Look at the best new car deals and you’ll see that many of them share many of the same hallmarks, including 0% APR finance. These 0% car finance deals are a tempting proposition because, provided you can put down the deposit required, they provide an easy way to spread the cost of a new car.
Finance deals offering 0% APR are less common than those with interest, but there are still plenty of manufacturers out there with offers that allow you to spread the cost of a new car into manageable monthly payments in an interest-free fashion.
A lot of these deals can be looked at and purchased online but don’t forget that you don’t have to limit your interactions to the purely digital – you can, and should, still go and test any prospective purchase in person, just to make sure it’s right for you.
It’s also worth remembering that while 0% car finance deals are a savvy way to buy a car while paying no interest, this type of agreement does have its flaws. Large deposits are usually required, plus you need a good credit rating to be eligible.
What is 0% interest car finance?
A 0% APR car finance deal effectively allows you to spread the list price of the car over a series of monthly payments without incurring any extra charges.
In short, you take out a loan but don’t get charged any interest. Lots of different manufacturers offer interest-free credit options, as do some individual dealer groups.
Generally, it’s available on Personal Contract Purchase (PCP) deals and Hire Purchase (HP) deals.
0% car finance deals UK: the small print
Do the usual best practices when taking out any form of financial agreement. Check and double-check the length of the agreement, the mileage limits, how much it is per month, and how much the balloon payment (optional final payment) is if you choose a PCP deal.
An important reminder: you’ll need to pay those payments every month – so make sure you can afford to pay it each time.
Do also check to see if the 0% APR is fixed for the length of the agreement. Generally, with manufacturer-backed finance, it will be – but it’s worth researching.
Look at the T&Cs, too. See how much the charges are for going over the agreed mileage limit, what to do if you miss a payment, and what to do if you damage the car. This will help you avoid any surprises.
Car manufacturers must adhere to Financial Conduct Authority rules. This body regularly publishes reviews into the motor finance section, including interest-free cars, so you can check for additional information and insight.
0% APR car finance pros
- Not charged any extra for spreading the cost of a car over a set timeframe
- Big savings to be made. Typical car deals can add thousands of pounds in interest charges over the course of an agreement. With 0% APR you negate this
0% APR car finance cons
- A hefty deposit is usually needed to secure these deals
- Terms are generally shorter than traditional PCP or HP contracts. This means higher monthly payments, but you have the chance to own the car sooner, too
- You have to have a good-to-excellent credit score and a strong credit history to be applicable for 0% APR car finance
- Other discounts offered by dealers and car makers can rarely be used in conjunction with 0% APR car finance deals
Interest-free car finance alternatives
Leasing, otherwise known as Personal Contract Hire (PCH), is a form of long-term rental. There is no APR attached because you’re not borrowing any money – you’re just renting the car.
Leasing offers an elegant short-term solution to 0% APR car finance. It’s especially useful if you don’t want to own the car, don’t want to keep a car for a long time, or don’t have a strong enough credit score to be accepted for 0% APR finance.
You may also encounter 0% APR finance deals involving an Advance Payment Plan (APP). These offers, which aren’t common, typically require a 50% deposit and have no monthly payments.
These give you the choice of keeping the car at the end, if you pay the remaining value, or you can hand it back. However, they often aren’t great value for money.
Halal car finance technically offers interest free cars, but there are some caveats.
Can I get 0% finance on used cars?
All the offers in this article are for new cars. That’s because while 0% APR deals are available for used cars, they usually aren’t as good value as they may first appear.
When used cars come with no interest, it usually just means that the seller has taken the money they would have made from the APR and added it to the list price.
For example, a £10,000 used Nissan Qashqai on a Hire Purchase agreement with a 5% APR rate would see the total cost come to £10,500, assuming for ease that the contract is for 12 months. £10,000 for the car, £500 in interest.
A dealer offering no APR might just raise the price to £10,500.
0% PCP car car deals 2024: the full list
Alfa Romeo 0% finance deals
If you’re willing to put down a 35% deposit, you can get a Giulia, Stelvio or Tonale on 0% finance. The PCP scheme is a shorter 25-month affair, but that could be useful if you want to own the car as soon as possible.
Alfa Romeo Giulia 0% finance deal
Alfa Romeo Stelvio 0% finance deal
Alfa Romeo Tonale 0% finance deal
Citroen 0% finance deals
Three cars are on offer from Citroen with 0% finance: the e-C4, the e-C4 X, and the e-Berlingo M. The deposit values are low, too, which some might find useful.
Citroen e-C4 Electric 0% finance deal
Citroen e-C4 X Electric 0% finance deal
Citroen e-Berlingo 0% finance deal
Cupra 0% finance deals
There’s an array of 0% PCP finance offers available from Cupra, including deals for its Ateca, Formentor, Leon hatch and estate, and all-electric Born.
Cupra Formentor 0% finance deal
Cupra Leon Estate 0% finance deal
Fiat 0% finance deals
Just a solitary 0% APR finance deal on offer at Fiat, on its all-electric 500 model. It does include a deposit contribution, though, and you can get it on both 24kWh and 42kWh variants.
All-electric Fiat 500 0% finance deal
Ford 0% finance deals
There’s a couple of PCP finance deals from Ford with 0% APR. One’s for the Focus, the other the tremendously popular Puma.
Ineos 0% finance deals
Yes, you can get 0% APR finance on a new Ineos Greandier at participating retail partners. There is one catch, though: a minimum 50% deposit. Expect to put down north of £30,000, as a result.
Ineos Grenadier 0% finance deal
Jaguar 0% finance deals
There’s a solitary 0% APR deal on offer at Jaguar, on its all-electric I-Pace. It includes a useful £3,000 deposit contribution, too.
KGM 0% finance deals
The manufacturer formerly known as SsangYong is offering a ‘Pay now and half in 12 months’ 0% APR APP-based finance deal on its range.
Lexus 0% finance deals
You can get an RZ 450E Takumi or UX 300E from Lexus on a 0% APR finance deal, and both include £4,500 deposit contributions.
Mazda 0% finance deals
Mazda is offering its smallest SUV with no APR attached. The MX-30 is an electric car that majors on style with an interior full of interesting materials, such as cork. This deal also includes a free home charger.
Mercedes-Benz 0% finance deals
You can get the all-electric Mercedes-Benz EQE saloon on a 0% APR finance deal, along with a £4,000 discount, from Mercedes. It might not beat its rivals, but the offer might make you overlook that.
Mercedes-Benz EQE 0% finance deal
MG 0% finance deals
The MG4 is one of the most affordable EVs around, and it’s a superb choice to boot. There are 0% APR finance deals available on it now, as well as other cars in MG’s lineup.
Nissan 0% finance deals
You’ve a choice of Leafs available on a 0% APR finance deal from Nissan, along with a deposit contribution of £1250. It’s an older EV but, in high-spec Shiro trim, it’s still worth considering.
Peugeot 0% finance deals
There’s a 0% finance deal available on the van-based Peugeot e-Traveller MPV. Its range is limited but it’s comfortable and offers seating for eight and lots of interior space.
Peugeot e-Traveller 0% finance deal
Polestar 0% finance deals
If you want a classy and smartly finished premium EV, the Polestar 2’s worth a gander. It doesn’t ride particularly well, mind, but this 0% APR finance deal might help you overlook that.
Renault 0% finance deals
We’ve clocked a brace of deals on offer over at Renault. First up is a 0% finance deal across the Captur range, and there’s also 0% finance available on the Arkana E-Tech full hybrid.
Renault Arkana 0% finance deal
Renault Captur 0% finance deal
SEAT 0% finance deals
The Solutions 0% APR finance package offered by SEAT is available on entire range, including the Ibiza, Ateca, Tarraco, and Leon hatch and estate.
SEAT Leon Estate 0% finance deal
Skoda 0% finance deals
Head over to Skoda and you’ll find 0% finance deals available on its Kamiq, Scala, and Enyaq. There are some other benefits, including low-cost service plans or options such as free home chargers.
Smart 0% finance deals
The new #1 and #3 have revived Smart, but the current 0% APR finance deals only apply to the older EQ fortwo. There’s £1000 off, too.
Smart EQ fortwo 0% finance deal
Suzuki 0% finance deals
You can get a Suzuki S-Cross from £179 a month, on a 0% APR finance deal, from Suzuki. It’s not a great SUV, but it’s cheap and comes with lots of kit. Suzuki S-Cross 0% finance deal.
Suzuki S-Cross 0% finance deal
Toyota 0% finance deals
The all-electric Toyota bZ4X is on offer with 0% APR finance and a deposit contribution of £2000. It’s an impressive and high-quality electric SUV, but its range and efficiency aren’t great.
Volkswagen 0% finance deals
If you’re considering an ID.3, ID.4 or ID.5, Volkswagen’s got a finance offer for you: 0% APR and a deposit contribution of £1250.
Volkswagen ID.3 0% finance deal
Volkswagen ID.4 0% finance deal
Volkswagen ID.5 0% finance deal
Volvo 0% finance deals
Volvo is another brand offering APP finance deals with 0% APR. The Volvo Loan offer requires a 50% deposit minimum, variable terms, and – notably – the opportunity to combine it with a substantial deposit contribution. As a result, it could be a viable option for some.
Volvo XC40 Recharge 0% finance deal
Volvo C40 Recharge 0% finance deal
What are the best new car finance deals around?
We regularly round up the best new car finance and leasing deals, allowing you to quickly and easily find a great new car that suits your budget. Check out our top car finance deals picks here.
