While the news might be full of talk of inflation and high interest rates, there are still some fantastic zero interest offers on new cars to be had. Granted, there's not quite the widespread choice that there was before the pandemic and the subsequent supply issues, but provided you're a little flexible on the model and trim you're after, you'll be able find a cracking 0% car finance deal.
But with a range of new car deals available to buyers, why should you be looking at a 0% finance car deal?
Even the best PCP car deals will incur interest (APR) over the length the contract (this can very in length, from as little as 12 months to cover 48 months). This means that on top of your monthly payments for the car, you'll be paying interest on top of this and the result is higher monthly payments each month. What makes 0% APR car finance deals so attractive is as the name suggests, you pay absolutely no interest over the term of your agreement.
The result is lower monthly payments and you're only paying for the cost of the car (it you take up the optional final payment). One thing to bear in mind though is that you might be required to put down a larger deposit than if you were paying interest on a PCP deal, but that's a consideration you have to weigh up with your financial circumstances.
So, if you're looking to get the cheapest car finance deals on the market, we've searched all the current manufacturer finance offers to round up the best 0% car finance deals just for you.
We’ve said that the MG4 is the best budget electric car, and when it’s available with 0% APR it’s even more attractive. You can drive around in the SE 125kW 51kWh model for just £99 per month, and if you want the more powerful, longer-range models then they’re just £30 or £60 pounds more each month.
The GWM Ora 03 (or you probably know it by its original name, the Funky Cat) is an electric car packed with personality and charm, and represents excellent value for money. And that’s even more the case with 0% APR, with the deposit made a bit more manageable thanks to a £4000 contribution.
The BYD Dolphin is an able and affordable new electric car, that is even more accessible thanks to a striking low deposit deal. The 0.5% representative APR is very low, and a further discount of £1463.89 helps make this a very competitive overall package.
This Fiat 500 Electric deal proves that not all EVs are expensive. It's currently available on a 0% APR PCP finance deal. The choice Icon model, fitted with a beefy 42kWh battery, is available for £299 a month. The deposit is just £999, and Fiat adds in a £3000 'e-Grant' price cut.
The new Ford Explorer electric SUV is now open for ordering. The first cars will arrive in September and the company is aiming to launch with a bang thanks to an appealing PCP deal with 0% APR. It means those who can find the £9881 deposit, and £380 a month, won't pay a penny in interest over four years.
The Lexus UX 300e is a posh electric small SUV that recently received a 40% boost in EV range to a handy 279 miles. It is currently available with 0% APR finance, spread over four years. Monthly payments are kept in check by a generous £4500 Lexus deposit contribution, and owners can cover up to 8000 miles a year.
The Polestar 2 is a dynamic crossover EV rival to the Tesla Model 3, and a facelift in 2023 made it even more competitive. You can now get a Dual Motor version with the Long Range battery for £444 a month, thanks to a £5k saving and free £4k Plus pack. It's a 0% finance PCP car deal, too.
Toyota’s fully electric SUV is loaded with standard tech and very comfortable to drive, with a battery range of up to 270 miles. Thanks to Toyota’s latest deal, offering 0% APR and a £2000 deposit contribution, you could drive a Vision model with optional pearlescent paint included for just £459 a month.
One of the most exciting electric cars to be launched last year, the Hyundai Ioniq 6 blends sleek looks with some impressive technology. This Premium spec car comes with an excellent array of standard features and a range of 338 miles.
The Jaguar I-Pace was a trailblazing electric car and is still a brilliant EV today. Fun to drive, there's lots of standard equipment, while this EV400 model has an official range of 292 miles and will hit 62mph in as little as 4.8 seconds.
If you've found the perfect car for you on a 0% finance deal and you can afford the monthly repayments for the loan period, it's not quite a done deal. As with any loan you take out, a zero interest car finance deal needs to be approved, and the better your credit rating, the more likely you are to be accepted.
While you're not paying any interest on a 0% car finance deal, you will still need to put down a deposit. Compared to some car deals where you're paying interest each month, you might find you need a larger deposit to secure the deal. The good news is that in some instances the manufacturers will support this with a deposit contribution.
Also worth bearing in mind is that if you do go for the zero per cent offer, the deposit contribution to start with may also be higher than a deal which incurs some kind of interest payment over its duration. Monthly payments may be higher, too.
As you'll see from our list of the best 0% car finance deals, there are a wide range of different cars available, from brilliant small cars to large electric SUVs, so the car you choose really comes down to your needs and budget. One thing to be mindful of though is you might not be able to get the trim or engine you're specifically after, the 0% car finance deals tend to be offered on a specific model and engine combination. If you're prepared to compromise a little on the spec, you can get a great deal on a new car.
By offering a 0% car finance deal, it's a great way for manufacturers to attract potential buyers as these deals can be appealing to buyers and tempt them away from rival manufacturer deals.
You can, but you'll have to look a bit harder for these deals. That said, large dealers tend to offer a range of financial products to get you behind the wheel of a car, including 0% offers.
Any deal where you get a free loan is a good dea. Because you're not paying interest each month you can potentially save yourself thousands of pounds for the period of the loan agreement. Remember though that some of these deals can run over 4 years, so make sure you're picking the right car for your needs for both now and in the future. You also have to be comfortable stumping up what can be a sizeable deposit.
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