Can I Get Car Finance With 0% Interest?

When you take out car finance, like any loan, interest is added on to the total. However, there are lenders who offer 0% interest car finance deals.

These deals let you borrow money to buy a car without the added cost of interest. While this sounds ideal, there's more to understand about these offers.

Here, we reveal everything you need to know about 0% interest in car finance, helping you decide whether it’s right for you.😊

Can I get car finance with 0% interest?

Many dealerships and car finance providers in the UK offer promotional deals, including 0% interest car finance options.

These deals mean you can borrow money to purchase a car without paying any extra in terms of interest.

However, it's essential to note that while these deals sound tempting, they often come with specific criteria.

Typically, to qualify for 0% interest deals, you may need an excellent credit score and a substantial down payment.

It's also crucial to read the terms and conditions, ensuring there are no hidden fees or clauses that could cost you later.

Understand Car Finance Interests and APRs

Before taking out any kind of offer, it pays to understand car finance. One of the main factors to consider when you’re looking at any type of deal is the interest rate.

An interest rate indicates how much extra you'll pay over the loan term, on top of the car's purchase price.

The APR (Annual Percentage Rate) includes both interest and any additional fees, giving you a clearer picture of the total cost.

When you come across terms like "0 APR for cars", it means there's no interest or additional fee added to the loan for a set period.

If you’re considering this type of deal, make sure you check how much the rate will increase once the promotional period ends.

Pros and Cons of Opting for 0% Interest Car Finance

Before deciding if a 0% interest car finance deal is right for you, weigh up the pros and cons. Here’s a rundown of the main benefits and downsides of these types of deals:


  • Savings: The most obvious benefit of 0% interest car finance is the savings. Without added interest, you'll be paying solely for the cost of the car, potentially saving you a significant amount.
  • Predictable Monthly Payments: With no interest, your monthly payments are easier to predict, making sure there are no surprises down the line.
  • Easier Budgeting: When you know precisely how much your car will cost each month, it's easier to budget and plan your finances.


  • Tougher Eligibility Requirements: These deals often require an excellent credit score and may be challenging to get for those with average or poor scores.
  • Shorter Term Agreements: 0% interest offers may come with shorter finance terms, meaning higher monthly payments.
  • Higher Deposit: To qualify, some deals may require a larger down payment upfront, which can be a hurdle for some buyers.

By taking these pros and cons into account, you can make a more informed decision about whether a 0% interest car finance deal is right for you.

How to Secure 0% Interest Car Finance: Tips and Insights

If you have your heart set on a hire purchase or PCP 0% interest car finance deal, there are things you can do to help get you approved. Follow these expert tips:

Work on Securing an Excellent Credit Score

One of the top criteria for 0% interest car finance deals is a high credit score. If you're unsure of your rating, it's wise to check it before applying.

If there are discrepancies or issues, address them. The stronger your credit score, the better your chances of securing a zero percent finance deal.

Shop Around

Not all lenders or dealerships offer 0% interest car finance deals. Do your research to find the best car finance options available.

At certain times, especially end-of-year sales or new model launches, there may be more offers available.

Read the Fine Print

Ensure you fully understand the terms of the deal. Some 0% interest offers may only last for part of the loan term, after which standard car finance interest rates apply.

Being well-informed can prevent unpleasant surprises later.

Provide a Large Down Payment

While it may not always be a requirement, offering a large down payment can increase your chances of securing a 0% interest rate. It reduces the lender's risk and shows your commitment.

Be Prepared to Accept Short Loan Terms

Many 0% APR deals come with shorter loan durations. While this means you'll be debt-free quicker, ensure that the monthly payments are manageable within your budget.

Be Wary of Other Costs

While you may not have any interest to pay, there could be other fees or higher prices for the car itself.

Always ensure the overall car finance package is a good deal, not just the interest component.

By following these tips and being prepared, you'll be in a stronger position to secure that 0% interest car finance deal. 😀🚗

Read more about 0% car finance deals:


FAQs About 0% Interest Car Finance:

Who Qualifies for 0% Interest Car Finance?

Typically, those with excellent credit scores, a stable financial history, and who meet the lender's specific criteria are eligible for 0% interest car finance.

How can I increase my chances of securing 0% interest car finance?

Maintain a high credit score, offer a large down payment, and shop around during promotional periods when 0% deals may be more available.

How does 0% interest car finance work?

0% interest means you're only paying back the principal amount borrowed, without any extra charges in the form of interest. It's essentially an interest-free loan, often available as a promotional deal.