No Deposit Car Finance
26 Sep 2024 | Car Finance
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Do I need a deposit for a car loan?
One common question that we get asked is “what sort of deposit do I need to finance a car?” and the answer is: well, that depends.
When you apply for car finance, the finance company (in our case Community Financial Services or CFS) are making a decision about risk. The last thing that CFS or Enterprise wants is for customers to struggle with their everyday living because their car payments are too high. So they assess what are the risks that you won’t be able to afford to keep up with your car payments.
So in short, no you don't need a deposit for a car loan, as your whole situation will be taken into account when you apply for finance. If you do have a deposit, it will definitely benefit you though because the more deposit you pay, the lower the amount of money you borrow, and the lower your car payments are.
Does the deposit need to be in cash?
No, most of our customer will trade in or sell their existing car and use that as a deposit.
Even customers who still owe money on their old car can trade it in. We simply deduct what you still owe on the car from your trade in value and settle your old car loan for you.
What are the criteria for a No Deposit Car Loan?
There are three main areas that are considered when you apply for a no deposit car loan; these are:
- How easily can you afford the payments?
- What do you do for a job and how long have you worked there?
- How long have you lived at your house?
But there are always exceptions to the rule. For example, we have helped countless customers who are on a benefit buy a car with no deposit finance.
So where do I start?
If you need car finance and you don’t have a deposit, the best thing you can do is complete our easy online finance application form and talk to one of our friendly staff about arranging a car loan that is right for you.