Can You Get No Deposit Car Finance?

Not everyone has the ability to put down a deposit on a new used car, and everyone's financial circumstances are different. That’s where no deposit car finance comes in, and can be a great way to save money on your next car, and get behind the wheel quicker. But what is no deposit finance, how does it work and is it the best option for you? Continue reading to find out.

What is no deposit car finance?

Usually, when buying a car, you’ll have the option of putting down a deposit to secure it. This upfront payment is around 10% of the overall vehicle price and is taken away from the overall amount when you come to buy. Any car finance deal that doesn’t incorporate this upfront cost is known as a no deposit, or zero deposit finance deal.

What are the requirements for zero-deposit car finance?

Being approved for any form of finance involves having a credit check performed and no deposit car finance deals are typically given to those who have a stronger credit rating. This is because if you have a strong credit rating it shows you pay off debts in a timely and consistent manner.

All car finance lenders will also perform affordability checks, so you’ll need to be able to provide proof of a steady income to show lenders you won’t have trouble making repayments.

Further, you need to be at least 18 years of age and have proof of this such as from a driver's licence, and be able to provide your proof of residency and some other basic information about yourself.

Which finance options do I have if I’m interested in no deposit car finance?

Both hire purchase and personal contract purchase car finance are available if you decide you want to go down the no deposit finance route.

It's crucial to note, however, that because you won’t be paying a deposit, you may have larger monthly repayments than other financing options where you would put down a deposit.

Hire Purchase

Hire purchase car finance is a great option if you’d like to own your chosen car at the end of the agreement. Once the final payment has been made on the agreement, the car is yours to do with as you please.

It’s worth keeping in mind though that hire purchase monthly repayments are generally higher than other forms of car finance, and without a deposit put down at the beginning, this could increase those even further, so you want to make sure you can afford it.

Personal Contract Purchase

With a personal contract purchase finance agreement, a big chunk of the loan agreement is deferred to be paid at the end of the contract term. Because of this, your monthly repayments would be lower than say on HP agreement, even with zero deposit put down, making it much easier to manage and afford.

The options you have at the end are also greater; if you want to own the car outright you pay the final lump sum (sometimes referred to as balloon payment), part exchange it for a new used car from the same dealership or return the car altogether.  

Why come to Hilton Car Supermarket for no deposit car finance?

We believe in finance for all here at Hilton Car Supermarket, which is why whether you have bad credit, no credit, or don’t want to dip into savings, we’ve got you covered by giving you the option of zero deposit finance.

We work with a panel of car finance lenders who specialise in offering zero deposit finance deals and it all starts with filling out an application form. We’ll provide you with an instant, no-obligation decision, so you can get on the road quickly.

If you have any queries about our zero deposit finance scheme, please contact us or check out some of our helpful resources on our website, which includes a number of guides that can provide insight and expertise into the world of vehicle finance.