SUVs have become increasingly popular among car buyers, and for good reason. They offer a perfect blend of spaciousness, style and functionality. However, potential buyers are under the impression that getting an SUV loan requires a significant deposit or down payment. This is not always the case.
While some lenders may require a deposit, there are also options available for those who want to finance an SUV without a deposit or zero money down.
In this blog, we will explore the options available to buyers looking for a No Deposit SUV Loan.
Yes, It is possible for people to get finance for an SUV without a deposit, but it depends on the lender and your credit history. Some lenders on the Motorly panel may require a down payment, while others may not. However, don’t forget that putting down a deposit may help you qualify for finance or get a better interest rate.
So, if you are keen to put zero down on your SUV purchase, it’s likely your monthly payments will be higher.
Ultimately, the terms and conditions of the loan, such as the interest rate and monthly payments, will depend on the lender and the borrower’s creditworthiness. It’s always recommended to shop around, compare loan offers from different lenders and check the terms and conditions before making a decision.
A question we get a lot from potential buyers is whether they can take out a car loan without a credit check.
All lenders on our panel will want to conduct a full credit check (also known as a hard credit check) before completing your car finance application. However, during the initial phase of your application, they’ll only do a soft credit check.
A soft credit check is a type of inquiry into your credit history that does not affect your credit score. This is the type of credit check that is performed when you first apply with Motorly. Soft credit checks are used by lenders to get a general idea of your credit history and to pre-qualify you for a car loan. They typically only show basic information such as your credit score and payment history. It leaves no permanent mark on your credit file.
A hard credit check is a more thorough inquiry into your credit history that can have an impact on your credit score. Hard credit checks are performed when you have been pre-qualified and have decided to move forward with your car finance application. Hard credit checks will show more detailed information such as recent credit inquiries and account details.
If you are looking for zero down on your SUV Car Loan now, it’s important to know the effects of doing so.
As you know, a deposit is not always required when taking out car finance. However, if a deposit is not made, you may be required to pay a higher interest rate on the loan, as the lender may see you as a higher-risk borrower.
By putting a deposit down, it shows the lender that you are invested in the loan and the purchase. This can increase the chances of the loan being approved and the interest rate being lower.
Additionally, without a deposit, the overall loan amount would be higher. As the lender is financing the full amount of the vehicle, your monthly payments will be higher.
Also, the loan may require a longer period to be paid off. This will result in more interest paid over the life of the loan.
Ready to apply? Check out the Motorly 0 Down SUV Loans page today!
How to prepare for a car loan and improve the chances of getting your new car
Looking to buy a new car? If you are considering a car loan to finance your new car you may be unsure of what you can do before you apply to improve your chances of getting accepted.
Here are our top tips to help you get the car loan you need to finance your next vehicle.
Although No Deposit options are available, the bigger deposit you have the less you’ll have to borrow.
By having a bigger deposit you make by able to decrease the size of the car loans needed to finance your vehicle. It could reduce the monthly payments, or you could borrow the money over a shorter loan term.
By borrowing less, you will also increase the chance of you getting approved. This is because the more you borrow, the higher the perceived risk you are to the lender.
When applying for a car loan, it’s worth knowing exactly what your credit score is. Your credit score is taken into account when taking out car finance. Therefore it’s vital to know where you stand with yours. That way, you will be able to make an informed decision on what to do next.
Once you know what your credit score is you can take steps to improve
If your credit score is lower than you hoped it would be don’t panic! The good news is once you know what your credit score is you can take steps to improve it. A few small changes to your credit profile can have a dramatic on your score, and in turn, your chances of getting approved for a car loan.
Steps you can take to enhance your credit score include:
Once you have a better understanding of your finances you can start to focus on the type of car you would like.
It’s a good idea to create a list of features that you require and ideally put them in rank order. That way, you’ll have a better idea of which features you won’t compromise on and those you may do.
Make sure to also think about what your needs will be in a few yours. For example, if you are thinking of starting a family a two-seater sporty convertible may be fun now but impractical in the future.
If you are still unsure exactly what car you want don’t worry. Our Sales Managers can help you with your car search.
If you have an old car to sell or part-exchange it can help get your finance approved. The value of the old car can be used as a deposit in the new car loan deal and reduce your borrowing amount. Using an online valuation service should give you a good idea of how much your old car is worth.
Don’t forget an online valuation is only a rough guide and the amount you get could be different due to many factors – including the condition of the vehicle.
Deciding on a suitable budget for your car purchase is an important step in your car-buying journey. Knowing how much you can afford to pay without overstretching yourself will ensure you don’t start looking at cars you can’t afford.
It’s worth remembering that car ownership costs aren’t just the cost of the vehicle itself. You also need to factor in the annual MOT, tax, fuel and maintenance.
Apply for a Car Loan today
Ready to take the next step? Apply today for Car Finance and see how much you can borrow.