Short answer: It's possible, but it's one of the harder combinations. With no deposit and poor credit, the lender carries all the risk, so it will look closely at your income, your recent conduct and the car. Some specialist lenders may consider it, usually at a higher rate and for a modest vehicle. A small deposit, even a few thousand dollars, can widen your options noticeably.
Why the combination is tricky
A deposit gives the lender a buffer: if the car has to be sold, there's less chance of a shortfall. Poor credit, meaning defaults, missed payments or a lot of recent enquiries, suggests a higher chance of that happening. Put the two together and many mainstream lenders will decline, while specialist and non-bank lenders may price for the extra risk.
What lenders look at instead
- Recent behaviour. The last 6–12 months of bank statements and repayment history often count for more than an old default.
- Income stability. Permanent employment and time in the job help a lot.
- What's still outstanding. Unpaid defaults and active arrears are much harder to get past than ones that are paid.
- The car. A newer, mainstream car with good resale value is easier to secure than an old or unusual one.
- Affordability. Repayments have to fit comfortably after rent, bills and other debts.
How a deposit changes the numbers
Example only, at 15% p.a. over 5 years with no fees included:
| Car price | Deposit | Amount borrowed | Approx. monthly repayment |
|---|---|---|---|
| $25,000 | $0 | $25,000 | $595 |
| $25,000 | $3,000 | $22,000 | $523 |
These aren't current rates. Your rate will depend on the lender and your circumstances.
Steps that may help
- Get your credit report from each credit reporting body and fix errors.
- Pay or arrange any unpaid defaults. A default stays for 5 years either way, but a paid one looks better.
- Clean up your statements. Avoid dishonours, gambling transactions and new short-term loans in the months before you apply.
- Consider a guarantor if a family member understands and accepts the risk of being liable for the loan.
- Pick a cheaper car. A smaller loan is easier to approve and easier to repay.
- Apply once, in the right place. Multiple applications add enquiries and can make things worse.
Watch out for
Be careful with offers that promise approval regardless of credit, rent-to-own or "no credit check" car deals, and very long terms with large balloons. Check the comparison rate, total amount payable and fees. Moneysmart has guidance on spotting a bad car loan deal.
No deposit and some credit issues? Tell us about your situation in about 60 seconds and a licensed broker will call you. No credit check to enquire.
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General information only. This isn't financial advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.
