Four checks before choosing a zero deposit
No-deposit finance means you do not contribute a vehicle deposit at the outset; it does not necessarily mean nothing is payable upfront. Availability, fees and accepted terms depend on the provider, your circumstances and the car.
For the same price, rate and term, borrowing more increases the repayments and interest. Compare a £0 deposit illustration against one with a deposit. The calculator cannot confirm acceptance or that all charges can be financed.
- Ask which charges, if any, are payable before handover.
- Compare the total payable as well as the regular payment.
- Check whether a part exchange has usable equity after any existing finance settlement.
- Consider the risk that the outstanding balance exceeds the car’s value.
Compare a zero-deposit car finance illustration
Open our calculator with a £0 deposit, select a listed car and compare the monthly figure with an illustration that includes a deposit. Keep the car, term and rate the same so you can see the effect of changing only the amount paid upfront. Neither result confirms which terms a lender will offer.
Zero deposit means no deposit towards the vehicle in the arrangement being discussed; it should not be read as a promise that collecting and running the car costs nothing upfront. Ask about any reservation payment, fees and insurance separately. If the proposed payment leaves too little room for essential spending, compare a lower-priced car or pause before applying.
Understand the trade-off
For the same cash price and otherwise identical terms, borrowing more generally increases the repayment and interest cost. A no-deposit option is not automatically a cheaper option. Compare the actual quote, including any fees and the total payable.
Avoid using the website's default illustration deposit as a lender minimum. The calculator methodology explains the assumptions; the lender sets the actual conditions.
Could part exchange help?
If you own another car, its value after any finance settlement may contribute towards a purchase. Read about part exchange and finance, and obtain a confirmed valuation before relying on an amount.
