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Car finance: best new cars for less than £400 per month

  • Choose from seven-seat SUVs to sleek sports cars
  • Upmarket models can be surprisingly affordable
  • We've rounded up the best personal lease and PCP deals

Fancy an upmarket, well-equipped car but don’t have the £40,000 cash needed to put one on the drive? Fear not, personal lease deals and PCP finance offers mean that you can drive one of these desirable machines for less than £400 per month.

We’ve grouped together the most appealing cars on offer, including everything from rapid turbocharged sports cars to hefty 4x4s with powerful diesel engines and large luxurious cars.

Best new cars for less than £400 a month 2019

If you’re still getting to grips with car finance, check out our video guides explaining what PCP finance is, how PCH leasing works, and whether Hire Purchase is for you. You can also visit our car finance calculator to see how much you can afford to borrow, or if you're looking to personal lease you can check out the Parkers personal leasing search tool.

In the meantime, take a look at the best finance deals – whatever your budget – below:

LEASE: Range Rover Evoque - £367/month

Best new car for less than £400 a month for: bling

Range Rover Evoque moving

The Range Rover Evoque is Land Rover's smallest and chicest car. If you lusted after the old model for years, you'll be pleased to learn that the new-for-2019 looks similar, but is more crisp and modern inside and out.

For £367 per month you get a powerful petrol engine and a mileage limit of 8,000 per year.*

  • Monthly cost: £367 (35 payments incl. VAT)
  • Initial payment: £2,750 (plus £199 processing fee)
  • Total amount payable by customer to lease car and return (excluding excess mileage charges and any end of contract charges)£15,794
  • Mileage allowance: 8,000 per year
  • Excess mileage charge: 13.51p per mile

Click here for more details: Range Rover Evoque P250

LEASE: Volvo V90 - £382/month

Best new car for less than £400 a month for: comfort

Volvo V90 static

A punchy petrol engine, slick automatic gearbox, and big boot make the V90 a simply brilliant family car. You can get one for £382 per month on a three-year personal lease with a £2,750 initial payment and an 8,000-mile-per-year allowance.*

  • Monthly cost: £382 (35 payments incl. VAT)
  • Initial payment: £2,750 (plus £199 processing fee)
  • Total amount payable by customer to lease car and return (excluding excess mileage charges and any end of contract charges)£16,319
  • Mileage allowance: 8,000 miles per year
  • Excess mileage charge: 12.23p per mile

Click here for more details: Volvo V90 T4 R Design Plus Geartronic


Want to find out more about car finance? Take a look at the links below:

*These deals are indicative examples of some packages available as at 5th September 2019 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: Cupra Ateca - £366/month

Best new car under £400 a month for: all-weather speed

Cupra Ateca PCP finance

Like the idea of a comfortable high-riding SUV but don't want to compromise on power? With 300hp and all-wheel drive traction, the Cupra Ateca offers sports car speed in an SUV shell.

Thanks to £2,250 in finance discounts, this Ateca is available for just £366 per month on a four-year contract with a £6,000 deposit and 10,000-mile-per-year allowance.**

Cupra Ateca 2.0 TSI 300hp DSG [Comfort and Sound]

  • Monthly cost: £366 (47 payments)
  • Deposit: £6,000 (plus £1,750 manufacturer deposit contribution and £500 test drive discount)
  • Total amount payable by customer if returning car: £23,197
  • Total amount payable by customer to buy car: £39,443
  • Cash price: £37,345
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

PCP: Audi A5 Coupe - £359/month

Best new car under £400 a month for: upmarket cabin

Audi A5 Coupe PCP finance

Striking looks, an upmarket cabin and a reasonably potent petrol engine make this A5 Coupe an appealing car for £400 per month. More than this, you get plenty of change, too.

Monthly payments come in at £359 with a £6,000 deposit (on a four-year contract with a 10,000-mile-per-year allowance), cut down to size by a £5,000 deposit contribution discount.** 

Audi A5 Coupe 40 TFSI 190 S Line S tronic

  • Monthly cost: £359 (47 payments)
  • Deposit: £6,000 (plus £5,000 manufacturer deposit contribution)
  • Total amount payable by customer if returning car: £22,890
  • Total amount payable by customer to buy car: £37,377
  • Cash price: £38,360
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

PCP: Alfa Romeo Giulia – £399/month

Best new car under £400 a month for: driver appeal

Alfa Romeo Giulia PCP deal

With bold styling, a 280hp turbocharged petrol engine and plenty of standard kit on its side, this Giulia is enjoyable to drive and should be equally enjoyable to live with.

Monthly payments aren't the lowest at £399 on a four-year contract with a £6,000 deposit and low 6,000-mile-per-year limit, but you do get a big, fast and stylish car for the money.**

Alfa Romeo Giulia 2.0 Turbo 280hp Veloce

  • Monthly cost: £399 (47 payments)
  • Deposit: £6,000 (plus £3,500 manufacturer deposit contribution)
  • Total amount payable by customer if returning car: £24,751
  • Total amount payable by customer to buy car: £39,960
  • Cash price: £39,690
  • Mileage allowance: 6,000 miles per year
  • APR: 4.2%

PCP: Ford Mondeo Estate - £342/month

Best new car under £400 a month for: all-round ability

Ford Mondeo Estate PCP deal

A giant boot, a cabin that's packed with standard equipment, a thrusting but economical diesel engine and all-wheel drive make this Mondeo Estate a great all-rounder for well under £400 per month. 

Monthly payments come in at just £342 on a 39-month contract with a £6,000 deposit and 9,000-mile-per-year allowance. Thank interest-free credit and a £1,300 deposit contribution discount for this.**

Ford Mondeo Estate 2.0 EcoBlue 190hp ST-Line Edition Lux Pack auto AWD

  • Monthly cost: £342 (38 payments)
  • Deposit: £6,000 (plus £1,300 manufacturer deposit contribution)
  • Total amount payable by customer if returning car: £19,007
  • Total amount payable by customer to buy car: £31,795
  • Cash price: £32,345
  • Mileage allowance: 9,000 miles per year
  • APR: 0%

PCP: Tesla Model 3 - £395 a month

Best new car under £400 a month for: electric power

Tesla Model 3 driving

Tesla admits that getting one of its cars into this sub £400 category is important to the brand as it brings the Model 3 in line with its biggest rival - the BMW 3 Series.

The Model 3 is brimming with new tech, and importantly, it's all-electric. Your £395 per month will just squeeze you into a Standard Range Plus model. It should do 254 miles when fully charged, plus, it delivers a scorching 0-62mph time of 5.3 seconds.**

Tesla Model 3 Standard Range Plus

  • Monthly cost: £395 (48 payments)
  • Deposit: £6,000
  • Total amount payable by customer if returning car: £24,967
  • Total amount payable by customer to buy car: £42,123
  • Cash price: £37,340
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

 

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

** These deals are indicative examples of some packages available as at 14 June 2019, 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.