Half a grand, a monkey – £500, in other words – is a good chunk of change to spend on a car every month. And if you like the finer things in life, that kind of money opens up a whole world of possibilities when you’re looking for a new car deal. On this page, we’re highlighting some of the best cars for £500 per month that are available right now.
There’s upmarket saloons, a couple of posh SUVs, even one of the very finest sports cars on the market. You’ll find both personal contract purchase (PCP) and leasing deals.
Get a PCP deal and you pay a deposit up front, then a number of monthly payments over a set period. At the end of that period, you can then make the optional final payment to buy the car outright, or hand it back.
Leasing – also known as personal contract hire, or PCH – is much the same as renting, just over a longer term. You make an initial payment, then a series of monthly payments at the end of which you hand the car back.
If £500 a month is a bit too steep for you, check out our page rounding up the best deals available for £400 a month.
Best new cars for £500 a month 2023
Compact exec is a class leader
For a bit over £500 a month, you can get a 320i M Sport that comes with an automatic gearbox and one of the best infotainment systems in the business. BMW asks for a relatively low deposit and the APR is a very reasonable 5.9%. The mileage allowance is a useful 10,000 per annum and residual values could outpace the balloon payment.*
To find out more, read our full BMW 3 Series review
Pros
- High quality interior
- Lots of tech
- Wide range of engines
Cons
- Jerky start/stop system
- Options are expensive
One of the very best sports cars is temptingly affordable
The deal we’ve found is for the entry-point A110 – arguably the sweet spot in the range – which has 252hp and does 0-62mph in just 4.5 seconds. Standing kit includes satnav, Apple CarPlay/Android Auto and climate control. The deposit is pretty chunky, but 7.9% APR is competitive when interest rates are generally high.*
To find out more, read our full Alpine A110 review
Pros
- So very, very good to drive
- Compact size
- Surprisingly usable day to day
Cons
- Waiting list can be long
- Irksome infotainment system
Smart-looking family-size SUV that’s comfy and practical
The Sport model in the deal we’ve pulled out comes with Apple CarPlay/Android Auto, satnav, heated leather seats and adaptive cruise control. The mid-ranking 40 powertrain offers 204hp. Audi provides a £5,000 deposit contribution, leaving you to find £7,700. APR of 6.9% is pretty good at the moment. Note the deal is only available on cars in stock.*
To find out more, read our full Audi Q4 e-tron review
Pros
- 300-mile range
- Five-adult space
- Smooth and quiet to drive
Cons
- Interior could be plusher
- Irritating touch controls
Makes you wonder what the point is of premium-brand rivals
The deal we’ve found is for a top-grade L&K model which comes with satnav, Apple CarPlay/Android Auto, heated and ventilated leather seats and adaptive cruise control. The 190hp petrol engine has an automatic gearbox and can return around 40mpg. Skoda provides £3,000 towards the deposit and reasonable APR; residual values might outperform the final payment, as well.*
To find out more, read our full Skoda Superb review
Pros
- Vast interior and boot space
- Relaxing motorway cruiser
- Very well made
Cons
- New generation coming soon
- Size can make parking tricky
Boisterous hot hatch that’s still practical
Standard features include Apple CarPlay/Android Auto, wireless charging pad, satnav and heated seats/steering wheel. Hyundai charges a high-ish 9.6% APR but the deposit is quite low. The mileage allowance of 10,000 per annum is useful, as well. Most noteworthy, though, is the final payment which is a lot lower than the car’s likely value after four years.*
To find out more, read our full Hyundai i30 N review
Pros
- Huge fun to drive
- Great value
- Generously equipped
Cons
- Ride is very firm
- Not the most spacious of hatchbacks
Spacious SUV that looks great and feels it to drive
For a smidge under £500 a month you get the R-Dynamic SE Black model which comes with satnav, Apple CarPlay/Android Auto, wireless charging pad and electrically adjustable heated leather seats. The D200 diesel engine is a strong performer and returns 40mpg-plus. Jaguar contributes £3,000 towards a manageable deposit and the APR is pretty competitive, these days.*
To find out more, read our full Jaguar F-Pace review
Pros
- Drives like a saloon
- Refined engines
- A great family car
Cons
- Can be a bit thirsty
- Showing its age in places
* These deals are indicative examples of some packages available as of 14 February 2024, 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.
