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No down payment car finance means asking a finance company to finance the full price of the car instead of paying part of it upfront, so the whole amount is spread over monthly instalments. This option eases the burden of a large sum at purchase, but it raises the amount financed, so the monthly instalment is usually higher and the total you pay by the end of the contract is often greater. It is not necessarily available to every applicant, because approval and its details are subject to the finance company’s terms and credit approval. In this guide we explain how this option works, what finance companies look at, the documents and costs that still apply, and the questions to ask before signing.
In standard instalment buying you pay part of the car’s price at purchase, known as the down payment or deposit, and the finance company finances the rest in instalments. With no down payment, which many people search for as instalments without a deposit, you ask for the full price to be financed, and your instalment commitment starts according to the contract schedule.
The financing here is provided by the finance company, not the car showroom, so it decides on approval, the term and the instalment according to its terms. The option may also come in different forms: some contracts require no down payment but include a final payment at the end of the term, and some ask for fees or amounts at signing even without a down payment. So ask for the offer details in writing, and do not rely on the advertising headline alone.
The general rule is simple: whatever you do not pay upfront goes into the amount financed. The larger the amount financed, the higher the monthly instalment usually is if the term stays the same, and the total financing cost is often greater because it is calculated on a larger amount. If the term is extended to lower the instalment, the total you pay may rise even further.
| Item | No down payment | With a down payment |
| Amount you pay at purchase | Lower, though fees or insurance may still apply depending on the offer | Higher because it includes the deposit |
| Amount financed | The full price of the car | The price minus the deposit |
| Monthly instalment for the same term | Usually higher | Usually lower |
| Total paid by the end of the contract | Often higher | Often lower |
| Impact of any change in your income | Heavier because the monthly commitment is larger | Relatively lighter |
| Your emergency savings | Stay with you | Shrink by the amount of the deposit |
To try out the effect of the down payment and the term on the instalment before requesting a formal offer, use the car instalments and finance calculator page, and treat the result as an estimate, because the actual instalment is set by the finance company in its written offer.
Criteria differ from one company to another, but finance companies generally look at your ability to repay, and the conditions for an application without a down payment may differ from those with one, depending on each company’s policy. The main points usually reviewed include:
There is no single rule that guarantees approval, and the final decision rests with the finance company after reviewing the application. Ask it directly about its criteria before applying, and if you want to know where you stand in advance, check your credit record through the official approved channels.
The list varies by finance company and customer type, and the documents commonly requested include:
Ask the finance company for its up-to-date list before applying, and make sure your details match across all documents, because a different name or employer from one paper to another may delay the review of your application.
Not paying a deposit does not mean the car will cost you nothing beyond the instalment. Review these items with the finance company:
Ask for all these items to be stated in the written offer, and add them to the instalments to know the real total cost before you decide.
Compare the answers from more than one company for the same car and the same term, and check the contract and the finance company’s official disclosures before signing. For calculating the total cost, reading the contract terms and comparing offers in detail, see our comparison of buying a car with financing or cash.
Instalments with no down payment may suit you in the following cases:
A down payment may be better if you have money beyond your emergency reserve, because it usually lowers the amount financed, the instalment and the financing cost. And if you have part of the price but not enough to pay it in full, the two-payment option may be worth asking about, including its details and conditions, before turning to financing.
Start by choosing a car that fits your budget from the list of new cars on offer, then request a finance offer for that specific car, because the instalment changes with the car and its trim. Saleh Cars Group offers buyers whose money does not cover the full price the two-payment option or financing of the rest through approved finance companies, and you can ask its team about this through the contact and branches page.
This is possible with some finance companies and in some offers, but it is subject to the finance company’s terms and credit approval, and it is not necessarily available to every applicant. Ask the finance company whether it is available in your case.
Usually yes for the same term, because the amount financed is larger. The instalment may look similar if the term is longer or there is a final payment, so compare the total amount, not the instalment alone.
Residents can buy with financing, but whether the no down payment option is available and its conditions, such as the employer and residency validity, are set by the finance company; ask it about its requirements for residents.
Finance companies usually require the car to be insured for the whole contract, and the contract sets its type and who bears its cost, so read this clause carefully and ask about it before signing.
Not necessarily; there may be administrative fees, insurance costs or other amounts depending on the finance company’s terms, so ask for a written list of everything payable before delivery.
Instalments with no down payment let you get the car without a large sum at the start, but they mean a larger amount financed, a usually higher instalment and an often higher total. Prepare your documents, know what the finance company looks at, add insurance, fees and any final payment to the instalments, and do not sign before you have written answers. If you have money beyond your emergency reserve, compare this option with a down payment or the two-payment option.