Is No Deposit Car Finance Right For You?

No deposit car finance enables you to take out finance for a vehicle without having to pay any upfront money, as a deposit. This can be an attractive option, particularly if you don’t have the time or cash to save up for a deposit. However, before you apply it’s worth considering the positives and risks of this type of financing.

The Good – Car Finance No Deposit Bad Credit
The Bad – More Monthly RepaymentsWhen you don’t pay any deposit, you borrow the full purchase price of the vehicle including dealer delivery etc charges from the lender. This often results in a larger loan amount being requested and can sometimes cause rejection, as the computer says ‘no you can’t afford to borrow that much’. However, it’s possible to source no deposit car loans if you have an excellent credit profile, as lenders will usually reduce the loan amount to a more manageable level by asking for a smaller dealer-added deposit or even no deposit at all.

Car finance no deposit is often attached to specific vehicles, either a brand new one with a very low mileage or a nearly-new model nearing the end of production. Whether or not it’s an appropriate option for you will depend on how much you can comfortably afford to pay in monthly repayments, taking into account running costs as well. Always compare all options and calculate your monthly payments using online calculators to ensure you’re able to afford the car you want. no deposit car finance

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