In most cases, you are required to pay a deposit of 10% minimum when buying on Personal Contract Purchase (PCP) or Hire Purchase (HP). This helps with getting approval for a lender and can also help reduce monthly repayments.
But with no deposit finance, you do not need to pay a deposit upfront when buying a new or used car. Instead, you make it up by repaying a little more in monthly payments that you can actually afford.
0% car finance means that you do not pay a deposit upfront when you purchase the car, and you make up for this by repaying in monthly payments that you can afford.
When you buy a car on finance, you typically need to pay a deposit of 10% minimum, for instance, buying on Personal Contract Purchase (PCP) or Hire Purchase (HP).
However, depending on personal choice, it can be more convenient to pay no deposit and spread the repayments over the 3 or 4 years of the loan term.
This does not mean that the loan is 0% in interest, since you will still be required to pay for the car each month and there are other options available if you want to own the vehicle outright.
You may be able to part-exchange your existing vehicle with the dealership and because it is still worth something (in parts or re-sale value), this amount can potentially cover your deposit – hence no deposit is needed.
If you want to pay zero deposit, you can request for the deposit amount to be added to your monthly repayments and ‘spread the cost.’ Of course, this will make your monthly repayments higher than usual and if you would prefer smaller monthly payments, you would typically pay a higher deposit.
If you have a good credit score and affordability, this will give the finance provider confidence that you will be able to make your monthly repayments on time. By having a good customer profile, this could open you to a lot of flexible and affordable financial options, including 0% car finance.
However, our partners are willing to offer no deposit car finance for bad credit too, taking lots of other factors into consideration. For more information, see car finance for poor credit.
Quick Car Finance has access to 48 different car finance payment options, which include:
Personal Contract Hire (PCP) – This is where you would make an initial deposit of around 10% and then pay monthly, with the option to pay a large balloon payment at the end of the contract if you want to own the vehicle outright. There may be an option to have a PCP deal with no deposit, assuming you part exchanged your vehicle or spread repayments over the loan term.
Hire Purchase (HP) – This also requires a deposit starting from 10% and then a monthly repayment, but by the end of the contract, you will own the vehicle outright. If you want to have a HP arrangement with no deposit, you would look at doing a part exchange of your current vehicle or paying a higher monthly rate.
Personal Loans – This is an unsecured loan where you can borrow either part or the full amount of the car’s value. When submitted, the funds are transferred directly to you or the car dealership. Depending on the payment terms, you can arrange to purchase the car without a deposit if you would prefer to.
Quick Car Finance is a registered broker in the UK and authorised by the FCA. We are passionate about offering transparency and the lowest prices possible to our customers. We work with all the main car finance partners in the UK and have an approved list of dealers to make sure that you are offered the best rates, with no hidden or inflated fees.
Our entire application and process is online and you can get an instant quote in just 5 minutes!
To get an initial quote, you will need some basic information on hand, such as the value of the vehicle you wish to buy and your monthly budget.
To complete the application, you will also need your driver’s license and some final bits for your loan to be approved.
Applications are usually approved and processed on the same day and funds are transferred to you or the car dealer within 24 to 48 hours.