0% APR car finance deals: January 2025

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 finance 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

Suzuki Swift 0% APR finance deal

The deal Suzuki Swift Mild Hybrid Motion for £139 a month on 25-month PCP at 0% APR with a minimum 20% customer deposit

The Suzuki Swift is celebrating its 40th year on sale in the UK with a brand-new model. That should be music to the ears of anyone looking for a small hatchback that comes with a finance deal as light on the pocket as possible. The latest Swift features an all-new engine that's particularly efficient, also helping to keep costs in check, yet that doesn't come at the expense of driving fun. This 0% APR deal requires a larger deposit, but Suzuki also offers a 7.9% APR PCP with a £500 deposit contribution that costs £239 per month for four years.

Suzuki Swift Mild Hybrid Motion
Price: £19,199 or £139 a month
Annual mileage limit: 8,000
Deposit: £4,996
Monthly payments: 24 x £139 (£3,336)
Optional final payment: £10,867
Total payable: £19,199
APR representative: 0%
PCP agreement length: 25 months
Deal available until: 31st March 2025
See this deal

Read our used Suzuki Swift review here

Renault Captur 0% APR finance deal

The deal Renault Captur Evolution Techno TCe 90 from £157 a month on 25-month PCP at 0% APR

Renault offers most of its range on 24-month 0% APR PCP agreements. We've selected a deal on the ever-popular and recently facelifted Renault Captur. The deal we've chosen is for a Captur powered by a petrol engine, but a more powerful hybrid option is also available, starting at £173 per month.

The Captur PCP deal we're featuring starts at £157 a month with 0% APR, but does require a £6,507 customer deposit. If you're looking to spread the cost, the same model is available for £249 a month over 48 months at 7.9% APR with a £3,178 customer deposit and a £750 deposit contribution.

Renault Captur Evolution Techno TCe 90 0% APR offer
Price: £21,695 or £157 a month
Annual mileage limit: 6,000
Deposit: £6,509
Monthly payments: 24 x £157 (£3,768)
Optional final payment: £11,428
Total payable: £21,695
APR representative: 0%
Length of agreement: 25 months
Offer available until: 31st March 2025
See this deal

Read our latest Renault Captur review here

Skoda Fabia 0% APR finance deal

The deal Skoda Fabia SE Comfort 1.0 80PS from £263 a month on 24-month PCP at 0% APR

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 electric Skoda Elroq and Skoda Enyaq are available with 0% APR.

The Fabia is available on a maximum 24-month term with 0% APR and requires a £3,653 deposit. A 48-month option is available too with the same deposit. This comes with a 6.9% APR and a £1750 deposit contribution, making monthly payments £204.15.

Skoda Fabia SE Comfort 1.0 80PS
Price: £20,295 or £263.15 a month
Annual mileage limit: 10,000
Deposit: £3,653.15
Monthly payments: 23 x £263.15 (£6,052.45)
Optional final payment: £10,589.40
Total payable: £20,295
APR representative: 0%
Length of agreement: 24 months
Offer available until: 31st March 2024
See this deal

Read our used Skoda Fabia review here

Hyundai Tucson 0% APR finance deal

The deal Hyundai Tucson Advance 1.6T 160PS from £223 a month at 0% APR

All Hyundai Tucson models are available on PCP with 0% APR finance up to 24 months with a minimum 35% deposit required. That means you have the pick of regular petrol engine, as we've chosen here, or hybrid and plug-in hybrid models with 0% APR.

The deposits are large, so signing up for this deal requires a not-insignificant £10,000 down, but the monthly payments for a well equipped family SUV come in at less than £225. If you're looking for a smaller initial outlay, the same car can be had on a 49-month deal with £5,000 deposit and a £2,500 deposit contribution for £356 a month at 6.9% APR.

Hyundai Tucson Advance 1.6T 160PS
Price: £32,400 or £223.34 a month
Annual mileage limit: 10,000
Deposit: £5,000
Monthly payments: 36 x £223.34 (£8,040.24)
Optional final payment: £17,039.75
Total payable: £32,400
APR representative: 0%
Length of agreement: 25 months
Offer available until: 31st March 2025
See this deal

Read our Hyundai Tucson review here

Volkswagen ID.4 0% APR finance deal

The deal Volkswagen ID.4 Match 52kWh Pure 170PS from £407 a month on a 36-month PCP at 0% APR, with a £5,100 deposit contribution

The Volkswagen ID.4 is a solid entry point into the EV world as it's spacious enough to be able to hold a family and all it can throw at it, and should cost pennies to run. This deal is 0% APR PCP with £5,100 towards your deposit and a customer deposit to pay of £6,337. There is a 48-month option at 5.9% APR with a £6,025 deposit contribution at £420 a month, but with a slightly lower £5,937 deposit.

Volkswagen ID.4 Match 52kWh Pure 170PS
Price: £39,580 or £407.01 a month
Annual mileage limit: 10,000
Deposit:£6,336.85
Monthly payments: 35 x £407.01 (£14,245.35)
Optional final payment: £13,897.80
Total payable: £39,580
APR representative: 0%
Length of agreement: 36 months
Offer available until: 31st March 2025
See this deal

Read our Volkswagen ID.4 review here

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.