As you are thinking about your next car purchase, no doubt you will be weighing up all of your options when it comes to financing the vehicle. But you should also be on the look-out for any finance plans that do not require a deposit payment, and there are several reasons why this would be a more beneficial option for you.
To start with, there is the obvious upside: if you do not have to pay a deposit, then that automatically reduces the pressure of making a purchase. Of course, you will still be required to make monthly payments, but knowing that they will be your only costs will allow you to put it aside in the form of a fixed amount. If a deposit was also needed, then you would have to put aside additional money to begin with, and depending on how large that deposit figure is, this could potentially impact the feasibility of a purchase.
Next up, it is a sign of good will from the dealership. There are plenty of showrooms which will suggest that they have all sorts of cars available, but with a deposit payment required, and potentially a very high one. A deposit payment runs the risk of bringing the overall cost of a car purchase to beyond its actual value, and there will unfortunately be some unscrupulous dealers out there that will take advantage of this. With the worry of the deposit removed, you will be able to identify whether the totalled monthly payments truly represent a car’s value, ensuring that you won’t be ripped off.
Last of all, the lack of a deposit allows you to enter into an agreement more quickly. There is a pretty good chance that, based on your financial and career circumstances, you can justify a purchase which involves £150-£200 a month leaving your bank for your car. But if there is a deposit required, you’ll have to stump up a figure in the mid-to-late three figures, or even four figures, as soon as possible, which could greatly delay a purchase. Without that deposit hanging over you, it is far more likely and realistic for you to sign on the dotted line, and to be taking your new car for a spin in next to no time!