A Guide To Getting Zero Deposit Car Finance
It almost sounds too good to be true; not only could you get a car finance deal that allows you to finally buy that vehicle you’ve long had your eye on, but it may also be a zero deposit car finance deal. So in other words, you might be able to drive away that car without paying a thing before the loan payments kick in, save for the standard reservation fee.
You might be thinking at this point; surely, car finance that doesn’t require you to pay a deposit involves some kind of catch?
Well, there are definitely certain things you need to think about before requesting a car finance deal with zero deposit, to ensure it is the right course of action for you. But one reason why we offer car finance with zero deposit ourselves at CarFinanceGenie, is the simple fact that it does help many of our customers.
So, here are the key steps to take to get approved for such car finance.
Consider your reasons for seeking no deposit car finance
This has to be the most important step of all. Depending on your circumstances and needs, zero deposit car finance may make a lot of sense for you… or it might not be a wise path.
You might, for instance, be thinking of requesting zero deposit on your car finance arrangement if you would rather not reach into your savings to pay a deposit. After all, you might have something else in mind for how you wish to spend that money – a well-earned holiday, perhaps, home improvements, or that loft conversion you keep promising yourself.
These are all understandable reasons to look for car finance with zero deposit, but such a reason alone won’t necessarily make it the best long-term route for you.
Bear in mind that part of the whole point of putting down a deposit for your car finance deal, is so that you won’t have to pay as much per month over the loan term. With part of the money you owe to the lender having already been paid when you paid the deposit, you’ll be a safer investment for the lender, which will translate into a lower overall interest cost, too.
But on the other hand, what if your existing car has suddenly broken down, or you’ve just landed a job that isn’t easily reachable by public transport? A new set of wheels may become essential. However, you might have bad credit, or insufficient money to actually be able to afford a deposit right now when seeking a car finance deal.
These are the kind of circumstances in which zero deposit car finance may make a lot of sense. Sure, not paying a deposit now will mean you pay more for your car finance in the longer term. However, you might be happy with that if it helps you to overcome your current tight, hopefully short-term financial predicament.
Apply for zero deposit car finance through a trusted broker
Imagine if, instead of approaching and being rejected by one lender, and then approaching and being rejected by another lender, and the same for a third or fourth lender… you could instead make one application that effectively sifts through multiple lenders at the same time?
This is precisely the difference made when you apply for car finance through a broker rather than a single lender. CarFinanceGenie has a broad panel of lenders, including many with a great track record of catering to the preferences and requirements of those who wish to pay no deposit at all.
So, you can expect us to offer you a highly competitive car finance deal, quickly. Furthermore, when you apply for car finance through us, we will only perform a soft search of your credit file, and will never perform a hard search without you first giving us your permission.
All in all, we have an excellent reputation for helping drivers to get approved for the car finance deal that works for them – including not only with a deposit or without a deposit, but also whether they prefer a hire purchase (HP) or personal contract purchase (PCP) arrangement.
Bear in mind that much depends on your credit score
Even if you’re likely to be able to get accepted for a zero-deposit car finance deal, this doesn’t automatically make it the most suitable option for you. It is in your interests, for example, to only take on a loan that you can genuinely afford, accounting for the repayments themselves alongside associated factors such as the running costs of the car.
As always here at CarFinanceGenie, when you contact our team, we can provide honest and straightforward advice to help ensure you make the right decision for both your immediate and longer-term practical needs and financial wellbeing.