A no-deposit car finance deal could be the perfect way to get behind the wheel of a new motor if life’s little inconveniences keep getting in the way of you saving for a down payment. In fact, no-deposit is a hallmark of the best new car deals because it allows you to be so adaptable.
No-deposit deals are generally available on a wide range of cars, plus both PCP (Personal Contract Purchase) and HP (Hire Purchase) deals are available with no deposit.
There are of course some drawbacks. Car dealers are less likely to give you a low interest rate or other discounts without a deposit.
It’s also worth noting that no deposit deals are generally reserved for people with excellent credit ratings. This is because without putting anything down, you essentially borrow more money.
Deposit contributions
Deposit contributions are sums of money that manufacturers or dealers (or sometimes both), put towards a car finance agreement. It essentially works as a discount you get up front. A deposit contribution can greatly affect how much your deposit is.
For instance, BMW regularly offers deposit contributions of around £5,000 on its popular 5 Series. One example of this sees the customer deposit drop from £11,000 to £6,000.
Big deposit contributions on cheaper cars, however, can effectively rid customers of the need for a deposit at all.
No-deposit car finance with bad credit
Generally, the best deals are reserved for people with good-to-excellent credit ratings.
If you have a bad credit rating, it might make more sense to pay a deposit. This is because paying a deposit reduces the value of your monthly payments. Lenders see people with low credit scores as a risk to lend money to, so reducing the money you’re borrowing greatly improves your chances of being accepted.
Top tips for choosing a no-deposit car finance agreement
- Manage your expectations. A lot of high-end manufacturers don’t offer no deposit deals
- Set yourself a monthly limit and stick to it
- Figure out how many miles you’re going to cover. Penalties can be as high as 15p per mile if you go over your limit
- Look at the APR rates. If you can afford the deposit, it often works out cheaper in the long run because higher deposits are associated with lower APR rates
Kia no-deposit car finance deals
Kia is offering a load of new metal, including the brand-spanking new £62k Kia EV6 GT (pictured) with no money down.*
Kia Ceed no deposit car finance
Kia Ceed Sportswagon no-deposit car finance
Kia EV6 no-deposit car finance
Kia Niro no-deposit car finance
Kia Niro EV no-deposit car finance
Kia Picanto no-deposit car finance
Kia ProCeed no-deposit car finance
Kia Sorento no-deposit car finance
Kia Soul EV no-deposit car finance
Kia Sportage no-deposit car finance
Kia Stonic no-deposit car finance
Kia XCeed no-deposit car finance
MG no-deposit finance deals
Tempting finance deals and a seven-year warranty are key to MG’s appeal. The company offers no deposit deals on all of its models and 0% APR on the 4, ZS and ZS EV too.*
MG ZS EV no-deposit car finance
MG HS plug-in no-deposit car finance
Nissan no deposit car finance deals
Nissan is another manufacturer offering a great chunk of its range with no deposit. Even its newest model, the X-Trail SUV (pictured), makes the list.*
Nissan Ariya no deposit car finance
Nissan Juke no-deposit car finance
Nissan Leaf no-deposit car finance
Nissan Qashqai no-deposit car finance
Nissan X-Trail no-deposit car finance
Suzuki no deposit car finance deals
Suzuki is another company offering its entire range of cars sans deposit.*
Suzuki Across no-deposit deals
Suzuki S-Cross no-deposit deals
Suzuki Swift Sport no-deposit deals
Suzuki Vitara no-deposit deals
*These deals are indicative examples of some packages available as of 12 July 2023, but are subject to change without prior notice. Everyone’s financial circumstances are different and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically.
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