0 Car Finance Calculator UK
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Reviewed by Calculator Editorial Team
Use this calculator to determine your monthly payments for a 0% car finance deal in the UK. Simply enter your car price, deposit, and loan term to see your estimated monthly payments and total interest paid.
How to Use This Calculator
To use the 0% car finance calculator:
- Enter the total price of the car you want to purchase.
- Enter the amount you plan to pay as a deposit.
- Select the loan term in months.
- Click "Calculate" to see your estimated monthly payments.
The calculator will show you:
- Your loan amount (car price minus deposit)
- Your estimated monthly payment
- Total interest paid (which will be £0 for a 0% deal)
- A breakdown of your payments over time
How 0% Car Finance Works
A 0% car finance deal means you won't pay any interest on your loan during the promotional period. This can make car finance more affordable, but you should be aware of the following:
Important: While 0% deals can be attractive, they often come with high monthly payments and a rapid increase in interest rates after the promotional period ends.
Key Terms
- Promotional Period
- The period during which you pay 0% interest on your loan.
- Monthly Payment
- The amount you pay each month during the promotional period.
- Early Repayment Charge
- A fee you may pay if you repay the loan before the promotional period ends.
- Exit Fee
- A fee you may pay when you return the car at the end of the promotional period.
Formula Used
For a 0% car finance deal, the monthly payment is calculated as:
Monthly Payment = (Car Price - Deposit) / Loan Term (in months)
Total Interest Paid = £0 (during promotional period)
Worked Example
Let's say you want to buy a car priced at £30,000 with a £3,000 deposit and a 36-month loan term.
| Calculation | Value |
|---|---|
| Car Price | £30,000 |
| Deposit | £3,000 |
| Loan Amount | £27,000 |
| Loan Term | 36 months |
| Monthly Payment | £750 |
| Total Interest Paid | £0 |
In this example, your monthly payment would be £750 for 36 months, with no interest paid during the promotional period.
Frequently Asked Questions
Is 0% car finance really free?
While you don't pay interest during the promotional period, 0% car finance often comes with high monthly payments and potential fees when you return the car. Always read the small print before agreeing to a deal.
What happens after the promotional period ends?
After the promotional period, interest rates typically increase significantly. You may need to repay the loan in full or switch to a standard finance deal.
Are there any hidden fees with 0% car finance?
Yes, many 0% deals include fees such as early repayment charges, exit fees, and administrative fees. Always ask about these before agreeing to a deal.
Can I get a 0% car finance deal with a bad credit history?
It's more difficult to get a 0% deal with bad credit, but some lenders specialize in bad credit car finance. You may need to pay higher interest rates or provide additional security.