0% APR car finance deals: February 2024

If you want to finance a brand new car with low monthly payments but want to avoid interest charges, check out the best car finance 0% APR deals

By Tom Phillips Feb 20, 2024

Getting a car with 0% APR finance - also known as interest-free credit - is one of the most attractive ways to pay for a new car.

The cost of the car is split across a deposit, a series of monthly payments and, in the case of PCP finance, an optional final payment that you make at the end of the contract if you choose to keep the car. This means that whether you opt for PCP finance or Hire Purchase, the purchase price of the car is cut into bitesize chunks, with nothing charged for the finance.

Unlike most car finance offers, there are no interest charges associated with 0% APR deals. This means the sum total of your payments should add up to no more than the full cash price of the car.

Just remember that with PCP finance you have to pay the deposit, all monthly payments and the large optional final payment to take ownership. Even with 0% APR PCP finance, though, the total amount you pay, including the optional final payment, equates to no more than the car's retail price.

A-Z new cars with 0% finance

Alfa Romeo 0% new car finance deals and offers

The Alfa Romeo Giulia saloon, Alfa Romeo Stelvio and Alfa Romeo Tonale SUV models are available with 0% APR when you put down a minimum 35% deposit on PCP. To sweeten the deal still further, Alfa Romeo is currently offering £500 on top of whatever you're quoted for the value of your part exchange vehicle, plus three years' free servicing on your new Giulia, Stelio or Tonale.

Citroen 0% new car finance deals and offers

Citroen is currently offering the e-C4 and e-C4 X electric family cars with 0% APR on PCP. As ever, the catch is that Citroen requires a hefty 40% deposit. However, the buyer can choose the payment term, from 36 to 60 months. See below for an example.

Citroen e-C4 You! Electric 100kW 50kWh 0% APR offer
Monthly payment: £399
Customer deposit: £399
Length of agreement: 48 months
Optional final payment: £11,417
Total payable:
£32,195
Annual mileage limit: 6,000
See this deal

Cupra 0% new car finance deals and offers

Cupra has 0% APR across all models in its line-up when you finance a vehicle using Solutions PCP. That means you can have a Cupra Leon family hatchback for £285 per month, a Cupra Formentor SUV for £289 per month, or the car we've selected, the electric Cupra Born hatchback for £349 per month.

Cupra Born V1 0% APR PCP offer
Monthly payment: £349
Customer deposit: £7,388.77
Length of agreement: 36 months
Optional final payment: £17,477.10
Total payable: £32,195
Annual mileage limit: 10,000
See this deal

Fiat 0% new car finance deals and offers

The electric Fiat 500 is currently available with a couple of useful incentives if you choose to finance the car with a PCP. Fiat includes an e-GRANT, which is essentially a £3,000 deposit contribution, and 0% APR over 48 months.

Electric Fiat 500 Icon 42 kWh 0% APR offer
Monthly payment: £299
Customer deposit: £2,999
Length of agreement: 48 months
Optional final payment: £9,974
Total payable: £31,195
Annual mileage limit: 6,000
See this deal

Ford 0% new car finance deals and offers

Right now, the Ford Focus, Puma and Kuga models are available with 0% APR on 24 month Ford Options PCP, and the Ford Mustang Mach-E Premium AWD is available with 0% APR on 48 month Ford Options PCP. As Ford's most popular car in the UK, we've picked the Puma as our choice below.

Ford Puma ST-Line X 0% APR offer
Monthly payment: £290
Customer deposit: £5,746
Length of agreement: 24 months
Optional final payment: £15,659
Total payable: £28,365
Annual mileage limit: 9,000
See this deal

Hyundai 0% new car finance deals and offers

All Hyundai Ioniq 5 and Ioniq 6 models are available on both PCP and Hyundai's Personal Motor Loan hire purchase agreements with 0% APR finance up to 37 months with no minimum deposit required. The Hyundai Kona Electric is also available with 0% APR finance but on a 25 month deal and with a minimum 10% deposit.

Hyundai Ioniq 6 Premium 77.4kWh 2WD 0% APR offer
Monthly payment: £501.10
Customer deposit: £5,000
Length of agreement: 37 months
Optional final payment: £24,000.56
Total payable: £47,040
Annual mileage limit: 10,000
See this deal

Jaguar 0% new car finance deals and offers

The Jaguar I-Pace EV is currently available with 0% APR and a £3,000 deposit contribution if you finance your car with Jaguar PCP. That takes monthly payments to £649 on a 48-month agreement, although you will need to put down a very significant deposit to take advantage of this deal.

Jaguar I-Pace EV400 R-Dynamic SE Black 0% APR offer
Monthly payment: £649
Customer deposit: £15,603
Length of agreement: 48 months
Optional final payment: £23,741
Total payable:
£73,495
Annual mileage limit: 10,000
See this deal

Mazda 0% new car finance deals and offers

The Mazda MX-30 is available on 0% APR hire purchase with a minimum 40% deposit. A £2,255 saving and home charging point are included, too. If you're feeling sporty, the Mazda MX-5 is also available with 0% APR at £299 a month with a 50% deposit.

Mazda MX-30 Prime Line 0% APR hire purchase offer
Monthly payment: £279
Customer deposit: £12,255.10
Length of agreement: 60 months
Total payable: £28,995
See this deal

Mercedes 0% new car finance deals and offers

Mercedes is currently offering 0% APR on the Mercedes EQE Saloon and Mercedes EQB electric cars. The EQE Saloon also gets a £4,000 deposit contribution and the EQB a £3,000 discount on Agility PCP, too. If you opt for PCP, neither deal requires you to pay a deposit, although the monthly payments are higher as a result.

Mercedes EQE 300 Luxury Saloon 0% APR offer
Monthly payment: £980.10
Customer deposit: £0.20
Length of agreement: 48 months
Optional final payment: £35,300
Total payable: £82,245
Annual mileage limit: 10,000
See this deal

MG 0% new car finance deals and offers

MG currently has 0% APR available on the MG4 EV, except the X Power model, and the MG ZS EV, when you put down a minimum 20% deposit for a PCP agreement. MG ZS petrols are available with 0% APR as long as you put down a 30% deposit.

MG4 EV SE 125kW 51kWh Auto 0% APR offer
Monthly payment: £99
Customer deposit: £9,346
Length of agreement: 37 months
Optional final payment: £14,085
Total payable: £26,995
Annual mileage limit: 8,000
See this deal

Nissan 0% new car finance deals and offers

The Nissan Leaf 39kW Shiro, Tekna, Acenta and N-Connecta models are both available with 0% APR and a £250 deposit contribution when you put down a 25% deposit, making the Leaf an affordable way into EV ownership. We'd still recommend checking nearly new Leaf models on BuyaCar for an even better deal, though.

Nissan Leaf 39kW Shiro 0% APR offer
Monthly payment: £269
Customer deposit: £5,000
Length of agreement: 49 months
Optional final payment: £10,629
Total payable:
£28,790
Annual mileage limit: 6,000
See this deal

Peugeot 0% new car finance deals and offers

The Peugeot e-208 small hatchback and e-2008 small SUV are available with 0% APR and the option of zero deposit on Peugeot Passport PCP. The condition is that you have to buy a car that's already in stock, so you'll have a little less choice on spec, but you do get three years' free servicing thrown in.

Peugeot e-208 E-Style Electric 50KWH 136 0% APR offer
Monthly payment: £399
Customer deposit: £2,291
Length of agreement: 48 months
Optional final payment: £10,896
Total payable: £32,650
Annual mileage limit: 6,000
See this deal

Renault 0% new car finance deals and offers

Renault asks for big upfront deposits but then extremely low monthly payments on its PCP agreements. This includes the Clio from just £32 per month, the Austral from £33 per month, the Captur from £41 per month, the Arkana from £44 per month all at 0% APR over 24 months.

Renault Austral Techno E-Tech 0% APR offer
Monthly payment: £36
Customer deposit: £11,643
Length of agreement: 25 months
Optional final payment: £21,691
Total payable: £34,695
Annual mileage limit: 6,000
See this deal

SEAT 0% new car finance deals and offers

The entire SEAT range is currently available with 0% APR when you take out an agreement with its in-house Solutions PCP offer. That means you can get behind the wheel of a SEAT Ibiza small hatchback for £219 per month, and Arona small SUV for £265 per month, and the larger Ateca SUV from £315 per month.

SEAT Ateca SE Technology 1.0 TSI 110PS 0% APR offer
Monthly payment: £315.82
Customer deposit: £5,852
Length of agreement: 36 months
Optional final payment: £12,354.30
Total payable: £29,260
Annual mileage limit: 10,000
See this deal

Skoda 0% new car finance deals and offers

The Skoda Enyaq is available with 0% APR on PCP with a maximum 36-month term. The deal is covers Enyaq 60, 85 and vRS models, and you also get a deposit contribution and a free home charger thrown in, too. The Skoda Scala and Skoda Kamiq have both just been facelifted, so pre-facelift cars from stock are all 0% APR and £1,000 off while they last.

Skoda Enyaq 60 0% APR offer
Monthly payment: £375.35
Deposit contribution: £2,500
Customer deposit:
£7,014.85
Length of agreement: 36 months
Optional final payment: £16,317.90
Total payable: £39,970
Annual mileage limit: 10,000
See this deal

Suzuki 0% new car finance deals and offers

The Suzuki S-Cross is an affordable small family SUV that's available with 0% APR. The full range is included, with the cheapest being the S-Cross Motion hybrid at £179 a month. A minimum 20% deposit is required and there's a 25-month maximum term.

Suzuki S-Cross Motion 1.5 Full Hybrid 0% APR offer
Monthly payment: £179
Customer deposit: £6,636.11
Length of agreement: 25 months
Optional final payment: £16,917
Total payable:
£27,849
Annual mileage limit: 8,000
See this deal

Toyota 0% new car finance deals and offers

The Toyota bZ4X electric SUV is available with 0% APR and a £2,000 deposit contribution when you take out a 36-month PCP agreement. That takes monthly costs to £469, although the deposit you need to contribute yourself is almost £10,000.

Toyota bZ4X Vision 0% APR offer
Monthly payment: £469
Customer deposit: £9,220
Length of agreement: 36 months
Optional final payment: £22,140
Total payable:
£49,775
Annual mileage limit: 8,000
See this deal

Volvo 0% new car finance deals and offers

Almost the whole Volvo range is available with Volvo Loan hire purchase at 0% APR. However, there's a minimum deposit of 50%, with the other half of the purchase price to be paid off over 36 months. Given Volvo's high prices, this can be a stretch, but does create a manageable way to budget for your new car.

Volvo XC60 Core B5 AWD 0% APR offer
Monthly payment: £600.75
Customer deposit: £21,128
Length of agreement: 36 months
Total payable: £46,863.91
Annual mileage limit: N/A
See this deal

0% finance: things to consider

Before you dive into the list of new cars available with 0% APR finance, it's worth taking a moment to consider your other options in case there's a better way to get behind the wheel of your chosen car for less. 

For a start, getting this rock-bottom rate often requires a large deposit, so you may need to spend a chunk of your savings to access a 0% APR deals. Interest-free agreements aren't usually available with no-deposit finance.

0% finance offers may not include savings available with other finance deals (like deposit contribution discounts), so you could end up paying more overall. To find out which offers you the best value, get like-for-like quotes with the same deposit, contract length and mileage allowance to see which has the lowest monthly payments and costs you less overall.

0% APR car finance is generally only available for new cars. Where it is available on used cars, this typically means you'll be paying an artificially high cash price, as dealers often inflate the price to cover what they lose by not charging interest. Consequently, 0% APR used car finance can actually be more expensive than equivalent finance deals on similar cars that charge interest but offer much lower cash prices. Once again, remember to get like-for-like finance quotes to find out which offers you the best value.

Types of finance available with 0% APR

It’s possible to find deals on multiple types of finance with 0% APR. The most common is Personal Contract Purchase (PCP). This offers affordable monthly payments, as these only cover the amount of value the car is expected to lose over the contract, rather than its whole price. At the end of the contract, you can either return the car to the finance company, or buy it for a pre-agreed optional final payment.

Another potential option is Hire Purchase (HP), which ends in you owning the car once you've made all the monthly payments. Because there is no large optional final payment, monthly payments are a little higher with HP than with PCP, since you have to pay for the entire value of the car through the monthly payments.

This also means that you don't need to find many thousands of pounds to pay off that large final payment if you want to take ownership, though you are able to refinance this into another finance contract, should you wish. Do bear in mind that you are very unlikely to be able to refinance a PCP deal with 0% APR, so you are likely to have to pay interest on the money borrowed on the second finance contract if you choose this option.

Meanwhile, if you're after the best value option and are happy to consider a nearly new or used model, you can kickstart your car finance journey with BuyaCar to see how much you can afford to borrow and find a great deal among thousands of used cars currently available now on our search pages.

0% APR finance: how it works

APR stands for annual percentage rate. It’s a standard way of calculating the full cost of finance and takes into account the interest charged on borrowing, as well as any fees. This makes it easy to compare the cost of finance between different providers.

If finance is advertised as 0% APR, then it means you won’t be charged any interest or fees. This should mean that the overall amount you pay is no greater than if you had bought the car you’re considering outright in cash.

A 0% APR offer often doesn’t take into account the discounts available in other forms of new car deals, however. For example, a manufacturer 0% APR offer may not include a deposit contribution or other discount incentive, so you’ll repay the full retail price of the car as advertised in the brochure.

If you’re buying in cash, you might be able to get a discount off the price, making the car cheaper, but bigger discounts are typically available if you opt for a finance deal that charges interest. If you are able to keep the contract length short, then this can work out to be the cheapest option overall.

Requirements for 0% APR finance

Many 0% APR deals require a large deposit. This is to give the lender a greater chance of getting their money back if the customer misses payments close to the start of the agreement.

Lenders increase interest rates for customers with poor credit ratings, as they are seen to be at higher risk of missing their payments.

This means that the lowest 0% APR rates are often only available to drivers with a good credit score.

 

Can you get used cars with 0% finance?

Used cars aren't generally available with 0% finance because they don't benefit from the same manufacturer finance discounts that new cars do. However, the used car finance industry is competitive, which helps to keep interest rates low.

Some retailers, including BuyaCar, work with several lenders to ensure that you get a competitive quote for your circumstances, along with a good value cash price to begin with - which means you might be able to get more car for your monthly budget than you might expect.

So while you can't typically get 0% APR with used cars - and where you can, it's likely the cash price has been inflated to cover the fact no interest is charged - going for a nearly new or pre-registered car, is typically far cheaper than going for a new car.

That can be the case even where there is a really good new car finance deal on offer, so as always, it's worth getting a couple of like-for-like quotes to find the best car you can get for your budget.

A 0% APR deal might not be as good value as it seems, however. While you don’t pay interest on the finance, the fact that new cars lose their value very quickly means that a 0% APR deal can still be expensive and cost much more than a nearly new or second-hand equivalent.

As a result, even an interest-free deal on a new car could end up being notably more expensive - overall and in monthly payments - than a finance deal on a one- or two-year-old equivalent where interest is charged.

So when you’re shopping around for the best deals, it’s worth getting like-for-like finance quotes (with the same type of finance, deposit amount, contract length and mileage allowance) on both new cars and equivalent nearly new or used models. Then you can directly compare the monthly payments to see which option offers you the best value.

For instance, you could finance a one-year old used car, which has only covered a couple of hundred miles with a cash price of £10,000 that is available with 6.9% APR finance.

Yes, that finance arrangement includes interest, but compared with a £13,000 new equivalent with 0% APR and otherwise like-for-like terms (a three-year Hire Purchase finance deal with a £1,000 deposit), you could still save £30 per month by going for the used car. Go for an older car and the savings are likely to be substantially higher.

If you're open to going used to get the most affordable car finance, have a look at some of the used car finance deals available now on BuyaCar.