Zero Deposit Car Finance in Essex
Drive Away With No Upfront Payment
At LMC (London Motor Company), we know that saving up for a deposit can sometimes feel like the biggest hurdle when you're trying to get your next car. That's why we offer zero deposit car finance options to help make things a little easier.Â
If you've found the perfect car but don't have hundreds (or thousands!) of pounds sitting around for a deposit, then don't worry - we might be able to help.
What is Zero Deposit Car Finance?
Simply put, zero deposit car finance means you can drive away in your chosen car without having to put down any money upfront. Instead of paying a deposit at the start of your agreement, the full cost of the vehicle is spread across your monthly payments.
It's worth knowing that while zero deposit finance can be a brilliant option for many of our customers, it does mean your monthly payments will typically be a bit higher compared to agreements where you've put down a deposit. That's because you're borrowing the full value of the car rather than just part of it.
Is Zero Deposit Car Finance Right for Me?
Zero deposit finance could be a good fit if you:
- Have found the right car but haven't had time to save up for a deposit
- Prefer to keep your savings for emergencies or other expenses
- Want to get on the road sooner rather than later
- Are comfortable with slightly higher monthly payments in exchange for no upfront cost
That said, if you can afford to put down even a small deposit, it will reduce your monthly payments and the overall amount of interest you'll pay over the term of your agreement. We're always happy to have a proper chat about what works best for your situation - there's no one-size-fits-all answer!
What Are the Benefits of Zero Deposit Car Finance?
Get on the Road Faster
Without needing to save for a deposit first, you could be driving your new car much sooner than if you needed to find the funds for an upfront payment. Perfect if your current car has packed in or your circumstances have changed.
Keep Your Savings Intact
Life's full of surprises, and having a financial cushion can be really important. Zero deposit finance means you don't have to dip into your savings to get the car you need.
More Flexibility
If you're managing other expenses or prefer to spread costs evenly over time, zero deposit car finance options give you that flexibility without the pressure of finding a lump sum upfront.
What Do I Need to Consider About Zero Deposit Car Finance?
We believe in giving you the full picture when it comes to car finance, so here's what you should know before making a decision:
Higher Monthly Payments
Because you're financing the full value of the car, your monthly payments will be higher than they would be if you'd put down a deposit. Make sure these payments fit comfortably within your budget.
More Interest Over Time
Borrowing more means you'll pay more in interest over the life of your agreement. Before you buy a car on finance from us, we'll always show you the total amount payable so you can make an informed decision.
Deposit Options Still Available
Even if you're interested in zero deposit finance, you can choose to put down a deposit if you'd like to - any amount helps reduce your monthly costs. Think of zero deposit as an option, not a requirement!
How Do I Apply for Zero Deposit Car Finance?
Applying couldn't be easier! Just browse our stock online or pop into our Upminster showroom, find a car you love, and when you're ready, click "Apply for Finance" or give us a call.
We work with a panel of trusted lenders who can assess your application and, subject to status, may be able to offer you a zero deposit finance agreement. Every application is different, and we'll work to find the best solution for your circumstances.
Why Choose LMC for Zero Deposit Car Finance?
We've been helping customers get into their dream cars since 1980, and we treat every customer the way we'd want to be treated ourselves. Whether you're putting down a deposit for a car or going with zero deposit, we'll take the time to understand your situation and find a finance option that actually works for you - not just one that's convenient for us.
We'll always explain everything clearly, answer all your questions (even the ones you think might sound daft - they never do!), and make sure you feel confident about your decision.
Get in Touch With Us
Do you fancy an informal chat about zero deposit car finance? Give us a ring, send us an enquiry, or pop into our showroom in Upminster. There's always a proper cup of tea on the go, and we genuinely love talking cars and finding solutions that work for our customers.
Our modern and welcoming showroom is open seven days a week, so get in touch today and we’ll be happy to help.
Contact our team
Why not talk to us directly by giving us a call or sending us an email.
FAQs
- Can I get zero deposit car finance with bad credit?
Yes, it's definitely possible, but not always easy! At LMC, we work with a panel of specialist lenders who understand that life happens and credit scores aren't always perfect. While having a good credit score can help you secure better interest rates, we've helped plenty of customers with less-than-perfect credit get behind the wheel of their ideal car with zero deposit finance.Â
Every application is assessed individually, and we'll always do our best to find a solution that works for you. Give us a call and we'll have a proper chat about your situation – we're here to help, not judge.
- Is zero deposit car finance more expensive than putting down a deposit?
In short, yes – but let's break it down properly. Because you're borrowing the full value of the car rather than just a portion of it, your monthly payments will be higher, and you'll pay more in interest over the life of the agreement.Â
However, for many people, the benefits of not needing to find a large lump sum upfront outweigh the extra cost. It all depends on your personal circumstances and priorities. We'll always show you a comparison so you can see the difference and make an informed decision that works for your budget.
- What documents do I need to apply for zero deposit car finance?
The application process is pretty straightforward. Generally, you'll need:
- Proof of identity – such as a UK driving licence or passport
- Proof of address – like a recent utility bill or bank statement
- Proof of income – typically your last three months' payslips or bank statements (if you're self-employed, we'll need a bit more info but we work with self-employed customers all the time!)
- Bank details – for setting up your monthly payments
Don't worry if you're not sure what you've got – just give us a call first and we'll talk you through exactly what's needed.
- What's the difference between PCP and HP with zero deposit finance?
Great question! With Personal Contract Purchase (PCP), your monthly payments are typically lower because you're only paying off the depreciation of the car, not the full value. At the end of the agreement, you'll have three options: make a final balloon payment to own the car, hand it back with nothing more to pay, or use any equity towards your next car. There are mileage limits to be aware of, though.
With Hire Purchase (HP), you're paying off the full value of the car over the term, so your monthly payments will be higher. However, once you've made your final payment, the car is yours outright with no balloon payment and no mileage restrictions. Both options are available with zero deposit – we'll help you figure out which one suits your needs best!
- What happens if I miss a payment on my zero deposit car finance agreement?
Life can throw curveballs, and we get that. If you miss a payment, the lender may charge a late payment fee, and it could affect your credit score. If payments are consistently missed, it could ultimately lead to the vehicle being repossessed – which nobody wants.
The key thing is communication. If you're struggling or think you might miss a payment, get in touch with the lender as soon as possible. They can often work out a solution with you, whether that's a temporary payment holiday, a revised payment plan, or other options. Don't bury your head in the sand – a quick conversation can make all the difference.
- Can I pay off my zero deposit car finance early?
Yes, you can! Most finance agreements allow you to settle the balance early if you want to. This is called an "early settlement." You'll need to contact your lender who will provide you with a settlement figure – this is the total amount outstanding including any early repayment fees that may apply.
Paying off your finance early can save you money on interest, but do check your agreement for any early repayment charges. If you're thinking about settling early, give us or your lender a ring and we'll talk you through the numbers.
- Do I own the car at the end of a zero deposit finance agreement?
It depends on which type of finance you've chosen:
With Hire Purchase (HP): Once you've made all your monthly payments, the car is yours. Job done!
With Personal Contract Purchase (PCP): At the end of the agreement, you'll have that final optional payment (sometimes called a balloon payment) to make if you want to own the car. If you don't want to keep it, you can simply hand the keys back (as long as you've stuck to your mileage allowance and the car's in good condition), or you can use any equity towards your next car.
We'll make sure you understand exactly what happens at the end of your agreement before you sign anything.
- Are all cars in your stock available with zero deposit finance?
Subject to status and lender approval, yes. All the cars in our Essex showroom and online stock can potentially be financed with zero deposit. Whether you're after a compact hatchback for city driving, a spacious family SUV, or something with a bit more oomph, we'll work with our lenders to see what's possible.Â
The final decision is down to the lender and will depend on factors like the car's value, your credit situation, and affordability. But we'll always do our best to make it happen!