Low deposit
Car finance with a low deposit
A deposit is not always required. It does change what is available to you, so it is worth understanding the trade before deciding how much to put down.
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What could Hire Purchase cost?
Your illustration
- Amount of credit
- £14,000
- Illustrative APR
- 9.9%
- Total charge for credit
- £2,876.36
- Total amount payable
- £17,876.36
- 48 monthly payments of
- £351.57
Includes a £1 option to purchase fee. An illustration only — not a quote and not an offer of credit. Your rate depends on your circumstances and the lender. Finance is subject to status and income. Q-Finance is a credit broker, not a lender.
Q-Finance is a credit broker, not a lender. Our rates start from 8.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £8,000 over 60 months with a representative APR of 18.8%, the amount payable would be £200.34 a month, with a total cost of credit of £4,020.11 and a total amount payable of £12,020.11.
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See what your deposit gets you
Try the calculator, then talk to an adviser for a real figure.
What a deposit actually does
A deposit reduces the amount you borrow, which reduces both the monthly payment and the total interest. It also reduces the lender's exposure, which can open up better rates or a wider set of lenders.
That second effect is the one people underestimate. On a marginal application, a deposit is often what turns a decline into an approval.
The trade-off
| Deposit | Effect on monthly payment | Effect on total cost | Effect on approval |
|---|---|---|---|
| None | Highest | Highest | Narrower lender choice |
| Small (5–10%) | Lower | Lower | Noticeably wider choice |
| Large (20%+) | Lowest | Lowest | Widest choice, best rates |
The figures are directional, not a quote. What matters is the shape: every pound of deposit works twice, once on the payment and once on the decision.
When not to stretch for a deposit
Emptying your savings to maximise the deposit is not automatically right. Leaving yourself without a buffer is how a manageable agreement becomes an unmanageable one after an unexpected bill.
A sensible balance is usually to put down what you can comfortably spare, keep an emergency fund intact, and take a term you can service without strain.
Common questions
Related reading
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First-time buyers
First-Time Buyer Car Finance
Car finance for first-time buyers and drivers with no credit history. How to build a file, what to budget for, and what lenders look for.
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Impaired credit
Car Finance With Bad Credit
Car finance for impaired credit profiles. What lenders actually look at, how a soft search helps, and an honest view of what to expect.
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Guide
How much can I borrow for a car?
How lenders work out what you can afford, why the answer is a monthly payment rather than a lump sum, and how deposit and term change the number.
Ready to apply?
See what your deposit gets you
Try the calculator, then talk to an adviser for a real figure.