The best cars for £500 per month

  • Choose from sleek saloons to plug-in hybrid SUVs
  • High-class models can be startlingly affordable
  • We've rounded up the best lease and PCP deals

£500 is a good chunk of change to spend on a car every month. And while it could lease you four Fiat 500s, it's probably best spent elsewhere.

The good news is that if you like the finer things in life, this amount of money really opens a whole new world of luxury. If there's £500 burning a hole in your pocket at the start of every calendar flip and you have a driveway with space on it, boy, do we have some good deals here for you.

Leasing deals, as well as PCP finance offers, mean that a wide range of body styles are on offer, all from premium and desirable marques including Audi, Range Rover and Tesla.

Best new cars for £500 a month 2021


LEASE: Tesla Model 3 

2021 Tesla Model 3

We at Parkers like the Tesla Model 3 so much we crowned it our Car of the Year back in 2020.

Since then, Tesla has even upped its game with a tweaked interior layout (now there's actually somewhere useful to put your phone).

Sub £500 per month gets you a 254-mile range, access to Tesla's exclusive Superchargers, and a smug-factor few can rival.*

Leasing price: from £438 per month

LEASE: BMW 5 Series

BMW 5 Series £500 per month

If the modern craze for shouty SUVs is a bit much, we can heartily recommend a BMW 5 Series instead. It's much more conventionally shaped, and as an all-rounder, it's hard to fault. It does all the basics well - but where it really exceeds is in the way it drives.

It's the best handling car in class and is genuinely fun. It's backed up by a cracking range of engines too. Small petrols (520i) for people who don't cover a great deal of ground, frugal diesels (520d) for those that do, and a plug-in hybrid version (530e) that will be attractive to company car drivers because of its low BIK.

The interior is as posh as you'd imagine. Plus BMW's infotainment system is brilliantly simple and elegant. Irritations in general are few and far between - a real sign of luxury.*

Leasing price: from £427 per month

*These deals are indicative examples of some packages available as of 5 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: Volkswagen Touareg

VW Touareg £500 per month

The Volkswagen Touareg is VW's flagship car. It's the most expensive model, brimming with the latest technology and creature comforts. Underneath, it shares a lot of parts with the likes of the Audi Q7 and Bentley Bentayga.

Opting for a Touareg gives you a lot of the quality of really expensive cars, for a much more modest price. State-of-the-art tech includes a lane assist system, cross-traffic warnings, four-wheel steering, active lighting and height-adjustable active suspension.

The offer here includes a powerful 3.0-litre diesel engine and four-wheel drive. £4,250 deposit contribution and 0% APR work together to create one of the biggest bargains out there.**

VW Touareg PCP deal

  • Monthly cost: £435 (47 payments)
  • Deposit: £9,680.20 (including £4,250 deposit contribution)
  • Total amount payable by customer to buy car: £51,900
  • Cash price: £51,900
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

PCP: Audi A7 Sportback

Audi A7 £500 per month

The A7 is for all intents and purposes an Audi A6 in a sleek and eye-catching five-door coupe bodystyle.

While that sounds complex, it really isn't. The A7 is basically a big posh Audi with a hatchback boot, and a slinky, svelte body.

It's super swish inside too, housing a lot of modern technology like haptic feedback, that lets you 'click' buttons on a touchscreen. The £6,750 deposit contribution is one of the largest around.**

Audi A7 Sportback PCP deal

  • Monthly cost: £489
  • Deposit: £11,893.94 (including £6,750 deposit contribution)
  • Total amount payable by customer to buy car: £59,761.04
  • Cash price: £53,090
  • Mileage allowance: 10,000 miles per year
  • APR: 6.5%

PCP: Range Rover Velar

Range Rover Velar £500 a month

If you're after a super posh, super in vogue hunkered-down SUV, the Velar fits the bill nicely. Despite being a bit lower than the Range Rover norm, it's still elevated enough for you to lord it over humbler cars - surely the core appeal of any Range Rover.

It feels large from behind the steering wheel, but in all other aspects the Velar is a surprisingly rewarding SUV that cossets the driver, and really makes everyone who rides in it feel special.**

Range Rover Velar PCP deal

  • Monthly cost: £529 (48 payments)
  • Deposit: £9,949 (including £3,000 deposit contribution)
  • Total amount payable by customer to buy car: £63,302
  • Cash price: £56,545
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

PCP: Lexus ES

Lexus ES £500 a month

The ES boasts a sharp design with the bold cotton-reel front grille, plenty of curves, slashes and creases in its bodywork that take influence from the much more expensive LC coupe and LS saloon

In terms of quality materials, it's a cut above what else you'd find in this price bracket. The fit and finish and overall solidity is extremely strong.

There's only one engine to pick. It's a hybrid 2.5-litre with 218hp. It's smooth rather than fast, but you can expect mpg in the fifties. Lexus, unlike some premium manufacturers, offers low deposits too.**

Lexus ES Premium Edition PCP deal

  • Monthly cost: £425 (47 payments)
  • Deposit: £3,851.24 (including £2,000 deposit contribution)
  • Total amount payable by customer to buy car: £40,129.10
  • Cash price: £36,555
  • Mileage allowance: 8,000 miles per year
  • APR: 3.9%

PCP: Toyota Highlander

Toyota Highlander £500 a month

The Highlander is Toyota's full-fat seven-seat SUV. It's a big-seller in the USA, so it makes sense that the front five seats are large and comfortable. The third row of pews isn't all that commodious, but the boot is massive. With all seven seats in place there's 332 litres of space, roughly the size of a supermini's boot. Drop the third row of seats and you'll liberate 658 litres. With both rear rows of seats folded there's a cavernous 1,909 litres.

There's only one engine to choose from. It's a 2.5-litre hybrid with four-wheel drive and it's pretty economical for a car of this size. Official fuel economy ranges from 39.2 to 39.7mpg. During a long, mixed test route we managed over 41mpg.

Huge deposit, but at least it's 0% APR.**

Toyota Highlander PCP deal

  • Monthly cost: £539 (23 payments)
  • Deposit: £12,498
  • Total amount payable by customer to buy car: £51,535
  • Cash price: £51,535
  • Mileage allowance: 9,000 miles per year
  • APR: 0%

What to read next - car finance

Want to know more about car finance? Check out our video guides explaining what PCP finance ishow PCH leasing works, and whether Hire Purchase is for you. Take a gander at our car finance calculator to see how much you can afford to borrow. Or if you're looking at leasing, check out the Parkers personal leasing search tool.

>> Best cars for £90 per month
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>> Best cars for £200 per month
>> Best cars for £300 per month
>> Best cars for £400 per month
>> Top cash, finance and leasing offers: Deal Watch

** These deals are indicative examples of some packages available as of 5 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.