The best cars for £300 per month

  • Choose from medium-sized SUVs to electric superminis
  • 0% APR finance available on a number of models
  • Choosing a lease can cut your monthly payments

Newbies and experienced car financers alike are taken aback by quite how much car you can get for £300 per month.

The sheer number of cars that fall into this range is magnificent, but the most impressive thing is the quality on offer.

The £300 a month figure unlocks a serious number of upmarket brands, as well as saloons, crossover, SUVs, estates and electric cars.

Of course first you'll need to decide what kind of finance package you're after.

Leasing (sometimes called PCH or Personal Contract Hire) is essentially a form of renting. You pay an initial payment, then a series of monthly payments. Then that's it. You hand the car back.

PCP (Personal Contract Purchase) deals involve a deposit and a series of monthly payments. Then you choose if you want to buy at the end, with what is often referred to as a balloon payment.

Leasing is usually better if you don't want to own a car. PCP is better if you want to keep your buying options open.

Best new cars for £300 a month 2021


LEASE: Volkswagen ID.3

Volkswagen ID.3

If you're after the most futuristic car for £300 per month, you've found it. 

The ID.3 is Volkswagen's first bespoke electric car. It represents a huge change to the way the brand builds cars. It's electric, for a start, with different batteries and ranges depending on how deep your pockets are.

Then there are the little things. Get inside and you don't need to turn anything on, it's just on. The infotainment (something very important in a modern electric car) is super slick and can be specced with niceties like an augmented reality sat-nav.

Your £300 will squeeze you into a model with a 45kWh battery that has a WLTP-rated electric range of 216 miles.*

Leasing price: from £313 per month

LEASE: Hyundai Tucson

Hyundai Tucson £300 per month

Hyundai's designs have come on leaps and bounds in the last few years, and no car epitomises the evolution like the Tucson. Gone are the blobby and anonymous bulges, replaced by sharp creases, a fragmented grille, and full-width light bar at the rear. The Tucson interior is equally as pleasing, with dollops of soft leather and twin 10.25-inch screens. 

The boot's a decent size and shape, and deep too. It'll hold 620-litres in the petrol cars (like the ones on offer here), but a bit less with the hybrid as the additional battery is stored in here as well.

The offer here is for an SE Connect model. This may be entry level, but it still comes with Apple CarPlay/Android Auto, forward collision avoidance safety features, and rear parking sensors.*

Leasing price: from £254 per month

LEASE: SEAT Tarraco 

Best cars for £300 per month

Not many seven-seaters for sub £300 per month. And even if you don't strictly need seven-seats, having a big car is always handy. The boot holds 700 litres when only five seats are up.

It's not all space without any substance either. The Tarraco is an excellent all-rounder. Outside it's handsome while inside it feels well built - if not as plush as other Volkswagen Group cars.

Petrol versions - like the one on offer here - are great for around town. The 1.5-litre engine is more than up to the task, but diesels are worth the extra money per month if you cover loads of miles and regularly travel seven up or fully laden.*

Leasing price: From £294 per month

LEASE: Audi A3

Audi A3 lease deals

The SUVs on this list might offer better value for money, with their big boots and passenger space. But what if you don't require a large car? And you want something that'll get you from A to B, with just a little added lux?

There's always the Audi A3. Mechanically it's nearly identical to the VW Golf. But we reckon it's a steal because it feels that much more premium. The interior feels more solid, the infotainment is slicker, and instead of aggravating touch controls for things like the air con, it has conventional and solid-feeling dials.

Dare we mention driving pleasure? We dare, because the A3 is rewarding to drive, even with the 150hp 1.5-litre petrol. Speaking of which, in our long-term Audi A3, we managed close to 50mpg over six months with this engine.*

Leasing price: from £317 per month

LEASE: BMW i3

BMW i3 lease deals

Can you believe this spaceship-like shape is eight years old? Despite its age, the BMW i3 is still very forward thinking. It's an electric car, with a dashboard made out of recycled material, and a fishbowl-esque windscreen giving you a huge view of the road ahead.

Despite its age, the interior still has all the mod-cons you'd expect. But the oficial range, at 182 miles, is a lot less than some of its rivals.*

Leasing price: from £308 per month

>> After an electric car? Check out what we think are the best electric cars for less than £300 per month

*These deals are indicative examples of some packages available as of 1 October 2021 but are subject to change without prior notice. Everyone’s financial circumstances are different, and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically. Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited. Terms, conditions and exclusions apply.


PCP: Kia Sportage 

Kia Sportage rear

There's a new Sportage en route, so expect to see more and more offers on this outgoing model.

It regularly flirts with the bestsellers list, and with good reason. It's spacious, well-made, and has trim levels and engine choices that make it appealing to a wide variety of buyers.

This 0% APR deal is only unlocked with a massive deposit. But it's a good deal if you're keen on keeping the car for a while because it has a seven-year warranty.**

Kia Sportage GT-Line S 1.6 manual

  • Monthly cost: £309.57(24 payments)
  • Deposit: £9,502
  • Total amount payable by customer to buy car: £31,510
  • Cash price: £31,510
  • Mileage allowance: 8,000 miles per year
  • APR: 0%

Kia Sportage PCP deal

PCP: Mazda MX-30

Mazda MX-30 £300 per month

Mazda's first fully electric car is quite the looker. Especially with those pillarless Freestyle doors, which open out wider than traditional ones, making it easier to get in the back compared with a three-door setup.

Interestingly, the Mazda's battery (35.5kWh) is smaller than rivals. However, a smaller battery means less charging time. A 20-80% zap using a 50kW public charger, like you'd find at a petrol station, takes 36 minutes. Cars with bigger batteries take more like 45.

Officially, the range is 124 miles. But this extends to 164 miles for low-speed urban journeys. Our own findings under mixed conditions put it at around 100 miles or so.

The deal is for a first edition model with all the bells and whistles and 0% APR finance.**

Mazda MX-30 First Edition

  • Monthly cost: £289 (24 payments)
  • Deposit: £4,309 
  • Total amount payable by customer to buy car: £29,995
  • Cash price: £29,995
  • Mileage allowance: 9,000 miles per year
  • APR: 0% 

Mazda MX-30 PCP deal

PCP: MG HS

MG HS £300 a month

You probably haven't seen too many of these on the road. Despite that, the HS is a pretty good car with one ace up its sleeve. It's roughly the size of a Kia Sportage, but it's a whole lot cheaper to buy outright.

The bootspace, at 463 litres, isn't all that big considering the size of the car. But rear seat passenger space is excellent - it's the budget SUV to go for if you regularly haul fully-grown adults as well as kids. It scores well in terms of standard equipment too. Apple CarPlay/Android Auto, keyless entry, and a reversing camera all come as standard.

£300 per month affords you a 1.5-litre petrol with a manual or automatic gearbox. Worth pointing out that it comes with 0% APR too.**

MG HS Exclusive 1.5 automatic

  • Monthly cost: £259 (48 payments)
  • Deposit: £3,122.50
  • Total amount payable by customer to buy car: £25,495
  • Cash price: £25,495
  • Mileage allowance: 8,000 miles per year
  • APR: 0%

MG HS PCP deal

PCP: Cupra Formentor

Cupra Formentor £300 a month

Cupra is known (in the right circles anyway) for kitting out SEATs with high performance engines. The Formentor is meant to change all of this, as it's Cupra's first standalone model.

Broadly, it's a family crossover that errs on the side of sportiness and attitude. It looks the business and is available with conventional petrol engines and two plug-in hybrids. They range from 150hp (tepid) to 310hp (hot) in power. No matter which one you choose you'll be rewarded with a car that feels much more like a hot-hatch to drive than an SUV.

Your monthly payments get you the 1.5-litre petrol with 150hp. It's an agreeable choice of engine, striking a fine balance between price and efficiency.**

Cupra Formentor V1 150ps

  • Monthly cost: £299 (47 payments)
  • Deposit: £4,510.57 (including £1,500 deposit contribution)
  • Total amount payable by customer to buy car: £29,953.17
  • Cash price: £28,835
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Cupra Formentor PCP deal

PCP: BMW 1 Series

BMW 1-Series £300 a month

The 1 Series is BMW's smallest and cheapest model. But it's not tiny or spartan. There's room for four adults to sit comfortably, and the boot is 380 litres - a bit bigger than its main rival, the Mercedes A-Class. 

Inside it's much like the bigger and more expensive BMW 3 Series. The materials feel solid and the car's infotainment system is both easy-to-use and up-to-date.

The 118i petrol engine on offer here is a 1.5-litre, promising mpg in the high 40s. While a 1.5 might not feel very BMW - a punchy 8.5 second 0-62mph time means joining the motorway won't require a military manoeuvre.**

BMW 118i M Sport

  • Monthly cost: £315.39 (47 payments)
  • Deposit: £4,500 (including £560.77 deposit contribution)
  • Total amount payable by customer to buy car: £32,959.90
  • Cash price: £29,350
  • Mileage allowance: 8,000 miles per year
  • APR: 4.9%

BMW 1-Series PCP deal

What to read next - car finance 

>> Best cars for £90 per month
>> Best cars for £100 per month
>> Best cars for £150 per month
>> Best cars for £200 per month
>> Best cars for £400 per month
>> Best cars for £500 per month
>> Deal Watch: top cash, finance and leasing offers

Looking to learn more about car finance? Watch our video guides to PCP financePCH leasing and Hire Purchase, or visit our car finance calculator to find out how much you can afford to borrow.

>> What is PCP?
>> What happens at the end of a PCP deal?
>> How does car leasing work?
>> Lease or buy: rent or keep?
>> How to find cheap car finance

** These deals are indicative examples of some packages available as of 1 October 2021, but are subject to change without prior notice. Everyone's financial circumstances are different and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically.

Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated consumer hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited.