The good thing with a no deposit car finance deal is that you can get it any time you want. Since you don’t have to pay for the deposit, you just need to sign the application documents, and you can soon drive a new car. Before you get too excited, you will still need to apply for this loan. To qualify, you need to show these requirements.
Proof of capacity to pay
Since you’re not paying any amount upfront, the loan provider needs a guarantee that you have enough money to pay the monthly quotas. If you are currently unemployed or you don’t have any reliable income source, your chances of getting approved might be low.
Proof that you didn’t file for bankruptcy in the past
Whether it’s personal or business, filing for bankruptcy under your name could reduce your chances of getting this loan. It’s already a risk on the creditor’s part to allow you to get a new car despite not paying a deposit. It’s an even bigger risk for someone who already experienced bankruptcy in the past. A low credit score holder might still have a chance to obtain this loan, but not someone with a history of bankruptcy.
Legal age and driving licence
Compared with other types of loan, it’s a lot easier to obtain this no deposit car loan. As long as you’re 18 years old or above, and you have a valid UK driving licence, you’re good to go.
Correct application documents
Although it’s way easier to get approval for this loan, you will still go through a process. You need to submit application documents and wait for the approval. Don’t falsify any information in the hope of successfully getting the loan. When caught, you could be in serious legal problems. You will also ruin your chances of getting approved now and for any other future applications.
Read the details first
These requirements aren’t necessarily difficult to fulfil. However, you still need to think hard if you should obtain this loan. Since you don’t have to pay any amount upfront, your monthly payments might be high. When factoring in the interest rate, the monthly fees could even be higher. If that’s something you can’t afford, this loan might not work for you.
Not all companies offering this deal have the same terms. It’s crucial that you read the fine print before closing the deal. You also have to compare the choices and understand them well before determining if you will pursue the transaction. Car finance is a long-term commitment. You can’t sign up and be irresponsible with the monthly payments. The application might be easy, but it’s only the first stage of the process. You still have a lot to do to own the car finally. Don’t rush the process and wait until you’re ready. Settle your existing financial issues first, and you can finally obtain a car loan that works for you like the ones offered by car finance giant.