BUYING a car on finance is an appealing proposition. You don’t have to save up or spend what savings you may already have; instead you allocate a manageable proportion of your future monthly income to your new vehicle, spreading the cost over a defined time period (often three or four years). This helps make a brand new car more attainable for many drivers.
However, most loans of any kind will involve a cost to you called the Annual Percentage Rate (APR). The charge means that you pay back more than you borrowed over the period, and the APR can vary greatly.
In order to lure buyers into factory fresh vehicles, dealers offer attractive incentives, and the most enticing of all is a finance deal that charges zero APR, potentially saving consumers thousands of pounds in interest.
These 0% finance deals aren’t all that common, and of the few there are, many are only offered for a limited period.
We go through manufacturer websites regularly and will continue to update this buying guide throughout 2020 with the best new cars — in a variety of shapes, sizes and budgets — available with 0% APR deals.
The prohibitive sum of the deposit can often rule out 0% loans
With all the cars listed, terms and conditions will apply, and the size of the necessary deposit contributions, monthly payments and agreement periods also vary. The prohibitive sum of the deposit, in particular, can often rule out 0% loans for drivers choosing to buy a new car using finance.
What’s more, 0% finance may well be available only on specific versions of the models mentioned, and the deals could be only available with a specific type of finance agreement, whether that be a Personal Contract Purchase (PCP), Hire Purchase (HP) or another product. That means drivers must read the small print carefully to check what’s being offered.
However, with no interest to pay, within these deals could be an offer you can’t afford to miss.
Best city car with 0% APR
If you’re after a new car on 0% finance and spend most of your time behind the wheel in towns and cities, the Volkswagen up! is definitely worth considering. The light controls and great visibility make it easy to navigate city streets, and while the tiny engine produces only 59bhp, it’s surprisingly eager, and plenty for when you’re driving in built-up areas.
See the latest 0% finance deals for the Volkswagen up! here
Best small car with 0% APR
The Ford Fiesta was Britain’s best-selling new car in 2019 by a big margin, and for good reason: it’s a fantastic supermini. Just like its predecessors, the current Fiesta is excellent fun to drive and the peppy 93bhp 1-litre petrol engine available with this 0% finance deal is ideal for tackling commutes and school runs. Better still, the Fiesta is also very comfortable and fairly spacious for such a small car.
See the latest 0% finance deals for the Ford Fiesta here
Best compact family car with 0% APR
The Toyota Corolla is back on sale in the UK and the latest version is a worthy wearer of the world’s bestselling car nameplate. As well as being comfortable and roomy inside, the Ford Focus rival is easy to drive, comfortable and, thanks to its hybrid powertrains, won’t burn petrol as fast as most other hatchbacks on a mix of roads. If the tiny boot on the hatchback is too small for you, the more practical “Touring Sports” estate version (shown here) is also available with 0% finance.
See the latest 0% finance deals for the Toyota Corolla here
Best large family car with 0% APR
Vauxhall Insignia Grand Sport
Premium brands may be snapping up most of the large family car sales but that only makes the more middle-of-the-road marques up their game in terms of buyer incentives. Case in point: the Vauxhall Insignia Grand Sport. It’s comfortable, well built, spacious and comes with an impressive amount of kit as standard.
See the latest 0% finance deals for the Vauxhall Insignia Grand Sport here
Best compact SUV with 0% APR
Citroën C3 Aircross
Of the many small SUVs vying for your attention, one that we reckon is worth a closer look at is the Citroën C3 Aircross. It’s a stylish little crossover, very comfortable and quite spacious for such a compact car. And unlike some other zero interest deals, you’re not limited to a single variant, as the entire C3 Aircross range is available with 0% finance.
See the latest 0% finance deals for the Citroën C3 Aircross here
Best family SUV with 0% APR
If you’re looking around for a new family-sized SUV with 0% finance, a good place to begin your search is the Kia Sportage. It’s comfortable, smartly styled inside and out, comes with a good amount of equipment as standard and has lots of interior space for your passengers and their various bits and bobs. This particular 0% finance deal applies to all Sportage variants, too, though there is one caveat: in order to qualify for the no interest offer, you need to pay at least 20% of the Kia’s value up front as a deposit.
See the latest 0% finance deals for the Kia Sportage here
Best large SUV with 0% APR
If you need an SUV even larger than that, the Seat Tarraco is an excellent option. As well as being very practical and spacious, it looks great, drives well and comes with a good amount of standard equipment in the specs offered in the 0% finance deals. The Tarraco is ideal for parents with young children: the Seat was awarded the full five stars for safety by Euro NCAP last year, and the Tarraco is exclusively sold as a seven-seater.
See the latest 0% finance deals for the Seat Tarraco here
Best people carrier (MPV) with 0% APR
Renault Grand Scenic
The golden age of the MPV may be long behind us but that doesn’t mean people carriers should be ignored. In fact, in most cases they represent the ideal mix of practicality, safety and comfort. Of those that have survived the rise in popularity of SUVs, the Renault Grand Scenic is one of the best – being as spacious and as versatile as you’d expect from a car in this class. With some encouraging 0% APR finance offers available, too, the Renault Grand Scenic is proof there’s still life in the MPV class yet.
See the latest 0% finance deals for the Renault Grand Scenic here
Best pick-up truck with 0% APR
Should an all-wheel drive SUV not be rugged enough for you, there are always pick-up trucks to consider. One of the best you can buy with 0% finance right now is the Mitsubishi L200, which boasts a one tonne+ payload and impressive off-road credentials thanks to its chunky tyres and configurable all-wheel drive system. Mitsubishi hasn’t scrimped on creature comforts, either, as the L200 comes as standard with heated wing mirrors, dual-zone air conditioning and a lane departure warning safety aid.
See the latest 0% finance deals for the Mitsubishi L200 here
Best sports car with 0% APR
More than three decades after the original arrived on the scene, the Mazda MX-5 remains one of the best sports cars you can buy. Like the classic roadsters that inspired it, it’s brilliant fun to drive yet easy enough to live with every day, and pretty economical, too. Go for the “RF” version, with its folding metal roof, and you get additional levels insulation from inclement weather.
See the latest 0% finance deals for the Mazda MX-5 here
Best executive car with 0% APR
Executive cars aren’t normally available with 0% finance deals so it was a surprise to see Volvo offer one for the S90. There’s more to like about the mid-sized saloon than its interest-free monthly repayments: the Volvo S90 is smartly styled inside and out, comes with lots of equipment and is supremely capable as a comfy long distance cruiser.
See the latest 0% finance deals for the Volvo S90 here
Best luxury car with 0% APR
As Audi’s flagship saloon, the A8 is predictably lavish. In true Audi fashion, the interior is impeccable and the A8 is crammed with advanced tech including air suspension, a slick digital dashboard display and a suite of safety aids. As an added incentive, the current 0% APR offer also has a £15,500 deposit contribution — bringing the total payable amount down to ‘only’ £56,195.
See the latest 0% finance deals for the Audi A8 here
Driving.co.uk’s bonus car with 0% APR
Renault Mégane R.S.
Though most 0% finance deals are only featured on mass market cars, you do every now and again see them for performance vehicles.
The Renault Mégane R.S. may come with a 0% APR deal (unlike all other hot hatches currently), but that’s not the only reason to buy one; it is one of the most exciting cars in its class — “a real hoot” to drive, in fact.
See the latest 0% finance deals for the Renault Mégane R.S. here
(Deals correct at time of publication, but many such deals are temporary. Although this article is updated on a regular basis,cannot guarantee that every deal will remain available between updates.)