Saving up for a deposit can be a huge barrier to buying a car. It’s can take a lot of time to save up the money required, and with rising bills and unexpected outgoings, saving is not always possible.
Luckily, there are plenty of no deposit car finance options which can help you to find your new car and drive it away without saving for a deposit.
What Options are there to Buy a Car with No Deposit?
One option to buy a car with no deposit is to get a personal loan. You can get a personal loan from an external lender, such as your bank, and you usually don’t have to pay any deposit for this. The money will be transferred to you, and you can use this to buy your car. You then only have to worry about keeping up with the monthly repayments.
With a personal loan, you’ll usually have options for how much you can borrow and the period of time you’ll have to repay the loan. It’s best to look around for the best rates, with affordable monthly repayments. GetCarFinanceHere can help to compare the market for you, to find the best deal.
Personal Contract Purchase (PCP)
Another possible way to buy a car with no deposit is with PCP car finance. Often, PCP car finance will involve a deposit, but GetCarFinanceHere can find the best deal for you that offers PCP terms with no deposit, so you’ll only have monthly payments to make. Typically, you’ll have to make repayments over a two-to-five-year period. After that time, you can either return the vehicle or make a final ‘balloon’ payment so you can own the car outright. Sometimes it’s also possible to arrange another PCP agreement for the car.
For more information on PCP, read our guide to the benefits of PCP.
Trade In Your Car
Another option is to trade in your car as a deposit. This way, you don’t have to pay a cash lump sum and it also means you don’t have to worry about selling on your old car yourself. Instead, your car acts as the deposit – whatever your current car is worth will equal the ‘deposit’. When you choose this option, we’ll look at the age of your current car, as well as the mileage, size of the engine and its general condition to determine its value. We’ll then find the best deal for you with affordable monthly repayments.
Pros and Cons of Buying a Car with No Deposit
The advantage of buying a car with no deposit is that you don’t have to save up money for a cash lump sum. Instead, you’ll be able to drive away in a new car with only the monthly payments. This can be really helpful if you urgently need to purchase a new car, and don’t have time to wait to save. It also means that you can keep any savings you currently have and put them towards something else.
A downside to buying a car with no deposit is that your monthly repayments will usually be larger. This is because you still have to pay for the total value of the car – whereas paying a lump sum upfront usually reduces these monthly payments, not doing so will mean they’re higher. You might also have a longer period to repay the loan. Either way can result in you paying more in interest over time.
Who’s Eligible for No Deposit Car Finance?
Often, car finance deals with no deposit are only available to those with a good credit rating. At GetCarFinanceHere, we’ll help you to find the best deal for your specific circumstance, and we can even find car finance for bad credit.
Whatever your financial situation, we’ll find the best deal from leading lenders, looking at zero deposit options and affordable monthly repayments over a period that works for you. We have thousands of cars available, including family vehicles, sports cars, and executive models. Apply for car finance today or contact us to speak to one of our team about how we can help you.