New cars with 0% finance: full list of latest 2022 deals
If you want to finance a brand new car with low monthly payments but want to avoid interest charges, check out the latest 0% APR deals
Getting a car with 0% APR finance - also known as interest-free credit - is one of the simplest 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 as well, which you make at the end of the contract if you want to keep the car. This means that whether you opt for PCP finance or Hire Purchase, the cost 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 make the large optional final payment - which could amount to half of the initial price, or even more - as well as the deposit and monthly payments 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 initial price.
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.
Best new cars with 0% finance
For instance, you could finance a one-year-old Citroen C1, 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.
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% 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 to access one of these 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. 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 finance discounts as new cars. However, the used car finance industry is competitive, which keeps 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 used car, or even a 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.
Best new cars with 0% finance
Alfa Romeo 0% new car finance deals
Italian carmaker Alfa Romeo is offering an interest-free Hire Purchase agreement on the performance-orientated Quadrifoglio versions of its Giulia saloon and Stelvio SUV. It's available on terms of up to 24 months on the Giulia and 30 months on the Stelvio, however both require a hefty deposit totalling more than £25,000. The Stelvio Quadrifoglio does get a £3,500 deposit contribution to soften the blow.
Ford 0% new car finance deals
Ford has been offering 0% finance for many years, and it has previously been available on some of Britain's favourite cars like the Focus hatchback. The interest-free two-year PCP offer currently extends to certain versions of the updated Fiesta supermini, EcoSport and Puma crossovers, Kuga SUV, and van-based Tourneo Custom MPV.
Hyundai 0% new car finance deals
Petrol, self-charging hybrid and plug-in hybrid versions of the Tucson are available with 0% finance, as well as the i20 and Bayon. There is no minimum deposit amount.
Kia 0% new car finance deals
There are 0% PCP finance deals available on the Picanto, Stonic and XCeed, though a 20% minimum deposit is required to secure the 24-month deal.
Maserati 0% new car finance deals
Purchasing a Maserati can be a costly ordeal, with prices starting well over £60,000. Buyers will still need to cough up a 55% deposit for the Ghibli, 53% for the Levante and 61% for the Quattroporte, but they will be rewarded with a 0% finance offer.
Renault 0% new car finance deals
Renault has a long history of offering interest-free credit agreements. There are offers on its entire range, including its electric and hybrid models.
SsangYong 0% new car finance deals
SsangYong is best known for its rugged off-road vehicles. Two of its smallest models are also available for interest-free HP agreements.
Suzuki 0% new car finance deals
The only car in Suzuki's range available for 0% finance is its Vitara on a PCP plan. This extends to the newly released self-charging hybrid model, which Suzuki refers to as its 'Full Hybrid'.
Toyota 0% new car finance deals
There are interest-free PCP plans on certain versions of six of Toyota's cars, including efficient hybrids, powerful sports cars and rugged SUVs.
Volvo 0% new car finance deals
Volvo is currently offering 0% finance plans on saloon, estate and SUV versions of its '60' and '90' series; the C40 and XC40 are not included.
*Representative PCP finance - Ford Fiesta:
48 monthly payments of £192
Deposit: £0
Mileage limit: 8,000 per year
Optional final payment to buy car: £2,923
Total amount payable to buy car: £11,926
Total cost of credit: £2,426
Amount borrowed: £9,500
APR: 9.9%
BuyaCar is a credit broker, not a lender. Our rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances.
