Car Finance No Deposit & Bad Credit

Car finance simply makes the entire process of buying a car much easier, as you won’t have to part with a lump sum of cash before you get behind the wheel. Purchasing a car on finance means getting a loan for the car, which you can then pay back in affordable, fixed monthly payments. Personal circumstances, such as monthly payment affordability, play a crucial role in determining the best car finance option.

Hire purchase (HP) and personal contract purchase (PCP) are the most common forms of car finance agreements, along with guarantor and personal loans. To get car finance, you don’t need a deposit as we have no-deposit option available.

It’s important to research the different options available and make sure that you choose the best, most affordable option for your needs.

Yes, lenders will only accept you if your credit file and history are ideal. For many years, Carplus has been assisting consumers in getting on the road. We collaborate with a sizable network of lenders, some of which specialise in providing car finance even with bad credit.

Carplus and our lenders panel performs a so called ‘soft credit check’ to provide you with a general quote and determine your borrowing capacity. Soft check is a guided quote only and doesn’t impact your credit. The quote is also subject to lenders checking your income and affordability. Once you decide to move forward with your car finance application, lenders would perform a hard search check at the point of signing of your PCP or HP agreement. A hard search leaves a record of your credit score.

Find out how much you can borrow by using our financial calculator. The exact amount you borrow will depend on your financial situation and credit score. To assist you in weighing your options, we may provide you with a free, no-obligation quote.

In order to apply for a car loan through Carplus you must:

Depending on the lender you're approaching, you may need specific documentation to obtain car finance. However, typically, they request the following three things

Any fees we charge for arranging your financing with the lenders are offset by the fees we earn from them. This enables us to provide you with our services free of charge.

You can fill out the form at Carplus and receive a response in just a few minutes. Your account manager will give you a call to confirm your information and go over the next steps if you've been approved in principle.

The cost of car finance can vary depending on several factors. This includes the type of finance option you choose, such as PCP or HP finance, as well as the interest rate, loan term, and the price of the car itself, and your credit score. Generally, it includes the monthly repayments, interest charges, and any additional fees or charges associated with the loan. So you have to carefully consider your monthly budget.

A good interest rate in the UK is around 8-9% for used cars.

Your finance offer will be valid for 48 hours from the time your request for financing is approved to you paying your deposit. The vehicle you applied for will be put back up for sale on our website if your deposit isn't paid within 48 hours.

While there are no-deposit vehicle loans available, making a substantial upfront down payment can lower the amount you need to borrow. An acceptable deposit is typically one that is at least 10% of the loan's entire amount.

Yes, car finance can typically be paid off early. However, it's essential to review the terms and conditions of your specific finance agreement, as some lenders may charge an early repayment fee.

If you miss your car finance monthly repayments, it can negatively impact your credit score, and the finance company may take actions such as charging late payment fees, contacting you for payment, or, in severe cases, repossessing the vehicle.

Modifying a car on finance may be possible, but it depends on your finance agreement and the specific modifications you intend to make. It's crucial to consult with the finance company before proceeding with any modifications.

In certain cases, you may be able to return the car to the finance company voluntarily. This process is known as a voluntary termination, but it's subject to specific conditions outlined in your finance agreement, such as a certain percentage of the total amount being repaid. It's important to check the terms of your agreement and discuss this option with your finance provider.

If you've been refused car loan because of bad credit, we may still be able to help. At Carplus, we work with a panel of lenders who can offer bad credit car finance.

Simply input the amount you'd like to borrow and the time period over which you'd like to repay the loan, and then the calculator will show your monthly repayments. Please note that the calculator is for illustrative purposes only, and actual repayments may vary based on individual circumstances.

APR stands for Annual Percentage Rate, and it is a measure of the cost of borrowing money, expressed as a percentage. It represents the total cost of the loan, including both the interest rate and any additional fees or charges. A lower APR indicates a more affordable loan, while a higher APR means you will pay more in interest over the loan term.

To lower your monthly car finance payments, there are a few strategies you can consider. Firstly, you can opt for a longer car loan term, spreading out the payments over a greater number of months. However, keep in mind that this may result in paying more in interest over the long run. Secondly, you can increase your initial deposit or trade-in value, reducing the loan amount and subsequently lowering the monthly instalments. Finally, you can shop around and compare different lenders to find the most competitive interest rates and finance deals available, which can help decrease your monthly payment amount.