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:
*You can risk losing the vehicle if you are unable to keep up with the repayment.
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:
Individuals who show affordability
While exploring car finance deals with no deposit, you may see different lenders having unique requirements. Out of which affordability is supreme. Lenders analyse your income and credit history to check whether you can afford the payments.
Based on that, you will get a quote revealing the monthly payments, loan tenure, and total amount to repay. Individuals having a stable income and balanced outgoings can get approval.
Individuals who are at the right age
18 years or above may qualify for student car finance deals with no deposit and bad credit. This includes first-time car drivers seeking used car finance or a new one.
Individuals with a guarantor
If you have bad credit and no or low income to meet the eligibility criteria, a guarantor can help. The third person may help you qualify. Income and a good credit score can help the lender get security. The guarantor will be responsible for the loan repayments if the borrower cannot.
If you need car finance without a guarantor, you must have a regular and stable income source.
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:
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.
Conditions may vary for new or used cars
It is not necessary that what you are getting on a new car, same will apply to the used one. We may allow a 0 deposit for new and older vehicles, but the final terms will be determined according to your affordability.
Analyse what is available for personal and commercial cars
Criteria will be different when comparing personal cars with commercial ones. We may offer no deposit car finance to businesses in the transport industry, but their affordability and purposes may change the final car finance deals. However, we are also specialised in offering dedicated business loan deals, which you can utilise for car purchase.
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:
Borrow a part instead of the complete loan amount
It can help you avoid unnecessary costs. For example, if you need £20000 to own a car on finance, you can instead borrow £16000 at bad credit. It is ideal if your current income does not meet the criteria.
Make existing repayments timely
If you have any debt that you are still to pay off, make regular payments on it. It helps the lender understand your discipline towards finances and may approve your application. Cut your spending to save more towards clearing loans.
Seek promotion or additional income source
Apart from paying existing loans, prove your capacity to manage car finance on poor credit. Having a good income is essential to secure car finance on bad credit. For this, efforts should be towards getting a promotion or seeking another income source.
Look for a deal with soft or no credit check
Since you are already struggling with poor credit, you need to be extra careful while going for this sort of financing a car. Therefore, choosing us will benefit you because we are open to the deal on no credit check car finance.
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.
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.
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:
Here are some common questions you may benefit from while applying for car finance with no deposit and bad credit. Have a glance:
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:
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.
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:
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 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.
While exploring used cars on finance with no deposit, check:
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.
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.
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.
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.
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:
There are ample advantages of car finance on bad credit with no deposit. Here are some:
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.
“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”
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
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.