Best 0% APR car finance deals - July 2025
0% car finance deals can be a great way of getting into your ideal car for minimal outlay. Here are the best interest free cars we've found.
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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.
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.
Abarth
- The Abarth 600e is available on 60-month conditional sale at 0% APR with a minimum 40% deposit and £1850 deposit contribution or PCP with a £1850 deposit contribution, starting at £499 a month for 48 months
- The Abarth 500e is available as above, including 0% APR, with a £450 deposit contribution, starting at £359 a month
- Find out more on these deals
Alfa Romeo
- The Alfa Romeo Junior Ibrida is 0% APR with a 20% deposit making it £233 a month over 24 months. The rest of the Junior range is 4.9-5.9% APR
- Deposit contributions are available on Alfa Romeo Tonale (£2000-£5500), Alfa Romeo Giulia (£1000-£2000) and Alfa Romeo Stelvio (£1000-£2000) depending on model, while 0% APR with a 30% minimum deposit is also available
- Find out more on these deals
BYD
- PCP deals include the BYD Dolphin from at £279 a month with 0% APR, a £279 customer deposit and £1300-£1600 dealer discount
- The BYD Atto 3 starts at £399 a month with 0% APR, £399 down, a £3100 deposit contribution and a £1800+ dealer discount
- The new BYD Dolphin Surf starts at £269, the BYD Seal U DMi at £349, the BYD Seal at £479 and BYD Sealion 7 starts at £489 a month
- Find out more on these deals
Dacia
- The Dacia Spring is available with 0% APR over 48 months and a £2250 deposit contribution
- Find out more on this deal
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- The Fiat 500e has 0% APR on PCP, the Fiat 600e has a £150 contribution, and the Fiat 600 Hybrid has a £900 deposit contribution
- These models are available on 60-month conditional sale with 0% APR with a minimum 40% deposit, plus the same deposit contribution discounts
- Find out more on these deals
Ford
- Selected Ford Kuga are 0% APR and the Kuga PHEV adds a £1000 deposit contribution, too
- Selected Ford Focus models have 0% APR and £750 towards deposits
- The Ford Explorer has a £3700 deposit contribution and 0% APR over four years, the Ford Capri (£3700 and 0% APR), Ford Mustang Mach-E (£7000 discount and 0% APR) and Ford Puma Gen-E (0% APR) also have offers
- Find out more on these deals
Honda
- The Honda e:Ny1 is available with 0% APR and a £5000 deposit contribution
- Find out more on these deals
Hyundai
- Deposit contributions include the Hyundai Inster (£1000), Hyundai i20, Hyundai Bayon and Hyundai i30 (£1750), Hyundai Tucson, Hyundai Ioniq 5 and Hyundai Ioniq 6 (£2000)
- Non-electric Hyundai Kona, Hyundai Inster, Hyundai Ioniq 5 and Hyundai Ioniq 6 are 0% APR
- Find out more on these deals
PCP Deal: Hyundai Kona Advance
£254 a month: 2 year PCP at 0% APR and no deposit required
The Hyundai Kona is bigger and better than the car it replaced, adding extra space and much more striking looks to the proven recipe of decent value and lots of equipment as standard. There's a choice of offers on the Kona, and we've picked the 0% APR option limited to 24 months, which is detailed below.
The same 0% APR deal is available with no customer deposit required, which makes monthly payments a more significant £585 on a 10,000 miles per year PCP agreement. There is also a 49-month PCP deal with a £1000 deposit contribution at 4.9% APR. A £5000 customer deposit makes monthly payments just under £300.
Deposit | Monthly Payments | Optional Final Payment | Total Payable | Mileage Per Year | Deal Available Until |
£7200 | 24 x £253.58 (£6085.92) | £15,249 | £28,535 | 10,000 | 30th September 2025 |
Jeep
- PCP deposit contributions on the Jeep Renegade (£1250-£3750), Jeep Compass (£4750-£6250), Jeep Wrangler (£3750-£4750) and Jeep Grand Cherokee (£5500-£7500) are available
- The Avenger is 0% APR with a minimum 10% deposit
- Find out more on these deals
KGM Motors
- All KGM models are 0% APR when you pay 50% upfront, then the remaining 50% 12 months later
- The KGM Torres EVX is available on a 36-month PCP deal from £310 a month. This has 0% APR but requires a minimum 20% deposit
- Find out more on these deals
Lexus
- Selected Lexus RZ and Lexus UX Electric models are available with 0% APR and a £4500 deposit contribution
- Deposit contributions are also available on selected Lexus LBX (£750), Lexus NX (£1000), Lexus UX (£2000), and Lexus RX models (£1500-£5000)
- Find out more on these deals
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- The Mazda2 Hybrid starts at £199 a month, the Mazda CX-30 starts at £259 a month, the Mazda CX-5 starts at £279 a month and the Mazda MX-30 R EV starts at £309. All are 0% APR
- The Mazda CX-60 PHEV is 0% APR and has a £2000 deposit contribution, and the Mazda3 has a £1500 deposit contribution and 3.9% APR
- Find out more on these deals
PCP Deal: Mazda2 hybrid Centre-Line
£199 a month: 4 year PCP at 0% APR
The Mazda2 hybrid is the Mazda-badged twin of the Toyota Yaris. The Mazda is slightly more expensive to buy than the respective Toyota, and both are currently available with a 0% APR deal.
However, the Mazda works out cheaper per month when you apply the same 6000-mile a year limit and deposit amount. The Toyota 0% APR deal is limited to 24 months, while Mazda lets you pay across 48 months. The Toyota 48-month deal is 2.9% APR.
Deposit | Monthly Payments | Optional Final Payment | Total Payable | Mileage Per Year | Deal Available Until |
£5394.27 | 47 x £199 (£9353) | £9833 | £24,580 | 6000 | 30th September 2025 |
MG
- The MG4 starts at £299 per month, the MG HS PHEV starts at £279, the new MGS5 starts at £269 and the MG4 XPOWER starts at £389, all with 0% APR
- Deposit contributions include the MG3 Hybrid+ (£250-£750), MG ZS Hybrid+ (£500-£750) and MG HS (£250-£500)
- MG is offering a £1000 test drive voucher redeemable on new MGS5, MG4, MG4 XPOWER, and MG HS PHEV until 30 September
- Find out more on these deals
Nissan
- All Nissan Ariya models are 0% APR with a £2750-£3750 deposit contribution, except the Ariya Nismo, which is 1.49% APR with £2225 towards your deposit
- Find out more on these deals
Omoda
- The electric Omoda E5 is £349 a month with a £3867 deposit, a £1000 deposit contribution and 0% APR
- Find out more on these deals
Peugeot
- Deposit contributions include the Peugeot 208 (£750-£4150), Peugeot 2008 (0% APR), Peugeot 308 (£2250-£2500), Peugeot 408 (£1750-£2000) and Peugeot 5008 (£1500 and 0% APR)
- Electric models with deposit contributions include Peugeot e-208 (£2100), Peugeot e-2008 (£800-£1850), Peugeot e-308 (£2350), Peugeot e-3008 (£2750 and 0% APR), Peugeot e-408 (£2450) and Peugeot e-5008 (£2500 and 0% APR)
- Find out more on these deals
Polestar
- The Polestar 2 starts at £399 a month with an £8800 deposit, the Polestar 3 starts at £599 a month with a £14,100 deposit and the Polestar 4 starts at £499 a month with a £10,500 deposit. All are 0% APR and have a £2000 discount
- Find out more on these deals
Renault
- Deposit contributions on 48-month PCP include the Renault Captur (£200-£600), Renault Clio (£750-£1000), Renault Symbioz (£750-£1250), Renault Austral (£500-£1500) and Renault Rafale (£750-£2500). All models are also available with 0% APR over 24 months
- The new Renault 5 and Renault 4 are 0% APR over two years or 5.9% APR and up to £500 deposit contribution over four years. The Renault Megane E-Tech is 0% APR and the Renault Scenic E-Tech is 0% APR over 24 months or 5.9% with up to £1500 deposit contribution over 48 months
- Find out more on these deals
PCP Deal: Renault 4 Evolution 42kWh Comfort Range
£210 a month: 2 year PCP at 0% APR
The Renault 4 could be the EV for you if you love the new electric Renault 5's mix of retro and modern flavours but need more space. Just as with the 5, Renault is offering 0% APR PCP deals on the 4 starting at £210 a month for two years, although deposits do start at a sizeable £8099.
Another option is the 48-month 5.9% APR deal on all models, which means monthly payments go up by £99, to £309, but the deposit drops to £4289, with Renault chipping in up to £500 towards your deposit.
Deposit | Monthly Payments | Optional Final Payment | Total Payable | Mileage Per Year | Deal Available Until |
£8099 | 24 x £210 (£5040) | £13,850 | £26,995 | 6000 | 30th September 2025 |
Skoda
- Deposit contributions are available on the Skoda Scala and Skoda Fabia (£1750), Skoda Kodiaq TSI and TDI (£2000), Skoda Kamiq (£2250), Skoda Karoq and Skoda Octavia (£3000), Skoda Superb (£3250) and Skoda Kodiaq PHEV (£4000)
- The new Skoda Elroq and facelifted Skoda Enyaq are 0% APR over 36 months or have a £2750 contribution at 6.4% over 48 months
- All models are also currently available with 0% APR on maximum 24-month terms
- Find out more on these deals
PCP Deal: Skoda Fabia SE Edition 1.0 MPI 80PS
£290 a month: 2 year PCP at 0% APR
The Skoda Fabia is perhaps the ideal small hatchback. It's very refined and quiet for a small car, comfortable to drive and features plenty of tech, too. The Fabia is available on a 24-month PCP with 0% APR that requires a customer deposit of £3714 and £290 a month, plus there's the option of adding the car's first two services for £299.
For the same deposit, you can opt for a 48-month PCP deal at 6.4% APR with monthly payments of £211. This deal comes with a £1750 deposit contribution.
Deposit | Monthly Payments | Optional Final Payment | Total Payable | Mileage Per Year | Deal Available Until |
£3713.57 | 23 x £290.31 (£6677.13) | £10,239.30 | £20,630 | 10,000 | 30th September 2025 |
Smart
- Smart is currently offering the Smart #1 Pro+ electric SUV with a £2000 discount and 0% APR on PCP, making monthly payments £379 over 48 months with a £379 deposit
- Find out more on this deal
Suzuki
- The new Suzuki e Vitara is available with 0% APR on a 25-month PCP with a minimum 20% deposit or over 49 months at 2.9% APR with a £500 deposit contribution and no minimum deposit
- The Suzuki Swift is available from £109 a month with 0% APR on a 25-month PCP with a minimum 20% deposit or over 49 months at 5.9% APR with a £500 deposit contribution and no minimum deposit
- Find out more on these deals
Tesla
- The Tesla Model Y SUV is available from £349 with a £9210 deposit and 0% APR over 36 months, plus a £2000 deposit contribution
- The Tesla Model 3 starts from £299 per month with £8840 deposit and a £3000 deposit contribution at 0% APR over 48 months
- Find out more on these deals
Toyota
- PCP deposit contributions include the Toyota Aygo X (£300), Toyota Yaris Cross (£750), Toyota Yaris (£800), Toyota Hilux, Toyota C-HR (£1500-£3500) and Toyota RAV4 PHEV (£1500), Toyota Prius PHEV (£2000) and Toyota Corolla (£3200)
- The C-HR, Corolla and Yaris can also be had with 0% APR over 24 months
- The Toyota bZ4X is available with 0% APR and a £4000 deposit contribution
- Find out more on these deals
Vauxhall
- Offers on PCP include the Vauxhall Corsa (£500 off and 0% APR), Vauxhall Mokka (£625 off and 0% APR), Vauxhall Grandland (£900 off and 0% APR) and Vauxhall Astra (£675 off and 0% APR)
- Opt for electric and the contributions and 0% deals are the same
- Find out more on these deals
Volkswagen
- Deposit contributions include the VW Polo, VW Taigo and VW T-Cross (£1400), VW Tayron (£1500), VW Tiguan (£1850), VW T-Roc (£2500), VW Golf (£3000), VW Passat (£4750) and VW Touareg (£8500)
- The electric VW ID.3 (£2500), VW ID.4 (£4000), VW ID.5 (£3500) VW ID.7 (£1000) are available with 0% APR over 36 months. Deposit contributions are £6000, £7000, £7000 and £2000 respectively on a 48-month term at 6.9% APR
- Find out more on these deals
PCP Deal: Volkswagen ID.4 Match 52kWh Pure 170PS
£394 a month: 3 year PCP at 0% APR with £4000 deposit contribution
The Volkswagen ID.4 is a solid entry point into the EV world as it's spacious and should cost pennies to run. This deal is 0% APR PCP with £4000 towards your deposit, with a £7918 customer deposit to pay. There is a 48-month option at 6.9% APR, too, with a £7000 deposit contribution, making it £415 a month with a £5939 customer deposit.
Deposit | Monthly Payments | Optional Final Payment | Total Payable | Mileage Per Year | Deal Available Until |
£7918.30 | 35 x £393.54 (£13,773.90) | £13,897.80 | £39,590 | 10,000 | 30th September 2025 |
Volvo
- EV discounts include the Volvo EX30 (£1000) and Volvo EX40 (£6000). Opt for mid-range Plus or top-spec Ultra trim and you get 0% APR
- Find out more on these deals
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.