PCP finance: best new cars for less than £400 per month

14 September 2018 by Christofer Lloyd

Choose from sports cars, 4x4s and estates
Posh models can be surprisingly affordable
Look for deposit contributions and low APR

Fancy an upmarket, well-kitted-out car but don’t have the £40,000 cash needed to put one on the drive? Fear not, PCP finance deals mean that you can drive one of these desirable machines for less than £400 per month (with a deposit of £6,000 or less).

We’ve grouped together the most appealing cars on offer, including everything from rapid turbocharged sports cars to hefty seven-seat 4x4s with powerful diesel engines and large luxurious cars.

If you’re still getting to grips with car finance check out our video guides explaining what PCP finance is, how PCH leasing works, and whether Hire Purchase is for you. Or you can visit our car finance calculator to see how much you can afford to borrow.

In the meantime, take a look at the best finance deals – whatever your budget – below:

Jaguar XF Sportbrake - £375/month

Version: XF Sportbrake 2.0t 300hp AWD Portfolio

An upmarket cabin, powerful 300hp turbocharged petrol engine, all-wheel drive and plenty of standard kit make this the best value car available for less than £400 per month.

Despite a hefty £49,215 list price, you could put this XF on the drive for just £375 per month on a four-year, 10,000-mile-per-year contract with a £6,000 deposit*.

What makes this XF such good value is interest-free credit, a substantial £4,300 deposit contribution discount and very strong residual values. All that means that even financing the car for four years you’d have paid less than half the list price overall if you handed the car back at the end of the contract.

Jaguar XF Sportbrake 2.0t 300hp AWD Portfolio

Monthly cost: £375 (48 payments)
Deposit: £6,000 (£4,300 manufacturer deposit contribution)
Total amount payable by customer if returning car: £24,004
Total amount payable by customer to buy car: £44,915
Cash price: £49,215
Mileage allowance: 10,000 miles per year
APR: 0%

Skoda Kodiaq - £373/month

Version: Kodiaq 2.0 TDI 190 4x4 DSG Edition (7 seats)

With seven seats, a punchy diesel engine, four-wheel drive and a super-slick automatic gearbox, this Kodiaq could be the ultimate family car.

Throw in top-line Edition trim and you get nearly all the kit most families could ever want as standard, too – all weighing in at just £373 per month on a 48-month contract*.

Standard equipment includes metallic paint, touchscreen sat-nav, powerful LED headlights, rear parking sensors, heated front seats, leather upholstery, and 19-inch alloy wheels.

Another bonus comes in the form of two free services thrown in, which should save you another chunk of cash.

Skoda Kodiaq 2.0 TDI 190 4x4 DSG Edition (7 seats)

Monthly cost: £373 (47 payments)
Deposit: £6,000 (£2,000 manufacturer deposit contribution)
Total amount payable by customer if returning car: £23,514
Total amount payable by customer to buy car: £39,345
Cash price: £37,040
Mileage allowance: 10,000 miles per year
APR: 4.9%

Range Rover Velar - £391/month

Version: Velar D180

Don’t think you can afford a brand new Range Rover Velar? Think again, as this model is far more affordable than you’d expect for a car with a £44,735 list price.

Despite a steep APR charge of 5.9% the Velar is worth so much at the end of the contract that the monthly payments are just £391 per month for this diesel model*.

That gets you a four-year contract with a £6,000 deposit and an 8,000-mile-per-year allowance. Beware though, that this is a bad value car if you intend to make the optional final payment to purchase it at the end of the contract: do this and you’ll have paid nearly £8,000 in interest overall.

Range Rover Velar D180

Monthly cost: £391 (48 payments)
Deposit: £6,000 (no manufacturer deposit contribution)
Total amount payable by customer if returning car: £24,758
Total amount payable by customer to buy car: £52,576
Cash price: £44,735
Mileage allowance: 8,000 miles per year
APR: 5.9%

BMW M140i - £333/month

Version: M140i 5dr

Don’t think of this BMW as a mundane five-door hatchback; with a potent turbocharged 3.0-litre six-cylinder petrol engine at the front and power channelled to the rear tyres, it’s more of a sports car than a shopping car.

Better still, thanks to an enormous £6,436 deposit contribution discount – accounting for nearly 20% of the car’s value – it’s great value on PCP finance.

Sign up to a three-year contract and it’ll set you back just £333 per month (with a £6,000 deposit and 10,000-mile-per-year allowance), dropping to barely £300 per month if you extend that to a four-year contract*.

It’s good value if you want to purchase the car outright, too, as you’d have paid just £32,443 overall – far less than the £36,105 list price.

BMW M140i

Monthly cost: £333 (35 payments)
Deposit: £6,000 (£6,436 manufacturer deposit contribution)
Total amount payable by customer if returning car: £17,666
Total amount payable by customer to buy car: £32,443
Cash price: £36,105
Mileage allowance: 10,000 miles per year
APR: 4.9%

Want to find out more about car finance? Take a look at the links below:

Audi TT Coupe - £400/month

Version: TT S Coupe

With 300hp from a turbocharged 2.0-litre petrol engine and Quattro all-wheel drive for all-weather traction, the TT focuses on providing effortless speed alongside its handsome looks.

With power going to all four wheels, the TT S rockets to 62mph in a rapid 4.9 seconds. It shouldn’t cost you much in fuel bills, though, thanks to official fuel economy of 38.7mpg.

Thanks to a substantial £4,500 deposit contribution discount, monthly payments come in at a reasonable £400 on a four-year contract, with a 10,000-mile-per-year allowance*. You will have to increase the deposit to £6,100 to get the car on budget, however.

Audi TT S Coupe

Monthly cost: £400 (47 payments)
Deposit: £6,100 (£4,500 manufacturer deposit contribution)
Total amount payable by customer if returning car: £24,891
Total amount payable by customer to buy car: £43,120
Cash price: £41,205
Mileage allowance: 10,000 miles per year
APR: 6.7%

Volvo V90 Cross Country - £399/month

Version: V90 D4 AWD Cross Country Volvo Ocean Race

Supremely comfortable seats, slick interior design, plenty of space and added off-road credentials in Cross Country form make this V90 good value at £399 per month on a four-year contract, with a useful 10,000-mile-per-year allowance*.

What makes the V90 Cross Country even better value is that the deposit is smaller than with the other cars in our roundup at £5,232 – put down £6,000 upfront and the monthly payments will fall further – partly thanks to enormous £9,896 finance discounts from Volvo.

You also get three years' free servicing thrown in, too. Aside from gaining all-wheel drive, the Cross Country features an additional 65mm ground clearance over the standard V90, making it capable on rough roads.

Volvo V90 D4 AWD Cross Country Volvo Ocean Race

Monthly cost: £399 (48 payments)
Deposit: £5,232 (£9,896 manufacturer deposit contribution)
Total amount payable by customer if returning car: £24,384
Total amount payable by customer to buy car: £45,909
Cash price: £45,374
Mileage allowance: 10,000 miles per year
APR: 3.9%

Mercedes-Benz GLC - £348/month

Version: GLC 250 4MATIC Urban Edition

With a Mercedes badge on the bonnet, a petrol engine underneath it and its high-riding SUV format, the GLC should appeal to many drivers. Its £348 per month costs are surprisingly affordable for a near-£38,000 SUV, too*.

Helping make the GLC affordable is a £3,828 deposit contribution, which cancels out much of the interest charged, in turn reducing your monthly payments.

This also means that whether you intend to hand the car back at the end of the contract or make the optional final payment to buy it outright, it’s a good value option.

Mercedes-Benz GLC 250 4MATIC Urban Edition

Monthly cost: £348 (48 payments)
Deposit: £6,000 (£3,828 manufacturer deposit contribution)
Total amount payable by customer if returning car: £22,703
Total amount payable by customer to buy car: £38,863
Cash price: £37,540
Mileage allowance: 10,000 miles per year
APR: 5.9%

Kia Stinger – £400/month

Version: Stinger 2.0 T-GDI 244hp GT-Line

If you want to stand out from the crowd with your £400-per-month car, the Kia Stinger is a great way to do it. With bold styling on its side, a powerful turbocharged petrol engine and plenty of standard kit, it’s enjoyable to drive and should be equally enjoyable to live with.

While the cash price offers good value at just over £32,000, this isn’t the best value finance deal, with relatively high interest charges and a small deposit contribution.

If you plan to hand the car back at the end of the contract, though, it’s still a lot of car for the money.

Kia Stinger 2.0 T-GDI 244hp GT-Line

Monthly cost: £400 (36 payments)
Deposit: £6,000 (£750 manufacturer deposit contribution)
Total amount payable by customer if returning car: £20,415
Total amount payable by customer to buy car: £34,176
Cash price: £32,025
Mileage allowance: 9,000 miles per year
APR: 4.9%

Ford Edge - £400/month

Version: Edge 2.0 TDCI 210hp AWD PowerShift Titanium

The Ford Edge may lack the two rearmost seats of the seven-seat Skoda Kodiaq at the top of our roundup, but what you do get is much bolder SUV styling plus interest-free credit.

This makes the Edge far better value if you like the idea of owning the car when the contract ends, because no interest is added to your payments, unlike the Skoda. Better still, £2,350 has been lopped off the price in the first place, though you only get a 9,000-mile-per-year allowance for your £400 per month in this case.

Meanwhile, if you plan to hand the car back at the end of the term you get to upgrade your car sooner rather than later, as this contract runs for three years rather than four.

For your money you get a punchy 210hp diesel engine, all-wheel drive and an automatic gearbox, with plenty of standard equipment thrown in for good measure.

Ford Edge 2.0 TDCI 210hp AWD PowerShift Titanium

Monthly cost: £400 (36 payments)
Deposit: £6,000 (no manufacturer deposit contribution)
Total amount payable by customer if returning car: £20,397
Total amount payable by customer to buy car: £35,410
Cash price: £35,410
Mileage allowance: 9,000 miles per year
APR: 0%

Still baffled by car finance? The articles below may help:

*Deals are correct at time of publication. Everyone’s financial circumstances are different and credit is not always available – Parkers cannot recommend a deal for you specifically. These deals are indicative examples of some packages available this week.