0% or interest free car finance allows you to buy a car, bike or van from a dealership or company without any additional fees or interest – you simply pay the amount you borrow.
At 0% APR, the loan is unsecured and the borrower owns the vehicle outright. The driver is required to pay monthly instalments for the loan term lasting for 1 to 5 years and they have the flexibility to repay early or pay lump sums towards the outstanding debt.
Overall, it provides a very low-cost and easy way to get a vehicle, without the risk of repossession.
The cars available at 0% interest may be offered by dealerships, motor companies or from second hand car finance dealers.
The cars on offer are likely to be slightly older models or those that are about to be replaced by new models. Therefore, such low rates are available because the manufacturer is trying to sell them to bring in new ones.
In reality, you may be paying slightly more than the market value for the vehicle but you get the low cost of purchasing a vehicle through zero percent car finance.
As part of receiving a vehicle on 0% finance, the providers we feature may require you to put down a deposit. This is typically 30-50% of the car’s value. So for a car worth £5,000, you may need to put down a deposit ranging from £1,500 to £2,500.
Some companies will provide an ‘on the road’ fee where you will need to put down a further deposit of £250 and this will include:
You can also part exchange your existing vehicle and this can make up your deposit or at least be put towards it.
The company that you apply with will be able to value your vehicle and a small deposit of around £250 may still be required.
At Quiddi Compare, we have teamed up with some of the best interest free car finance companies in the UK. Simply review the different providers and click through to their website where you can choose from hundreds of vehicles and apply online today.
It will take a few minutes to apply and you should receive a decision on the same day. As part of the application, you will be required to provide a copy of the following:
If your application is successful, you will need to sign relevant documents and send these back to the finance provider. But all being well, your car can be delivered to your address in 7-10 working days.
Although every application is subject to a credit check, you can still receive 0% car loans with bad credit or if you have experienced a CCJ or bankruptcy in the past.
If you have poor credit, you may be required to pay a larger deposit or you will have access to a lower class vehicle on offer. But with each provider we feature having so many different cars available, we are certain that you will be able to find the right vehicle for you.