The best cars for £400 per month

  • Choose from seven-seat SUVs to sleek sports cars
  • Upmarket models can be surprisingly affordable
  • We've rounded up the best personal lease and PCP deals

Fancy an upmarket and lavishly equipped car? The £400 per month mark lands you right in the stomping ground of high-end manufactures like BMW, Audi, Porsche, and Volvo. This sort of budget will stretch to hefty 4x4s, luxury saloons, and sleek sports cars, as well as pretty much any other type of car that takes your fancy.

This article lists the best PCP (personal contract purchase) and leasing deals around, helping you pick the right car for your needs. With a PCP deal, you pay a deposit and a series of monthly payments. You then choose whether you want to buy the car at the end or not.

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

PCP is the way to go if you want to keep your buying options open, and leasing is usually better if you don't want to buy a car at the end of the agreement.

Best new cars for £400 a month 2020


LEASE: Mercedes-Benz GLB

Best new car for £400 a month for: posh seven-seat lease deals

2020 Mercedes-Benz GLB

Want a high-riding, comfortable and upmarket family car, but need to juggle space, running costs and agility for nipping around town? Mercedes has three SUVs in the form of the GLA, GLB, and GLC that all offer an answer to that question.

The German firm hopes customers will have a goldilocks moment and pick the one that's just right for them. But the truth of the matter is that most people will pick which they can afford.

Seven-seater SUVs are common, but posh, compact seven-seaters are much rarer. This model on offer looks sporty because it's an AMG Line, but the truth is that it's actually powered by a frugal 1.3-litre petrol engine.*

Leasing price: from £342 per month

LEASE: Peugeot 3008 hybrid

Best new car for £400 a month for: a hybrid heart

2020 Peugeot 3008 hybrid

Striking isn't it. And don't think those sharp lines prevent the 3008 from being practical. There's still a big boot, and wide opening rear doors.

This model is a plug-in hybrid, meaning up to 69 miles of pure electric range if you remember to actually plug it in. This isn't the 300hp four-wheel drive version, but total output is still a healthy 225hp.

It's a sensible option if you don't want a pure petrol car, but can't quite get a fully electric one to fit in with your lifestyle. If you want a cheaper 3008, petrol models can be found for under £300 per monthWhile, if you want a fully electric Peugeot SUV, there's always the smaller e-2008.*

Leasing price: from less than £400 per month

*These deals are indicative examples of some packages available as of 29 June 2020 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: Toyota GR Supra

Best new car under £500 a month for: muscle car looks

2019 Toyota GR Supra

If you're looking for a great GT car that's filled with heritage, and attitude, the GR Supra is easy to recommend.

Toyota set out from the get go to make it an enjoyable yet every day kind of sports car. By and large it has succeeded. And while the Alpine A110 and Porsche Cayman are both brilliant too, there's no denying that the Supra is just that much better to deal with day to day.

A 0% APR is generous for this kind of car. Plus, it's backed by Toyota's five-year warranty too. Obviously the deposit is massive, but it's a savvy way to buy an expensive car outright.**

Toyota GR Supra PCP deal

  • Monthly cost: £399 (24 payments)
  • Deposit: £12,526
  • Total amount payable by customer to buy car: £54,960
  • Cash price: £54,960
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

PCP: BMW 5 Series

Best new car for £400 a month for: upmarket saloons

Silver BMW 5 Series

The BMW 5 Series is the epitome of the premium executive saloon class. Now in its seventh generation, it has quietly improved itself through every iteration, culminating in this.

While the interior lacks the wow factor of the Mercedes-Benz E-Class, it makes up for it in the way it drives. It feels so much more agile than similarly large cars.

The 2.0-litre petrol engine found in this model is a peach too. Powerful enough to keep up in the outside lane, but also capable of 48mpg.**

BMW 520i M Sport Saloon

  • Monthly cost: £380.94 (47 payments)
  • Deposit: £4,669 (including deposit contribution of £5,773.66)
  • Total amount payable by customer to buy car: £42,665.84
  • Cash price: £40,970
  • Mileage allowance: 10,000 miles per year
  • APR: 1.9%

BMW 5 Series PCP deal

PCP: Audi A4 Avant

Best new car under £400 a month for: estate-car sensibleness

2019 Audi A4 Avant

A stylish, well appointed, and practical estate for sub £400 per month? Your eyes aren't deceiving you.

It'll seat four in comfort, while luggage room is a capacious 495 litres. Although those rear seats don't fold completely flat.

Compared with other posh estates, it feels most special where you spend the majority of your time - inside.

£4,250 deposit contribution really sweetens the deal too.**

Audi A4 Avant Sport 35 TFSI S Tronic

  • Monthly cost: £389 (47 payments)
  • Deposit: £5,242.63 (including £4,250 deposit contribution)
  • Total amount payable by customer to buy car: £35,504.68
  • Cash price: £36,060
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

Audi A4 Avant PCP deal

PCP: Land Rover Discovery Sport

Best new car under £400 a month for: seven-seat SUVs

2019 Land Rover Discovery Sport

The Discovery Sport may well be the 'entry' level Land Rover, but that doesn't stop it from being a Land Rover. It's rugged, good looking, and it was even updated last year, bringing it bang up to date.

It's a seven-seater too. Those rear seats are a little cramped from adults, but are spacious enough for kids. With those rear seats folded flat, there's a generous 829-litres worth of boot space. Or 981-litres with the second row slid fully forwards.**

Land Rover Discovery Sport D180 SE Auto

  • Monthly cost: £399 (48 payments)
  • Deposit: £7,275 (including £4,250 deposit contribution)
  • Total amount payable by customer to buy car: £48,115
  • Cash price: £44,170
  • Mileage allowance: 10,000 miles per year
  • APR: 3.9%

Land Rover Discovery Sport PCP deal

PCP: Volvo S60

2020 Volvo S60 side profile

The S60 is a stylish luxury saloon, packed with advanced safety kit and tech. It's also a left-field alternative to the likes of the BMW 3 Series, Mercedes C-Class, and Audi A4. Except, thanks to keen finance deals, it's a good chunk cheaper.

Inscription and R-Design models are within the £400 price range. R-Design models look sportier with 5-spoke wheels while they also get a sportier (harder) suspension setup. We'd go for an Inscription model instead. These offer drivers a more relaxed driving experience thanks to softer suspension. 

Either way, you'll get a 12.3-inch portrait style infotainment system with most gadgets you'd want. Diesel as found in this B5, is still the most sensible option for the majority of buyers - and the Volvo has a claimed MPG of 42. This diesel hybrid engine has a useful 250hp to play with too. Volvo is offering 0% APR deals across most of its range.**

Volvo S60 B5 Inscription

  • Monthly cost: £372.38 (49 payments)
  • Deposit: £7,385.75 (includes £5,681.25 deposit contribution)
  • Total amount payable: £36,928.75
  • Cash price: £40,610
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Volvo S60 PCP deal

What to read next - car finance

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.

** These deals are indicative examples of some packages available as at 29 June 2020, 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.