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 2019 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
The Volkswagen Up! is already an enticing option in the city car segment, and its 0% finance offer makes the smallest VW on sale an even more tempting buy. You’ll have a fairly well specced Up! if you go for the 0% finance deal, too, as all of the trims bar the entry level spec and the range-topping GTI model are included in the offer.
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 2018 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 99bhp 1.0-litre petrol engine available in this 0% finance deal is ideal for driving in towns and cities. Better still, the Fiesta is also very comfortable and fairly spacious for such a small car.
Best compact family car with 0% APR
Of the many family hatchbacks on the market, one that’s worth having a closer look at is the Honda Civic. It ticks all the right boxes when it comes to practicality (its 478 litre boot is one of the largest in its class, for example) and, though not as exciting as the 306bhp Type-R, the Civic 5-door 126PS Sport Line available in the 0% APR deal is also good to drive. You’ll have the satisfaction of helping support the British car industry, too, as the hatchback Honda is built in Swindon.
Best large family car with 0% APR
Vauxhall Insignia Sports Tourer
Premium brands may be snapping up most of the large family car sales but only makes the more everyday marques up their game for buyer incentives. Case in point: the Vauxhall Insignia Sports Tourer. As well as being comfortable and well built, it’s also very spacious and comes with an impressive amount of kit as standard. If you’d prefer not to have an estate, the saloon-esque Insignia Grand Sport hatchback is also available with 0% finance.
Best compact SUV with 0% APR
Of the many small SUVs vying for your attention, one that we reckon is worth a closer look at is the Mazda CX-3. It’s one of the best-to-drive cars in its class and a number of versions are available with 0% finance over 24 months. The most basic on offer is the Mazda CX-3 121ps 2WD SE Nav+, which you can drive away on PCP finance for a deposit of £3,273.50 and £269 per month over 24 months, with an optional final payment of £10,055.50.
See the latest 0% finance deals for the Mazda CX-3 here
Best family SUV with 0% APR
Of the many accomplished family SUVs you can buy, one that’s definitely worth considering is the new Nissan Qashqai. Recently updated in a mid-life facelift, the Tucson is a very spacious and comfortable five-seater car that also comes with a good amount of kit as standard. No wonder, then, that the Nissan Qashqai is currently one of the UK’s best-selling new cars.
Best large SUV with 0% APR
If you crave the versatility of a people carrier in a high-riding SUV, the Tarraco might be the car for you. SEAT’s first seven-seater, which is so new the first deliveries are only just beginning, is an ideal school run workhorse for larger families and both available engines (a 148bhp petrol and a 187bhp diesel) offer a good blend of performance and fuel economy. And underneath the SEAT clothing it’s basically a Skoda Kodiaq, which is no bad thing at all. At time of writing, it’s also the only seven-seater SUV you can buy with 0% finance.
See the latest 0% deals on 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 the represent the ideal mix of practicality, safety and comfort. Of those that have survived the rise in popularity of big 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 for the car too, the Renault Grand Scenic is proof there’s still life in the MPV class yet.
Best pick-up truck with 0% APR
Fiat Fullback Cross
In comparison with Fiat’s mostly retro road car range, the Fullback Cross is a big departure from the Italian car maker’s norm. Despite this, there’s more to the truck than pure novelty value: the torquey diesel engine, all-wheel drive system and 3.1 tonne towing capacity make the Fullback Cross an excellent workhorse, and the standard-fit leather upholstery, cruise control and parking sensors means the Fiat’s quite well equipped for a pick-up.
Best sports car with 0% APR
Thirty years after the original arrived on the scene, the current 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 drive every day, all year round. Go for the “RF” version, with its folding metal roof, and you get additional levels insulation from inclement weather. Even the hard-to-please Jeremy Clarkson believes the MX-5 is a “full-on five-star gem“.
Best mid-size executive car with 0% APR
Interest free finance deals don’t often come up for mid-size executive cars, especially premium models, but Jaguar has bucked that trend with its BMW 3 Series-rivalling XE, which has just had a mid-life facelift featuring an all-new, high-tech interior. Unlike most 0% APR offers, you aren’t limited to a handful of specs here either, as the deal is available across the entire Jaguar XE range.
See the latest 0% deals for the Jaguar XE here
Best large executive car with 0% APR
Swedish car maker Volvo is on top form at the moment, and no model makes that point clearer than its flagship S90 saloon. As well as being a very handsome car, the S90’s impressive comfort and refinement make it an excellent long distance cruiser. Plus, being a Volvo, it’s also laden with safety tech.
The 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 such as air suspension, a slick digital dashboard display and a suite of safety assists. As an added incentive, the current 0% APR offer also has an £8,875 deposit contribution — bringing the total payable amount down to ‘only’ £61,080.
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; the 2018 Mégane R.S. is one of the most exciting cars in its class — “a real hoot” to drive, in fact.
(Deals correct at time of publication, but many such deals are temporary. Although this article is updated on a regular basis, Driving.co.uk cannot guarantee that every deal will remain available between updates.)