![]() ![]() It’s especially useful if you don’t want to own the car, don’t want to keep a car for a long time, or don’t have a strong enough credit score to be accepted for 0% APR finance. Leasing offers an elegant short-term solution to 0% APR car finance. There are no APR rates attached because you’re not borrowing any money – you’re just renting the car. ![]() Leasing, otherwise known as Personal Contract Hire (PCH), is a form of long-term rental. > Other discounts offered by dealers and car makers can rarely be used in conjunction with 0% APR car finance deals.> You have to have a good-to-excellent credit score and a strong credit history to be applicable for 0% APR car finance.This means higher monthly payments, but you own the car sooner, too > Terms are generally shorter than traditional PCP or HP contracts.> A hefty deposit is usually needed to secure these deals.Typical car deals can add thousands of pounds in interest charges over the course of an agreement. > Not charged any extra for spreading the cost of a car over a set period of time.This body regularly publishes reviews into the motor finance section, including interest free cars. See how much the charges are for going over the agreed mileage limit, what to do if you miss a payment, and what to do if you damage the car.Ĭar manufacturers have to adhere to Financial Conduct Authority rules. Generally with manufacturer-backed finance it will be. Check and double-check the length of the agreement, the mileage limits, how much it is per month, and how much the balloon payment ( optional final payment) is if you choose a PCP deal.Īn important reminder: you’ll need to pay those payments every month – so make sure you can afford to pay it each time.Ĭheck to see if the 0% APR is fixed for the length of the agreement. 0% car finance deals UK: the small printĭo the usual best practices when taking out any form of financial agreement. 0% financing on new cars is pretty standard across the industry. Generally, it’s available on Personal Contract Purchase (PCP) deals and Hire Purchase (HP) deals. Lots of different manufacturers offer interest-free credit options, as do some individual dealer groups. In short, you take out a loan but don’t get charged any interest. You spread the cash price of the car over a set of monthly payments, and you don’t get charged any more money for doing so. What is 0% interest car finance?Ī 0% APR car finance deal is pretty easy to get your head around. Large deposits are usually required, plus you need a stellar credit rating. And while 0% car finance deals are a savvy way to buy a car while paying no interest, this type of agreement does have its flaws. If you’re buying online via a manufacturer, remember that you can still test drive it in person, too. > Skip to the full list of 0% car finance deals But there are at least a few manufacturers who will allow you to spread the cost of a new car into monthly payments without having to pay any interest. ![]() This means manufacturers don’t need many incentives to get people into (real or virtual) showrooms. Unfortunately because of outside factors like chip shortages and the war in Ukraine car production has slowed. Car manufacturers love 0% APR deals as they add a little incentive to finance your next vehicle. Paying no interest is no longer just associated with school reports. ![]()
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