Yes, some lenders will consider car finance with no deposit, subject to status and affordability checks. It means borrowing the full price of the car, so the monthly payments and the total interest are higher than they would be with a deposit. A part exchange can do the same job as a cash deposit.

What does no deposit car finance mean?

It means you pay nothing upfront and the lender funds the whole price. Your first payment is normally due about a month after you collect the car. Nothing else about the agreement changes: it is still hire purchase or PCP, with the same checks and the same obligations.

Is it more expensive without a deposit?

Yes, in most cases, for three reasons:

You borrow more, so each monthly payment is higher for the same term.
You pay interest on a larger amount, so the total amount payable goes up.
You are more likely to owe more than the car is worth in the early part of the agreement. See our guide to negative equity.

Stretching the term to bring the monthly figure down adds further interest. Always look at the total amount payable as well as the monthly payment.

Who is more likely to be accepted with no deposit?

Each lender sets its own criteria, and nobody can promise an approval. In general an application is stronger when:

the payment is comfortably affordable against your income and outgoings;
your credit record shows payments made on time;
the car is sensibly priced for your budget.

A lender may ask for a deposit as a condition of accepting an application, particularly where the credit history is weaker.

Does a part exchange count as a deposit?

Yes. Whatever your current car is worth, less any finance still owed on it, comes off the amount you borrow. You can get a valuation before you decide. If the car is still on finance, read part exchanging a car on finance.

Should I use my savings as a deposit?

Even a modest deposit reduces what you borrow and what you pay in interest. Against that, it is sensible to keep an emergency fund, because a car brings its own bills for insurance, tax, tyres and servicing. Ask for the figures both ways, with and without a deposit, and compare the total amount payable.

Common questions

Is no deposit finance harder to get?

It can be, because the lender is taking more risk. The decision still rests on your credit record and affordability.

Can I get no deposit finance with bad credit?

Some lenders will consider it, but it is less likely and usually costs more. Our guide to car finance with bad credit explains what lenders look at.

Can I pay extra later to make up for having no deposit?

Yes. On a regulated agreement you have the right to make early repayments. See paying car finance off early.

Talk through the numbers in Barnsley

anycolourcar.com is a used car dealer in Barnsley, South Yorkshire. Browse cars in stock, read about finance or call Sales on 01226 574410 and ask us to show you a quote with and without a deposit.

We are a credit broker, not a lender. Finance is subject to status and affordability checks.

This guide is general information, not financial advice. Updated October 2026.

Can You Get Car Finance With No Deposit?