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
Seat has no prior experience with making a compact SUV, but you wouldn’t have thought that given how well the Arona turned out. Its compact dimensions and nippy petrol engines make it ideal for tackling urban commutes, and there’s a decent amount of interior space. The Arona impresses when it comes to safety, too, courtesy of a five-star crash test rating thanks to standard-fit tech such as autonomous emergency braking.
See the latest 0% finance deals for the Seat Arona 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 Hyundai Tucson. 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. Additional peace of mind comes in the form of a five-star safety rating and a five-years/ unlimited-mileage warranty.
See the latest 0% deals for the Hyundai Tucson 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
If you’re after something a bit tougher than a family SUV, you can’t go too wrong with a Nissan Navara. Though not as cossetting as an X-Trail, the latest Navara is well-appointed and surprisingly comfortable, in addition to having all the practicality you’d expect from a pick-up. The four-wheel drive versions are pretty handy off road, too.
See the latest 0% deals for the Nissan Navara here
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“.
The best 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.)