Should you part-exchange or go with no deposit?

When it comes to getting a car, there are a few variables to consider. The financial variables are the ones that most affect our decision to acquire a car or not. Two of the main choices is whether to part-exchange your current car as a form of deposit or to go for a no deposit car leasing option.

Either one is a valid choice and depends on your needs and circumstances. There are benefits and downfalls for both options. Whichever option you would choose, car leasing is the more affordable option to choose when compared with a car finance agreement.  

The benefits of part-exchanging

If you own a car and are looking to get a new car, you can part-exchange your car in to act as a deposit on your new vehicle. This can be a great advantage because one of the factors that decides how much you will pay monthly throughout a leasing agreement, is how much of a deposit you place down at the start.

The higher the value of the car, the larger the deposit and therefore the lower your monthly payments will be in the long run. If the value of your car is low because of how much mileage is on it or how old it is, it can still make up the base of a deposit that you choose to then supplement.

There is a downside to part-exchanging your car with a dealership or lender and that is you will likely get less value for the car than you would if you sold it privately. It would be an option to sell the car privately and use that money as a deposit rather than part-exchanging your car.

What about no-deposit car leasing?

If you are interested in car leasing but don’t have an initial deposit, there is a great solution. For a lot of people having the spare cash or a car with enough value for a deposit is difficult. In the past that would bar them from ever being able to get a car. That seemed unfair so no deposit car leasing agreements appeared.

No deposit car leasing makes it easy for those of you who don’t want to pay a deposit to get a car. In the same that placing a deposit lowers those monthly payments, no placing a deposit means you will pay higher monthly payments that you might otherwise have done. That may seem like a steep price, however, with car leasing your monthly payments will usually be lower than they would be under the same circumstances on a car finance agreement.

Whilst you may not be able to afford to pay an initial deposit, as long as you can pay the monthly amounts, a no deposit car leasing agreement will be worth it.


It all comes down to affordability. If you have a car worth part-exchanging and you want cheaper monthly payments, then part-exchanging is the best option for you. Remember the higher the value, the larger the deposit and lower the monthly payments.

However, if you can’t afford an initial deposit but can afford the monthly payments, then a no deposit car leasing agreement would be a batter choice for you. No longer do you have to be held back by not having the money available for a deposit. You can easily get a car now.

Zero Deposit Car Leasing has a variety of great deals on a huge selection of cars available for consideration now.