Even with a no deposit loan, you can choose between HP, PCP or a personal loan.
A personal loan will not usually require a deposit. Once you’ve been accepted for the loan and are happy with the monthly payments, you can pay the seller for the car. At this stage, the car is yours to do with as you wish.
For more options, a PCP car finance deal could be the way to go. You will agree to a fixed monthly amount, paid until the end of the loan agreement. At this stage you have the option to buy the car with a balloon payment, trade it in for a newer one or simply give the car back.
PCP does however come with mileage restrictions so even though the monthly payments are typically lower, it is not the correct option for everyone.
If owning the car outright is the goal, then an HP loan may be the option for you. This type of agreement will typically come with higher monthly payments but at the end of the agreed term you will own the car following completion of the ‘Option to Purchase’ fee. The option to purchase fee is typically ONLY £10.