0% Car Finance Deals 2025

0% car finance deals are interest-free loans where you don’t pay any interest on your monthly payments. This means all your money goes directly to paying off the car, often resulting in a total payment amount similar to that of a cash buyer, but spread out over time.
0% finance deals are relatively rare and often available only for a limited time, which means finding them in among all the other hundreds of finance deals can be quite tricky.

APR stands for Annual Percentage Rate, and it is the yearly cost for borrowing money, including interest rates and any additional fees. You can learn more about APR interest rates here.

0% car finance deals are similar to many other finance deals: you spread your payments over an extended period of time to make buying a new car more affordable. The difference is that you don’t pay any interest on a 0% finance deal.
0% car finance deals are typically offered by manufacturers or dealers who aim to sell the car over a longer period while still earning the same amount as an outright sale.

Some people think there’s a catch to 0% car finance, as you’re essentially borrowing money without having to pay a fee to do so. It’s not a scam, but the deals are rare and hard to secure.
Ultimately, whether 0% car finance deals are good or not will depend on your individual circumstances and budget. If you can already afford a new car outright, you might benefit more from bonus cash incentives or freebies, as price negotiations can be a bit more difficult as interest has already been deducted. But if financing a car with manageable monthly payments suits you better, a 0% finance deal can be an excellent and affordable option. With any financial arrangement, you should take the time to fully understand what’s involved; read the terms and conditions thoroughly and, if you’re unsure about anything at all, seek professional and impartial advice from sites like the Money Advice Service and Citizen’s Advice. Don’t jump in because it’s for a limited time or in front of you today, there’s lots of great deals on the market.

To qualify for a 0% car finance deal, you’ll need a strong credit profile and good credit score. Interest-free loans are a high risk offer for lenders, so they’ll only approve you if they’re confident you can pay every month.
Before committing, ensure you can afford the monthly repayments and understand the full terms and conditions of the offer, including what happens if you miss a payment. If you don’t qualify, explore other car finance deals available.

While 0% finance deals may seem like an attractive option, there are several potential drawbacks that you should consider before committing.
0% car finance deals often have shorter contract terms, resulting in higher monthly repayments to pay the car off more quickly. While longer contracts might seem more manageable, you could end up making monthly payments on the same car for anything up to six years. With 0% car finance, you may also need a larger deposit than you would with other finance deals. If you get the option to make a smaller deposit, remember you could end up owing more than the car is worth after a couple of years. You may also have to pay more insurance, particularly gap insurance, as a result. Some deals may include hidden fees or restrictive conditions, such as limited model availability, mileage caps, or penalties for early repayment. Another thing to keep an eye out for are contractual clauses, such as 0% interest only being available for a portion of the loan term. Additional fees may be included in some deals so do check before committing to a higher interest rate. Despite these potential downsides, 0% finance can be an excellent option if you understand all the terms and conditions. You just need to know the ins and outs before you commit. Each case is different and you’ll need to make sure the deal and car are right for you.

0% finance deals are typically available on brand-new cars.
Manufacturers like to entice buyers away from rivals with free insurance deals, free extras or cash discounts; 0% finance is another way of doing so.

As 0% finance deals are often only available for a limited time, people can sometimes feel rushed into deciding. As with any finance deal, it pays to do your research properly.
• Make sure you read the terms and conditions properly. Check whether the 0% interest rate is a fixed rate for the duration of the contract or an introductory offer that could change after a few months. • Make sure you can keep up with the monthly payments. Shorter loans normally result in higher monthly payments, and you may face additional costs or fines for missed payments. • Compare the car’s price and see how much it sells for elsewhere. In some instances, the dealer may add the interest to the price of the car to make their money back. • Check your contract for any additional or unexpected costs. • Compare the overall cost of your 0% finance deal with other deals on the market. You may find a low interest rate deal, with a lower deposit and smaller monthly repayments more suited to your budget. • Don’t give up. You may not be accepted for a 0% finance deal, but you may be offered another deal. Just make sure the deal you end up with suits your budget and your lifestyle.

You can find car finance and monthly price deals on Autotrader. Search by popular brands, and find the latest deals from dealers and private sellers near you.