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When it comes to financing a car, the first thing you worry about is the deposit size. The larger the deposit size, the better the deal. Even if you are taking out an auto loan from a reputed bank, they would want you to put down a small portion of the market value of the car as a down payment.

Arranging a deposit size is not that easy even if you are buying a second hand car. It is essential to take stock of your budget or else you will end up with a wrong deal. Since a car loan in Ireland are secured loans where your car serves as security, you can think about availing yourself a loan without a deposit. Is that possible to finance a car without it? You can come up with a few advertisements that markets car finance deals with no deposit.

Well, the straightaway answer to this question is no whether you finance your car with a personal loan, hire purchase or personal contract purchase. It is crucial to pay the down payment as a significant proportion of the market value of your car and it is usually around 10%.

Although no-deposit deals generally do not exist, it does not mean that you cannot try to get the one. Here is what you need to do to get a car finance deal with no down payment.

Do market research

It might be hard to get a deal with no down payment from a bank, but there are a few lenders that will not have any problems doing so. Try to find a lender that may be ready to lend money even if you cannot pay the down payment. However, note that you will be paying larger instalments, which means it is crucial to analyse your affordability.

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As you do not have a deposit, it increases the risk for a lender and therefore they may want you to have a good credit rating. Otherwise, they will not approve your application. If no lender advertises their car finance deals with no deposit size, you can ask them about the ways in case of absence of the deposit size.

Some lenders do not advertise no-deposit deals, but they keep it as an alternative. Note that you must have a good credit rating and strong income source to qualify for the loan. Interest rates will likely be higher to mitigate the risk, so make sure that you can easily repay the debt.

Personal loans are more ideal options

If you are looking to finance a car with hire purchase or personal contract purchase, a car dealer or a lender may not approve your application if you do not have a deposit size. However, you can still successfully finance your car. Yes, you can take out a personal loan. It is an unsecured loan that you can use to fund your car.

The best part about personal loans is you do not need to arrange a deposit. You want to own a dream car, just fill up the application form. If you meet the eligibility criteria, you can qualify for the loan easily. Although you will be using your car, the title will remain with the lender. It means the ownership will pass on to you only when you pay off the whole of the debt.

You will get the loan at lower interest rates because your car will serve as collateral. If you fail to pay off the debt, your lender will take your car into possession to liquidate it to release money from it. Personal loans come with several benefits that even other car finance deals do not offer, for instance, no deposit size, no mileage restriction, and the like. Yet, they come with some drawbacks.

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Since you are not paying down a initial payment, the size of monthly instalment will be much bigger than they would be if you had used other car finance deals. If you do not put your car as collateral, the interest rates will be high.


Well, if you are looking to finance your car with no down payment, you will have to consider pros and cons. A good rule of thumb says that you should set aside some money as a down payment for the car you want to buy. Even if it is less than 10% of the market value of the car, it is better.

Your car loan size will be lower and so will be your instalment size. No-deposit car finance deal is usually not a product. However, you can ask your lender if they can let you borrow money without a deposit. Otherwise, you will have only one option and that is personal loans. Though they work as instant loans in Ireland, they can be quite expensive for funding a car.

Shabbir Ahmad

Shabbir Ahmad is a freelance enthusiastic blogger & SEO expert. He is the founder of Shifted Magazine & Shifted News. He contributes to many authority blogs including porch, hackernoon & techcrunch.