How to own a car with no deposit, or if you have bad credit

Owning a new car is a huge milestone for anyone.

Offering the latest technology, a new car investment will guarantee you a better overall driving experience. However, the road to owning a new car isn't always straight forward. Deposits, down payments, credit history and APR rates can often make it challenging to buy a new car. This is how car subscription helps thousands of drivers.

We answered the most asked questions about getting a new car with car finance, leasing or a car subscription plan.

Can I buy a car with no credit check?

Yes, you can, but only if you pay for it outright. If you need car financing, you’ll need to go through a credit check.

How does car financing work?

Car finance is a loan to cover the cost of the car so that you can spread the cost over a few years. The car is yours to drive from day one, but insurance and maintenance is also your responsibility.

With car finance, you’ll be paying back the purchase price of the car plus interest over a set period – usually four years.

For your creditor to minimise their risk, they require a large down payment and conduct a credit check to ensure you can afford to pay for the car.

Can I lease a car with no credit check?

No. Any lease agreement requires a certain credit score. Therefore, a credit check procedure is necessary to qualify for a lease. However, certain providers might approve a lease even with a bad credit score.

How does car leasing work?

Similarly to car financing, leasing is also based on credit. The difference is that the car is not your property – you might be limited to driving up to a specific mileage and can’t modify it in any way. On the upside, you’ll likely benefit from the manufacturer warranty, road tax and breakdown cover included.

Instead of repaying the purchase value of your car, your payments cover its depreciation (plus interest). At the end of the lease term, in most cases, you return the car and walk away, or swap it in for a newer model and start the cycle over again. You can often opt to buy out the car, although it’s not a common practice to do so.

As with car finance, your lessor (a lease broker or the car dealership) has to make sure you can afford to pay your lease instalments, so they conduct a thorough background check. Most of the time, you need a good credit score and a down payment to qualify for a car lease.

You can qualify for a lease even with a bad credit score, but you’ll find yourself paying much more for the car lease than usual.

Can I subscribe to drive a car with no credit check and no deposit?

Yes, with Splend you can. You can think of Splend's Flexi Own plan, as a solution that sits at the crossroads of car finance and leasing, tailored for on-demand drivers who want to earn a flexible income.

How does Splend's Flexi own plan work?

Flexi own starts similarly to a lease deal, where you’re not the car owner, but you don’t have to worry about scheduled maintenance and keep its paperwork up to date.

After 3 to 5 years, depending on how much you drive and your contract term, you gain full ownership of the car.

Why does Splend's Flexi own plan work without a credit check?

Instead of paying back a loan, you pay in advance for the next week as if you were renting the car. You’re not borrowing money. Therefore, no credit is involved in the process. This allows you to apply even if you have a bad credit score.

Why does Splend's Flexi own plan work without a down payment?

Since you have a subscription agreement with Splend up until you’ve paid out the total car value, there’s no need for a down payment or a credit check. However, you’ll have to pay a setup fee to cover your car's admin work and the current and upcoming weekly fee.

What do I need to be eligible for a Flexi own car?

Whoever provides you with the subscription car still has to make sure you earn enough money to pay for it.

IMPORTANT: At Splend, we ask you to share your Uber earnings data from your Driver app – and that’s it.

Flexi own vs car finance vs leasing

To sum up, here’s what you need to know about Flexi own:

You own the car after 3-5 years of paying your weekly fee
You don’t have a down payment, but there is a setup fee
Bad credit isn't a deal breaker
A credit check is not necessary since you always pay in advance

Glossary

What is a credit history?

Your credit activity is logged whenever you apply for credit, whether a mortgage, a personal loan or something as simple as a credit card. Your credit history is a log of reports from your creditors that includes all these activities, including your repayments, defaults and court judgements.

What is a credit score?

Your credit score is a 3-digit number that shows how likely you are to be accepted for credit — the higher the score, the bigger the chances of being taken for a credit application. If you pay off your loans and make your payments on time, it increases your credit score. It goes both ways — late or incomplete repayments and defaults decrease it.

What is a credit check?

A credit check is a procedure when your lender or creditor verifies your credit history and your credit score to determine whether you qualify for a loan and evaluate their risk to determine what interest rate to offer.

What is a down payment?

The down payment is the large initial payment you make when you buy or lease a car, a percentage of the total purchase price.

About Splend

We enable people to make money by driving. Our vision is a future where every on-demand driver can be successful. We are car subscription specialists. Don’t take our word for it—drivers rate us excellent on Trustpilot. We can set you up with a brand-new or new-model car on our Flexi own plan, plus we provide the training and support you need to become an Uber driver that’s more profitable, safer, and fulfilled. Drop by our London Hub at 393 Edgware Road Cricklewood, London, email us, or say hello on 0333 016 4331