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 £500 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, Volvo, Range Rover, and even Tesla.

Best new cars for £500 a month 2020


LEASE: Tesla Model 3 

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

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 £453 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 £440 per month

LEASE: Mercedes-Benz GLC Coupe

Best new car for £500 a month for: what-on-earth-is-it vibes

2020 Mercedes-Benz GLC Coupe

Struggling to comprehend what you're looking at? It's a coupe-SUV. The thinking behind it? As SUVs rise in popularity, inevitably, the boxy shape is proving too mainstream for some free thinkers. In steps the coupe SUV, and the GLC Coupe is one of the best around.

While those big wheels make it look imposing, the truth is, it's actually a great family wagon. So it's still a sensible choice, with five-doors and just about enough rear headroom for six-foot adults.

This model on offer has a 2.0-litre diesel engine with four-wheel-drive.*

Leasing price: from £379 per month

*These deals are indicative examples of some packages available as of 29 June April 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: 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 £63,000 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 (47 payments)
  • Deposit: £16,415 (including £4,000 deposit contribution)
  • Total amount payable by customer to buy car: £66,600
  • Cash price: £64,000
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

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.

The P250 is the least powerful petrol engine on offer, but it's not what you'd call slow – 0-62mph comes up in 6.4 seconds.

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.**

Leasing price: from £573 per month

Range Rover Velar PCP deal

  • Monthly cost: £499 (48 payments)
  • Deposit: £8,861 (including £4,750 deposit contribution)
  • Total amount payable by customer to buy car: £56,630
  • Cash price: £51,050
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

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.**

Leasing price: from £542 per month

Audi A7 Sportback PCP deal

  • Monthly cost: £489 (47 payments)
  • Deposit: £7,831 (including £9,000 deposit contribution)
  • Total amount payable by customer to buy car: £48,123
  • Cash price: £52,075
  • 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.

Still perplexed by car finance? The articles below may help:

** 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.