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

Unless you have enough money for a down payment and a good credit history to qualify for car finance or leasing, it’s difficult or impossible to buy a new car. At least it used to be before the concept of car subscription plans came along.

Wait! What? Does this mean you can subscribe to drive a car with no credit check and no deposit?

Well, let’s see what we’re up against.

Can I get a car with a bad credit history and no down payment?

Yes, you can. Splend's Flexi own plan was built to overcome these obstacles and help drivers get flexible long-term access to new-model cars. It’s not a revolutionary product – all it does is combine the benefits of car subscription, leasing, and car finance plans to offer another alternative, tailored to the needs of drivers for on-demand rideshare apps and delivery driver apps. A best-of-both-worlds solution, if you will. Let’s take a brief look at both options so it’s easier to understand the Flexi own plan.

1. Can I buy a car with no credit check?

Only if you pay for it outright – the entire sum in one payment. If you need car financing, you’ll need to undergo a credit check. You can also consider the benefits of a car subscription plan, compared to car finance.

How does car financing work?

In a nutshell, you borrow money from a bank or credit union to buy a car. The car is yours to drive from day one, but insuring and maintaining it is also your responsibility. With car finance, you’ll be paying back the purchase price of the car plus interest over a set period of time – usually four years. In order for your creditor to minimise their risk, they require a large down payment and conduct a credit check to make sure you can afford to pay for the car.

2. 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 in order 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, the car is not your property – you might be limited to drive up to a certain mileage, and can’t modify it in any way. On the upside, you’ll likely have a lot of the paperwork such as insurance covered as part of the deal. 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 all over again. In some cases, you can opt to buy out the car too, although it’s not a common practice. Same 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, and most of the time you need a good credit score and a down payment to qualify for a car lease.

Yes, with Splend you can. You can think of Splend's Flexi own, 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, or as guaranteed car finance — no credit check, no deposit.

How does Splend's Flexi own plan work?

Flexi own starts out similarly to a lease deal, where you’re not the owner of the car, but you don’t have to worry about scheduled maintenance and keeping its paperwork up to date either. After 3-5 years, depending on how much you drive and your contract length, you gain full ownership of the car.

Why does Flexi own work without a credit check?

Instead of paying back a loan, you pay in advance for the next week, just 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 Flexi own 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 do have to pay for all the admin work that makes this construction possible upfront, as well as the current and the upcoming week’s subscription.

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.

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 recap, here’s what you need to know about Flexi own in comparison with car leasing and car finance. Flexi own means:

You get to own the car, although not from day one
You don’t have a down payment, but there is an upfront cost to cover the services
You can apply even if you have bad credit, but you need to report part of your earnings
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 it’s a mortgage, a personal loan, or something as simple as a credit card. Your credit history is simply a log of reports from your creditors that includes all these activities, including your repayments, including defaults and court judgements.

What is a credit score?

Your credit score is a number between 0 and 1,000 or 1,200 that offers a quick overview of how creditworthy you are to a lender based on your credit history. The higher your credit score, the more creditors “trust” you, therefore the better your chances are to get approval and a favourable interest rate. 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/or 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 assess their risk to determine what interest rate to offer.

What is a down payment?

The down payment is the large initial payment that 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 for on-demand apps such as Uber. We’re more than a car subscription provider. In addition to new-model cars and all the essentials to start earning money with Uber as quickly as possible, our customers enjoy driver training and dedicated support, as well as customer benefits such as partner discounts and exclusive events. For more information about Splend, make an appointment and drop by to your local Splend Hub, email us, or say hello on 1800 775 363.