Interest free car finance deals mean you don't pay any extra interest or other charges on your car finance package. With less money to repay, you can put your entire budget behind getting the right car. However, zero percent finance deals often require you to pay quite a hefty deposit - often up to 40% of the price of the car, making it suitable only for those with some savings to put down.
This type of deal often requires the loan to be paid off in a shorter time than other loans (often 24 or 36 months compared to the more common 48- to 60-month term), making your monthly repayments higher. You're also unlikely to get any discount on a 0% deal, so it could work out more expensive overall, as the example below shows.
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