No Deposit Car Finance To Suit Your Budget

Car Finance

Rates from 10.9% APR. Representative APR 19.9%

Rates from 10.9% APR. Representative APR  19.9% Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 19.9%, the monthly payment would be £182.26, with a total cost of credit of £2,748.61 and a total amount payable of £8,748.61. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply.

What Is No Deposit Finance?

Buying a new car is an exciting prospect. However, for all but a few, it will mean entering into some form of finance agreement to fund the purchase. Because if you don’t have an existing car to offset against the new purchase or savings, then you may be looking for a car loan for the whole value of your new car.

A personal loan remains the most popular way to finance a car. Of course, this can be a particularly attractive finance option if you don’t have a deposit to put against the purchase.

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Find out how much you could borrow

Rates from 10.9% APR. Representative APR  19.9% Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 19.9%, the monthly payment would be £182.26, with a total cost of credit of £2,748.61 and a total amount payable of £8,748.61. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply.

How Does Car Finance Work?

Car Finance

The Initial Deposit

This step isn’t always required. Although, placing down a deposit when completing a car finance agreement is highly recommended.

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Repayment Plans

Depending on the agreement that has been put in place for example HP, PCP & CS, your repayment plan may vary.

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Contract Completion

Upon completion of your contract, you will then have a number of different options available to you. Which we will state below.

No Deposit Finance In More Detail

We know that identifying the right loan for you and navigating your way through the application process can seem complicated. Fortunately, at Car Loans UK, we are committed to helping to make the process as easy as possible.

Instead of having to complete the application process several times with several lenders, you can enter your details just once on our site. Because our smart technology will then search for loans that match your requirements.

The Advantages

Taking out car finance without putting down a deposit can make the whole process much quicker and simpler. Then there is no need to save up in advance for the deposit or sell your existing car.

This type of car finance can particularly appeal to first-time car buyers. For first-time car buyers or those who have not owned a car for some time, the ability to purchase a car without having to save up for a sizeable deposit first can be attractive. It can mean that they are on the road in their own car sooner than they may have been otherwise.

Those purchasing a second car for the household could also benefit from no deposit car finance. Increasingly, busy families find that having two cars in the household is the most practical option. Because there is no car to trade in, the choice can be between saving for a deposit for car number two and waiting, or taking out a loan for the full value and going ahead with the purchase more quickly.

The Disadvantages

The higher the loan value, the more it will cost overall as interest is applied across the full value.

In addition. Because the loan will be larger, this is likely to mean either higher monthly payments or a longer loan term. Whilst a longer loan term makes budgeting easier, it should be considered that this likely means a higher overall cost when you choose used car finance deal with no deposit.

How To Compare

Taking out car finance, either with or without a deposit, means that you are making a financial commitment. Then in some cases, this could mean a fairly long term commitment. So it’s sensible to compare no deposit car finance options to determine which will be best suited for your individual requirements. Things to consider include:

  • The annual percentage rate, usually referred to as the APR, will tell you the interest rate you will pay over the term of the agreement. This is a useful guide when comparing loans from different providers.
  • The term of the loan, or how long you will be paying it back for, is another important consideration.
  • Longer loan terms may mean lower monthly repayments. APR is applied across the full term of the loan. Because of this, the total sum will be greater.
  • Using CarLoansUK can also help when considering how to compare no deposit car finance. An independent broker has access to a far wider range of options than individual lenders usually would. This is because an independent broker is not tied to offering specific finance products in the same way as perhaps your bank or building society may be.
The Requirements

The basic premise for obtaining finance will be the same regardless of the lender. However, there are likely to be slight differences between lenders. This can make the ultimate difference to their ability to offer a product which suitsthat your requirements. This is why it is a good idea to compare options.

There are, however, requirements to which all lenders must adhere when considering an application for car finance. These include:

  1. Applicants for loans in the UK must be at least 18 years old
  2. When applying for a loan, most lenders will require that the applicant has been resident in the UK for a minimum of 3 years
  3. Loan applicants must not be currently registered as bankrupt

Other points which can improve the options available include holding a full UK driving license, having an improving credit score or an existing good credit score, and being able to evidence that you will be able to afford repayments.

Obtaining finance can be more difficult in some circumstances. However, whilst options may be reduced, there are still likely to be lenders that will be able to offer possibilities.

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Car Loans UK is a trading style of BMG FG (UK) LTD, a company registered in England and Wales. (Company number: 12382512, Registered Address: 4th Floor, Kingsgate, Wellington Road North, Stockport, Cheshire, SK4 1LW. We act as a credit broker and not a lender and are authorised and regulated by the Financial Conduct Authority for consumer credit FCA no.928674. Car Loans UK can introduce customers to a limited number of finance providers based on overall credit profile and we receive a commission for such introductions, this will not impact the rate you are provided. We do not charge a fee to the customer for arranging the finance. This is a fixed payment or percentage, but can vary by lender. Further information is available on request. Written quotations on request. All finance subject to terms and status Data Protection Registration No.ZA766848.

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