Buying a car but no deposit? You’re not alone. Many borrowers seek car financing without upfront cash. While lenders typically prefer a deposit to reduce risk, it’s still possible to secure a car loan with no deposit—if you plan smartly. Here’s how.
1. Understand What “No Deposit” Means
A zero-deposit loan means you don’t pay upfront and borrow the full car price plus fees. Lenders take on more risk, so expect slightly higher interest rates or stricter approval terms.
2. Explore Lenders That Offer No Deposit Loans
Some lenders, including finance brokers like SB Finance, offer no-deposit car loans. They structure financing based on:
- Vehicle type: Used vs. new cars
- Loan term: 36–84 months
- Interest model: Fixed or variable rates
👉 Check out SB Finance’s guide on How to Get a Car Loan in Australia for detailed lender comparisons and additional car-loan tips.
3. Boost Your Application with Strong Credit & Stable Income
To offset the lack of deposit, a lender will want:
- Stable income: Employment >6 months, payslips, bank records
- Clean credit score: Avoid defaults and manage existing loans
- Low debt-to-income ratio: Show you can responsibly service the loan
4. Choose the Right Loan Product
Not all car loans work for zero-deposit deals. Consider:
- Dealer vs. broker: Brokers like SB Finance may find better terms
- New vs. used: New cars may get better rates
- Loan-to-value (LVR): Lenders set caps—understand limits
5. Understand Fees & Repayments
Zero-deposit loans often include:
- Higher interest rates
- Additional loan establishment fees
- Potential gap insurance on new cars
Plan your budget, factor in monthly payments, and check you meet repayment obligations.
6. Consider Secured vs. Unsecured Loans
Choose:
- Secured loans: Lower rates because the car is collateral
- Unsecured loans: Riskier and costlier for lenders—few allow zero deposit
Most no-deposit car loans will be secured.
7. Compare Offers & Lock In the Best Deal
Use rate comparison tools and get quotes from:
- SB Finance brokers
- Bank branches and credit unions
- Dealer financing
Compare rates, fees, term lengths, and repayment flexibility.
8. Prepare & Submit Your Application
Compile:
- Photo ID and proof of address
- Payslips or bank statements
- Proof of employment
- Vehicle info (if chosen)
Submit via SB Finance or lender portals—they’ll assess and provide pre-approval if eligible.
9. Finalise Your Loan & Take Delivery
Once approved:
- Review the contract: term, rate, disclaimers
- Sign papers and finance the car
- Take delivery and set up repayment
Avoid default to prevent repossession or credit damage.
Conclusion: No Deposit, No Problem
Getting a car loan without a deposit is entirely possible in Australia—if you prepare smartly. Start by understanding what lenders need, improving your credit profile, and comparing loan options through trusted brokers like SB Finance.
While you might face slightly higher interest or stricter checks, a no-deposit loan can be the perfect solution when managed responsibly. With the right partner and the right plan, your new car might be closer than you think.
🔗 Ready to explore your options? Visit the SB Finance Resource Centre to learn more and get expert guidance today.
