Looking at car finance but wondering if you need to put money down first? It’s one of those questions that comes up all the time, and honestly, the answer might surprise you.

The truth is, while deposits can be helpful, they’re not always necessary. Let me walk you through what you actually need to know.

 

car-autumn-wing-mirror

What exactly is a car finance deposit?

 

A deposit is simply money you pay upfront when you’re getting car finance. It goes towards the total cost of the car, which means you’ll need to borrow less. Sometimes this can bring your monthly payments down a bit.

Here’s what many people don’t realise though – plenty of lenders don’t actually require a deposit at all. Some even specialise in deals where you don’t need to put anything down.

 

Do I definitely need one?

 

Not necessarily. It really depends on the type of finance you’re looking at:

With Hire Purchase (HP) or Personal Contract Purchase (PCP) deals, you’ll often see deposits mentioned, but they’re not always compulsory. No-deposit car finance is actually pretty common these days, especially if you go through brokers who work with lenders that focus more on whether you can afford the monthly payments rather than how much you’ve saved up.

If you don’t put down a deposit, your monthly payments will probably be a bit higher, but that’s often manageable depending on your budget.

 

Why would I bother with a deposit then?

 

Fair question. If you’ve got some cash available, there are a few reasons why you might want to use it:

Your monthly payments will be lower since you’re borrowing less money. It can also help with getting approved, as it shows you’re serious about the purchase. In some cases, you might pay less interest overall too.

But don’t worry if you haven’t got anything saved up – loads of people get car finance without putting money down first.

 

What if I genuinely can’t afford a deposit?

 

You’ve still got options. At Motorly, we work with lenders who offer finance without requiring any upfront payment. It’s designed for exactly this situation.

You’ll still need to pass the usual credit and affordability checks, and your monthly payments might be slightly higher, but the focus is on your income and credit history rather than your savings account.

 

How to improve your chances without a deposit

 

If you’re going down the no-deposit route, here are a few things that can help:

Work out what you can realistically afford each month before you start looking. Check your credit score so you know where you stand – some lenders are more flexible than others. Think carefully about which car you choose – something that holds its value well and isn’t too expensive can make approval easier.

If you’re concerned about your credit or income, adding a guarantor might be worth considering. And honestly, working with a broker like us can make the whole process much smoother since we can match you with the right lenders for your situation.

 

The bottom line

 

While having a deposit can be useful, it’s definitely not essential. Whether you’ve been saving up or you’re starting from scratch, there are still plenty of ways to get the car finance you need.

The key is finding the right deal for your circumstances and budget.

Ready to see what’s available to you? You can check your eligibility in just a few minutes – no deposit required and it won’t affect your credit score.

 

Click here to find out more >

If you’re thinking about getting a new car, you’ve probably come across two main options: leasing or buying. On the surface, they can look pretty similar, you pay monthly, drive away in a nice vehicle, and get on with your life. But dig a little deeper, and the differences really start to matter.

The truth is, the right choice depends on how long you want to keep the car, how much flexibility you need, and whether you want to own it at the end. In this guide, we’ll break it all down in plain English, no jargon, no pressure, so you can make the decision that actually fits your life.

What Does Leasing a Car Involve?

Leasing is basically like renting a car for a few years. You agree to a fixed monthly cost for a set period (usually 2–4 years), stick to a mileage limit, and hand the car back at the end.

It’s often called Personal Contract Hire (PCH) in the UK. You never own the car. It’s always the leasing company’s. You’re just paying to use it.

Leasing works well for people who:

But there are catches. If you go over your mileage limit or the car has damage beyond ‘fair wear and tear,’ you’ll be charged. And because you don’t own the car, you can’t make any changes or upgrades to it.

What Does Financing a Car Mean?

Financing is a way to spread the cost of a car over time — but unlike leasing, there’s usually an option to own the car at the end.

There are two common types:

This route works well if:

 

Lease vs Buy – A Quick Comparison

Let’s break down the key differences.

Ownership:
When you lease a car, you never own it. You’re essentially renting it for a fixed period. With car finance, ownership is possible. If you choose Hire Purchase (HP), the car becomes yours once all payments are made. With Personal Contract Purchase (PCP), you have the option to buy the car at the end by making a final payment.

Mileage limits:
Leasing agreements usually come with strict mileage limits. Go over them, and you’ll pay extra. PCP finance deals also tend to have mileage restrictions, but they’re more flexible. If you go with HP, there are typically no mileage limits at all, since you’re working toward full ownership.

Customisation:
Leased cars need to be returned in good condition and as close to factory standard as possible, which means no modifications. When you finance a car, especially with HP, you’re free to personalise it however you like.

Monthly payments:
Leasing often comes with lower monthly payments, especially in the short term. Finance payments can be higher, particularly if you’re aiming to own the car outright, but they’re building towards something more valuable.

End-of-term options:
With leasing, your only option at the end is to return the car. With car finance, you usually have choices: you can keep the car, part-exchange it, or return it (depending on the type of agreement).

Long-term value:
Leasing gives you no long-term asset. You hand the car back and start again. Financing, on the other hand, gives you the potential for ownership. Once it’s paid off, the car is yours, and you can keep it or sell it on.

Pros and Cons of Leasing

Pros:

Cons:

Pros and Cons of Financing

Pros:

Cons:

Which Option Is Better for You?

Leasing can be tempting, especially if you love the idea of always driving something new. And if you’re happy to treat your car like a rental, it can work fine.

But if you’re planning to keep the car for more than a couple of years, or if you want more control over how you use it, buying starts to make more sense.

And that brings us to something important.

Why Buying (Through Car Finance) Might Be the Smarter Choice

Here’s the thing: owning a car gives you freedom.

You can drive as far as you like. You can sell it, part-exchange it, or keep it running for years. You can fit roof racks, add baby seats, change the stereo, whatever suits your life.

There’s no “you’ve exceeded your mileage” fee. No “you’ll need to pay for that scratch” surprise. No handback inspection stress.

Buying through finance spreads the cost in a manageable way, but still gives you the benefits of ownership. And by the time you’ve finished paying it off, the car’s yours to keep, sell, or do what you like with.

If you’re in your 30s, 40s or 50s and want a reliable car that fits your life, buying, not leasing, is often the better long-term decision.

Want to Explore Your Finance Options?

At Motorly, we help you find the right finance deal without the confusion. No sales jargon. No pressure. Just helpful people and tools to make getting a car feel simple again.

You can check your eligibility, see your options, and apply online, all in your own time.

If you’re currently receiving Universal Credit or other government benefits, you might be wondering: can I still get car finance? It’s a common concern. The answer is yes, it is possible.

While receiving benefits can affect your application, many lenders today are more focused on affordability and reliability of income rather than just whether you’re in full-time employment. In this guide, we’ll explain how car finance works if you’re on benefits, what lenders are looking for, and how to give yourself the best chance of approval.

Is It Possible to Get Car Finance While on Benefits?

Yes, but it depends on the lender and your personal circumstances.

Some mainstream lenders may have stricter rules, but specialist lenders are more flexible. These companies often work with people who are self-employed, on part-time income, or receiving support such as:

The key question is whether you can afford the repayments.

 

What Car Finance Companies Look For

When assessing your application, lenders will consider:

It’s important to be honest when applying. Lenders will do their checks, and transparency helps ensure you’re matched to suitable options.

How to Improve Your Chances

Even if you’re not in traditional employment, there are a few ways to boost your chances of being accepted:

Be cautious with “no credit check” or “instant approval” offers. These can come with extremely high interest rates and hidden fees. Always read the small print.

 

Frequently Asked Questions

Will applying affect my credit score?
Not at first. Using a site like Motorly to check your eligibility only performs a soft search – this doesn’t affect your credit score. A full application might involve a hard search, but you’ll be notified beforehand.

Can I apply if I’ve been declined elsewhere?
Yes. Many people come to Motorly after being turned down by mainstream lenders. We work with a panel of finance providers, some of whom specialise in helping people with less conventional circumstances.

Being on Universal Credit or other benefits doesn’t mean car finance is out of reach. Lenders are increasingly looking at your whole financial picture, not just your job title. If you have stable income and manageable outgoings, there’s a good chance you’ll find a lender who can help.

At Motorly, we make the process easy by matching you with trusted finance providers who understand real-world circumstances. There’s no upfront cost to check, and no obligation to proceed if it’s not right for you.

Ready to see your options? Start your quote today – it only takes a few minutes.

If you’re applying for car finance, you may be tempted to make several applications to increase your chances of approval. But did you know this approach could harm your credit score and reduce your chances of success?

In this guide, you’ll learn:

Why Multiple Car Finance Applications Can Hurt Your Credit Score

Every time you apply for car finance, the lender usually performs what’s called a hard credit check. This kind of check stays visible on your credit report.

Why does this matter?

When lenders see multiple hard credit checks within a short period, they get cautious. It suggests you’re desperate for credit, which lenders interpret as a sign of financial difficulty.

Each hard check slightly reduces your credit score. Too many in quick succession can significantly lower it, making future approvals harder and potentially more expensive due to higher interest rates.

How Many Applications Is Too Many?

Generally, applying for car finance more than two or three times within a short period (around three to six months) can negatively impact your credit score.

A good rule to follow:

Every rejected application is recorded and visible to future lenders. That’s why applying carefully matters.

Smart Ways to Apply for Car Finance Without Hurting Your Credit

Here’s how to approach your car finance application strategically and safely:

Use Eligibility Checkers (Soft Credit Checks)

Always use a car finance eligibility checker first. These tools run a soft credit check, which won’t impact your credit score at all. Eligibility checkers give you an indication of your chances of approval before you formally apply.

This helps you:

Motorly provides a safe and quick eligibility checker.

Check your car finance eligibility safely now >

Space Out Your Applications

If you’re rejected, avoid immediately applying elsewhere. Wait at least 2–3 months before making another application. During this waiting period:

Waiting allows your credit profile to recover slightly and demonstrates responsible behaviour to future lenders.

Choose the Right Lender

Different lenders have different criteria. Mainstream lenders might reject applicants with lower credit scores. But specialist lenders are often more flexible and can help even if you’ve been declined before.

Applying smartly means targeting lenders most likely to approve your specific credit profile.

What to Do If You’ve Already Made Multiple Applications

Already applied multiple times unsuccessfully? Don’t panic. Follow these clear steps to get back on track:

Taking these steps can help your credit profile recover and improve your chances when you next apply.

How to Improve Your Chances Before Reapplying

Before applying again, take positive steps to improve your credit score:

For more detailed tips, read our complete guide:

“How to Improve Your Credit Score for Car Finance”

Applying Smartly for Car Finance

Applying multiple times for car finance in a short period is risky. It can significantly lower your credit score and reduce your chances of securing finance.

Instead, take a smarter approach:

By applying strategically, you’ll maximise your chances of approval, protect your credit score, and secure better finance deals.

Ready to see your finance options safely?

Check your eligibility today—without affecting your credit score

Thinking about selling your car but still owe money on it? You’re not alone – and yes, it is possible. But there are some important rules to follow.

Here’s what you need to know

Can You Sell a Car With Outstanding Finance?

If you bought your car on finance, you don’t legally own it until the last payment is made. The finance company does. So you can’t just sell it without clearing the finance first.

Trying to sell a financed car without sorting the finance can land you in legal trouble. But if you follow the right steps, it’s completely doable.

How to Sell a Car on Finance (The Right Way)

1. Ask for a Settlement Figure

Contact your finance provider and ask for a settlement figure. This is the total amount you need to pay to clear your finance. It’s usually valid for 10 to 30 days.

2. Pay Off the Finance

You have two options:

If you’re selling privately and using the buyer’s money to pay the finance, be upfront. It’s best to call the lender and pay it off while the buyer is there.

3. Get Written Confirmation

Once the finance is paid, ask your lender for a letter confirming the debt is settled. This shows the car is legally yours to sell.

4. Now You Can Sell

With the finance cleared and proof in hand, you’re free to sell the car—either privately or through a dealer.

car-sale

Can You Trade in a Financed Car?

Yes. In fact, it’s often easier.

Dealerships handle this all the time. They’ll:

If your car is worth less than what you owe, you’ll need to cover the difference or roll it into your new finance deal. Ask the dealer to explain your options clearly.

Risks of Selling a Financed Car Privately

Selling privately can sometimes get you a better price, but it comes with a few risks:

To stay safe, always settle the finance first.

What If You Can’t Afford the Settlement?

If you’re looking to sell because you’re struggling financially, don’t panic. You have options:

Just don’t ignore it or try to sell illegally. Being upfront leads to better outcomes.

Final thoughts – Selling a Financed Car

You can sell a financed car—just follow the steps:

If you’re short on options, talk to your lender or look at refinancing.

Need help finding a better car finance deal? Motorly can help.

Check your finance eligibility today and see what you could save.

As your car finance agreement comes to an end, it’s normal to wonder what happens next. You might feel unsure whether you should keep your car, return it, or trade it in for a newer model.

Fortunately, you have several straightforward options. Knowing these can help you make an informed decision that matches your finances and personal circumstances.

In this guide, you’ll learn:

Understand Your Car Finance Agreement Type

The options available depend on your car finance type. Here’s a quick refresher:

Hire Purchase (HP)
Once your final payment is made, you own the car outright. There’s no balloon payment, and your obligations end once the final monthly payment clears.

Personal Contract Purchase (PCP)
At the end of PCP, you have three options:

Personal Loan
If you used a personal loan, you own the car as soon as your final payment is complete. There’s no further payment or action required.

Understanding your finance type helps you clearly see which options are available.

Your Main Options at the End of Car Finance

Depending on your finance agreement, you’ll generally face three possible options:

Option 1: Keep the Car

Keeping your current car is straightforward if you’re happy with it.

Option 2: Return the Car

With PCP agreements, you can simply hand the car back to the dealer at the end of the contract.

To return the car:

This option suits you if you no longer need the car, want to avoid a large final payment, or plan to switch to a different vehicle.

Option 3: Trade-in or Upgrade

If you’d prefer a newer or different vehicle, trading in your existing car is a convenient choice:

This option is popular for drivers who regularly update their cars or whose needs have changed.

Things to Consider Before Making Your Decision

Choosing the right option depends on several practical factors. Consider:

Taking time to reflect ensures you choose the best solution for your personal circumstances.

Next Steps to Take When Your Finance Ends

To avoid surprises, start taking these practical steps 2–3 months before your agreement ends:

If you’re unsure about your options or eligibility for new finance, consider using a specialist finance broker.

Want to know your finance options now? Check Your Finance Eligibility Here

What if You Can’t Afford the Final Payment?

Sometimes the final balloon payment on PCP agreements can be higher than expected. If this payment becomes unaffordable, don’t panic—you have several solutions:

Taking proactive steps can reduce financial stress and keep you in control.

End of Car Finance—Your Next Steps

As your finance deal ends, remember your three main options clearly:

  1. Keep your car by paying the final payment (or automatically with HP/personal loans).

  2. Return your vehicle if it suits your circumstances (mainly PCP agreements).

  3. Trade-in or upgrade your vehicle if you prefer something newer or different.

Be proactive:

By planning ahead, you can transition smoothly into your next financial decision.

Want to explore your car finance options easily? Check Your Eligibility Today

Once you’ve secured car finance, your next priority is making sure payments are managed effectively. Keeping up with repayments not only helps you avoid stress, but it also protects your credit score and financial stability.

But life happens, and it’s easy to worry about meeting these monthly commitments. The good news is that with careful planning, managing car finance payments can be straightforward.

This guide provides six practical tips to help you stay on track, avoid missed payments, and enjoy financial peace of mind.

Set Up Automatic Payments

One of the easiest ways to avoid missing car finance payments is to set up an automatic payment (direct debit).

When you pay automatically each month, you don’t have to remember due dates. Payments are always on time, and you’ll gradually improve your credit score.

Here’s what you should do:

Automatic payments mean less stress and fewer chances of costly missed-payment fees.

Budget Clearly and Honestly

A clear, realistic budget is the foundation of successful financial management. Knowing exactly what you earn and spend each month makes managing car finance repayments much simpler.

Here’s how to budget effectively:

Once your budget is clear, you’ll quickly see how affordable your repayments really are. If they’re tight, it’s a sign to make spending adjustments elsewhere.

Build an Emergency Fund

Even the best plans sometimes go off track. Job losses, illness, or unexpected car repairs can create financial strain. Building a small emergency fund can help you manage unexpected costs without affecting your repayments.

Aim to save enough to cover at least 2–3 months of car finance payments. Even small regular contributions add up over time.

Simple steps to create an emergency fund:

An emergency fund reduces financial anxiety and provides a safety net, making your car finance repayments easier to manage.

Communicate with Your Lender if You’re Struggling

If your finances change suddenly and payments become difficult, don’t avoid your lender. Ignoring the problem could lead to late fees, default notices, or even repossession.

Lenders appreciate honesty. Most will offer practical help if you’re upfront about your situation. Solutions they might offer include:

Contact your lender as soon as you realise there’s a problem. Early communication makes finding solutions much simpler and reduces long-term financial consequences.

Regularly Review Your Expenses

Over time, it’s easy for unnecessary costs to creep into your budget. Subscription services you rarely use, higher-priced utility bills, or overspending on non-essentials can silently drain your finances.

Every few months, take a fresh look at your expenses:

Reducing even a few small costs can free up extra money each month, giving you more breathing room for your car finance repayments.

Make Extra Payments When Possible

If your finances improve, or you receive unexpected money, consider making extra payments toward your car finance loan. Even occasional extra payments can help significantly.

The benefits include:

Before making extra payments, confirm with your lender whether they charge early repayment fees. Many lenders allow extra payments without penalties.

Simple ways to pay extra:

Making extra payments reduces your debt faster and gives you peace of mind.

Managing your car finance repayments doesn’t have to feel overwhelming. Following these six tips will help you take control of your finances, keep your payments affordable, and build financial confidence:

  1. Set up automatic payments to avoid missed payments.
  2. Budget honestly and clearly—prioritising car repayments as essential.
  3. Build a small emergency fund to prepare for unexpected costs.
  4. Always communicate with your lender early if problems arise.
  5. Regularly review your expenses and reduce unnecessary spending.
  6. Make extra payments whenever possible to pay off your loan sooner.

Taking these proactive steps ensures your car finance stays manageable and helps build a strong credit profile.

Check your eligibility now to see specialist lenders who can help you – Check Now.

Car finance can be a great way to spread the cost of a vehicle, but high monthly payments can put a strain on your budget. Whether you’re applying for finance or already have a loan in place, there are ways to reduce your payments and make car ownership more affordable.

In this guide, we’ll explore five practical strategies to lower your car finance costs—helping you find a deal that works for your budget.

1. Choose a Longer Loan Term

One of the most effective ways to lower your monthly repayments is to spread the loan over a longer period. By increasing the repayment term, you reduce the amount due each month, making car finance more manageable.

However, there is a trade-off. The longer the loan term, the more interest you’ll pay overall.

Although the monthly payments are lower, you’ll pay more interest over time. If you choose this route, check whether your lender allows early repayments without penalties, so you have the option to pay off the loan sooner if your financial situation improves.

2. Improve Your Credit Score Before Applying

If you’re in the early stages of applying for car finance, improving your credit score could help secure a lower interest rate, which in turn reduces your monthly payments.

How to Improve Your Credit Score:

A better credit score gives you access to lower APR rates, meaning you borrow at a cheaper rate and pay less each month.

Further Reading: For more detailed advice, read our How to Improve Your Credit Score for Car Finance guide.

3. Make a Larger Deposit

A bigger deposit reduces the amount you need to borrow, which means lower monthly payments.

If you don’t have savings available, you may still be eligible for no-deposit car finance, but this often results in higher monthly payments.

4. Choose a More Affordable Car

The car you choose has a direct impact on your finance repayments. A lower-cost vehicle means a smaller loan, which naturally reduces your monthly payments.

How to Reduce Your Finance Costs:

5. Review Running Costs Before Committing

The cost of car finance isn’t just about the loan repayments – it’s also about how much the car costs to run each month.

Key Running Costs to Consider:

By choosing a car that is cheaper to insure, fuel, and maintain, you can make overall ownership more affordable – even if the finance deal itself stays the same.

Final Summary: 5 Ways to Reduce Car Finance Payments

If you’re looking for car finance that fits your budget, it’s important to compare your options.

Check your eligibility today and find the best finance deals available to you – Check Your Finance Options Now.

Navigating car finance can be challenging, especially if you’re currently in an Individual Voluntary Arrangement (IVA). Many people assume that being in an IVA automatically disqualifies them from obtaining car finance, but the reality is more nuanced. We’ll explore your rights regarding car finance during an IVA and offer practical advice to help increase your chances of approval.

What Is an IVA and How Does It Affect Your Finances?

An IVA, or Individual Voluntary Arrangement, is a legally binding agreement between you and your creditors to pay off your debts over a fixed period, typically five to six years. It’s a popular solution for those struggling with unmanageable debt, as it allows you to make affordable monthly payments based on your financial situation. However, being in an IVA does impact your credit score, making it harder to access credit, including car finance.

When you’re in an IVA, your finances are closely monitored by an insolvency practitioner (IP). This professional is responsible for managing your IVA, ensuring that you stick to the agreed payment plan, and that any new financial commitments are affordable. While an IVA does restrict your access to credit, it doesn’t completely close the door on obtaining car finance.

Can You Legally Apply for Car Finance During an IVA?

The short answer is yes, you can legally apply for car finance while in an IVA. However, there are conditions you must meet. The most crucial step is obtaining approval from your insolvency practitioner (IP) before you apply. Your IP needs to confirm that the new finance agreement is affordable and will not jeopardize your ability to make your IVA payments.

Legally, nothing prevents you from seeking car finance during an IVA, but it’s essential to proceed with caution. The new finance agreement must be sustainable within your current budget. If your IP approves and the lender is willing, you can proceed with your application.

Your Rights When Seeking Car Finance in an IVA

It’s important to understand that you have rights when applying for car finance during an IVA. Knowing these rights can empower you to make informed decisions and protect yourself from unfair practices.

  1. Right to Apply – You have the right to apply for car finance, provided you can afford the repayments and have obtained approval from your IP.
  2. Right to Transparent Terms –  Any lender you approach must provide clear and transparent terms. You should fully understand the interest rates, fees, and repayment schedule before signing any agreement.
  3. Right to Protection – As a consumer, you are protected from unfair or predatory lending practices. This means that lenders cannot take advantage of your financial situation by offering unfavourable or exploitative terms.
  4. Right to Informed Consent – You have the right to be fully informed about how taking out car finance might impact your IVA and overall financial health. Your IP should provide guidance on this.

How to Increase Your Chances of Approval

Getting car finance during an IVA can be challenging, but it’s not impossible. Here are some practical tips to help you increase your chances of approval.

 

How Motorly Can Help You Navigate IVA Car Finance

At Motorly, we understand the challenges of securing car finance during an IVA. That’s why we’ve partnered with a large panel of lenders who specialize in IVA car finance. Our team is experienced in finding finance solutions tailored to your needs, even if you’re currently in an IVA. We’ll guide you through the process, from obtaining the necessary approvals to finding the right car finance deal.

Getting car finance during an IVA may seem daunting, but with the right approach and understanding of your rights, it’s entirely possible. By working with specialized lenders and maintaining open communication with your insolvency practitioner, you can secure the car finance you need without jeopardizing your financial recovery. If you’re ready to explore your options, contact Motorly today. Our team is here to help you every step of the way.