TO DRIVE AWAY in a new car you usually need a minimum deposit of 10 per cent of the car’s value. That can mean a long time saving to get into a new car. And while there are plenty of trade-in and ‘scrappage’ offers available, these aren’t much help if you don’t have a car to trade in.
But fear not, there are some deals out there that require a deposit of less than 10 per cent. However, these deposit offers usually can’t be combined with low APR offers – so it is an essential to have a calculator at hand and work out which deal is really better for you.
Additionally, if you are looking for a zero-deposit PCP deal, just heed some advice – a 20 per cent deposit is generally recommended. It is the deposit ‘sweet spot’, as a 20 per cent deposit means that, when you come to the final payment, there should be equity left in the value of the car over and above the level of the balloon payment.
That way you can use the car to clear off the last payment, and still have value left in it that will act as your deposit for the next car. Less of a deposit at this end means less of a deposit for the next purchase.
All that said, if you are stuck for cash up front, these PCP and hire purchase offers may just help you out:
BMW – zero deposit
You can drive away a BMW with zero deposit if you finance through BMW on a hire purchase agreement. You can have a BMW 118i SE 3-door hatch for an OTRP of €30,166.27 with zero deposit for €944.61 a month for 35 months with 8.6 per cent APR. Your first monthly repayment will be €1,019.61.
However, the zero deposit option is not available with the lower APR rates or the deposit contribution offers.
Dacia – zero deposit
Dacia has a zero deposit finance offer across its range and as a result, you could drive away in a new Dacia Sandero in Alternative trim for just €45 per week. The Dacia Sandero Alternative costs €10,490 and with zero deposit and a hire purchase contract for a 36-month term you’ll pay €197 per month at a 4.9 per cent ARP with a final payment of €4,310.
Essentially, this deal allows you to drive away in a new Dacia without the need for a lump sum upfront and it gives you three years to save up the final €4,310 payment. However, this lump payment is optional so you can negotiate other deals.
MINI – zero deposit
If you finance a MINI through BMW on a hire purchase agreement you don’t need to fork out a deposit. This means you could drive away a MINI One three-door hatch for an OTRP of €21,459.63, zero deposit and 35 monthly repayments of €640.28 at 5.3 per cent APR with the first payment being €715.28.
However, the zero deposit option is not available with the lower APR rates or the deposit contribution offers.
Hyundai – 7 per cent deposit offer
To drive away most of the Hyundai range you need a minimum deposit of just 7 per cent – one of the lowest around. For example, if you are after an electric car, you can drive away the all-new Hyundai Ioniq for €595.03 per month if you take out a 36 month PCP finance agreement with a deposit of €2,500 and a 5.9 per cent APR.
(In fact the minimum deposit for the Ioniq is just €2,054.15 but then you are looking at higher monthly repayments.)
Toyota – 7 per cent deposit offer
To drive away most of the Toyota range you need a minimum deposit of just 7 per cent – again, one of the lowest around. For example, if you are after a hybrid you can have the Toyota Auris Hybrid in Aura trim for an OTRP of €25,000 with a 7 per cent deposit of €1,750.
You will then pay €422.08 for 36 months at 4.9 per cent APR on PCP contract and you have an optional final payment of €10,500.
Dealership offers
Many dealers will offer to pay your deposit for you – and these are actual deals coming from the dealership themselves and not the manufacturer. Keep an eye out for banners and sale events at your local dealer.
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