What Is No Deposit Car Finance?
A no deposit car finance deal is probably exactly what you think it sounds like. A lot of the time, you’ll need to pay a deposit to secure the car you’re interested in - this is typically 10% of the car's sale price. Any finance agreement where you don’t need to pay this is known as a no deposit car finance agreement.
What are the benefits of a no deposit car finance agreement?
If you don’t have any savings or even a part exchange to put towards the cost of your new car, a no deposit finance agreement gives you the opportunity to still apply for finance.
What are the drawbacks?
By placing no deposit down, it is important to understand that your monthly repayments may be higher and you also may have a limited array of cars to choose from.
Because the monthly repayments are likely to be higher, it is also integral that you have a good credit score. This is because lenders will want to see you’re a trustworthy borrower who will make the repayments regularly and on time.
What are the requirements to apply for no deposit car finance?
You’ll need to be 18 years of age or older
Be able to provide proof of identity with your driver’s licence, proof of address and proof of income
A good credit score
What do I do if I have bad credit and want to apply?
There are simple steps you can take to improve your credit score, some of them being:
Make repayments on time - This will help improve your eligibility and chances of being accepted, as it shows you’re a reliable borrower who can manage your money sensibly.
Don’t make too many applications at once - Applying for too many car finance loans at once can be a red flag for some lenders, as it suggests you’re desperate for a loan.
Get on the electoral roll - This enables potential lenders to access your personal details, such as your name and address more easily, which will help them when running a credit check.
How to get no deposit car finance with Motor City
If you’re searching for no deposit car finance deals in Plymouth, Motor City Plymouth is here to help. We pride ourselves on offering our customers flexible payment plans, including no deposit options. Our partnerships with various lenders also enable us to help those with poor credit histories, or if you’ve been refused car finance in the past. Use our free finance checker today to see if you’ll be eligible for no deposit car finance before you apply, or get in touch with a member of our team to discuss your options and cars you can buy from us on a no deposit option.