How does zero deposit car finance work?

Sometimes paying a substantial amount upfront for your vehicle finance agreement simply isn’t possible - this is where zero deposit finance comes into its own. A no-deposit car finance deal works in the same way as one with an upfront fee, but the amount you pay back each month and the length of the contract will vary. 

Because of the risk involved for the lender, zero-deposit vehicle finance deals can have higher interest rates than traditional options. No deposit deals are also likely to cost you more per month than the likes of Personal Contract Purchase (PCP) because you are paying for the whole cost of the car during the agreed term, rather than part of the overall value of the vehicle.