Can I get car finance without a deposit?

When you’re deciding whether to get a car, it’s important to think about your budget.

Sometimes, people are put off by the fact that they have to put down a deposit because they want to keep the cash for something else. Which is understandable.

You might start to think ‘can I get car finance without a deposit?’

It’s a fair enough question and we understand that deposits can set you back a fair bit. We at OSV talk people through the car ordering process every day and that involves discussing the matter of the deposit.

So, in this article, we are going to talk about whether you need a deposit to get car finance, and the ways in which you can get car finance without a deposit 


Can I Get Car Finance Without a Deposit?


Unfortunately, yes you do. A finance agreement that does not require a deposit doesn’t actually exist. But that’s not to say it can’t be done.

There are some ways in which you can get car finance without a deposit and those are;


  • Speak to your dealer or supplier and tell them you don’t have a deposit
    • They could be able to structure a package for you
  • Get a personal loan
    • We will talk about that in a minute.


Can I Go Through a Vehicle Supplier if I Don’t Have a Deposit?


You can still get a car through a vehicle supplier if you want car finance without a deposit.

You should tell them that you don’t have a deposit, and ask them if they can structure a package for you that will generate a deposit so you can get car finance. Depending on the car, your credit history, and the company you are talking to, it is possible. They should be able to either build in a cash back to give you your deposit back or give you the deposit for your car instead of discounting it.

This can be done on;



However, not all vehicle suppliers will offer this. So it is vital that you go through an experienced broker who knows exactly what they are doing. You can read our article in what to look for in a vehicle broker here.[vc_single_image image=”32274″ img_size=”article-image”]

Can I Get a Loan For The Car Deposit?

Your second option to get car finance without a deposit is to get a personal loan.

What Is a Personal Loan?

A personal loan is something you get from the bank, online lenders or your local building society. When you borrow money from either one of these sources, you’ve got yourself a personal loan.Essentially, you agree to a series of terms and conditions, and you have to agree to pay a series of monthly payments over an extended period of time. It should be noted that these payments do gain interest. But, you can use the money to act as a deposit for your car.

What Are The Different Types of Personal Loan?


There are two different types of personal loan;


  • Secured
  • Unsecured

What is a Secured Loan?

If you opt for a secured loan, you will be asked to put down collateral. This is essentially the most expensive item in your possession. In this case, the collateral will be your car. If you happen to default on payments, the lender will sell this piece of collateral if you can’t pay them back.

What is an Unsecured Loan?

An unsecured loan, however, doesn’t require you to put down collateral. Because of this, the stakes for the lender are much higher. This is because they are essentially basing their trust in  you on your credit rating alone.

It should be noted that both types of personal loan will come with an Annual Percentage Rate (APR). This tells you how much you will be repaying, so it’s really important you check this before you take out a loan.

What Are the Pros to Taking Out a Personal Loan?

There are advantages to taking out a personal loan. Such as;


  • The number one advantage of taking out a personal loan to finance a car is that you don’t need to pay a deposit. Any other form of car finance will require an initial down payment
  • Unlike traditional forms of car finance, by using a personal loan the car will be yours to own outright.
  • You won’t be restricted by mileage or have to keep the car in good condition (not that you’re going to run it into the ground)
  • If you have enough cash in the bank, you could always take out a loan and use the money for another purchase


What Are the Cons to Taking Out a Personal Loan?


Of course, there will be disadvantages to taking out a personal loan. For example;


  • The monthly payments could be higher than they would if you have used a personal contract purchase or a hire purchase
  • Because you will own the car outright, you won’t be protected under the Consumer Credit Act.
  • While paying with cash will mean you don’t have monthly payments, cars can be pricey, and you could be saving that money for a rainy day.


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