0% car finance deals 2021 | Best interest free cars (0% APR)

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

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

New car sales took a massive hit in 2020 and 2021. So expect to find hundreds of 0% finance car deals out there aimed at enticing in new customers - whether that's into a physical showroom or online.

Skip to the full list of 0% car finance deals

Skip to the best 0% car finance deals

> Skip to 0% car finance for used cars

If you're buying online via a manufacturer, remember that you can still test drive it in person, too.

And 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 stellar credit rating. Oh and don't expect to find a huge variety of cars available with an interest free scheme.

What is 0% interest 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 rate.

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% financing on new cars is pretty standard across the industry.

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.

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. 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.

Car manufacturers have to adhere to Financial Conduct Authority rules. This body regularly publishes reviews into the motor finance section, including interest free cars.

Ford Puma 0 car finance 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
  • > 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 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 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.

Halal car finance technically offers interest free cars. But there are some pretty big caveats.

0% PCP car car deals 2021: full list

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

Ford 0% finance deals

0 car finance deals Ford

Ford is the company credited with bringing car finance to UK buyers, so it's only fitting that its finance deals are top notch.*

Ford Fiesta 0% APR deal

Ford Galaxy 0% APR deal

Ford Kuga 0% APR deal

Ford Puma 0% APR deal

Ford S-Max 0% APR deal

Ford Tourneo Custom 0% APR deal

Kia 0% finance deals

Kia 0 car finance deals

Kia is currently only offering one car on 0% APR. It's a pretty niche deal too. To get a Sportage interest free you'll need a minimum 20% deposit and the contract will have to be for 24 months.*

Kia Sportage 0% APR deal

Mazda 0% finance deals

Mazda 0 car finance deals

All of Mazda's range is available with 0% APR, including the new MX-30 electric car. Sensible deposits, too.*

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 6 Tourer 0% APR deal

Mazda MX-5 0% APR deal

Mazda MX-5 RF 0% APR deal

Mazda MX-30 RF 0% APR deal

MG 0% finance deals

MG 0 car finance deals

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 offering 0% APR deals on all of its cars, including the new MG 5 EV estate.*

Interested in an electric estate? Read our best electric estates article.

MG 3 0% APR deal

MG 5 EV 0% APR deal

MG ZS 0% APR deal

MG ZS EV 0% APR deal

MG HS 0% APR deal

Nissan 0% finance deals

Nissan 0 car finance deals

There are only three cars available that let you skip interest payments from Nissan. The Juke feels up-to-date but the other two are beginning to feel old.*

Nissan Juke 0% APR deal

Nissan Leaf 0% APR deal

Nissan Micra 0% APR deal

Renault 0% finance deals

Renault 0 car finance deals

Renault took home our New-Car Finance of the Year award, so it's only right the French firm has such a strong showing on our 0% APR list. You'll have to pick relatively short-term deals, though.*

Renault Arkana 0% APR deal

Renault Captur 0% APR deal

Renault Clio 0% APR deal

Renault Kadjar 0% APR deal

Renault Zoe 0% APR deal

SsangYong 0% finance deals

SsangYong 0 car finance deals

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

SsangYong Tivoli 0% APR deal

Subaru 0% finance deals

Subaru 0 car finance deals

Aimed at the comfortably-off country set that tends to buy Subarus, the company's '50/50' deal requires a 50% deposit.

Buyers then pay nothing for one or two years, before settling 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 Outback (new) 0% APR deal

Subaru BRZ 0% APR deal

Subaru Levorg 0% APR deal

Toyota 0% finance deals

Toyota 0 car finance deals

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 too, with the GR Supra sportscar on offer.*

Toyota Aygo 0% APR deal

Toyota Corolla 0% APR deal

Toyota Corolla Touring Sports 0% APR deal

Toyota C-HR 0% APR deal

Toyota GR Supra 0% APR deal

Toyota RAV4 0% APR deal

Toyota Yaris 0% APR deal

Volkswagen 0% finance deals

Volkswagen 0 car finance deals

Only one car being offered by VW. But at least the Touareg also comes with a whopping £5,250 deposit contribution.*

Volkswagen Touareg 0% APR deal

Volvo 0% finance deals

Volvo 0 car finance deals

Volvo is offering 0% APR deals across its range of cars - however, you'll need to cough up at least a 50% deposit.*

Volvo S60 0% APR deal

Volvo S90 0% APR deal

Volvo V60 0% APR deal

Volvo V90 0% APR deal

Volvo XC40 0% APR deal

Volvo XC60 0% APR deal

Volvo XC90 0% APR deal

*Manufacturer deals are subject to status and regulated by the Financial Conduct Authority.

Still looking for a new car? Read our roundup of the best new car deals

The best 0% finance car deals

Here are five of the most tempting interest free car finance deals available right now. 

Ford Fiesta

Ford Fiesta 0 car finance

The Fiesta really has become part of the UK's furniture - that's just how well it sells. Tonnes of spec and engine options, plus it's much more fun to drive than it needs to be. Good looking and dependable too.

Ford Fiesta Trend

Monthly cost: £180 (36 payments)
Deposit: £4,330 (including £250 deposit contribution)
Total amount payable by customer to buy car: £18,020
Cash price: £18,020
Mileage allowance: 9,000 miles per year
APR: 0%

Kia Sportage

Kia Sportage 0 car finance deals

A seven-year warranty, reliable engines, a spacious interior, and loads of equipment. It might look big, but it's easy to drive thanks to light steering and controls.

Kia Sportage GT-Line 1.6 S manual

Monthly cost: £309.57 (24 payments)
Deposit: £9,502
Total amount payable by customer to buy car: £31,510
Cash price: £31,510
Mileage allowance: 8,000 miles per year
APR: 0%

Mazda MX-5

Mazda MX-5 0 car finance

One of the sweetest handling cars at any price point whatsoever. The MX-5 has been in the UK since 1990, and the firm hasn't messed with the classic sports car formula. The rear-wheel drive, manual gearbox and naturally aspirated engine recipe keeps droves of buyers coming back for more.

Mazda MX-5 SE-L

Monthly cost: £409 (24 payments)
Deposit: £3,847
Total amount payable by customer to buy car: £25,165
Cash price: £25,165
Mileage allowance: 9,000 miles per year
APR: 0%

Renault Arkana

Renault Arkana 0 car finance deals

Renault's latest model provides PCP-ers with a handsome and in vogue body shape (SUV/coupe) with a cracking finance package to boot. However, most people might want to negotiate a higher mileage allowance.

Renault Arkana Iconic

Monthly cost: £229 (24 payments)
Deposit: £5,965
Total amount payable: £25,300
Cash price: £25,300
Mileage allowance: 6,000 miles per year
APR: 0%

Toyota GR Supra

Toyota GR Supra 0 car finance

Toyota's full-fat 3.0-litre Supra is available on 0% APR. 340hp for £349 per month, anyone?

Toyota GR Supra Pro 3.0

Monthly cost: £349 (23 payments)
Deposit: £13,008
Total amount payable by customer to buy car: £54,985
Cash price: £54,985
Mileage allowance: 8,000 miles per year
APR: 0%

0% finance used cars

A quick warning. All the offers in this article are for brand-new cars. 0% APR deals are available for used cars, but 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.

Further reading:

>> No deposit car finance offers
>> The best 2021 hybrid cars to lease
>> The best 2021 electric cars to lease