeking a dream car early, it has some risks. These include the following:

  • You may pay more eventually if you miss a payment on the loan
  • You may lose the car if you are on the hire purchase agreement
  • You would have to manage the car maintenance along with making repayments
  • If you finance the full amount, the monthly payments may increase

What are the advantages of bad credit car finance with no deposit?

There are ample advantages of car finance on bad credit with no deposit. Here are some:

  • You do not have to provide a sum upfront to drive your favourite car
  • If you can manage to pay for it comfortably afterwards, it is ideal
  • You only pay the purchase price of the car without any interest costs
  • Flexibility to exchange the vehicle without paying a deposit

What happens if I sell a car with outstanding finance?

You may not be identified as the legal owner if you still have due payments on the car. Thus, first, you must pay the outstanding balance to own the car if on Hire Purchase. If you are on another car finance agreement, you cannot own the car in Personal Contract Hire. Thus, check out the car finance agreement you are on and act accordingly.

What our customers say

“The firm helped arrange suitable loan tenure by analysing and guiding me throughout the process. My questions were never too much for them as deals on no deposit car finance are very rare. Thanks a lot for bringing me the best offer and I would definitely recommend them”

-Rodger Leeds

I enquired the firm for a detailed analysis of getting a car without any intention of owning it, and the guidance was excellent. They help me pick the apt car finance arrangement. The most surprising for me is the no upfront cost

- Kenny Edwards

“I was confused regarding the aspects to consider while choosing a used car on no deposit. Advanceloanday not only helped clear my doubts but familiarised me with the ways to grab the most affordable deal.”

– Steven Larsen

Want to discuss your loan needs?

Representative 49.9% APR

Representative Example: Credit Amount - £7,000 for 12 months at £752.73 per month. Total loan repayment amount of £9032.80. Interest Amount: £2032.80. Interest rate: 49.9% pa (fixed). 49.9% APR Representative.

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