
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
There’s one common question that many new car buyers have asked when searching for their next set of wheels: Can I get a car loan without a deposit?
The good news is that the answer to this question is a resounding yes – there are many lenders that offer no-deposit car loans to Australian car buyers. Here’s how to compare your loan options and find one that’s right for your needs.
A no-deposit car loan is a type of secured personal loan that provides the financing you need to buy a new or used car. However, unlike a home loan or many other types of car loans, this product does not require you to pay a deposit towards the purchase price of the car.
The availability of no-deposit car loans varies depending on a lender’s maximum loan-to-value ratio (LVR) – this is the maximum percentage of the car’s value that the lender is willing to let you borrow. Before agreeing to lend you money to buy a car, a lender will calculate the LVR figure for your desired loan amount by dividing the loan amount by the book value of the vehicle.
If this figure is within the lender’s LVR guidelines, you may be approved for financing. LVR guidelines differ from one lender to the next, with some offering flexible LVRs of up to 150% or even 180% of a car’s value.
No-deposit car loans aren’t available for all borrowers, as a lender will need to be sure that offering you no-deposit financing doesn’t come with an unacceptable level of risk attached. While requirements vary between lenders, you typically won’t be able to qualify for a no-deposit car loan if:
The costs and charges associated with a no-deposit car loan will vary depending on the lender you choose, so keep an eye out for the following fees when you apply:
You’ll need to consider the following features when comparing the strengths and weaknesses of no-deposit car loans:
There are a few key traps to avoid when borrowing through a no-deposit car loan:
If you’re searching for a no-deposit car loan, make sure you meet any loan criteria that apply. You will usually need:
During the application process you will need to provide:
Once you’ve compared a variety of loan options and decided on the right one for your needs, you can apply for financing and hopefully access the funds you need to get behind the wheel of your next vehicle.
Yes. Some lenders can offer car loans to borrowers who can’t provide the usual proof of income.
Yes. If you’ve saved a deposit, any loan you apply for will have a lower LVR and therefore be seen as lower risk by a lender. A deposit can also demonstrate your ability to put aside genuine savings and provide proof of your solid financial position.
Yes. Pre-approval is offered by many lenders.
Picture: Shutterstock
Find out about how to insure the luxury Mercedes-AMG G 63 4x4 SUV.
Learn more about the AAVE cryptocurrency in this beginner’s and buyer’s guide.
Both Square and PayPal are popular choices, but which payment processor is best for your business needs?
From costs and finance options to what materials you’ll need, learn about bathroom renovations in this comprehensive guide.
Funding Christmas festivities pushed Aussies $24.3 billion deeper into debt, according to Finder, Australia’s most visited comparison site.
Earnd is a pay on demand service that lets you access a portion of your paycheque before payday without paying any fees or interest.
Learn more about how PayActiv's Earned Wage Access service can help you access up to $500 of your paycheque for a $5 fee charged fortnightly (only if you access your wage before payday).
Gumtree reveals data that could help used and new car buyers save money
Optimistic home buying sentiment has reached a pre-pandemic high in Australia according to new research by Finder, Australia’s most visited comparison site.