0% car finance: we explain it and list all 2020 deals

  • Lets buyers spread the outright cost of a car
  • Can help save thousands in interest payments
  • Full list of manufacturer-backed 0% APR deals

What do car manufacturers, white goods sellers, and carpet warehouses have in common? No you're way off - it's that they all love to show off their 0% interest deals.

As we all know, car sales plummeted during the lockdown. But now dealerships are open again, there are hundreds of offers out there aimed at enticing in new customers - whether that's into a physical showroom or online.

If you'd like to learn more about 0% APR car finance deals, keep reading.

>> Or, you can skip to the 0% car finance deals

What is 0% car finance?

A 0% APR car finance deal is pretty easy to get your head around. You spread the cash price of the car over a set of monthly payments, and you don't get charged any more money for doing so.

In short, you take out a loan but don't get charged any interest rates.

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. It's simple enough to understand. But it pays to read the small print.

>> The best new car deals

0% car finance: 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.

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 checking.

Look at the T&Cs. 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.

0% APR car deals

0% APR car finance pros

>> Not charged any extra for spreading the cost of a car over a set period of time

>> 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. Some deals offer a buy-now-pay-later option, where you essentially pay 50% up front and then nothing for a year or more

>> Terms are generally shorter than traditional PCP or HP contracts. This means higher monthly payments, but you own the car sooner too

>> You have to have a good credit score and a good 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

0% APR car finance alternatives: leasing

Leasing, otherwise known as Personal Contract Hire (PCH), is a form of long-term rental. There are no APR rates 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.

Search for leasing deals

0% APR car finance deals: Full list

Looking to buy a car with a 0% APR deal? These are the latest deals:*

Ford 0% APR car finance deals

Two Ford Fiestas facing one another

Ford is the company credited with bringing car finance to UK buyers, so it's only fitting that its finance deals are top notch. It's currently only offering seven cars with 0% APR - earlier on in 2020 the company offered 10 cars with no APR attached. Still, it's good to see high-end performance cars like the Ford Mustang make this list.

Ford Fiesta 0% APR deal

Ford Focus 0% APR deal

Ford Kuga 0% APR deal

Ford Mondeo 0% APR deal

Ford Mustang 0% APR deal

Ford Puma 0% APR deal

Ford Tourneo Custom 0% APR deal

Search for Ford leasing deals

Hyundai 0% APR car finance deals

Hyundai i30 N Fastback

Earlier in 2020 Hyundai only offered 0% on its Tucson, but now, there's far more metal on offer. The Ioniq is available in all of its forms, plus, the rapid i30N and i30N Fastback make a welcome appearance.

Hyundai i30 N Performance 0% APR deal

Hyundai i30 Fastback N Performance 0% APR deal

Hyundai Ioniq Hybrid 0% APR deal

Hyundai Ioniq Plug-in Hybrid 0% APR deal

Hyundai Ioniq Electric 0% APR deal

Hyundai Kona Electric 0% APR deal

Hyundai Santa Fe 0% APR deal

Search for Hyundai leasing deals

Kia 0% APR car finance deals

2019 Kia Xceed rear

Kia is currently running two different types of 0% APR deals. The first is called 'Zero In On Hybrid' and as you can expect, it's a 0% APR deal on its hybrid range. It's a pretty tempting deal, especially as it's a 24-month contract, with a seven-year warranty. Meaning you'll own the car after two-years and still have five-years worth of warranty left.

Other Kias are available with 0% APR, but they need a 20% minimum deposit.

Kia Picanto 0% APR

Kia XCeed 0% APR deal

Kia Ceed Sportswagon 0% APR deal

Kia Sportage 0% APR deal

Kia Niro 0% APR deal

Search for Kia leasing deals

Mazda 0% APR car finance deals

2019 Mazda 3 front

Mazda's entire range (well, except for its new MX-30) is now available with 0% APR, with either 36-month, 42-month, or 48-month long contracts depending on the car.

Mazda CX-30 0% APR deal

Mazda CX-5 0% APR deal

Mazda 2 0% APR deal

Mazda 3 0% APR deal

Mazda 6 0% APR deal

Mazda MX-5 0% APR deal

Mazda MX-5 RF 0% APR deal

Search for Mazda leasing deals

MG 0% APR car finance deals

2020 MG HS

No longer a British sportscar maker, MG is now knocking out Chinese-built hatchbacks and SUVs with whopping seven-year warranties. The company is currently only offering 0% APR deals on its electrified cars, including the new MG 5 EV - Britain's first electric estate car.

MG 5 EV 0% APR deal

MG ZS EV 0% APR deal

MG HS plug-in 0% APR deal

Search for MG leasing deals

Nissan 0% APR car finance deals

Nissan X-Trail 0% APR

Nissan is currently running finance schemes on all of its models, but there are only three cars available that let you skip interest payments. The X-Trail (above) will set you back just over £300 per month, the Qashqai is a bit cheaper, while the Micra is more like £200.

Nissan Micra 0% APR deal

Nissan Qashqai 0% APR deal

Nissan X-Trail 0% APR deal

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Ssangyong 0% APR car finance deals

2019 Ssangyong Korando front

Ssangyong has come a long way from its agricultural past. Just look at the latest Korando, above. 0% APR deals work out well if you're looking at keeping a car for a long time - which really falls into Ssangyong's wheelhouse - because all new Ssangyongs come with a whopping seven-year warranty.

Ssangyong Korando 0% APR deal

Search for Ssangyong leasing deals

Subaru 0% APR car finance deals

2019 Subaru XV

Subaru's known for doing things slightly differently, and its 0% APR deals are no different. Aimed at the comfortably-off country set that tends to buy Subarus, the company's '50/50' deal requires a 50% deposit.

Then buyers can pay nothing for one or two years, then pay the final 50% balance. Helpfully, Subaru offers this deal on its entire range.

Subaru XV 0% APR deal

Subaru Forester 0% APR deal

Subaru Outback 0% APR deal

Subaru Impreza 0% APR deal

Subaru BRZ 0% APR deal

Subaru Levorg 0% APR deal

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Suzuki 0% APR car finance deals

2019 Suzuki Swift

Suzuki's recently added a mild hybrid system to its entire range (well, except for the Jimny) and in order to celebrate, is offering a combined no deposit 0% APR deal on every mild hybrid it sells.

The deals are available on 25, 37, and 49-month long contracts.

Suzuki Swift Sport 0% APR deal

Suzuki Swift 0% APR deal

Suzuki Ignis 0% APR deal

Suzuki Vitara 0% APR deal

Suzuki S-Cross 0% APR deal

Search for Suzuki leasing deals

Toyota 0% APR car finance deals

Black 2018 Toyota Corolla

Toyota practically invented the idea of reliable cars, and the motors on this list will make practical and hugely reliable modes of transport for years to come.

The Corolla (pictured) makes an interesting proposition if you want to dip your toe into the pool of hybrid ownership, while fast car lovers are well catered for here, with the GR Yaris hot-hatch and Supra sportscar both on offer.

Toyota Aygo 0% APR deal

Toyota Yaris 0% APR deal

Toyota GR Yaris 0% APR deal

Toyota Corolla 0% APR deal

Toyota Corolla Touring Sports 0% APR deal

Toyota C-HR 0% APR deal

Toyota RAV4 0% APR deal

Toyota GR Supra 0% APR deal

Search for Toyota leasing deals

Vauxhall 0% APR car finance deals

2020 Vauxhall Corsa

Vauxhall is offering 0% APR and £0 deposit deals on four year PCP contracts with nearly all of its news cars.

The British car company is also offering a payment holiday, meaning customers won't have to pay anything for the first three months. Plus, there's also a job loss payment waiver, allowing customers to waive up to six monthly instalments in the event of involuntary redundancy.

Vauxhall Astra 0% APR deal

Vauxhall Corsa 0% APR deal

Vauxhall Crossland X 0% APR deal

Vauxhall Grandland X 0% APR deal

Vauxhall Insignia 0% APR deal

Vauxhall Combo Life 0% APR deal

Vauxhall Vivaro Life 0% APR deal

Search for Vauxhall leasing deals

Volvo 0% APR car finance deals

Volvo XC90 front

Volvo is really on a roll at the moment, with well rounded, good looking, and of course, safe cars. Its finance deals are top notch too - with 0% APR being offered on all its models bar the XC40 and S90.

Volvo V60 0% APR deal

Volvo V90 0% APR deal

Volvo S60 0% APR deal

Volvo XC60 0% APR deal

Volvo XC90 0% APR deal

Search for Volvo leasing deals

*These deals are indicative examples of some packages available as of 20 October 2020, but are subject to change without prior notice. Everyone's financial circumstances are different and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically.

Further reading:

>> No deposit car finance offers
>> The best 2020 hybrid cars to lease
>> The best 2020 electric cars to lease
>> The best new car deals