Bad credit
no deposit car finance

What is no deposit car finance?

No deposit car finance lets you drive away without paying anything upfront, spreading the total cost into affordable monthly instalments. It’s a simple way to get a used car while keeping your savings intact.

Lenders assess your credit score and financial situation to determine eligibility, but many deals are flexible. By covering the full amount through finance, you avoid large upfront expenses and keep your budget predictable. Fixed payments make planning easier, while the chance to own a reliable vehicle without a deposit brings greater convenience. This option puts car ownership within reach, even if saving feels out of reach

Can I get bad credit car finance with no deposit?

If you have bad credit, you can still qualify for car finance without a deposit. Many lenders specialise in working with different credit backgrounds, and they'll consider your full financial situation when assessing your application. While interest rates may be higher, you'll still have access to various financing options. You might pay a higher interest rate or APR, but you can still spread the cost through monthly payments.

If you can manage even a small deposit, it could lower the amount you borrow and bring down your monthly repayments. But if that’s not possible, there are lenders who offer no deposit deals that fit your circumstances. A soft search is done first, so your credit score won’t take a hit.

At Carboom, we work with a panel of trusted lenders to help you find the best no deposit car finance deal with bad credit – no matter your credit history. Get a free, no-obligation quote today and see how we can get you behind the wheel.

How does no deposit car finance work?

No deposit car finance lets you get a car without paying anything upfront. Instead, the full cost is spread across monthly payments, making it easier to get on the road straight away. It works just like any other car finance deal, but you skip the big initial payment.

Since there’s no deposit, your monthly repayments will be higher. Some dealers might ask for a small reservation fee to secure the car, but not always. Once the deal is approved, you can pick up your car or have it delivered. Your first payment usually kicks in about 30 days later.

No deposit doesn’t mean fewer options. Whether you're after a hatchback or an SUV, there’s plenty to choose from. It’s a great way to make car finance more manageable if saving for a deposit isn’t an option right now.

No deposit finance options

No deposit car finance gives you a few different ways to get behind the wheel without paying anything upfront. Whether you go for a PCP or Hire Purchase (HP), each option works a little differently, so it’s worth finding the one that fits your situation.

• With Personal Contract Purchase (PCP), you make fixed monthly payments, and at the end of the term, you decide what to do next. You can hand the car back, put its value towards another vehicle, or pay a lump sum to keep it. PCP is popular because the monthly payments are lower and you’re not locked into buying the car.
• Hire Purchase (HP) is more straightforward. You make higher monthly payments than PCP, but once the loan is fully repaid, the car’s yours. There’s no big decision at the end – just an optional small fee to take full ownership.

Each option lets you avoid a large upfront payment, making it easier to manage your budget. It’s worth comparing them to see which one makes the most sense for you.

Who is eligible for no-deposit car finance?

How to get car finance without a deposit

Getting car finance without a deposit is easier than you might think, even if you have a bad credit score:

1. Start by applying for a quote – just fill in a few details, and lenders will check for the best no deposit options available to you. This gives you a clear idea of how much you can borrow and what your monthly repayments will look like.
2. Next, choose the car you want. You can pick from a huge selection or bring a vehicle you’ve already found. With so many options out there, finding something that fits your needs won’t be a problem.
3. Once you're approved, the lender sorts out the payment directly with the dealer. All that’s left is for you to collect the keys and hit the road. No upfront costs, no hassle – just simple, affordable monthly payments. Apply today and drive away with nothing to pay upfront.

What are the pros and cons of zero deposit car finance deals?

How much can I borrow without a deposit?

You could borrow up to £40,000 without needing a deposit. How much you can get depends on your credit history and how lenders assess your application. They’ll look at things like your income, credit score, and overall ability to manage repayments.

Even if your credit isn’t perfect, there are options out there. The better your credit profile, the more you’re likely to be approved for. It’s all about finding the right lender who understands your situation and offers a deal that works for you.

Is it a good idea to get a zero deposit car finance deal?

A zero deposit car finance deal can be helpful if you don’t have savings for an upfront payment. It allows you to get a car by spreading the full cost into monthly payments. However, with no deposit, your monthly repayments will be higher, and you may pay more overall due to interest.

If you can save for even a small deposit, it can reduce both your monthly repayments and the total amount you pay back. The right option depends on your budget and financial situation. For those with bad credit, it’s important to find a deal that keeps repayments manageable while improving your financial stability.