0% APR car finance deals: September 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.

See also

• Nearly new car deals
• Best cars for £99 a month
• Best PCP car deals
• Best car leasing deals
• Zero deposit finance deals
• Best car subscriptions
• Best electric car leasing deals
• Best van finance deals
• New cars with free insurance
• All car finance deals

Best 0% APR car finance deals A-Z

Best new cars with 0% finance

Renault Austral 0% APR finance deal

Renault offers most of its range on 0% APR PCP agreements, fixed to 24-month finance deal terms. Monthly costs start from £153 for the Clio E-Tech, £168 for the Captur, the new Symbioz from £201, the Scenic E-Tech from £224, £225 for the Arkana, the Austral from £244 per month, the Rafale from £289 and the Megane E-Tech from £333 - the latter being available on a 48-month 0% APR deal.

Renault Austral Esprit Alpine E-Tech 0% APR offer
Price: £36,695 or £244 a month
Annual mileage limit: 6,000
Deposit: £11,009
Monthly payments: 24 x £244 (£5,856)
Optional final payment: £19,828
Total payable: £36,695
APR representative: 0%
Length of agreement: 25 months
Offer available until: 30th September 2024
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Skoda Fabia 0% APR finance deal

The Skoda Fabia is just one of a number of Skoda's current models available with 0% APR PCP. The Skoda Scala, the Skoda Kamiq and the Skoda Enyaq are available with 0% APR. All are available on a maximum 24-month term, and all also include an extra £500 discount for new customers and the option to buy the car's first two services for a fixed fee of £269.

The Skoda Enyaq 50 is available with 0% APR PCP with a maximum 36-month term and a £2,000 deposit contribution. The rest of the Enyaq range is also 0% and these deals include either a 7kW Ohme 5m tethered cable Home Pro home EV charger or a 7kW untethered ePod home EV charger, plus installation, or a £500 PowerPass charging voucher code. 

Skoda Fabia SE Comfort 1.0 80PS
Price: £19,730 or £266.76 a month
Annual mileage limit: 10,000
Deposit: £3,551.42
Monthly payments: 23 x £266.76 (£6,135.48)
Optional final payment: £10,043.10
Total payable: £19,730
APR representative: 0%
Length of agreement: 24 months
Offer available until: 30th September 2024
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Ford Focus 0% APR finance deal

Right now, the Ford Kuga ST-Line X and Active PHEVs and Ford Focus ST-Line X are available with 0% APR. If you're looking at going electric, all Ford Explorer models and the Ford Mustang Mach-E Premium AWD are available with 0% APR on 48 month Ford Options PCP. Before it sails off into retirement, we've picked the Focus as our choice below.

Ford Focus ST-Line X
Price: £32,330 or £380 a month
Annual mileage limit: 9,000
Deposit:£5,686
Monthly payments: 36 x £380 (£13,680)
Optional final payment: £12,964
Total payable: £32,330
APR representative: 0%
Length of agreement: 36 months
Offer available until: 30th September 2024
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Hyundai Ioniq 5 0% APR finance deal

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. Right now, the Ioniq 5 gets a £2,000 deposit contribution, while the Ioniq 6 gets a £1,000 contribution. 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 5 Advance 63kWh RWD
Price: £39,900 or £426.90 a month
Annual mileage limit: 10,000
Deposit: £5,000
Monthly payments: 36 x £426.90 (£15,368.40)
Optional final payment: £17,531.53
Total payable: £39,900
APR representative: 0%
Length of agreement: 37 months
Offer available until: 30th September 2024
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Mercedes EQA 0% APR finance deal

Mercedes is currently offering 0% APR on the Mercedes EQA and Mercedes EQB, plus a healthy £4,500 discount on either car. The Mercedes EQS Saloon and the AMG version of the EQS are both available with 0% APR too, and the regular car features a £7,000 discount, while the AMG model has £8,500 off. None of these deals require a customer deposit, although the monthly payments are higher as a result.

Mercedes EQA 250+ Sport Executive
Price: £45,260 or £532.29 a month
Annual mileage limit: 10,000
Deposit: £0.08
Monthly payment: 48 x £532.29 (£25,549.92)
Optional final payment: £19,700
Total payable: £45,260
APR representative: 0%
Length of agreement: 48 months
Offer available until: 30th September 2024
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Are there any drawbacks to 0% APR car finance deals?

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.

What types of finance are 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.

How do 0% APR finance deals work?

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.

What do I need to get a 0% APR finance deal?

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.