Deposit Size Impact Calculator
Find out how much difference your deposit makes to monthly payments and total interest. Enter the vehicle price, APR, and loan term to compare four deposit levels instantly.
Frequently asked questions
How much deposit should I put down on a car?
A deposit of 10-20% of the vehicle price is a good target in the UK. This reduces your monthly payments, lowers total interest, and helps avoid negative equity. Some lenders require a minimum deposit, while others offer zero-deposit deals at higher APRs.
Is a zero-deposit car deal a good idea?
Zero-deposit deals mean you finance the full vehicle price, resulting in higher monthly payments and more total interest. You are also more likely to be in negative equity in the early months. They can work if you need a car urgently and have no savings, but a deposit is always better financially.
Does a bigger deposit get me a lower APR?
A larger deposit reduces the lender's risk, which can help you qualify for a lower APR. It also means the lender has more confidence in your ability to manage finances. However, the relationship is not automatic — your credit score and income matter more.
Can I use a part-exchange as my deposit?
Yes. The value of your current car can serve as a deposit on a new finance agreement. If you owe more on your current car than it is worth (negative equity), the shortfall may be added to your new loan, which increases costs. Use our part-exchange calculator to check.
Should I deplete my savings for a bigger deposit?
No. Keep an emergency fund of at least 3 months' expenses. A larger deposit saves interest, but having no cash buffer is riskier than paying slightly more in finance costs. Only put down what you can comfortably afford after retaining your emergency fund.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.