Is Zero Deposit Commercial Vehicle Finance Real?
Yes, but it is not available to everyone. Lenders offering 100% (no deposit) commercial vehicle finance are taking on more risk, so they require compensating factors: strong credit history, 3+ years trading, profitable accounts, and typically a new or nearly-new vehicle from an authorised dealer. The rate on a zero deposit deal is also higher than on a 10% deposit transaction.
Who Qualifies for Zero Deposit?
Prime applicants with established businesses, clean credit across both the company and its directors, strong audited accounts and a new vehicle from a franchised dealer are most likely to secure 100% finance. Some manufacturer finance schemes offered through dealer networks also provide zero-deposit offers as promotional tools - these can be very competitive but are usually time-limited and model-specific.
The Cost of No Deposit
Zero deposit finance always costs more than a deposit-bearing deal. You are financing 100% of the vehicle's value rather than 90%, so the loan is larger. The rate is also typically higher because the lender's loan-to-value ratio is at maximum exposure. On a £50,000 van over 60 months, moving from 10% to 0% deposit might add £80–£120 to your monthly payment and £2,000–£4,000 to the total cost of credit.
Alternatives to Zero Deposit
If you cannot raise a cash deposit, consider: a sale-and-leaseback of an existing owned vehicle to release equity; an unsecured business loan used as a deposit; or negotiating with the dealer to include accessories or service contracts in the finance value rather than paying for them separately.
Used Vehicles and Zero Deposit
Zero deposit finance on used commercial vehicles is significantly harder to arrange. Lenders are more cautious about residual values on older stock and typically require at least 10% on used vehicles. A few specialist lenders will consider 90% LTV on used CVs for very strong applicants.