0% Car Finance Deals 2023

0% car finance is a type of PCP or HP but with a difference. The money you borrow is paid back over a fixed period by monthly payments. However, these deals usually incur interest (APR) and additional charges over the contract.

APR (Annual Percentage Rate) is the yearly interest rate applied to the borrowed amount. This is calculated over the period and added to monthly instalments.

In contrast, no APR car finance is a PCP or HP deal but with zero interest to pay - meaning you have more affordable payments over the term. 

Explore below to find out how each type of 0% finance deal works.

Personal Contract Purchase (PCP) finance is a common way to finance a car. You put down a deposit and pay fixed monthly payments over an agreed term. The only difference is that the last instalment is larger and optional – often referred to as a balloon payment. In addition, interest (APR) is typically applied to this product and added to your monthly instalments. 

PCP is calculated based on the depreciation of your car, rather than the car’s current value. This means monthly payments are typically lower for a comparable car on other types of finance, like HP.

With 0% PCP finance, the same applies. However, there is zero interest on the amount borrowed. As there is no interest to pay, finance is calculated by deducting the deposit amount from the car price and splitting the remainder over the agreed term.

Hire Purchase (HP) is similar to a traditional loan. The amount you borrow is paid back with a deposit and equal monthly instalments with no balloon payment. Instead, there’s a nominal option-to-purchase fee. Once you’ve paid, you own the car. APR is added to this finance agreement and included in the monthly payments. 

For 0% HP car finance deals, you don’t pay interest on the loan. So, the calculation is the same above. 

0% finance is available on various new models, and on used cars during special offer events at Pentagon. This is ideal if you’re looking to get a great deal with lower monthly payments.

Like buying a new car with 0 finance, there is the option of PCP and HP 0% finance deals. Payments are split equally over the agreed term, often with a lower initial deposit.

In addition, at Pentagon, our cars come with our Approved Used Guarantee, which includes: 

• A detailed 112-point check
• 12-month warranty
• 30-day/1,000 mile fault exchange guarantee 
• One-year full RAC cover

Keep an eye out for our latest used car event offers to make the most of 0% finance used car offers.

0% car finance deals are the perfect way to save money on your next purchase. You can choose PCP and HP 0% deals which split the amount borrowed into manageable monthly instalments. What’s more, there’s no APR on the loan, so there is no interest to pay.

Choosing a new car with our 0% finance deals means you get the latest models for a great price.

0% finance deals could save you money on your next car. Plus, you benefit from: 

There are a few things to consider when deciding whether 0% car finance is right for you. These include:

Discover how Pentagon could help you save more on your next car purchase with our 0% finance deals. We offer a range of options for brand new and used models, and our finance deals offer: