Best 0% APR car finance deals - January 2026

0% car finance deals can be a great way of getting into your ideal car affordably while paying no extra for using finance. Here are the best interest-free cars we've found.

If you're reluctant to finance your car purchase using PCP, or just want to find the best deal, 0% finance is one of the top things to look for when you're hunting for a competitive PCP offer.

Unlike most Personal Contract Purchase (PCP) agreements which incur interest (APR) over the duration of the contract, which has the knock-on effect of increasing your monthly payments, a 0% finance deal ensures you have no interest to pay for the duration of the agreement.

This means monthly payments can be more affordable and you get the satisfaction of knowing that you're only paying for the cost of the car, and no extra for the convenience of paying monthly in instalments.

While zero per cent interest on PCP finance deals are nowhere near as prevalent as five years ago, there are still really good offers available if you shop around and remain flexible with your choice of car, especially if you're thinking about going electric. It's worth noting that these deals tend to come with hefty deposits, but if you've got some savings or a car to trade in, a 0% APR deal is often worth considering.

On this page, we highlight our picks of the cheapest car finance deals you can get your hands on. They may not all be 0%, but we’ll try to find the best offers available that keep those pesky monthly payments down.

After more deals on new cars? Check out our round-up of all the best new car deals around.

Best 0% APR Car Finance Deals

Our round-up of the best 0% APR deals allows you to make the most from attracting no interest charges on a PCP agreement. This list includes 0% APR deals being offered by the biggest carmakers right now, plus our picks of the deals on individual makes and models.

What’s the difference between 0% APR and zero deposit car finance?

0% APR finance means that you don't pay any extra interest over the term of your agreement for the car you're financing than the cost of the car itself.

Zero deposit car finance means that you don't pay anything towards the deposit when you start your finance agreement. There may still be a deposit contribution paid, but that comes from the carmaker or car dealer's side.

It's quite rare, but it is possible to find PCP deals where you pay no deposit, there is a deposit contribution, and there's 0% APR on the agreement, too.

Is there a catch to 0% APR finance?

In general, a 0% APR PCP finance deal is well worth a look, as it means you're paying no extra money for the money you're borrowing to pay for your new car.

However, while a 0% deal might be enticing, it's worth making sure you're getting the best deal for you. For example, if the PCP is only offered with 0% and no other incentives, are you being tempted into choosing a more expensive car that will cost more to insure and run, too?

It may also be that the same car comes with a choice of 0% APR or an interest-charging loan that comes with a big deposit contribution. It's worth checking out both if you're not planning to buy the car to see which comes out with the cheaper monthly payments.

As with all deals, it's worth establishing the best finance product that works for you then writing down the numbers to you know exactly how much it will cost. Only then is it time to sign on the dotted line.

Can I still get the car I want?

One thing we would say is that if you're set on getting a 0% APR finance deal, it helps to have an open mind as to the type of car you’d like to drive. For example, as a way of incentivising people into to switching to an electric car, some of the most reliable 0% APR finance offers are on electric cars to encourage you to switch to an EV.

It also helps if you’re not dead set on having the absolute latest model in a carmaker’s range. If a car gets a mid-life update or facelift, quite often, surplus stock of the outgoing model can be snapped up with a zero percent deal and even a deposit contribution too, just to make sure the old cars are shifted to make way for new models.

As an example, Skoda uses this offer to shift old stock at 0% APR, while the incoming new version of the car will be offered at around 6-7% APR on PCP. The slight downside of taking the outgoing car is that it's likely to have to be ordered from stock, so you won't be able to specify the car exactly as you'd like it, but the flip side is that it'll already be waiting at the dealer so you won't have to wait to get behind the wheel.

How do I qualify for zero percent car finance?

All buyers using a finance product to get behind the wheel of a new car will have their credit rating checked, and the better your credit rating the more likely you are to be approved for a 0% car finance deal.

It’s worth checking your score and taking steps like making sure you're registered to vote at your address, and using and paying off credit cards each month to improve your rating, if you find a car that’s perfect for your needs. 

Also worth bearing in mind is that if you do go for the zero per cent offer, the deposit contribution you'll need to pay 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 ever, it's worth figuring out how long you will keep the car for, and working out the costs as they'll affect you, before signing up for any finance deal.

Can I get 0% finance on a used car?

Yes. Most car dealers have various financial products they can offer, including zero percent deals to get you on the road with a used car. However, just as with buying new, you'll need the same good credit score when your details are checked in order to sign up to an 0% APR finance agreement.

This is especially useful now as the price of used cars has been forced up due to fluctuations in demands caused by the pandemic and supply chain issues. When you go for a deal like this, it’s likely the car you’re buying is a traded-in model from a previous finance deal, which should mean it’s been well kept and the mileage will be reasonable.

However, it's worth checking the asking price for the used car you're considering. If it seems a little high, the dealer may have just added the money to the cash price it would have made with the APR on a regular finance deal, so you end up paying more anyway.

What are the alternatives to zero percent car finance?

A 0% deal might be enticing on paper, but can come with some limitations. They tend to be offered with bigger deposits, which means you need to put down a lump sum all at once.

They also tend to be offered for limited lengths, which increases the monthly payments, too. If you’re planning to spread the cost of a PCP agreement over 4-5 years, then it may not be possible. When working out the best finance deal to take, it often helps to have representative finance deals written side to side so you can see the final costs and which to opt for, which good car dealers will be happy to provide.

An option to consider if you don’t want to own the car is a Personal Contract Hire, which means you aren’t buying the car, so you aren’t paying interest. The lease just costs what you agree per month, plus an initial payment.