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

0 percent APR cars

What do carpet shops, sofa stores, and car makers have in common? That's right, they all love flouting 0% interest deals.

And now that dealerships are open again, car manufacturers are upping their offers - including 0% APR deals.

The latest trend from manufacturers is to offer 0% or no deposit deals (or sometimes both) in conjunction with a three-month payment holiday. This means there's nothing to pay for the first three-months. Other types of offer in vogue at the moment include getting the first three-months for free.

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.

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 every single month.

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 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 offering ten cars with 0% APR deals - more than any other manufacturer. Ford is also offering six-month car payment holidays for new customers during the Coronavirus (COVID-19) pandemic.

Ford Fiesta 0% APR deal

Ford Tourneo Courier 0% APR

Ford Tourneo Connect 0% APR deal

Ford EcoSport 0% APR deal

Ford Focus 0% APR deal

Ford Mondeo 0% APR deal

Ford S-Max 0% APR deal

Ford Galaxy 0% APR deal

Ford Tourneo Custom 0% APR deal

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Hyundai 0% APR car finance deals

2020 Hyundai Tucson

Hyundai is playing it differently to other car makers, only offering a 0% APR deal on one of its cars, the Tucson. Even more peculiarly, it's only available on N Line spec.

Alongside the 0% deal, Hyundai is allowing buyers to take advantage of a three-month payment holiday. However, a deposit is still needed.

Hyundai Tucson 0% APR deal

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Jeep 0% APR car finance deals

Jeep Wrangler off-road

(Stetson) hats off to Jeep. The American SUV maker is offering its entire lineup with 0% APR deals attached. Not much can beat the Jeep Wrangler offroad, while the 6.2-litre V8 found in the Jeep Grand Cherokee Trackhawk is a) the largest engine on this list, and b) beguilingly loud and fast.

Jeep Renegade 0% APR deal

Jeep Compass 0% APR deal

Jeep Wrangler 0% APR deal

Jeep Grand Cherokee 0% APR deal

Jeep Grand Cherokee Trackhawk 0% APR deal

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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. They're pretty tempting, 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

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Mazda 0% APR car finance deals

2019 Mazda 3 front

Mazda's entire range is now available with 0% APR, with nothing to pay for the first three months. Do remember, you still have to pay those three months. The money's just split between the rest of the contract.

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

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MG 0% APR car finance deals

MG ZS Rear

MG might have changed a bit since you last remember them. No longer a British sportscar maker, MG is now knocking out Chinese-built hatchbacks and SUVs with whopping seven-year warranties. The really rather good electric version of the ZS, called the ZS EV, is sadly not available with 0% APR.

MG 3 0% APR deal

MG ZS 0% APR deal

MG HS 0% APR deal

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Nissan 0% APR car finance deals

Nissan X-Trail 0% APR

Nissan is currently running a car payment holiday scheme as well as a hefty trade-in offer at the moment alongside its 0% APR deals. However, only three cars are available that let you skip interest payments. The X-Trail (above) will set you back just over £300 per month, the Qashqai (above) 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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Renault 0% APR car finance deals

Renault Clio front end

A hugely impressive showing here from Renault. All of its cars are available with a 0% APR deal of some kind - one of the many reasons it took home Parkers New-Car Finance of the Year award. The new Clio was good enough to win our Best First Car Award, and the Megane R.S is one of the best performance bargains of the year.

Renault Clio 0% APR deal

Renault Captur 0% APR deal

Renault Kadjar 0% APR deal

Renault Megane 0% APR deal

Renault Megane Sport Tourer 0% APR deal

Renault Megane RS 0% APR deal

Renault Grand Scenic 0% APR deal

Renault Koleos 0% APR deal

Renault Zoe 0% APR deal

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SEAT 0% APR car finance deals

Seat Tarraco front

SEAT is offering its largest SUV with 0% APR. The Tarraco is a seven-seat SUV that's handsome and as practical as you could possibly want.

SEAT Tarraco 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

Ssangyong Rexton 0% APR deal

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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 its entire range (well, except for the Jimny).

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

Suzuki Swift Sport 0% car finance

Suzuki Swift 0% car finance

Suzuki Ignis 0% car finance

Suzuki Vitara 0% car finance

Suzuki S-Cross 0% car finance

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Toyota 0% APR car finance deals

Black 2018 Toyota Corolla

Toyota practically invented the idea of reliable cars, and the cars 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 the Hilux pickup verges on indestructible. New to the offer is Toyota's super Supra sportscar.

Toyota Aygo 0% APR deal

Toyota 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 Hilux 0% APR deal

Toyota GR Supra 0% APR deal

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Vauxhall 0% APR car finance deals

2020 Vauxhall Corsa

Vauxhall is offering 0% APR and £0 deposit deals on four year PCP contracts with all of its news cars. Well, except for the electric Corsa-e.

The British car company is also offering a payment holiday, meaning customers won't have to pay anything for the first three months. While 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 Grand Sport 0% APR deal

Vauxhall Combo Life 0% APR deal

Vauxhall Vivaro Life 0% APR deal

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Volkswagen 0% APR car finance deals

Volkswagen Touareg front

Volkswagen is offering its smallest car, and its largest car, with zero interest fees. The Up is a class leader in the city car segment, while the massive Touareg houses kit found in much, much more expensive cars.

Volkswagen Up 0% APR deal

Volkswagen Tiguan 0% APR deal

Volkswagen Touareg 0% APR deal

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Volvo 0% APR car finance deals

Volvo S90 rear

Volvo is really on a roll at the moment, with well rounded, good looking, and of course, safe cars. Sales for its SUV range are good at the moment, which explains the lack of 0% APR deals. But those wanting a sleek saloon can have a S90 with no interest charges added.

Volvo S90 0% APR deal

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*These deals are indicative examples of some packages available as of 12 June 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