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 five 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, Porsche, Range Rover, and Tesla.

Best new cars for £500 a month 2020


LEASE: Tesla Model 3 

Best new car for less than £500 a month for: impressing the neighbours

2019 Tesla Model 3

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

In the process of taking that gong it picked up more category wins than any single model previously, taking home the Electric Car of the Year and Company Car of the Year titles too.

Less than £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 £447 per month

LEASE: Audi A6 Saloon

Best new car for less than £500 a month for: high-end familiarity

Audi A6 saloon

You'll be forgiven for mistaking the A6 with smaller models in the Audi lineup. It's a deliberate strategy of familiarity from Audi - the A6 is aimed at people who want a bigger, posher and more tech-heavy A4.

The A6 delivers too. It's exceptionally well put together and refined. In fact, it's one of the finest cars out there if you cover galactic mileages up and down Britain's motorways.

This price is for the entry level 40 TDI (a high-power 2.0-litre diesel engine). This engine achieves up to 64mpg in official testing.*

Leasing price: from £410 per month

LEASE: DS 7 Crossback E-Tense

Best new car for less than £500 a month for: eco-bling

DS 7 Crossback E-Tense

The DS 7 is the complete antithesis to hard-riding and sporty SUVs like the Range Rover Sport and Porsche Cayenne.

It's designed with comfort in mind. It has some of the softest suspension in the business, plus, inside, it's all quilted leather and big seats.

To some, it might seem out of place in this price range because the DS brand isn't usually associated with such lofty pricing. But the model on offer here isn't the regular DS 7 - it's the E-Tense model. This is a 300hp plug-in hybrid version with four-wheel-drive and an electric range of 31 miles.

In comparison, another big, plug-in hybrid SUV, the Volvo XC90 T8, starts from £699 on a Volvo-backed lease deal.*

Leasing price: from £380 per month

LEASE: BMW X3

Best new car for £500 a month for: a conventional posh SUV

2020 BMW X3 side

If the modern craze for angular coupe-like SUVs is a bit much, we can heartily recommend a BMW X3 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 doesn't lean into bends like other SUVs, while its four-wheel drive system provides safe, dependable grip.

The best all-rounder of the X3 range is the xDrive20d M Sport, which is on offer here. It features a powerful and efficient diesel engine and a brilliantly simple, yet elegant, infotainment system.*

Leasing price: from £473 per month

*These deals are indicative examples of some packages available as of 14 October 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: Range Rover Velar

Best new car under £500 a month for: svelte SUVs 

2019 Range Rover Velar

If you're after a super posh, super in vogue hunkered-down SUV, the Velar should fit the bill. Despite being a bit lower than the Range Rover norm, it's still elevated enough for you to lord it over more humble 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: £499 (48 payments)
  • Deposit: £8,437 (including £4,750 deposit contribution)
  • Total amount payable by customer to buy car: £56,722
  • Cash price: £51,050
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

PCP: Ford Mustang

Best new car under £500 a month for: yee-haw exuberance

Ford Mustang Bullitt

The Ford Mustang may well be as American as apple pie (although the new electric Mustang will be built in Mexico), but the cars we get over here are actually engineered for European tastes. This means our cars stop and steer better, but still get Ford's belter of a 5.0-litre V8 engine.  

Better still, the Bullitt special edition, built to commemorate 50 years since Bullitt was released in cinemas, is available for sub £500 per month. These cars get the iconic green paint and black wheels combo, plus an improved engine, meaning 460hp.**

Ford Mustang PCP deal

  • Monthly cost: £469 (36 payments)
  • Deposit: £7,895
  • Total amount payable by customer to buy car: £49,085
  • Cash price: £49,085
  • Mileage allowance: 9,000 miles per year
  • APR: 0%

PCP: Audi A7 Sportback

Best new car under £500 a month for: posh practicality

Audi A7 Sportback dynamic

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.**

Audi A7 Sportback PCP deal

  • Monthly cost: £489
  • Deposit: £7,803.77 (including £8,700 deposit contribution)
  • Total amount payable by customer to buy car: £48,757.47
  • Cash price: £52,295
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

PCP: Porsche 718 Boxster

Best new car under £500 a month for: driving purists

Porsche 718 Boxster

The 718 is the cheapest way into a new Porsche sports car. However, don't think that means it's missing out on anything - even this entry-level car gets a 300hp two-litre engine and a 0-62mph time of less than five seconds.

What makes the Porsche stand out from the crowd is in the way it drives. If you're a thrill-seeker, the 718 Boxster is one of the best roasters to drive. The steering is sharp and decisive, while even with the engine in the middle, it's never intimidating. Surprisingly, on wet roads, the 718 gives drivers confidence to really push on.

Inside it's built like a Swiss watch factory, while the deal here includes a £2,000 discount in the form of a deposit contribution.**

Porsche 718 PCP deal

  • Monthly cost: £410.30 (35 payments)
  • Deposit: £11,000 (including £2,000 deposit contribution)
  • Total amount payable by customer to buy car: £54,204.55
  • Cash price: £50,010
  • Mileage allowance: 10,000 miles per year
  • APR: 6.4%

PCP: Audi S6 Avant

Best new car under £500 a month for: posh badge and powerful engine

Audi A6 Avant

Recent trends have seen manufacturers filling smaller and smaller niches. Audi's no stranger to this (Q8, anyone?) but the S6 is a traditional, big and practical estate.

The 565-litre boot is large (although smaller than some rivals), but at least the passenger space is very impressive front and rear. And the S6 comes with a 3.0-litre diesel sporting 350hp, that's capable of hurling this family lugger from 0-62mph in 5 seconds.

A £4,000 discount up front (in the form of a deposit contribution) is pretty hefty and brings this £64,690 car down to £529 per month. Yes, it is slightly above £500, but we thought that this deal was worth it.**

Audi S6 Avant

  • Monthly cost: £529
  • Deposit: £18,167.53 (including £4,000 deposit contribution)
  • Total amount payable by customer to buy car: £71,732.93
  • Cash price: £65,240
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

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
>> Best cars for £100 per month
>> Best cars for £150 per month
>> 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 at 14 October 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.