Buying a car on finance is an appealing proposition. You don’t have to save up or spend what savings you may already have; instead, you allocate a manageable proportion of your monthly income to your new vehicle, spreading the cost over a defined time period (often three or four years). This helps make a brand-new car more attainable for many drivers.
However, most loans of any kind will involve a cost to you called the annual percentage rate (APR). The interest charge means that you pay back more than you borrowed over the period, and the APR can vary greatly.
In order to lure buyers into factory-fresh vehicles, dealers offer attractive incentives, and the most enticing of all is a finance deal that charges zero per cent APR, potentially saving consumers thousands of pounds in interest.
These 0% finance deals aren’t all that common, and of the few there are, many are only offered for a limited period.
We’ve scoured car manufacturer websites to find the latest 0% finance deals on new cars, and noticed a clear trend this autumn 2023: for these zero-interest loans to be available most widely on electric vehicles (EVs). It’s a great way to encourage buyers into zero emission cars, which are still costlier to buy up front than petrol or hybrid equivalents.
That means if you’re ready to make the leap to electric power in your car, you’re quite likely to find a car that suits on 0% finance.
Deposit can often rule out zero per cent loans
With all the cars listed, terms and conditions will apply, and the size of the necessary deposit contributions, monthly payments and agreement periods also vary. While you might be able to put the sale of an existing car towards the deposit on a new model, it may still be a prohibitive sum that rules out 0% APR loans for drivers choosing to buy a new car using finance.
What’s more, 0% finance may well be available only on specific versions of the models mentioned, and the deals could be only available with a specific type of finance agreement, whether that be a Personal Contract Purchase (PCP), Hire Purchase (HP) or another product. That means drivers must read the small print carefully to check what’s being offered.
However, with no interest to pay, within these deals could be an offer you can’t afford to miss. Here’s a rundown of our favourite EVs available with zero per cent finance right now.
Cupra Born on 0% finance
Cupra’s compact Born hatchback is a brilliant EV. It has smart exterior styling, a high-quality cabin, easy-to-use technology and an engaging chassis that makes it one of the more fun electric cars to drive.
All versions of the Born are available at 0% APR, but you might want to aim for the 77kWh model — not only does it have more power than the versions with the 58kWh battery, packing a healthy 227bhp, but it also goes further on a single charge. Officially, it can go up to 342 miles in one hit, although realistically you can expect around 280-300 miles of driving before having to plug in the Born again.
Ford Mustang Mach-E on 0% finance
Ford’s decision to leverage its historic Mustang nameplate on an electric SUV was perhaps a risky one, but the resulting product is excellent. Mustang-themed exterior styling clothes an interior where the centrepiece is a giant portrait touchscreen for the infotainment, while the Mach-E also has plenty of interior space and boot capacity.
The best news is that the 0% APR deal is for the 98kWh AWD model, so you get strong driving performance and up to 341 miles from a single charge of the battery pack.
Ford is also offering 0% APR deals on its Puma, Kuga and Focus models at the time of writing, although none of these are pure EVs (an electric Puma is on the way but not with us yet).
Hyundai Ioniq 6 on 0% APR
Hyundai’s evolution into one of the market-leading car brands is based heavily on its skills with electric cars. One of the Korean company’s finest products right now is the Ioniq 6, a swoopy saloon that takes its styling inspiration from the ‘streamliner’ design themes of the Art Deco era.
But the Ioniq 6 isn’t all show and no go, as the Hyundai has a high-tech interior and the capability for ultra-rapid charging due to its advanced 800-volt technology.
Both rear-wheel-drive single-motor and all-wheel-drive dual-motor models are part of Hyundai’s attractive 0% APR offer.
Hyundai is also offering 0% APR deals on its Ioniq 5 and Kona Electric (both the old version and the all-new take) products at the time of writing.
Mazda MX-30 on 0% finance
Although it has the upright stance and build of a crossover-SUV, the Mazda MX-30 is best thought of as a purely urban or semi-urban vehicle, thanks to a driving range of just 124 miles on its ‘right-sized’ battery pack.
But as city cars go, this Japanese EV is full of charm. It has an interior lined with cork, a nod back to Mazda’s distant manufacturing heritage, and the rear doors are hinged at the back for real kerbside showmanship.
Its small battery also means relatively low weight, so the MX-30 is great fun to drive in a way many other EVs that go further per charge are not.
MG ZS EV on 0% finance
MG has set out its stall as a budget brand, yet the affordability and all-round talents of the ZS EV are hard to ignore.
The 0% APR deal applies to all models, so set your sights on the 72.6kWh Long Range version that can travel up to 273 miles on a single charge.
Purchase prices are low to start with, which means the ZS EV’s monthly repayments are really attractive – and for that you get a comfortable cabin appointed with plenty of equipment across all versions.
The Chinese-owned brand is also offering 0% APR deals on its MG 4 model (excluding the XPower) at the time of writing.
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Mercedes-Benz EQB on 0% finance
Trying to pack several disparate parameters into one type of car is tricky, but Mercedes has managed to pull it off with the likeable EQB.
This is a compact SUV, which a desirable body shape to begin with and only helped by the premium allure of that three-pointed star. But it is also a seven-seater… and an electric one to boot, making it a fairly unique proposition right now.
You’ll enjoy up to 253 miles of zero-emissions range from this multitalented machine, with a high-quality interior being a particular perk of the EQB.
Mercedes is also offering 0% APR deals on its EQA, EQC and EQE EVs at the time of writing.
Peugeot e-208 on 0% finance
Peugeot has aspirations to become a manufacturer only selling EVs right across Europe by the end of the decade, and the e-208 electric supermini was at the vanguard of the company’s shift in focus.
One of the most affordable EVs going anyway, a technical update in 2023 gave it a touch more power (154bhp), a slightly larger battery for greater driving range (up to 248 miles) and revised looks for a sharper appearance.
The zero-free interest deal is on the e-208 one step up from base spec, which means you get a generous level of kit for your money from this electric supermini.
Peugeot is also offering 0% APR deals on its e-2008 electric crossover at the time of writing.
Renault Mégane E-Tech Electric on 0% finance
Renault’s zero APR offer on its superb Mégane E-Tech Electric applies to all versions, which means you’ve got plenty of choice if you want to go for this EV.
It has a top-notch interior, with quality fixtures and fittings, as well as a good spread of the latest technology.
The exterior styling is also eye-catching, while up to 280 miles of driving range is possible on a single charge.
The performance of the Mégane E-Tech is well-judged too, making it a pleasure to drive in a wide variety of scenarios.
Renault is also offering 0% APR deals on its Clio, Captur and Arkana models at the time of writing, although none of these are pure EVs.
Skoda Enyaq on 0% APR
Skoda’s transformation from the butt of every 1980s car-related joke to a truly front-running brand has long been complete, which means vehicles like the exceptional Enyaq iV push the manufacturer right to the forefront of the electric car marketplace.
It uses the same underpinnings as the Volkswagen ID.4 but there’s no doubt the Enyaq is the superior product, with an interior which feels more solidly built and sensibly arranged than that of the VW.
Skoda’s deal applies to the regular SUV and also its Coupé spin-off, but either way what you’re getting here is one of the best family EVs going, with up to 345 miles of driving range possible.
Volvo C40 on 0% finance
The Volvo C40 is a pure-electric coupé version of the Swedish company’s smallest SUV, the XC40. That means this EV has a sensational interior, replete with the highest-quality materials and a cool, reserved air that is a hallmark of Scandinavian culture.
It’s also nice to look at on the outside and possessed of highly amenable dynamic manners, with up to 342 miles of driving range possible from its 82kWh-capacity battery pack.
Volvo is also offering 0% APR deals on its XC40, XC60, XC90, S60, S90 and V90 model lines at the time of writing, although only one of these — the XC40 — is potentially available as a pure electric car.
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