The pandemic, chip shortage and the war in Ukraine have all made it more expensive than ever to buy a new car. Even so, that doesn’t mean you have to trawl through every car valuation site to get every last penny for your old banger. Believe it or not, there are still a few manufacturers out there with 0% PCP finance deals.
What does that mean exactly?
Put simply, it means you can pay a deposit and then spread the cost of the car over a fixed period of time. Effectively it’s like taking out a loan and then not paying any interest on the repayments, potentially saving hundreds if not thousands of pounds.
Are there any downsides?
You’ll generally find that a large deposit – sometimes as much as 50% – is needed to secure your 0% deal. The length of your finance term will also often be shorter than traditional PCPs, pushing the price of your monthly payment up. The upshot is that you will own the car sooner should you decide to pay the final balloon payment.
You’ll also find that a good to excellent credit score is needed to secure a 0% deal, so it pays to look at a free credit check before applying. It’s also unlikely you’ll be able to combine 0% finance with any other discounts or deposit contributions.
Are there cheaper alternatives to a PCP?
The other option is personal contract hire (PCH), traditionally known as leasing. If you’re unfamiliar with PCH, it’s a form of long-term rental with no APR rates attached as you’re not actually borrowing any money, you’re just hiring the car.
It’s a good choice if you don’t want to own the car, maybe because you like that new car smell every couple of years, or don’t have a good enough credit rating for a 0% APR PCP deal.
Who can I get a 0% PCP deal from?
Here’s a list of the manufacturers who, at the time of writing, were offering 0% finance on one or more models from its ranges.
Jeep
There’s only one offer from Jeep and that’s on its rugged Wrangler, an off-road biased SUV that won’t suit everyone on account of its compromised on-road manners and thirst for petrol. This is a hire purchase agreement instead of a PCP that’ll lock you into owning the car at the end of the contract.
Renault
There’s not one but four cars that Renault will provide 0% finance on, with something to suit most buyer’s needs. At the cheaper end are the Clio supermini and slightly larger Captur SUV, with the coupe-inspired Arkana SUV available if you want something slightly bigger and a lot more stylish. Finally, there’s the Kadjar SUV for those that require family-friendly transportation.
SsangYong
You won’t find any 0% deals on the brand’s more rugged offerings like the Musso pickup. Instead it’s the road-biased Tivoli and larger Korando that get the tempting finance along with Ssangyong’s impressive seven-year warranty.
Volvo 0% finance deals
You can get 0% APR PCP deals across most of the Volvo range, including the S60 and S90 saloons, V60 and V90 estates and XC40, XC60 and XC90 SUVs. The only issue is that you’ll need at least a 50% deposit.
