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0% car finance deals 2024 + Best interest-free cars (0% APR)

  • Our guide to all the 0% APR new car finance deals available
  • A rundown of the advantages and savings of 0% APR car finance
  • All the manufacturer-backed 0% finance deals in the UK in 2024

Written by Ryan Gilmore Updated: 25 October 2024

Check out the best new car deals, and you’ll notice that many of them share similar hallmarks, such as 0% APR finance offers. These deals are a tempting proposition because, provided you can put down the deposit required, they offer 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, to make sure it’s right for you.

It’s also worth noting that 0% car finance deals are a savvy way to buy a car without paying 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

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.

Giulia 0% finance deal

Stelvio 0% finance deal

Tonale 0% finance deal
Citroen offers four cars with 0% finance: the e-C4, the e-C4 X, the e-Berlingo M and the e-SpaceTourer. The deposit values are low, too, which some might find useful.

e-C4 Electric 0% finance deal

e-C4 X Electric 0% finance deal

e-Berlingo 0% finance deal

e-SpaceTourer 0% finance deal
There’s an array of 0% PCP finance offers available from Cupra, but all are for different varients of the all-electric Born. Best of all, Curpa is running a three-month return option to tempt anyone who's unsure about embracing electrification.

Born V1 0% finance deal

Born V2 0% finance deal

Born VZ 0% finance deal
Honda’s second attempt at an EV, the e:Ny1, is the brand’s sole 0% APR offering. It's not the best EV on sale, but a handsome £3500 deposit contribution sweetens the deal.

e:Ny1 0% finance deal
You'll find several PCP finance deals from Hyundai with 0% APR. This includes deals for the IONIQ 5 Premium Electric, IONIQ 6 Premium, and Kona Electric Advance. The deposit values are reasonably low, sitting at £5,000 or less. The Tuscon is also available at 0% APR in petrol, hybrid, and plug-in hybrid form, albeit with a more expensive deposit.

IONIQ 5 Advance Electric 0% finance deal

IONIQ 6 Premium 0% finance deal

Kona Electric Advance 0% finance deal

Tuscon Advance 0% finance deal

Tuscon Hybrid Advance 0% finance deal

Tuscon Plug-in Hybrid Advance 0% finance deal
Yes, you can get 0% APR finance on a new Ineos Grenadier 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
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.

Jaguar I-Pace 0% finance deal
The manufacturer formerly known as SsangYong is offering 0% APR on the Tivoli. The minimum deposit of 40% may be jarring, but the car still represents good value for money.

KGM Tivoli 0% finance deal
Lotus has branched out in recent years, now offering the Electre SUV alongside the traditional Emira sports car. Both are currently available with 0% APR too.

Emira 0% finance deal

Electre 0% finance deal
You can get an RZ 450E Takumi or UX 300E from Lexus on a 0% APR finance deal. The Lexus RZ has a slightly higher deposit contribution of £6,000 in comparison to the UX at £4,500. Both also entitle you to a reduced home EV charger rate of £395.

Lexus RZ 0% finance deal

Lexus UX 0% finance deal
Mazda has a few nice 0% APR deals available at the moment. The funky all-electric MX-30 includes a whopping £6,750 deposit contribution and a free home EV charger. If that's not to your liking, the CX-60 and Mazda2 Hybrid can also be had for 0% APR.

Mazda2 Hybrid 0% finance deal

CX-60 0% finance deal

MX-30 0% finance deal
You'd be hard-pressed to find an MG4 PCP deal with interest, which is excellent news as it's the best EV around. You can also pick up a 0% APR deal on the ZS EV.

MG4 0% finance deal

MG ZS EV 0% finance deal
You'll have a choice of Leafs available on a 0% APR finance deal from Nissan, along with a deposit contribution of £2,500. Production ended earlier this year, but in high-spec Shiro trim; it’s still worth considering.

Nissan Leaf 0% finance deal
Two plug-in hybrids make up the 0% APR for this German brand. The A 250 e Saloon comes with a £1500 discount, and the CLA 250 e Coupe features £1000 off.

A250 e Saloon 0% finace deal

CLA 250 e Coupe 0% fiance deal

There’s a 0% finance deal available on the van-based Peugeot e-Traveller MPV. While its range is limited, it’s comfortable and offers seating for eight and lots of interior space. For a slightly smaller 0% choice, the e-Rifter is still an excellent load-lugger.

e-Rifter 0% finance deal

e-Traveller 0% finance deal
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.

Polestar 2 0% finance deal
Renault is having a 0% finance frenzy at the moment, and we’ve clocked a brace of deals. Our stand-out picks are the Clio, Megane, and Scenic, all excellent cars with tempting finance.

Arkana 0% finance deal

Captur 0% finance deal

Clio 0% finance deal

Megane 0% finance deal

Scenic 0% finance deal

Symbioz 0% finance deal
Head over to Skoda and you’ll find 0% finance deals available on the Kamiq, Fabia, and Enyaq. There are some other benefits, including low-cost service plans or options, including free home chargers for the electric Enyaq.

Enyaq 0% finance deal

Fabia 0% finance deal

Kamiq 0% finance deal
You can get a Suzuki S-Cross from £249 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. Alternatively, the new Swift is a hoot to drive and can be picked up with 0% APR from just £139 a month.

S-Cross 0% finance deal

Swift 0% finance deal
The all-electric Toyota bZ4X is on offer with 0% APR finance and a deposit contribution of £2,000. It’s an impressive and high-quality electric SUV, but its range and efficiency aren’t great. If that's not to your fancy, the Proace City and Proace Verso also have 0% APR and sport a £1000 deposit contribution.

bZ4X 0% finance deal

Proace City Verso Electric 0% finance deal

Proace Verso Electric 0% finance deal
If you’re considering an ID.3, ID.4, ID.5, or ID.7, Volkswagen’s got a finance offer for you: 0% APR and a deposit contribution of £1,250.

ID.3 0% finance deal

ID.4 0% finance deal

ID.5 0% finance deal

ID.7 0% finance deal
Volvo is another brand offering 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.

EX30 0% finance deal

EX40 0% finance deal

XC40 0% finance deal

XC40 Recharge 0% finance deal

XC60 0% finance deal

XC90 0% finance deal

V90 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.

Ryan Gilmore is the Car Buying Editor at Parkers. Having previously worked as Deputy Commercial Content Editor for Parkers, he’s a savvy shopper dedicated to helping you when car shopping. In his spare time, he enjoys going to the gym and walking.