How £0-deposit deals work on HP and PCP
A deposit isn't a fee — it's the slice of the car you pay for upfront, so the loan covers the rest. Skip it and the loan simply covers 100% of the price. Both HP and PCP are routinely written with zero deposit: the structure doesn't change, only the amount financed does. One quiet variant worth knowing: if you're trading a car in, its value acts as your deposit — part-exchange equity is deposit, even in a “no deposit” deal.
The honest maths: payments and interest
Finance 100% instead of 90% and two numbers move, both upward: the monthly payment (you're repaying more) and the total interest (you're paying the rate on more, for the whole term). No trick, no hidden fee — just more borrowed money costing what borrowed money costs. The reverse is the useful insight: every pound of deposit works twice, cutting the payment now and the interest across the full term. Even a few hundred pounds down makes a visible difference to both.
Who no-deposit suits — and who it doesn't
£0 down earns its keep when income is steady but savings are thin — keeping an emergency fund intact instead of emptying it into a bonnet is often the financially sensible move, even at the cost of higher monthlies. It suits people who need the car now for work and can carry the payment comfortably.
It stops making sense when it's used to reach for more car than the budget honestly carries — if the only way the numbers work is £0 down on the stretch model, the answer is a cheaper car, not a cleverer structure.
No deposit with bad credit or a CCJ
Here's where £0 down meets reality: a deposit isn't just your money — it's the lender's risk cushion. With a clean file, zero-deposit approval is routine.
With a weaker one — missed payments, a CCJ, thin history — some lenders will ask for money down as a condition of the yes, and offering it upfront can flip a marginal decision your way. If a deposit is genuinely impossible, say so honestly and let the affordability maths do the talking with a modest car. Approval, as always, is subject to status.
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