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No Deposit Car Finance

You don’t always need a deposit to get a car on finance. We work with lenders who’ll get you on the road, without needing to pay anything upfront.

Zuto is a credit broker, not a lender. Our rates start from 10.6% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £8,000 over 60 months with a representative APR of 20.9% the amount payable would be £208 a month, with a total cost of credit of £4,486 and a total amount payable of £12,486.

What is no deposit car finance?

In a nutshell, it’s taking out finance for a car without putting down a lump sum at the start. If you don’t have the money upfront, then no deposit car finance is one of the best ways to spread the cost of buying a car. There may be numerous reasons why you can’t get a deposit together, but that doesn’t mean you can’t be in the market for a car. It’s especially useful if you need to replace a car quickly, and don’t have time to raise a deposit, or you have other big expenditures at the same time. 

By taking out car finance with no deposit, you’ll just pay the value of the car, plus interest, over regular monthly payments, although your payments will be higher than they would be with a deposit as you’ll be borrowing more.

No deposit car finance calculator

See how much you could borrow

How to get car finance without a deposit

People sometimes pay a deposit when they get car finance; in some instances, it can help with getting an approval from a lender and helps reduce monthly repayments.

But we know it’s not always possible to save for that upfront cost. Fortunately, with Zuto, getting no-deposit car finance is as simple and straightforward as getting any other type of car finance.

  1. Apply for a quote: Fill in your details and we’ll search our panel of lenders. We’ll then get in touch to discuss your £0 deposit car finance options.
  2. Pick your car: Choose from over 40,000 cars from a Zuto-approved dealership, or you can find your own car. We’ll run a free vehicle and history check on any car you choose.
  3. Start driving: If the agreement works for you, the lender will run some final checks; make sure you’re happy to proceed. We’ll arrange to pay the dealer and then you just need to pick up the car.

The advantages and disadvantages of no-deposit finance

A no-deposit car loan provides the flexibility you need to buy a new or used vehicle. Car finance options available include PCP, Hire Purchase (a type of finance where payments are based on the car's value), or a personal loan.


  • For cheaper car finance deals, no deposit could be an attractive solution, with no need to make a payment upfront.
  • You could get your new car quicker, as you wouldn’t need to save for a deposit.
  • You could use an existing vehicle in part exchange as a deposit.


  • If you don’t pay a deposit, your monthly payments will be higher or the loan period may have to be longer.
  • The total amount you pay will be higher than if you had paid a deposit, as you’ll be charged more interest.

Who is eligible for no-deposit car finance?

No deposit car finance deals are a popular choice for car buyers, with flexibility based on a few simple requirements:

  • Affordability: Lenders will want to make sure you can afford the monthly repayments and look at your affordability. By providing details of your income, lenders will be able check your income and check whether they think the monthly repayments will be manageable. For example if you earn £1,200 per month and you apply for £30,000 lenders will take the monthly repayments into account.
  • Age: You need to be over 18 and be able to provide some basic personal details, such as your name, age, and address.
  • Extra information: The lender may sometimes ask for more information, but we will let you know if anything additional is required.

No-deposit car finance is really simple. Just apply online or get in touch with our team, to get the ball rolling.

Getting car finance with bad credit and no deposit

Having bad credit and no deposit, doesn’t necessarily mean you can’t get car finance. Zuto works with a number of specialist lenders who consider all credit histories. It may be that you’ll pay a higher APR or interest rate as a result, but you may still be able to buy a car and we’ll happily search our lenders for you. If you’re able to put together even a low deposit, it will reduce the amount of borrowing required, and your monthly payments.

Car finance options with no deposit

As a buyer with no deposit, you still have plenty of options available. As always, it’s worth considering what your budget is and what monthly payments you can afford, factoring in running costs. Nearly new cars may have fewer miles on the clock, but they’re usually more expensive and will require more borrowing and higher repayments. Used cars tend to be cheaper, and so will require less borrowing, and therefore repayments will be lower, also without any upfront cost.  

If you’re concerned about negative equity in your car, then a deposit is a good way to protect against that. By paying a lump sum towards a car, the amount you’re borrowing will actually be less than the car is worth. Even a small deposit may make a difference to what cars you can finance, depending on what the lender is prepared to offer you. If a lender will only offer finance for £9,000, but you want a £10,000 car, you’ll either have to find a £1,000 deposit, or settle for a £9,000 car instead.

Your main finance options will be Hire Purchase (HP) and Personal Contract Purchase (PCP).

Finding the right low-deposit car finance lender

Zuto works with a panel of lenders who can offer no- or low-deposit car finance. Whether you apply online or talk to our team, we’ll be able to discuss your options with you; together, we’ll find suitable car finance deals, no deposit required. We also work with lenders who specialise in bad credit car finance

How much can I borrow without a deposit?

In theory, there’s no set limit to how much you can borrow without a deposit. Each application is considered on its own merits, which means we’ll run a tailored search, based on the amount you want to borrow and your credit history, to find lenders from our panel that can offer zero-deposit car finance.

No deposit finance FAQs

How long do I get to pay off a zero deposit finance deal?

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The length of your finance agreement depends on whatever’s right for you and your lender. A longer plan can mean smaller monthly payments, but you might spend more in the long run with the interest.

Which cars are available with no deposit?

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Whether you’re looking for a family SUV or a city run-around, we should be able to help find the right car for you. Some of our lenders have minimum requirements on a car such as age and mileage. We can help clarify these details when we speak, and help you find appropriate 0% finance on used cars (no-deposit) and new vehicles.

Can I pay off the finance early?

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Paying off your 0-deposit car finance early depends on the agreement you have with your lender. You can contact us for any support.

Can I keep the car once the finance is paid off?

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Whether you can keep a car after a finance period depends on your agreement:

  • With PCP, you’ll have the option to make a balloon payment at the end of the deal.
  • With HP, the car will be yours once you’ve paid the option to purchase fee (Zuto’s lenders usually charge £1 to £10, although some lenders may be higher).
  • With a personal loan, the car is yours from the beginning.

Does a no-deposit agreement take longer to process?

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A zero deposit car finance agreement will take the same time to process as any other type of loan.

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