![]() The most common is Personal Contract Purchase (PCP). It’s possible to find deals on multiple types of finance with 0% APR. Once again, remember to get like-for-like finance quotes to find out which offers you the best value. Consequently, 0% APR used car finance can actually be more expensive than equivalent finance deals on similar cars that charge interest but offer much lower cash prices. Where it is available on used cars, this typically means you'll be paying an artificially high cash price, as dealers often inflate the price to cover what they lose by not charging interest. To find out which offers you the best value, get like-for-like quotes with the same deposit, contract length and mileage allowance to see which has the lowest monthly payments and costs you less overall.Ġ% APR car finance is generally only available for new cars. Interest-free agreements aren't usually available with no-deposit finance.Ġ% finance offers may not include savings available with other finance deals (like deposit contribution discounts), so you could end up paying more overall. That can be the case even where there is a really good new car finance deal on offer, so as always, it's worth getting a couple of like-for-like quotes to find the best car you can get for your budget.īefore you dive into the list of new cars available with 0% APR finance, it's worth taking a moment to consider your other options in case there's a better way to get behind the wheel of your chosen car for less.įor a start, getting this rock-bottom rate often requires a large deposit, so you may need to spend a chunk of your savings to access a 0% APR deals. So while you can't typically get 0% APR with used cars - and where you can, it's likely the cash price has been inflated to cover the fact no interest is charged - going for a nearly new or used car, or even a pre-registered car, is typically far cheaper than going for a new car. Some retailers, including BuyaCar, work with several lenders to ensure that you get a competitive quote for your circumstances, along with a good value cash price to begin with - which means you might be able to get more car for your monthly budget than you might expect. Used cars aren't generally available with 0% finance because they don't benefit from the same manufacturer finance discounts that new cars do However, the used car finance industry is competitive, which helps to keep interest rates low. Even with 0% APR PCP finance, though, the total amount you pay, including the optional final payment, equates to no more than the car's retail price. Just remember that with PCP finance you have to pay the deposit, all monthly payments and the large optional final payment to take ownership. This means the sum total of your payments should add up to no more than the full cash price of the car. Unlike most car finance offers, there are no interest charges associated with 0% APR deals. This means that whether you opt for PCP finance or Hire Purchase, the purchase price of the car is cut into bitesize chunks, with nothing charged for the finance. The cost of the car is split across a deposit, a series of monthly payments and, in the case of PCP finance, an optional final payment that you make at the end of the contract if you choose to keep the car. Getting a car with 0% APR finance - also known as interest-free credit - is one of the simplest ways to pay for a new car.
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