No Deposit Car Finance To Suit You

Rates from 10.9% APR. Representative APR 19.9%

Audi A1

No Deposit Car Finance.

Other than a mortgage, one of the most significant financial commitments you are likely to consider is the purchase of a car. A new car can easily cost more than £30,000. Even buying a used car, while a cheaper option than a brand new vehicle, can still cost thousands.

Finance is often the only way to make purchasing a car suited to your budget because you spread the cost over monthly repayments. However, finding the deposit for a car can be very difficult when you have so many other financial commitments. The deposit is often around 10% of the overall cost of the vehicle.

Saving the amount needed for a deposit can take too long if you need to get a vehicle quickly, or savings may be needed elsewhere. No deposit car finance could work out more cost-effective than hire purchase and the monthly repayments might be lower than you expect.

The Pros of No Deposit Car Finance.

  • The most obvious benefit is not having to find the money for a deposit. Not having to spend the time saving up for a deposit means you can get the car you need quickly.

  • Most people don’t have the funds readily available to put down for a car deposit. This means that no deposit car finance might be the best solution.

No Deposit Car Finance Cons.

  • It is worth noting that with no deposit car finance, there may be more to pay back on a loan resulting in higher monthly payments or a longer repayment contract. Also, no deposit car finance may only be available to those with good credit.

No Deposit Car Finance

How does no deposit car finance work?

There are three primary types of car finance available. Firstly, there is the personal loan option. With the personal loan, you receive the money and pay the seller of the car and it’s yours to take home. From there you just have to keep up with the repayment schedule.

Another option is the personal contract purchase, or PCP. The way PCP works is that you make fixed monthly payments until the payment schedule comes to an end. Then, you can choose to return the car, purchase it by making a one-off option to purchase payment or use it as a deposit for a new PCP deal.

The third option is hire purchase, or HP. This is an agreement where the payments are typically higher than a PCP arrangement but when the loan period comes to an end there is simply an ‘option to purchase fee at the end and the car is then yours.

no deposit Car finance: other things to consider

As with any contract, you should take the time to read the terms and conditions closely before signing the agreement. If you don’t understand any of the information, you should always ask for clarification. The sums involved are typically significant, so you shouldn’t feel uncomfortable asking questions.

Some finance deals may have a clause about mileage, where you are restricted from going over a certain mileage and will incur a charge if you go over the set amount. When the contract draws to a close, the car will be checked for wear and tear, the repair for which will be down to you. The contract may also have a requirement as to when the car needs to be serviced and even have a set list of garages you can use to do the work. Some PCP contracts may stipulate that the car can only be out of the country for a few days.

No Deposit Car Finance
Payment History
Amount You Owe
Length of Credit History
New Credit Opened
Type of Credit

Credit Score Breakdown.

What Factors Affect Your Credit Score?

Financial well-being is strongly influenced by people’s credit scores. Your credit score is a measure of your financial responsibility. The higher your credit score, the better your chances of getting car finance with lower interest rates, and other benefits. Having a low credit score may prevent you from qualifying for a car loan that you may want, or your interest rate for borrowing will be higher than those who have excellent or good credit.

If you seek advice on how to improve your credit score or simply require more information, please visit: Ultimate Guide to Credit Scores

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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



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Rates from 10.9% APR. Representative APR 19.9%

Frequently Asked Questions.

Why use Bright Motor Finance for motor finance?

At Bright Motor Finance we have many lenders on our panel, so we can make sure you are getting the best motor finance deal for you. Plus, we do all the admin, paperwork and negotiations with the dealer.

What is the difference between HP & PCP?

HP and PCP car finance are fairly similar to one another. However PCP tends to have lower monthly repayments. Although that the full amount that will need to be repaid is generally higher than with hire purchase.

PCP works by having a loan for the difference of the vehicles price when it is brand new, and the anticipated vehicle value when the agreement has been completed. This is because the vehicle will of course, depreciate over time.

HP works by usually paying a deposit of around 10% of the cars initial value, and then this value will be paid off in fixed monthly instalments. Car dealers as well as brokers (such as ourselves) can arrange a hire purchase finance agreement.

What is a car finance brokerage service?

In essence, a car finance broker acts as a middleman between the customer and the lender. A car loan broker handles all the paperwork and negotiates with lenders on your behalf. By doing this, you can rest assured that the broker is fighting for you to get you the best deal. Our goal is to make your car finance journey as simple as possible. As well as this, car finance brokers such as ourselves have deals that aren’t usually available to the general public. Instead of charging the customer, car finance brokers charge the dealerships.

What if I have been refused by other brokers?

There is still hope even if other brokers have rejected you in the past. We offer a number of finance options for those with bad credit scores at Bright Motor Finance. We will conduct a hard credit check when you apply for car finance through us, which may negatively affect your credit score. Especially if they were conducted within a short period of time. As a result, it is recommended that you wait between 3-6 months before applying for car finance again after being declined.

What if I’m struggling to make payments?

Having trouble making your car finance payments? You have a number of options available to you. One of the following charities/organizations can provide you with free, independent advice. 

Can I change my mileage on PCP contracts?

In a nutshell, the answer is no.

This is because the car’s resale value has already been calculated once you’ve signed your PCP car loan contract. It is crucial to know that exceeding your agreed-upon mileage allowance will result in additional penalties at the end of your PCP contract.

How does car finance affect my credit score?

Initially, asking for a car loan will typically have a negative impact on your credit score due to the intensive credit checks that lenders will perform. You should be aware, however, that if you make your car finance instalments on schedule. This will almost certainly improve your credit score.

What is APR?

The annual percentage rate (APR) is the total amount charged for the loan. APR, on the other hand, comes in two varieties. Exact APR implies that the rate displayed to you is the rate you will receive. Representative APR, on the other hand, suggests that 51 percent or more of those who apply for financing will receive that rate. This means that customers with weak credit may face a higher APR.

Representative APR is commonly used to advertise a company’s rates. After you have provided the lender with all of the essential information, they will be able to provide you with your specific APR rate.

GAP insurance and do you need it?

What exactly is it?

Gap insurance is an abbreviation for Guaranteed Asset Protection.

Gap insurance is a type of insurance that is meant to cover the difference between the amount your insurance provider pays out in the event that your car is written off or stolen and the price you paid for the vehicle. However, you should be aware that gap insurance supplements, not replaces, your usual car insurance.

So, when do you need gap insurance?

Gap insurance can be beneficial in a variety of ways. First and foremost, if you took out a large loan to purchase your car. As previously said, gap insurance would be advantageous if your automobile was stolen or written off. This is due to the fact that the gap will pay off the existing debt.
Furthermore, gap insurance may be advantageous if you are concerned about the depreciation of your vehicle. In the first year, a brand new car will lose 15-35 percent of its value. As a result, gap insurance might assist you in receiving a larger reimbursement if your automobile is written off after it has already depreciated.

Where can I purchase gap insurance?

Thanks to Bright Compare, comparing gap insurance quotes has never been easier!

What Happens If There Is An Issue With The Vehicle?

If the vehicle is defective upon delivery, you can simply refuse it and return it to the dealership.

Can I alter my car if I finance it?

You can, but you must first obtain authorisation from the financial firm before making any changes.

Is there anything to consider?


  • You will not own the car until you make the final payment.

  • You are also not permitted to sell or modify the vehicle in any manner without receiving permission first.

  • Third, monthly repayments are typically higher when compared to PCP and other car leasing plans.

  • Finally, it can be expensive if you only need a short-term arrangement

What affects the cost of my car finance payments?
  1. Your deposit size
  2. How long your car finance agreement will last
  3. The interest rate
  4. What car do you choose?
How can I qualify?

It can be tricky applying for no deposit car finance, however, it is possible. A history of maintaining repayment schedules on other loans or finance agreements will stand you in good stead. Lenders are generally risk-averse and lending large amounts without a deposit is seen as high risk. This risk can mean lenders require high interest rates to try and mitigate the risk.

Lenders will also expect all those applying for a finance deal to pass an affordability test. This is so lenders can make sure that the person they are lending to can afford the monthly payments without being overstretched. As no deposit car finance typically demands higher interest rates, borrowers will more than likely need to show a higher income to satisfy the criteria for affordability.

Before deciding on a particular vehicle, it is important that you consider the extra costs involved. The car you choose will change the rates you pay. There are also other things to consider; for example, a car with a more powerful engine will use more fuel. Plus, the insurance costs will be higher due to the higher costs of repair and maintenance. A car with modifications will also demand higher insurance as they cost more to repair or can be more at risk of damage and theft.

Another running costs, what you should consider is road tax. Vehicle duty is determined by the vehicle’s fuel type and CO2 emissions – fewer emissions means lower tax costs.