A car loan without a deposit works pretty much like a personal loan, just secured against the vehicle. You borrow however much you need to buy the car outright, then if you default on your repayments, your lender has the right to repossess it to cover their losses.

If you’re eager to get hold of your new car right away, you might not want to wait until you’ve saved up enough for a deposit. Many lenders give out car loans without requiring any upfront payment, but there’s a few things you should know first.

Compare No Deposit Car Loans


VariableNew1 yearMore details
  • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Required: Good credit history, stable employment history. Aus citizenship or PR.

loans.com.au – New Car Loan - Home Owner Special

  • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
FixedNew99 yearsMore details
  • Lower Interest Rates
  • No Hidden Fees
  • A quick and easy, 100% online application. No printing. No paper. No fuss.

OurMoneyMarket – New Car Loan

  • Lower Interest Rates
  • No Hidden Fees
  • A quick and easy, 100% online application. No printing. No paper. No fuss.
FixedNew, Used5 yearsMore details

Community First Bank – Car Loan (Fixed)

    FixedNew, Used99 yearsMore details

    Harmoney – Low Rate Car Loan Excellent Credit (Amount > $5000)

      FixedNew4 yearsMore details

      IMB Bank – New Car Loan

        FixedNew, Used7 yearsMore details

        Great Southern Bank – Secured Car Loan Fixed

          FixedNew1 yearMore details

          Firstmac – New / Demo Car Loan (Fixed)

            FixedNew99 yearsMore details

            Money Place – New Car Loan (Excellent Credit)

              FixedNew, Used99 yearsMore details

              Pepper – Car Loan

                FixedNew1 yearMore details
                • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
                • Available for purchasing new and demo vehicles
                • $5,000 to $150,000 loan amount
                • Required: Good credit history, stable employment history. Aus citizenship or PR.

                loans.com.au – New Car Loan - Special (Fixed)

                • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
                • Available for purchasing new and demo vehicles
                • $5,000 to $150,000 loan amount
                • Required: Good credit history, stable employment history. Aus citizenship or PR.
                FixedNew99 yearsMore details

                Greater Bank – New Car Loan (NSW, ACT & QLD only)

                  FixedNew, Used99 yearsMore details

                  UniBank – 5 Year Fixed Rate Car Loan

                    Important Information and Comparison Rate Warning

                    All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

                    The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

                    Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes.

                    Rates correct as of June 23, 2024.View disclaimer

                    What’s the point of a deposit?

                    The bigger the amount you borrow, the larger your interest bill. The more you are able to put up in your deposit, the less you will need to borrow, so a hefty deposit is a great way to reduce the overall cost of your loan. Lenders are also more likely to approve car loans with a substantial deposit, because the Loan to Value Ratio (LVR) is reduced.

                    LVR measures the value of the loan relative to the asset used as collateral. If you have a home loan, you’re probably very familiar with how LVR can affect your borrowing capacity.

                    Less risk of negative equity

                    High LVR loans are riskier for a lender, because they run the risk of negative equity should the asset depreciate. Due to the amortisation schedule of loans, at the start you are paying off a higher proportion of interest than the principal - if you come into it with $10,000, you have more principal paid off and skin in the game.

                    Imagine you buy a car for $50,000, with a $2,500 deposit and $47,500 loan. Your LVR would be 95% (47500/50000*100). Now imagine that after six months, you have paid off $7,500 of the loan, but are now struggling with repayments.

                    At the same time, the used car market has shifted, and your car is now only worth $35,000. This means that if you default on your repayments to the point where the lender repossesses the car, they will make a loss, since reselling the car at auction will not be enough to recover the full outstanding amount.

                    Lenders might therefore be a bit more apprehensive about giving out car loans without a deposit, since this will nearly always mean an LVR of at least 100%. There is an insurance policy called ‘car gap insurance’ that covers you in the event of negative equity, but this is an additional cost.

                    Why wouldn’t I be able to get a no deposit loan?

                    No deposit car loans are common, but are riskier for lenders. There are several circumstances where a lender might require a deposit before they can give out a loan.

                    Maximum LVR requirements

                    Most lenders will have an LVR threshold that loans cannot exceed. If the loan amount is too much relative to the vehicle, your lender might require a deposit to reduce the loan amount, and bring down the LVR.

                    You have poor credit history

                    As with any loan, your lender will do due diligence on your background, particularly your credit history. High LVR loans mean defaulting can put lenders in a tough spot, so they are likely to be even more rigorous when assessing loans with no deposit. If you have a history of unpaid bills and late repayments on other debts, it might suggest to your lender that giving you a loan without a deposit would be an unacceptable risk.

                    You have no credit history

                    It would be nice if lenders gave the benefit of the doubt to borrowers who haven’t had the chance to demonstrate their trustworthiness. Unfortunately, that isn’t the world we live in, and if you have no way to show your lender that you can be relied upon to make all your repayments, they will probably ask for a deposit.

                    Young people, students and retirees who have minimal credit history and regular income who are in the market for a car might find it far easier to be approved for a car loan if they can build up a deposit first.

                    You’re already in negative equity on your current car

                    Negative equity basically means that you owe more on your car than it is worth. It isn’t a great spot for your lender, who is likely to make a loss should you default, but it’s not good news for you either. If you are in positive equity, you can sell your existing car, pay off the loan and use the remainder to go towards your new ride.

                    Negative equity positions mean that if you decide to sell your car, you won’t be able to pay off the loan entirely, and will be left with residual debt. When you’re in the market for a loan for your next car, lenders will also take note of your negative equity position. They might require a deposit to make up for this shortfall.

                    Will I need to pay anything else?

                    You might not need a deposit to get your loan, but there are still usually several fees that you’ll need to pay. Look out for the following, which may be charged as a one off payment or added to the outstanding amount you owe.

                    • Establishment fees that cover the administration costs of setting up your loan.

                    • Account keeping fees that could be an ongoing charge throughout the loan term.

                    • Exit fees that apply if you pay off your loan early, perhaps by selling the car.

                    • Late fees if you don’t manage to make your repayments on time.

                    What to look out for

                    If you’ve decided you don’t want to wait until you have a deposit saved, there are many lenders that give out low or no deposit car loans. You’ll still need to check the following though:

                    • Eligibility. Some lenders may require a deposit on certain types of vehicle, or those that exceed a certain price point.

                    • Loan insurance. Since no deposit loans are riskier for lenders, some may require you to pay an extra amount to cover loan insurance that protects them. This could be a substantial amount, so it’s worth checking to see if this will be the case with your preferred lender.

                    • Interest rates. Like with any loan, the interest rate will probably be the biggest cost consideration. Lenders might charge a higher rate for riskier loans with low or no deposit, so it’s worth using our comparison tables to try to find the lowest rates going. It might even be a good idea to get a couple of different quotes to compare.