Best new car deals 2020 - PCP, cash, and leasing

  • The best cars for your budget
  • The biggest car discounts
  • The full low down on lease deals, 0% APR finance, and cash savings

Understandably, car buying isn't top priority for many at the moment. But if you are thinking about your next motor, Deal Watch is here to help.

>> Don't fancy visiting a dealership? Here's how to buy online

We’ve walked the hard metaphorical miles and fished-out the best-value car deals in 2021. Leasing, PCP, and cash deals are all covered here.

>> Your Coronavirus (COVID-19) related questions answered

With car finance splitting the cost of a new car into affordable chunks, the best new car deals mean that you can get a more upmarket or higher-spec car than you might expect, all without breaking the bank. Below we’ve rounded up the best value offers – whatever your budget:

Check out some of our favourite new car offers below and work out how much you can afford to borrow with our finance tool. Plus you can always visit our cars for sale section for used car deals. And when you come to sell your current vehicle, make sure you get a car valuation from us to ensure you get a good price.

The best new car deals: PCH personal leasing

PCH personal leasing is the simplest way of getting behind the wheel of a brand new car. Put down your initial payment, lay out those monthly payments, then that's it. You hand the car back at the end of the contract.

If you like keeping your cars for a long time, PCP and HP deals are usually better value. But if you do like changing your car every two to three years, then leasing is a wise choice.

>> How does leasing work?

PCH personal leasing – Ford Puma: Parkers car of the year for £192/month

2020 Ford Puma

Our Car of the Year. The Puma proves Ford still knows how to make sensible but desirable family cars in an increasingly crowded market.

Like other small SUVs, it's based on a supermini - in this instance, the Ford Fiesta. But unlike other cars of this ilk, the Puma manages to be even more practical, with clever touches like the 'Megabox' - essentially a plastic container underneath the boot with a waterproof lining and a drain plug.

The 1.0-litre mild hybrid, as found in this deal, is brilliant. 125hp and a 0-62mph time of sub 10 seconds means it delivers all the pep a mini-SUV driver could need, while it also achieves an official rating of 50mpg. ST-Line cars have nearly all the options ticked and 17-inch alloys.*

Ford Puma 1.0 EcoBoost Hybrid mHEV ST-Line

  • Monthly cost: £192 (35 payments, incl. VAT)
  • Initial payment: £1,250 (Plus £99 processing fee)
  • Total amount payable by customer to lease car and return (excluding excess mileage charges and any end of contract charges): £8,069
  • Mileage allowance: 8,000 miles per year
  • Click here for the latest Ford Puma deals

PCH personal leasing: SEAT Leon: Spanish Golf for £163/month

2020 Seat Leon

If you've already read a review of the Leon, you'll know that it's basically a Golf underneath, with a Spanish body on top. It's a combination that works - the Leon is SEAT's most successful model in the UK. 

Inside it's a sea of Volkswagen tech too. Expect to find a digital cockpit and wireless Apple CarPlay/Android Auto on most models.

The best thing about the Leon is that it's cheaper than a Golf. Even at this price range you can afford an SE Dynamic model, with that lovely digital cockpit. The 1.0-litre might not sound like a lot, but its 110hp ensures it's not too slow for motorway maneuvers.*

SEAT Leon 1.0 TSI SE Dynamic

  • Monthly cost: £163 (35 payments, incl. VAT)
  • Initial payment: £1,000 (Plus £99 processing fee)
  • Total amount payable by customer to lease car and return (excluding excess mileage charges and any end of contract charges): £6,804
  • Mileage allowance: 8,000 miles per year
  • Click here for the SEAT Leon deals

PCH personal leasing - Skoda Karoq: sensible SUV for £240/month

Skoda Karoq dynamic

The Karoq is Skoda's mid-sized SUV model. So it's larger than a Kamiq and smaller than a Kodiaq.

It's a great middle ground and a fantastically family-friendly SUV. Practical too, and full of 'simply clever' touches. We highly rate the removable door bins. The infotainment and controls are ergonomic and there's a pleasing solidity to nearly everything you touch.

On offer here is a 1.5-litre petrol with an automatic gearbox. It's not the fastest, but the official MPG is up to 53.3mpg.*

Skoda Karoq 1.5 TSI SE L automatic

  • Monthly cost: £240 (35 payments, incl. VAT)
  • Initial payment: £1,500 (Plus £99 processing fee)
  • Total amount payable by customer to lease car and return (excluding excess mileage charges and any end of contract charges): £9,999
  • Mileage allowance: 8,000 miles per year
  • Click here for the latest Skoda Karoq lease deals

PCH personal leasing – Volkswagen ID.3: the future for £471/month

Volkswagen ID.3

The Volkswagen ID.3 is the first purpose-built electric Volkswagen. It really feels, and looks, like the future.

The exterior is clean and simple without a grille. The interior is even more pared back. There are few physical controls - nearly all functions are dealt with by a pair of digital screens.

Expect a 0-62mph time of 7.3 seconds from the 150kW battery, as well as an official WLTP range of 263 miles.*

Volkswagen ID.3 Life Pro Performance

  • Monthly cost: £471 (35 payments, incl. VAT)
  • Initial payment: £3,500 (Plus £99 processing fee)
  • Total amount payable by customer to lease car and return (excluding excess mileage charges and any end of contract charges): £20,084
  • Mileage allowance: 8,000 miles per year
  • Click here for the latest Volkswagen ID.3 deals

PCH personal leasing – BMW 1 Series: posh BMW hatchback £234/month

BMW 1-Series static

The 1-Series may be BMW's smallest car, but it's still a BMW through and through. Inside you're cocooned in a plush cell with the latest tech, like a digital cockpit. While there's no denying the BMW badge and big grille combo at the front will impress a few envious neighbours.

SE spec cars like this are well equipped with pretty much everything you'd want - but miss out on the important M Sport package with the bling wheels. The 118i engine is the cheapest available and is quick enough for most situations - but will only return around 40mpg in real-life driving. Lots of different trim levels to rifle through by clicking the link below.*

BMW 1 Series 118i SE

  • Monthly cost: £234 (35 payments, incl. VAT)
  • Initial payment: £1,500 (Plus £99 processing fee)
  • Total amount payable by customer to lease car and return (excluding excess mileage charges and any end of contract charges): £9,789
  • Mileage allowance: 8,000 miles per year
  • Click here for the latest BMW 1 Series deals

*These deals are indicative examples of some packages available as of 22 January 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.

The best new car deals: Personal Contract Purchase (PCP)

Like the idea of running a brand new car for an affordable monthly payment – with the option to hand the car back at the end of the contract or buy it outright? You need PCP finance.

Beware: the difference between the best and worst PCP deals is enormous. Do your homework, though, and you can bag a great car for far less per month than you might expect.

PCP finance –  Ford Focus: £250/month, £5,140 deposit, 0% APR

2018 Ford Focus driving

How good is the Focus? Well it took the crown for the Parkers Small Family Car of the Year. We love its spacious interior, and the way it drives.

It's also packaged in a way that's extremely easy to use and understand. Good kit levels too - especially for the ST-Line that's up for grabs here.**

Ford Focus ST-Line 1.0 EcoBoost MHEV 125

  • Monthly cost: £250 (36 payments)
  • Deposit: £5,140 (including £1,000 deposit allowance)
  • Total amount payable: £24,810
  • Cash price: £24,810
  • Mileage allowance: 9,000 miles per year
  • APR: 0%

PCP finance – MG ZS EV: £279/month, £3,212 deposit, 0% APR

MG ZS EV dynamic

An electric SUV with a 163-mile range and 448-litre boot for less than £300 per month - with a 0% APR offer thrown in for good measure. There's an awful lot to like with this deal.

Town and city life is where the ZS EV excels. The instant response of the electric motor means it's quick to get to 30mph, while its electric powerplant also ensures there are no emissions coming out on an exhaust pipe.

Inside it feels pretty cheap. But other electric cars of this size, like the Kia e-Niro, cost more like £350-£400 per month with a much heftier deposit.**

MG ZS EV Excite

  • Monthly cost: £279 (48 payments)
  • Deposit: £3,212
  • Total amount payable: £28,495
  • Cash price: £28,495
  • Mileage allowance: 8,000 miles per year
  • APR: 0%

PCP finance – Suzuki Swift: £158/month, £3,750 deposit, 0% APR

Suzuki Swift

Suzuki is famous (well within the right circles) for regularly winning real-world economy awards and topping reliability surveys. 

If you're after a simple and easy to use supermini, the Swift is easy to recommend. It's not as fun to drive as a Ford Fiesta, and it's not as flash as a Peugeot 208. But it's very very easy to live with, with very little to annoy you.

SZ-T cars come with pretty much everything you'd want in a supermini - Apple CarPlay/Android Auto, alloy wheels, and a blindspot monitoring system. 0% APR on this offer too.**

Suzuki Swift SZ-T 

  • Monthly cost: £158.20 (47 payments)
  • Deposit: £3,750
  • Total amount payable: £12,749
  • Cash price: £12,749
  • Mileage allowance: 6,000 miles per year
  • APR: 0%

PCP finance – Volvo XC60: £399/month, £4,368 deposit, 4.9% APR

2020 Volvo XC60

The XC60 is a stylish luxury SUV, packed with advanced safety kit and tech. It's a left-field alternative to the likes of the BMW X3, Audi Q5, and Mercedes-Benz GLC, but thanks to keen finance deals, the XC60 is a good chunk cheaper.

This model on offer is a sensible mild hybrid diesel, in front-wheel drive configuration. Not putting drive to the rear wheels ensures an official 45 mpg rating.

Momentum spec cars get a 12.3-inch portrait-style infotainment system, Pilot Assist adaptive cruise control, and adjustable drive modes. Deposit contribution helps to make this a bargain.**

Volvo XC60 B4 Momentum

  • Monthly cost: £399 (37 payments)
  • Deposit: £4,368.47 (after £7,035.25 retailer contribution)
  • Total amount payable: £41,871.10
  • Cash price: £40,810
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

PCP finance – Toyota GR Yaris: £269/month, £7,068 deposit, 0% APR

2020 Toyota Yaris GR

260hp. Four-wheel drive. 0-62mph in 5.5 seconds. And all for less than £300 per month. 

Power being sent to all four-wheels and a very short wheelbase makes the GR Yaris super darty and responsive, two traits associated with the creme de la creme of hot-hatchbacks.

0% APR sweetens the deal.**

Toyota GR Yaris

  • Monthly cost: £269 (24 payments)
  • Deposit: £7,068
  • Total amount payable: £29,995
  • Cash price: £29,995
  • Mileage allowance: 8,000 miles per year
  • APR: 0%

The best new car deals: Cash

The phrase 'cash is king' is often repeated at business conferences up and down the A1. And sometimes it's even true. If you want to own and keep your car for a while, cash deals are refreshingly simple. Car manufacturers rarely do cash deals on new cars anymore - but there are plenty of brokers offering huge cash discounts on new cars.

Cash discount – Mercedes-Benz C-Class: up to £10,645.35 saving

Mercedes C-Class

Premium cars usually carry premium price tags, but hefty cash savings on this C-Class mean you can get a German executive car for the price of a blinged up supermini.

The C-Class is one of the most relaxing cars to drive in the compact exec class. The soft suspension and big seats will soak up the motorway miles. The interior is ergonomic too, with just the right level of soft touch plastics.

Huge cash savings on lots of different trim levels at the moment, direct from Mercedes. These offers do change quickly though.**

(typical example) Mercedes-Benz C-Class Sport Edition

  • List price: £37,005
  • Discounted price: £26,359.65
  • Saving: £10,645.35

Cash discount – Kia Sportage: save £4,108

Kia Sportage rear

A seven-year warranty, reliable engines, a spacious interior, and loads of equipment. These are the reasons people flock to the Kia Sportage like a seagull to a box of chips on Brighton beach.

It's big and boxy, but feels a lot smaller when you're behind the wheels thanks to light controls. While the 1.6-litre diesel is capable of up to 49.6mpg. Even during our testing, the mild hybrid averaged close to 45mpg.**

Kia Sportage 1.6 CRDi

  • List price: £25,380
  • Discounted price: £21,273
  • Saving: £4,108

Cash discount –  Fiat Tipo: £4,872 saving

2020 Fiat Tipo

The Fiat Tipo lacks much in the way of Italian brio. It's a relatively safe design that doesn’t make much attempt to stand out from the crowd, and despite a smattering of interesting detailing – the headlights, grille and bodyside creasing, for instance – it nevertheless blends in with the plethora of generic small hatchbacks on sale.

Huge cash discounts are a hallmark of the best new car deals - and more than £5,000 off makes this Tipo a bargain. There’s plenty of space once aboard the Tipo, including a welcome 440-litre boot, which makes it one of the roomiest in the class. Discounts available in a number of different places too.**

Fiat Tipo Street 1.4 95hp

  • List price: £16,870
  • Discounted price: £11,998
  • Saving: £4,872

Cash discount – SEAT Arona: £2,998 saving

2018 SEAT Arona

The Arona is aimed at people who have outgrown the SEAT Ibiza. Whether that's physically, with the addition of kids, or, mentally, as people's tastes migrate from superminis to mini SUVs.

It shares oily bits with the Volkswagen T-Roc, but is considerably cheaper. Inside, it is plain, but well thought out and roomy, with a 400-litre boot.

The 1.0 TSI on offer here is the one to go for if you don't regularly travel up and down motorways.**

SEAT Arona 1.0 TSI FR

  • List price: £22,009
  • Discounted price: £19,011
  • Saving: £2,998

Cash discount – SsangYong Tivoli XLV: £1,500 saving

Ssangyong Tivoli rear

>> The cheapest new SUVs for sale in the UK

An updated SsangYong Tivoli has just been released, meaning the previous-generation models are on sale. You'll still get a new car, but you'll need to pick from current stock.

The Tivoli XLV is a bit like a Tivoli estate. It's 245mm longer than the regular Tivoli, meaning boot space jumps from 423 litres to 720 litres. 

Your £16,395 buys you leather seats, keyless entry, sat-nav, and a rear parking camera.**

SsangYong Tivoli XLV EX

  • List price: £20,145
  • Discounted price: £18,645
  • Saving: £1,500

What to read next - learn more about car finance

>> Best new cars for £90 per month
>> Best new cars for £100 per month
>> Best new cars for £150 per month
>> Best new cars for £200 per month
>> Best new cars for £300 per month
>> Best new cars for £400 per month
>> Best new cars for £500 per month

Further reading

>> 0% APR finance: how it works and the latest deals
>> No deposit deals
>> 0% APR with no deposit deals
>> How to lease a car with bad credit
>> Lease or buy?
>> Best electric cars to lease
>> Scrappage schemes: why they can save you thousands

** These deals are indicative examples of some packages available as of 8 January 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.