Looking for no deposit car finance?
Getting car finance with no deposit is becoming more attractive to those looking to buy a car. This is because for many finding the funds to put down a sizeable loan deposit is not possible.
Nowadays 4 in 10 people living in the UK have savings of less than £100 (The Money Advice Service, September 2016). Despite this, many car finance companies still require you to make an upfront payment to secure a car. Saving up this money can be extremely difficult and means you have to wait longer for a car that you might need right away. This can be especially hard if you have experienced financial difficulties or have bad credit. If you do have the money in savings, you might need this for other priorities instead.
How we can help
Red Potato can provide no deposit car finance even if you have a poor credit history. We may even be able to provide finance for you if you have been refused credit in the past.
Although we will try to help anyone in any financial situation, approval for car finance is subject to status and income. We also only offer our service to applicants over 18.
Buying a car on finance with no deposit
Red Potato specialises in providing bad credit car finance for those who have previously had financial difficulties. We understand that some people may not have enough in savings for a car deposit. Because of this, there’s no requirement to put down an upfront sum when you apply for an agreement through us. If you do wish to pay a deposit, you can choose to put down as much or as little as you like. If you don’t put down a deposit, however, you should be aware that your monthly repayments will be higher. Our car finance calculator can help you to work out how much your monthly payments will be.
We base our lending decisions on your current financial situation and consider much more than your credit rating and history. The type of car finance we provide is hire purchase, which means if we accept your application you will borrow the money to purchase the car and pay this back over a period of 3-5 years with interest. At the end of your agreement, providing you have made all of the payments due under the agreement, you will have full ownership of the car.
We offer finance from 19.9% APR to 29.9% APR. We will confirm the APR you are eligible for when we provide you with a lending decision. The APR you are offered is subject to our underwriting checks once we have received your documents and completed our affordability checks.
Representative example: Loan amount of £7,500 with a monthly repayment of £191.63 over a term of 60 months at a rate of 10.66% interest per annum (fixed). This is equivalent to 19.9% APR representative. Interest repayable is £3,997.80 with an option to purchase fee of £10.00. Total amount repayable is £11,507.80.
How much can I borrow without a deposit?
As a car dealer, we have around 4,000 affordable used cars available that we can help finance for you. All of our cars can be taken out on finance without the requirement of a deposit. We will, however, look at your current financial situation and make sure you can comfortably afford the monthly payments. If we consider the car you’re looking at to be unrealistic for you to pay each month, then we will advise you to look at more affordable options instead.
Your car finance application
You can apply through Red Potato even if you;
- Are in a Debt Management Plan (DMP)
- Have a County Court Judgement (CCJ) or Individual Voluntary Arrangement (IVA)
- Previously have been bankrupt
- Are self-employed
Whilst there’s no such thing as guaranteed car finance, we can give you a fast lending decision once you have completed your application and provided all the required information. Once you have applied for finance, our team will take a look at your income and expenditure. We will then make a decision on what you can realistically afford to spend each month on a car loan.
Our decision will not just be based on your credit history alone. We will look at your financial situation now to understand what you can realistically afford to spend on a hire purchase agreement each month.
Red Potato is authorised and regulated by the Financial Conduct Authority (FCA) and provides car finance to customers through responsible lending and our commitment to treating customers fairly so you can be confident that we will never offer you a product that is not appropriate for you.
Reducing your monthly payments
If your monthly car finance payments work out too high then you might want to consider saving for a deposit in order to help reduce these costs. The Money Advice Service has a great savings calculator that can help you work out how much you can afford to put aside each month. Another way to reduce your payments is by trading your current vehicle in as part exchange. You can use the amount you are offered as part exchange for your current vehicle as a deposit towards your new car.