No deposit car finance: Can I buy a car without a deposit?

Parkers cars (HEAT ONLY)

by Kat de Naoum |
Updated on

So you really want to buy a car, but there's a slight problem. You've managed to save up all of £0 for a deposit. Is no deposit car finance possible without ending up in mountains of debt? Yes and yes! You can buy a brand spanking new car on a PCP deal and drive away with it without initially paying a penny.

What is a PCP deal?

PCP means Personal Contract Purchase and is really gaining popularity in the world of new car finance. You only pay the car's future residual value at the end of the contract, which keeps the monthly instalments really low. At the end of the contract you have the choice of either paying off the rest of the value of the car and keeping it, you can swap it for another new car (starting instalments over again), or just hand the car and keys back to the dealer.

No deposit car finance deals

Zero-percent APR non-deposit deals are hard to come by and you need to do your research, but the car experts over at Parkers did some digging and found these 4 non-deposit deals currently available for you to look into if you want to buy a car but are sans deposit.

1. Renault******__

Parkers cars (HEAT ONLY)

You can get the Clio hatchback along with a selection of other Renault cars with no deposit. The cute Clio is available on a 49-month PCP contract for as little as £169 a month on a 5.9 percent APR (Annual Percentage Rate) deal.

2. Mazda

Parkers cars (HEAT ONLY)

Mazda is offering its stylish 2 hatchback on a 37-month PCP deal with you paying no deposit and £212.81 each month thereafter.

3. Hyundai******__

Parkers cars (HEAT ONLY)

If you buy the Hyundai i20, Hyundai will give you a £750 deposit so you initially don't have to pay anything out of your own pocket. The monthly payments are £254.74 on a 49-month deal at 6.9 percent APR.

4. Suzuki

Parkers cars (HEAT ONLY)

The Suzuki Swift is a well-built, reliable car that is fun to drive and you can get it at a zero-percent APR deal with no deposit, paying £168 a month for 43 months.

Tips for buying a car on finance

We asked Parkers the top things to consider when buying a new car on finance.

1. Know your finance options

PCP isn't the only option available. There is also Hire Purchase (which is like a mortgage) and leasing (which is like renting), among others. Have a look at the other car finance options available to see which one is the best for you.

2. Shop around

Don't jump on the first deal you see – there are so many deals going around at any given moment, so make sure you know what's available before you make your final decision. And don't rush – new deals come out every day.

3. Set your budget

Only you know what you can really afford each month for a car and insurance. Salespeople can be pretty hardcore on the whole selling thing and looking at all the bright, shiny new cars with all the extras might make you want to forget about the budget and go all in. In the long run, though, it's better to stick to a realistic budget. Don't be swayed, stick to your guns and remember that you can always walk out of there if you're feeling pressured.

Deals are correct at time of publication. Everyone's financial circumstances are different and credit is not always available – Parkers cannot recommend a deal for you specifically. These deals are indicative examples of some packages available at time of publication

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