New cars with 0% finance: full list of latest 2021 deals

If you want to finance a brand new car with monthly payments but want to avoid interest charges, here are the latest 0% APR finance deals

BuyaCar team
Apr 20, 2021

Getting your new car finance with a 0% APR deal – also known as interest-free credit – is undoubtedly one of the simplest ways to pay for a new car. You simply spread the overall cost of the car across a fixed term of monthly payments.

Unlike most other forms of car finance, 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. It’s worth noting, though, that Personal Contract Purchase (PCP) type deals also include an optional final payment. In these cases, the total of your monthly payments, plus the optional final payment will equal the total cash price of the car.

A 0% APR deal might not be as good value as it seems, however. You don’t pay interest on the finance, but the fact that new cars lose their value quite quickly can make a new car purchase more expensive than a nearly-new or second-hand equivalent. As a result, even an interest-free deal on a new car could end up being 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 similar models.

By way of example, you could buy a one-year-old Citroen C1 that has only covered a couple of hundred miles with a cash price of £10,000 and available with 6.9% APR finance. Compared with a new equivalent at £13,000 on like-for-like terms (a three-year Hire Purchase finance deal with a £1,000 deposit), you could save £30 per month on the used car, even though the finance deal involves interest.

Have a look at some of the great-value finance deals on used and nearly new cars available on BuyaCar by clicking the link below.

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 good-value monthly payments, as you only pay a certain amount of the car's value over the course of the agreement. At the end of this, 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 optional final payment, monthly payments tend to be a little higher with HP than with PCP, since you have to pay for the entire value of the car over the course of the monthly payment term.

Meanwhile, if you're after the best value option and are happy to consider a nearly new or used model, click on the link below to start a finance application with BuyaCar to see how much you can afford to borrow or click on the button above to browse the cars available now with the lowest monthly payments on the site.

0% finance: things to consider

Before you dive into the list of new cars available with 0% APR finance, though, consider your other options:

  • Getting this rock-bottom rate often requires a large deposit, so you may need to spend a chunk of your savings.
  • 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 offers the lowest monthly payment and will cost 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. Get like-for-like finance quotes to find out which offers you the best value.

Scroll down for all current 0% finance deals, arranged alphabetically by brand, or see below for our pick of the best deals.

Used cars with 0% finance

Used cars aren't generally available with 0% finance because they don't benefit from the same manufacturer incentives as new cars. However, the used car finance industry is competitive, which keeps interest rates low.

Some retailers, such as 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 used 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.

Best new cars with 0% finance

Ford 0% new car finance deals

Ford has recently added the Focus to its 0% APR deal, on all models except for base specification Style models. The UK's best-selling car, the Fiesta, is also available with interest-free credit across nearly the entire model range, plus deposit contribution discounts making it a great value new car to finance.

New Ford cars with 0% finance

Kia 0% new car finance deals

Kia XCeed front

Kia is offering a number of 0% finance deals throughout its range of hybrid cars. Each of these deals is based on a PCP contract with a term of 24 months. Anyone looking to take advantage of this deal will need to pay a 20% deposit. This could make the initial purchase quite expensive, so you may want to consider whether taking a more standard APR deal might be better suited to your budget.

New Kia cars with 0% finance

Maserati 0% new car finance deals

A brand steeped in history, Maserati continues to produce exquisite Italian luxury cars with big, powerful engines and inimitable style. They tend to be rather expensive, but you could worse than to bag one with a 0% finance deal.

Both the Ghibli saloon and Levante SUV models currently have 0% offers on the table from £625 and £525 per month respectively. Bear in mind that the Ghibli is available on a 0% Hire Purchase contract only, which does put up monthly costs, but the car will be yours at the end of it.

Don't just be tempted by the 0% APR options either, as there are some very handy deposit contributions on offer across the range as well.

New Maserati cars with 0% finance

Mazda 0% new car finance deals

More useful 0% finance deals from Mazda which don't require outrageous deposits in order to make the most of them. The range of cars covered by this deal is broad, with practically every model in the current Mazda range included.

New Mazda cars with 0% finance

MG 0% new car finance deals

MG is gradually beginning to ramp up its production with a steady stream of new models. Bargain hunters will be thrilled to find out that they also come with a seven-year warranty too.

Both the MG ZS EV and the MG 5 EV along with the HS plug-in hybrid are also available with 0% finance, making them even more affordable, with low cash prices plus no interest added on top, meaning super-affordable monthly payments.

New MG cars with 0% finance

Mitsubishi 0% new car finance deals

Mitsubishi offers 0% APR finance on its ASX, Eclispe Cross and Outlander PHEV models on PCP deals as well as the L200 Warrior pick-up.

New Hyundai cars with 0% finance

Nissan 0% new car finance deals

The Qashqai is the standout car on this list from Nissan, as it's one of the most popular new cars in the UK. It's a reasonable all-rounder, offers a raised driving position and is relatively affordable, with clever semi-autonomous safety tech fitted to some models.

Beware, though, that in some cases Nissan offers multiple finance options on the same car: typically 0% APR and higher-rate APR with large deposit contribution discounts. In some cases going for a 5.0% APR offer with a deposit contribution is cheaper than the 0% APR option. If in doubt, ask for like-for-like quotes for both options and you'll see which one provides the lower monthly payments.

New Nissan cars with 0% finance

Skoda 0% new car finance deals

The Skoda Fabia remains one of the best value cars on the market. Skoda consistently offers its small hatchback with competitive finance deals and this 0% APR example is no exception. Since the Fabia's cash prices are low and no interest is charged here, it's extremely hard to say no to this kind of value.

You can currently get similar deals on Skoda's excellent range of SUVs, from the smallest Kamiq to the gargantuan seven-seat Kodiaq.

New Skoda cars with 0% finance

Suzuki 0% new car finance deals

Suzuki offers the Vitara with 0% APR PCP finance. Having been updated with improved engines and boosted equipment levels, the Vitara is a very strong alternative to the slightly larger Nissan Qashqai and is temptingly affordable, thanks to the 0% finance offer and strong value cash prices. It may not sell in such high numbers, but the Vitara is a smart choice.

Aside from the Vitara, Suzuki is currently offering 0% fiance on all of its hybrid range, from the Swift through to the S-Cross.

New Suzuki cars with 0% finance

Toyota 0% new car finance deals

Even the very latest Toyota - the new Corolla - is available with 0% finance. Interest-free credit deals also cover the Yaris Hybrid, with excellent fuel economy, which means that you should save at the pump - as well as on finance costs.

Some Toyota cash prices can be high, though, so it's worth comparing Toyota 0% APR offers with deals from rival manufacturers to see which offers you the best value. As always, get like-for-like finance quotes to see which option gives you the lowest monthly payments.

New Toyota cars with 0% finance

Vauxhall 0% new car finance deals

Vauxhall is running an end of year sale, which means that almost the entire range can be bought with 0% finance. This includes the Corsa and Astra, as well as the new family-friendly Grandland X (above) and Combo Life. In most cases you can combine the finance offer with additional discounts, which are displayed when you configure any car.

As some new Vauxhalls often don't hold their value as well as alternatives - which increases your monthly payments on PCP finance, because the car you hand back at the end of the contract is less valuable - it's important to shop around, getting like-for-like quotes on rival cars to see which offers you the lowest monthly payments.

On the flipside, getting a PCP deal on a used Vauxhall can prove particularly good value, as the used cash price is often quite low, meaning you're borrowing less money in the first place, so your monthly payments are low.

New Vauxhall cars with 0% finance

Volkswagen 0% new car finance deals

Volkswagen only offers a couple of cars with 0% finance - the little Up, which is mechanically identical to the Skoda Citigo and Seat Mii. Entry-level Take Up models are not eligible for the deal, and neither is the sporty Up GTI.

However, at the other end of the range, the large Touareg SUV is available with interest-free credit. This makes this luxurious off-roader incredibly good value to finance considering its high cash prices.

New Volkswagen cars with 0% finance

Volvo 0% new car finance deals

Volvo V90 front

The Volvo V90 is large and luxurious, but despite this, it's available with 0% APR and, better still, substantial deposit contribution discounts. This makes it fantastic value to finance - especially compared with pricey rivals from Audi, BMW and Mercedes.

So, even if you think a new V90 might be out of reach, it's worth getting a finance quote to check, as it is extremely good value on PCP finance, with particularly low monthly payments compared with the cash price of the car.

New Volvo cars with 0% finance

 

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