Interest rates on car finance deals can be off-putting when it comes to buying a new car, with the prospect of ballooning costs forcing plenty of potential customers to opt for an alternative path. Fortunately, some finance deals are available with 0 per cent APR, giving buyers predictable monthly costs over the course of a contract.
Used by carmakers to tempt new buyers, a 0 per cent APR deal will ensure you know exactly how much your car is going to cost from the moment you sign on the dotted line. There’s nearly always a charge if you exceed an agreed mileage over the life of a contract, but as long as you stick to this, you’re going to get the best possible deal. In fact, with many manufacturers often offering deposit contributions, you will end up paying significantly less than the list price of the car. It’s win-win.
We’ve put together a handful of the best 0 per cent APR deals on a number of new cars across a variety of sectors, which are on sale today. Even though the quoted terms are subject to frequent updates, they should still give you a fair idea of what you should be aiming for when it comes to negotiating a price with your local dealer.
The best 0% APR deals 2020
• Skoda Fabia – £149 per month
• Ford Focus – £256 per month
• Toyota Corolla – £300 per month
• Mazda 6 – £329 per month
• Volvo S90 – £400 per month
• Volkswagen Touareg – £544 per month
• Audi A8 – £626 per month
Skoda Fabia – £149 per month
Model: Skoda Fabia 1.0 MPI 60 S
List price: £12,620
Deposit: £1,500 (£1,250 contribution)
Monthly payments: £149.41
Number of payments: 35
Optional final payment: £4,640.40
Total to pay by customer if returning: £6,729.35
Total to pay by customer if buying: £11,369.75
With your sensible hat on, the Skoda Fabia is the pick of the supermini pack. It’s practical, with a 330-litre boot that’s not far off the size you’d find from the class above, and front and rear legroom is excellent, too.
The amount of tech also impresses, with all models receiving Apple CarPlay and Android Auto, while all cars bar the entry-level have sat-nav, plus a handy umbrella under the driver’s seat. The rest of the interior won’t set pulses racing, but it’s solidly built and the controls are well arranged. The same is true with the driving experience, but what it lacks in sharp dynamics, it more than makes up for in comfort, and for many that’s far more important.
Ford Focus – £256 per month
Model: Ford Focus Zetec 1.0 125 Ecoboost
List price: £19,895
Deposit: £2,500 (£500 contribution)
Monthly payments: £256.08
Number of payments: 36
Optional final payment: £7,676
Total to pay by customer if returning: £11,718.88
Total to pay by customer if buying: £19,394.88
Ford’s first Focus redefined what keen drivers could realistically expect from a humble family hatch. More than 20 years later, the Mk4 is doing the same thing.
Ford tweaked the suspension recently so pretty much all but the fastest Focuses get a simpler torsion beam at the rear. That doesn’t mean they’re not great to drive; the Focus still loves to change direction, with crisp steering and excellent control weights that can make a B-road thrash fun.
The cabin is a bit dull, yet offers decent practicality, while Ford’s infotainment system is snappy, crisp and quick to respond. It’s a great all-rounder, helped by some of the keenest deals out there.
Toyota Corolla – £300 per month
Model: Toyota Corolla 1.8 Hybrid Automatic
List price: £26,215
Deposit: £3,000 (£0 contribution)
Monthly payments: £300.61
Number of payments: 41
Optional final payment: £10,890
Total to pay by customer if returning: £15,325
Total to pay by customer if buying: £26,215
The Corolla name is an old one, but Toyota’s latest family hatch is state of the art, especially now the firm has dropped its turbo petrol engine option and made the entire range hybrid-only. Real-world fuel-efficiency will impress, especially if you do lots of miles in town, where the ‘self-charging’ hybrid tech can harness more braking energy and thus spend more time using electricity instead of petrol.
The Corolla is more agile and involving than you might expect, yet comfortable too. Its boot isn’t the biggest in the class, but the cabin is stylish and beautifully built. With the right deal, this could be a stellar family car over the next two or three years.
Mazda 6 – £329 per month
Model: Mazda 6 2.2D 150 SE-L Nav+
List price: £25,195
Deposit: £3,865 (£1,500 contribution)
Monthly payments: £329
Number of payments: 24
Optional final payment: £11,934
Total to pay by customer if returning: £11,761
Total to pay by customer if buying: £23,695
The Mazda 6 is a bit of a curve ball in the executive class, but it’s a seriously accomplished and rather luxurious saloon.
It’s more spacious than some of the segment favourites, and you won’t be left wanting for standard kit. The diesel engines are really strong, and while the petrol motors need to be worked hard to extract the available performance, they’re nicely refined at high speed.
If you’re after a decent spec without splashing too much cash, then the SE-L Nav+ is all you’ll need; it does without the Lux car’s leather seats, but boasts sat-nav, dual-zone climate control, 17-inch wheels and a suite of cutting-edge safety kit.
Volvo S90 – £400 per month
Model: Volvo S90 D4 Momentum Plus
List price: £38,465
Deposit: £5,000 (£2,000 contribution)
Monthly payments: £399.99 (first payment £399.97)
Number of payments: 48
Optional final payment: £12,265.50
Total to pay by customer if returning: £24,198.56
Total to pay by customer if buying: £36,464.06
Those after something different are well served by the S90. Smart, sophisticated and undeniably Swedish, the sleek saloon offers everything its German rivals do, in a suitably Scandinavian package.
The interior centres around the big touchscreen, and while the heater controls can be fiddly, the set-up itself is filled with functionality. The driving experience is best described as relaxed; the S90 is at its best on the motorway, allowing driver and passengers to sit back in comfort.
The petrol engines can feel a little strained, but the diesels are brilliant. We’d go for the D4, because it returns excellent economy without sacrificing performance.
Volkswagen Touareg – £544 per month
Model: Volkswagen Touareg 3.0 V6 TDI (231PS) SEL
List price: £45,445
Deposit: £5,000 (£3,500 contribution)
Monthly payments: £544.17
Number of payments: 35
Optional final payment: £17,398.80
Total to pay by customer if returning: £24,045.95
Total to pay by customer if buying: £41,444.75
In many ways the Volkswagen Touareg is the easiest way to get into a premium SUV without an inflated price tag. The VW shares much of its tech with the Audi Q7, including the fabulous air-suspension system, and the 3.0-litre V6 diesel engine works brilliantly in a large SUV.
The infotainment system is one to try before you buy: some find it brilliant, others may consider it distracting. But what’s sure to attract your attention are the current deals, which make the Touareg tempting value for money.
Audi A8 – £626 per month
Model: Audi A8 50 TDI Sport
List price: £71,695
Deposit: £7,169.50 (£15,500 contribution)
Monthly payments: £625.70
Number of payments: 47
Optional final payment: £19,617.50
Total to pay by customer if returning: £36,577.40
Total to pay by customer if buying: £56,194.90
The cabin is dominated by two large displays on the dashboard that give you access to all of the car’s functions. Thanks to the use of haptic feedback for inputs, it means using it on the move is a lot easier than a traditional touchscreen, too.
The semi-autonomous driving system keeps the car in its lane on the motorway and perfectly negotiates crawling traffic, which makes it all the more relaxing.
This 50 TDI diesel is the best model but a plug-in hybrid will join the range soon.
Looking for more new car deals? Check out our comprehensive round-up of the best deals available right now…