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Can I Buy A Car On Finance With No Deposit?

It is possible to buy a car on finance with no deposit. However, there are certain conditions that must be met for this to be possible. It is important to understand the different types of finance available when buying a car. Generally, people can either choose Hire Purchase (HP) or Personal Contract Purchase (PCP).


What Is Hire Purchase? 

Hire purchase (HP car finance) is a type of car finance where you pay an initial deposit and then make regular payments over a set period of time until the loan has been paid off completely.

In some cases, depending on the lender, you may be able to get a 0% deposit HP agreement. This means you would have access to your chosen vehicle straight away without having to make any initial outlay. However, while zero-deposit deals are available, they are often reserved for people with good credit ratings. It’s worth taking the time to check whether you are eligible before applying for one.

What Is Personal Contract Purchase? 

Personal Contract Purchase (PCP car finance) works in much the same way as HP but typically involves lower monthly repayments and more flexibility over how much is paid each month. It also usually requires an initial deposit but this can sometimes be as low as 5%.

If you opt for PCP finance when buying your car, at the end of your repayment plan there is usually the option to keep the car by paying a lump sum or hand it back and start again with another vehicle on PCP terms.

Advantages Of Buying On Finance With No Deposit 

The biggest advantage of choosing a 0% car finance deal when buying a car is that you don’t need to save up for months in order to cover an upfront cost – meaning you could have access to your new vehicle much sooner than if you were paying cash.

Disadvantages Of Buying On Finance With No Deposit 

While zero-deposit finance agreements can provide convenient access to vehicles without upfront costs, it’s important to make sure that such deals are suitable for your situation before committing to them.

For example, if you don’t have a good credit rating or don’t meet certain criteria, then lenders may not offer such deals – resulting in higher monthly repayments that could become unmanageable over time.


While 0% deposit finance agreements offer convenient access to vehicles without an initial outlay, they come with their own unique set of risks and considerations which should always be weighed up carefully before committing to any agreement – no matter how attractive they seem!

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