Top 10 Best 0% Finance Deals

Taking out finance can often be the easiest way to get yourself into a new car, one of the cheapest ways to do that is to find the best 0% finance deals out there.

Finance works on paying a set annual percentage rate, APR for short. It’s much the same as a loan, so the money from the manufacturer’s finance company buys the car from the dealer, you then pay the finance company back at a set APR.

You have to keep an eye on these, sometimes it’s often better to get a personal loan as the rates can be more favourable.

Recent years have seen a big increase in 0% finance car deals though, whether that’s for PCP car finance or HP.

top best 0% finance deals
0% finance deals are almost exclusively offered direct by manufacturers.

If you can find one of these deals on a hire purchase (HP) offer, then you’ll be beating the banks as you won’t be paying anything for being lent the money.

With the majority of these 0% finance deals, you’ll still have to place a deposit, while some of these can be inflated to cover the cost of the lending, others aren’t.

0% finance deals can be the absolute cheapest way to get a great new car deal.

Our current top 0% finance deals of 2020 are:

  1. Ford Fiesta Active
  2. Renault Captur
  3. Nissan X-Trail
  4. Skoda Fabia
  5. Peugeot 308
  6. Vauxhall Corsa
  7. VW Touareg
  8. SEAT Tarraco
  9. Ford S-Max
  10. Peugeot Traveller

1. Ford Fiesta Active

We couldn’t start our list with anything but the most popular car in the UK, the humble Ford Fiesta.

This ‘Active’ model of the Fiesta gives it ruggedised exterior looks, slightly higher ride height and a set of satin silver roof rails. You also get 17” alloy wheels and an 8” infotainment system.

Ford Fiesta Active, a great 0% deal from Ford
Ford’s Fiesta Active is currently a great 0% finance offering.

Now the deposit is relatively hefty, £3,454 in total. But if you use Ford Credit to finance the Fiesta they’ll contribute £1,000 too.

Monthly instalments of £195 follow for three years, that’s based on a generous 9,000 mile per year allowance and an optional final payment if you want to keep the car of £7,000.

This is available on the five-door, 1.0 litre EcoBoost engine Fiesta Active with 98 BHP.

See the deal with Ford by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £195 a month
  • Deposit of £2,454 – £3,454
  • 0% APR
  • Three-year term
  • Decent engine
  • Healthy kit levels on the ‘Active’

2. Renault Captur

Just a bit bigger than a Clio, Renault’s Captur gives you that high up driving position with crossover looks to match. It’s been out for a good few years now and its replacement is just around the corner.

If that doesn’t bother you, then there’s an excellent 0% APR deal with no deposit. That includes a £1,000 customer saving.

Sadly, the 0% APR offer is only on the entry-level ‘Play’ model. This still includes; 16” alloy wheels, LED front fog lights, cruise control with speed limiter, manual air-con, and the swanky Renault hands-free key card instead of a car key.

Renault Captur Crossover
A brand new Renault Captur for just £189 with 0% APR, crazy.

Prices start at £15,730 for the ‘Play’, it may be the basic trim, but it still has most of the creature comforts you’d look for in a new car. It does, however, lack an infotainment screen.

There are two engines to pick from, a TCe 90 three-cylinder petrol or a dCi 90 diesel. Both have 90 HP as the name suggests. Any other colour options apart from the dull ‘Boston Blue’ cost extra, prices vary between £560 and £660 depending on what you pick.

Over 4 years the 0% PCP deal equates to £189 a month, that’s with no deposit. There is an optional final payment of £5,424 if you want to keep the car.

See the deal with Renault by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £189 a month (PCP)
  • £0 deposit
  • 0% APR
  • Four-year term
  • Basic model
  • Only two engines choices
  • Model likely to be replaced relatively soon

3. Nissan X-Trail

Nissan have a couple of 0% PCP deals on offer at the moment, including the ever-popular Qashqai. Our pick, however, is its larger brother, the X-Trail.

The X-Trail is known for its go-anywhere, off-road abilities, this particular model features that 4×4 setup, making it ideal for countryside living through the winter months.

It’s also in ‘N-Connecta’ trim which is one below the top-level ‘Tekna’. This means you have a ton of kit as standard; 18” alloys, roof rails, hands-free opening boot, keyless ignition, 360-degree cameras and the new NissanConnect EVO touchscreen system.

Nissan X-Trail a large sized SUV
Nissan’s X-Trail is a capable off-roader as well as a great tow car.

As it’s the 4×4 version, there’s just the one engine choice, that’s a 1.7-litre diesel engine which makes 148 BHP, perfect for both towing and getting out of muddy situations. Oh, and there are seven seats too, ideal for larger families.

You will have to pay a reasonably hefty deposit to take advantage of the 0% offer though, £7,361. Over three years with a 10,000 mile a year allowance you’ll be paying £349 a month.

There’s also an optional final payment of £12,576 if you want to keep the car.

See the deal with Nissan by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £349 a month (PCP)
  • £7,000 deposit
  • 0% APR
  • 4×4 abilities
  • Seven seats
  • High spec

4. Skoda Fabia

If you’re after a decent car to get you from A to B cheaply, then the Fabia ticks all those boxes. It won’t however tick the ‘fun’ or ‘exciting’ boxes, but you can’t have everything.

The Fabia is the ‘white good’ of the car world. It serves a purpose and does a job. And it does so incredibly cheaply thanks to a superb 0% finance deal from Skoda.

They’ll give you £1,250 toward your deposit as long as you use their ‘Solutions PCP’ plan. You’ll also get the offer of a £99 service plan and 0% APR.

Skoda's Fabia makes for a super cheap car to insure.
The Fabia is competitively priced, spacious and one of the cheapest cars to insure.

As with most of these deals, they’re only available on the entry-level models, this is mostly to entice you in. But stick to your guns, and you could have four years of ridiculously cheap motoring.

‘S’ trim still gives you some decent features though; LED daytime running lights, a 6.5” touchscreen, electric front windows, tyre pressure monitoring, body-coloured mirrors and door handles.

There’s only one engine choice, the three-cylinder petrol 1.0 MPI with 58 BHP, so you won’t be setting the world alight anytime soon.

Basic, but incredibly cheap. How cheap? £105 a month to be exact.

That’s over 4 years with a 10,000 mile per year allowance. A deposit of £2,239 is required by yourself, along with the £1,250 Skoda contribute. An optional final payment of £4,110 will mean it’s yours forever if you so desire.

See the deal with Skoda by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £105 a month
  • £2,239 deposit
  • 0% APR
  • Entry-level model
  • Great MPG
  • Fabia has just been facelifted

5. Peugeot 308

If you’re after a Volkswagen Golf but can’t quite afford it in your budget, look no further. The Peugeot 308 is a superbly good hatchback for the money, rivalling the infamous Golf in nearly every aspect.

Recently it’s undergone a slight facelift both inside and out, meaning the tech has seen a significant uplift. Putting it on par with the last generation Golf – sadly the new VW Golf has just launched which is leaps and bounds ahead of anything else in the segment.

Peugeot 308, a cut price bargain Golf
Just like a Golf but far cheaper, especially with a great 0% finance deal.

Peugeot are currently offering a few 0% deals, and you can pick either the 308 in hatchback form or estate, depending on the size you need. The difference between the two is just £10 a month in most cases.

A mid-level ‘Tech Edition’ model is just £329 a month on the Peugeot ‘Passport’ plan. A £1,625 deposit gets you 6,000 miles a year mileage allowance over the 48 month term with 0% APR.

You can find cheaper deals on the 308 range, but expect to pay higher deposits unless you customise the deal yourself.

See the deal with Peugeot by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £329 a month
  • £1,625 deposit
  • 0% APR
  • Good levels of kit on ‘Tech Edition’ trim
  • Frugal 1.2-litre engine

6. Vauxhall Crossland X

An often overlooked small crossover is Vauxhalls Crossland X.

Currently, the deals they have are on conditional sale, meaning you purchase the car at the end of the term. That’s with 0% APR and £0 deposit, win win.

Vauxhall Crossland X Crossover
With no deposit and 0% APR it’s hard to ignore the Crossland X.

Vauxhall are offering the same deal on PCP where they will contribute your deposit. The amount over 48 months drops to £240, but there’s a hefty £5,693 final payment to own the car.

HP works out more expensive at £390 a month over the same time frame, but at least you’ll own it outright at the end.

This is one of those rare situations where an offer from a manufacturer can beat that of a personal loan from a bank.

That price is for a 1.2 litre Grandland X in ‘Sport’ trim with just 82 BHP, if you want something more high end, say the ‘Elite’ model with 109 BHP expect to pay £436 a month for four years, or £339 over five years. You can change the term and deposit amount if you wish.

So yes, it may not be the prettiest crossover out there, but with no deposit and 0% APR it’s hard to argue with.

See the deal with Vauxhall by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • From £240 a month
  • £0 deposit
  • 0% APR
  • Flexible deposit and term

7. VW Touareg

It’s pretty rare for VW to run a 0% finance deal, their cars are so popular they just don’t need to shift them with cut-price deals or offers. But they’re currently running a 0% finance deal on their biggest, most luxurious SUV, the Touareg.

VW are also giving £2,000 towards your deposit when you use their ‘Solutions Personal Contract Plan’, their own finance company in other words.

The model on offer is the diesel 3.0 litre V6 in SEL trim, it comes with 4MOTION four-wheel drive an eight-speed DSG gearbox and has just under 230 HP at its disposal.

Volkswagen's largest SUV the Touareg
It may require a big deposit, but £405 a month is incredibly cheap for such a large SUV.

As standard you get 19” alloy wheels, the incredible Discover Pro infotainment system with gesture controls, leather seats, heated front seats, LED headlamps, parking sensors all around and adaptive cruise control.

SEL may be the entry-level model, but it packs enough tech and kit from the start, so you’re not left wanting.

Over four years you’ll be paying just £405 a month with 0% APR. You will need a hefty deposit though, £7,998. But with the VW contribution, this drops to £5,998.

There’s a generous 10,000 mile a year allowance, and the optional final payment comes out at £20,611.

See the deal with Volkswagen by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £405 a month
  • £5,998 deposit
  • 0% APR
  • Incredible fit and finish inside
  • Infotainment system is class-leading
  • 4×4, ideal car for towing.

8. SEAT Tarraco

Another large SUV, this time from VW’s sister brand SEAT. The Tarraco is the biggest car they make, think of it as a jacked-up Skoda Octavia estate in terms of its size.

It’s only available as a seven-seater form so ideal for larger families, those rear-most seats also fold flat, ideal if you’re going to be carting around the dog.

Current offers are on the ‘SE Technology’ or ‘XCELLENCE’ trim, both with the 1.5 EVO TSI 148 BHP engine.

Skoda Karoq Motability
The Karoq SUV covers all bases.

Luckily both are 0% interest and 0% APR over the 48 month term, there is however a final payment of over £11,000 if you want to keep both cars.

The ‘SE Technology’ comes in at £265 a month, while the ‘XCELLENCE’ is slightly more at £289.

In with that, you get a decent 10,000 mile a year allowance, you’ll also need a pretty large deposit of £5,739 for the lower spec model or £5,000 for the range-topping ‘XCELLENCE’.

See the deal with SEAT by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £265 a month
  • £5,000 deposit
  • 0% APR
  • Fairly new model
  • Seven seats
  • Great spec on both options

9. Ford S-Max

It’s hard to tell the Ford S-Max and Galaxy apart, to all intents and purposes they offer the same thing, a large practical MPV for seven.

Look a little closer, and you’ll see that the S-Max is a tiny bit sportier in its appearance, think of it as a Galaxy in a catsuit.

These days you can only get the S-Max in automatic form, and there’s also just the one 2.0 litre diesel engine to pick from. It has 188 BHP and can be optioned with all-wheel drive if needed.

Ford S-Max offers 7 seats but more stylish lines than the Galaxy
The Ford S Max: stylish, spacious and fuel-efficient, it’s a great choice for families.

A hefty deposit of £12,000 will need to be found to get the 0% interest deal, there’s also an optional payment of £13,000 to keep the S-Max at the end of the short three-year term.

This offer is only available on the ‘ST-Line’ trim, which is one below the range-topping ‘Vignale’. That does mean it has all the toys you could ever want, including unique ST-Line badging, sportier exterior looks, sports suspension and Salerno part-leather sports seats.

In terms of mileage allowance you get 9,000 per year, and thanks to that rather large deposit the monthly payments are only £289.

There are cheaper seven-seat options, but if you don’t like the whole crossover movement of late, you’ll find far more room and practicality in the S-Max.

See the deal with Ford by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £289 a month
  • £12,000 deposit
  • 0% APR
  • Lots of space inside
  • Easy to get into and out of
  • Short three-year deal

10. Peugeot Traveller

Finishing off our list with one of the newer seven-seat options on the market, Peugeot’s traveller. Before you turn your nose up at it, yes, it is based on the Peugeot Expert van, but that’s not a bad thing.

VW has been doing it for years with the Transporter, and Peugeot have aimed to take a slice of the MPV pie.

£489 a month will get you a brand-new Peugeot Traveller, yes, you’ll need to put down a £2,222 deposit beforehand, and that is over a 48-month term with just 6,000 miles per year.

It makes the Traveller an ideal getaway, or weekend family lugger.

The van based Peugeot Traveller offers luxury travel on a budget
One of the cheapest seven-seaters out there on finance at the moment, the Peugeot Traveller.

That offer is based on the Peugeot ‘Passport’ finance deal, and the model we’re looking at is the ‘Allure’ with the BlueHDi 150 engine. As with the 308, you can find lower monthly prices, but that means bumping down to the bog standard ‘Active’ trim.

‘Allure’ is top of the range for the Traveller and has a full leather interior throughout, 3D connected nav with voice recognition, electric sliding doors on both sides, 180 degree reversing camera and 17” alloy wheels.

All that is on top of the standard 7” touchscreen, rear parking sensors, dual-zone climate control, dog lights and cruise control.

There’s just the one 2.0 litre engine to pick from, but you can opt for an 8-speed automatic instead of the manual.

Peugeot Passport allows you to edit the finance deal so you can lower the deposit and up the mileage if required, the 0% finance remains.

See the deal with Peugeot by clicking here.

Note: Last checked Dec 2019

Deal summary:

  • £489 a month
  • £2,222 deposit
  • 0% APR
  • Deal can be changed to suit your needs
  • Tons of space
  • Luxury interior
  • Decent tech

Still don’t fancy car finance, or need something cheaper?

No matter how cheap and cost-effective our 0% deals are, car finance isn’t for everyone. It can be a big, long term commitment leaving you stuck with a car you may not like for years on end.

Take a look at our guides to find out more about budget used cars, or selling your old car.