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What is 0% APR Finance?

Choosing to pay for your new car on finance allows you to spread the cost of your ŠKODA over a number of months, on your preferred finance product such as Solutions PCP or Hire Purchase. On top of the vehicle price, you will usually be charged interest and fees, known as the Annual Percentage Rate (APR).

0% APR finance is therefore finance with no additional interest or charges added. If you are financing a car that is £17,250 you will pay £17,250 in total over the duration of your agreement.

Find out more about other finance options or see our video for a further explanation of APRs.

Is 0% APR right for me?

There are a few things to consider when deciding between a 0% APR and a standard APR offer.

0% APR offers can have restrictions to the finance parameters, such as the number of months you can finance across, the finance products or vehicles eligible, deposit amount required – or a combination of all of these.

If you have a particular monthly budget or small deposit for example, a standard APR offer might be more accommodating for your specific requirements, by allowing you to use a smaller deposit, or spread the cost over a longer term to lower your monthly payments.

What are the benefits of 0% APR Finance?

• No Interest or additional fees.

• The amount you pay is the cost of your chosen vehicle only.

• Your monthly payments could be lower compared to a standard APR offer on identical finance parameters.

Our credit rating criteria is the same for 0% APR Finance and standard APR finance.

What are the disadvantages of 0% APR Finance?

• You might not be able to spread the cost over a longer period.

• May have minimum deposit requirements, unlike standard APR offers, which can be as little as one monthly payment.

• May only be offered on selected models.

• May only be offered on selected finance products i.e. Solutions PCP only.

If any particular terms or restrictions do apply, this will be clearly listed in the finance offer terms and conditions.

How do I apply for finance?

The process of applying for finance with SKODA Financial Services is the same, regardless of the APR or finance product you choose.

Step one

Choose your perfect ŠKODA, whether it’s ready and available from stock, or a bespoke factory order.

Step two

Visit your local Retailer and personalise your finance by selecting your finance product, deposit amount, finance duration, and your predicted annual mileage. The Retailer will then submit your finance application plus any supporting documents to ŠKODA Financial Services.

Step three

ŠKODA Financial Services will review your credit history with credit reference agencies, then carry out an affordability check. Providing you meet the lending criteria, your finance application will be approved.

Step four

When your ŠKODA is ready, you’ll be contacted by your local ŠKODA Retailer to arrange collection. For information on COVID-19 onsite safety parameters please click on this link:

FAQs

Will I get accepted for a 0% APR Finance agreement?

The approach ŠKODA Financial Services take when checking credit qualifications is the same for 0% APR finance applications as it is for standard APR finance, so you do not need to have a better credit rating to qualify.

Your credit history will first be reviewed with credit reference agencies - Experian and Transunion, to provide information about current and previous credit. The credit application process is designed to protect you, the customer, as well as the finance company. This will enable ŠKODA Financial Services to determine whether financing your new car is in your best interest, as all finance companies must lend responsibly.

ŠKODA Financial Services will then carry out an affordability check to make sure the monthly payments aren’t too large a proportion of your total monthly earnings alongside other commitments, such as mortgage or rent payments. This is to ensure you aren’t making any financial commitments that could make your current circumstances more difficult.

Am I too young to finance a car on 0% APR?

The age criteria for all ŠKODA Financial Services finance applications is a minimum of 18 years.

What details and documents do I need for applying?

  • Full Name (and previous name if applicable)
  • Date of Birth
  • Marital Status
  • Residential Status
  • Bank Details
  • 3 Year Address History
  • 3 Year Employment History
  • Proof of address (e.g. Utility bill dated in the past three months)
  • Proof of Identity (i.e. a valid UK Passport)
  • Valid, full UK Driving License