BUYING a car on finance is an appealing proposition. You don’t have to save up or spend what savings you may already have, leaving your finances free for other things, such as family holidays or work on the home. Instead, the cost of the car is spread over a defined time period, often three years, and monthly payments make a 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 there are some loans that charge nothing, though, saving consumers thousands of pounds. These 0% finance deals aren’t all that common, and of the few there are, many are only offered for a limited period.
We’ve gone through manufacturer websites and in this buying guide highlight the best cars in a variety of shapes, sizes and budgets that are available with a 0% finance package.
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 on new cars could be an offer you can’t afford to miss.
The best small car with 0% APR: Ford Fiesta
With an attractive range of 0% APR finance offers to choose from, it’s perhaps no surprise the Ford Fiesta remains the UK’s most popular new car by far.
Better still, there’s plenty more to like about the all-new Ford Fiesta, which launched last year, than the finance deal. Big leaps in areas like space and build quality have been made over the old car, and the Ford Fiesta still has the best-judged comfort/handling balance you’ll find in this class.
See the latest 0% deals on the Ford Fiesta here
The best compact family car with 0% APR: Ford Focus
If the Fiesta’s a bit too small for you, there’s also the all-new Ford Focus, which is fresh in the showrooms this summer. Like its smaller sibling, the new Focus is a sizeable improvement over its predecessor, and remains just as fun to drive as the old car.
You’re in luck too if you want one with a 120bhp 1-litre petrol engine, as currently the 0% APR deals only include two trims with that engine specified.
See the latest 0% deals on the Ford Focus here
The best large family car with 0% APR: Vauxhall Insignia Grand Sport
Executive brands may be snapping up most of the large family car sales, but cars from less upmarket makers are still shortlist worthy. Case in point: the Vauxhall Insignia Grand Sport. As well as being comfortable and well built, it’s also very spacious and comes with an impressive amount of kit as standard.
See the latest 0% deals on the Vauxhall Insignia Grand Sport here
The best compact SUV with 0% APR: Honda CR-V
It may be a bit overlooked in favour newer rivals, but the Honda CR-V is still worthy of your attention. Few mid-size SUVs are as versatile or as spacious as the Honda (its clever ‘Magic Seats’, which fold up to free up the entire rear floor space — good for tall loads like pot plants — is particularly ingenious), and it performs well in owner satisfaction surveys.
At present, the front-wheel drive manual gearbox CR-V 2.0 I-VTEC SE Plus Navi is available with a £1,000 test drive incentive, £1,000 deposit contribution and 0% APR, and Honda will even add five years’ servicing for £599 – that’s well worth it.
With an all-new Honda CR-V due to go on sale before the end of the year, you might be able to get them to throw in an option or two, too.
See the latest 0% deals on the Honda CR-V here
The best large SUV with 0% APR: Jeep Grand Cherokee
The Jeep Grand Cherokee helped popularise large SUVs back in the ’90s but lost ground to rivals in subsequent years until the latest, fourth-generation model arrived in 2011. It revived that rugged, “big, bad and proud” appeal that so caught the public’s attention the first time around. A facelift in 2014 added a bit of sophistication but it’s still an unashamedly large bruiser of a car.
While it can’t quite match some rivals for refinement and premium feel, it does represent decent value for money, especially if you snap up the 0% APR deal with £7,250 deposit contribution, five years free warranty, three years servicing and five years roadside assistance.
See the latest 0% deals on the Jeep Grand Cherokee here
The best people carrier (MPV) with 0% APR: Renault Grand Scenic
The golden age of the MPV may be long behind us now, but that doesn’t mean people carriers shouldn’t be on your radar. Of those that have survived the rise in popularity of big SUVs, we reckon the Renault Grand Scenic is one of the best out there – 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.
See the latest 0% deals on the Renault Grand Scenic here
The best sports car with 0% APR: Mazda MX-5 RF
The world’s best-selling roadster combines a fun drive with good looks and affordability. The two-seater MX-5 becomes even more affordable on a 0% finance deal, which Mazda is currently offering on a limited basis when choosing a hire purchase agreement. Jeremy Clarkson called the MX-5 a “full-on, five-star gem.”
See the latest 0% deals on the Mazda MX-5 RF here
Read Driving’s comparison of the Mazda MX-5 and Fiat 124 Spider
The best executive car with 0% APR: BMW 6 Series Gran Turismo
The big BMW 6 Series Gran Turismo is slightly odd-looking but its challenging aesthetics resulting in an executive commuter that’s as practical as it is luxurious, with a hatchback boot lid and plenty of space inside. It also happens to be good fun to drive despite its considerable size.
The current BMW 620d M Sport Gran Turismo 0% finance offer includes a £2,316.75 deposit contribution.
The best luxury car with 0% APR: Audi A8
A good deal is always welcome, even if you can afford a luxury car. As such, the already rather lovely Audi A8 becomes an even more tempting ownership proposition when you factor in its 0% APR finance arrangement.
The deposit of £10,777 by itself is enough to buy some entry-level superminis, but you end up with a cracking on one of the best, most high-tech luxury cars on the road.
See the latest 0% deals on the Audi A8 here
Read Jeremy Clarkon’s review of the Audi A8
Driving’s bonus car with 0% APR: BMW i8 Coupé
Though most 0% finance deals are only featured on mass market cars, you do every now and again see performance vehicles. We didn’t expect to see the ultra-exclusive, £112,000 BMW i8 offered with a 0% deal, though.
BMW has gone even further by contributing £10,000 on top of what you want to put down for a deposit, and the PCP deal’s maximum annual mileage limit option of 16,000 miles is very decent indeed considering some owners will want to garage it and keep the mileage down; it suggests BMW really does see the i8 as a hybrid supercar you can drive every day.
See the latest 0% deals on the BMW i8 here
(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.)