0% APR PCP Deals in the UK: A Comprehensive Guide
What is a 0% APR PCP Deal?
A 0% APR PCP (Personal Contract Purchase) deal is a type of car finance agreement that allows you to purchase a vehicle with 0% interest charged on the loan. This means that you only pay the depreciation value of the vehicle, plus any fees and charges, without any interest added on top.
How Does a 0% APR PCP Deal Work?
In a typical PCP deal, you pay an initial deposit, followed by a series of monthly payments over an agreed term (usually 2-5 years). At the end of the term, you have the option to:
- Return the vehicle to the dealer
- Pay a balloon payment (also known as the Guaranteed Minimum Future Value) to own the vehicle
- Part-exchange the vehicle for a new one
In a 0% APR PCP deal, the interest rate is set at 0%, which means you only pay the depreciation value of the vehicle, plus any fees and charges.
Benefits of 0% APR PCP Deals
- No interest charges: You only pay the depreciation value of the vehicle, without any interest added on top.
- Lower monthly payments: With 0% interest, your monthly payments are likely to be lower compared to a traditional PCP deal.
- Flexibility: You have the option to return the vehicle, pay a balloon payment, or part-exchange for a new one at the end of the term.
Things to Consider
- Depreciation: While you won't pay interest, you'll still need to consider the depreciation value of the vehicle, which can be significant.
- Fees and charges: Some dealerships may charge fees and charges, such as administration fees or documentation fees.
- Mileage limits: Some 0% APR PCP deals may come with mileage limits. Exceed these limits and you may be charged a fee.
Best 0% APR PCP Deals in the UK
Here are some of the best 0% APR PCP deals currently available in the UK:
Ford Fiesta
- Deposit: £1,000
- Monthly payment: £199
- Term: 3 years
- Total cost: £11,844
Vauxhall Corsa
- Deposit: £1,500
- Monthly payment: £229
- Term: 3 years
- Total cost: £13,274
Nissan Qashqai
- Deposit: £2,000
- Monthly payment: £299
- Term: 3 years
- Total cost: £15,494
Conclusion
0% APR PCP deals can be an attractive option for those looking to purchase a new vehicle with low monthly payments. However, it's essential to consider the depreciation value of the vehicle and any fees and charges that may apply. Always read the terms and conditions carefully and compare deals from different dealerships to find the best option for you.
