We all know that cars can be expensive. Aside from a house, it is probably the biggest purchase you’ll make in your life, especially if you buy a new motor. And while the vast majority of people opt for second-hand vehicles – 6,752,959 were sold in 2020 – it still means splashing out a significant chunk of change.

One way to make the costs lower is to put down a large deposit, even if you opt for car financing to make the monthly premiums more affordable. The truth is, though, that you don’t need a deposit to become the proud new owner of a car.

The main two types of car financing

By now, most people are familiar with the broad concept of car financing. After all, the vast majority of vehicle sales are leveraged with the help of hire purchase (HP) or personal contract purchase (PCP) deals.

Although the two forms of financing are similar, they do have their differences – and it’s essential to understand them before proceeding. For instance, HP is where you pay back the loan and own the vehicle at the end of the contract. PCP, on the other hand, involves having to return the car, finding a new PCP deal, or purchasing the car outright.

Both typically involve deposits, however, so how do you buy your dream motor if you don’t have a couple of grand lying around?

No deposit car finance

Even with the affordability of car finance, the deposit alone can price out many buyers. The good news is you can drive away without having to save up to 10% of the total amount. For people with small budgets, it’s an ideal compromise.

However, it’s worth pointing out the caveats that exist. Firstly, the monthly repayments are greater as there isn’t a deposit to reduce your premiums. That means you’ll pay more in the long term due to the interest rate. Still, it may be better for you to do this than wait for years to accumulate a deposit. Even then, the monthly fee may not be that much cheaper.

Fortunately, there are now plenty of car finance deals available – both HP and PCP – where a deposit is not necessary. Just bear in mind, with a PCP, a balloon payment will be needed to pay for the car outright. But, if you’re prepared, you can try and save up over the contract period while driving around in a fantastic vehicle.

How do you qualify?

Is it hard to get accepted for car finance? Well, not everyone is eligible to buy a car with no deposit as providers take certain features into consideration. Thankfully, My Car Credit has several tools you can use that highlight your probability of being accepted.

To learn about them, and to find answers to more of your questions, please contact us right away. We want to hear from you!

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!