Best new cars for under £300 per month

Around 90 per cent of people buying a new car do so using some sort of finance in the UK. It’s as easy as signing up for a phone contract, and PCP (Personal Contract Purchase) deals are continuing to bring monthly costs down.

A budget of £300 per month, and a deposit (typically between £4,000 and £5,000) opens a whole new world of motors. Below, we’ve selected nine of the best deals out there.

Best new cars for under £300 per month

• Audi A4
• Ford Focus
• Seat Tarraco
• Kia Ceed Sportswagon
• Jaguar XE
• Renault Megane R.S
• Volvo XC40
• Toyota Corolla Hybrid
• Vauxhall Insignia Grand Sport

1. Audi A4

The Audi A4 is thoughtfully designed and well-built, with the latest technology that makes it feel special. It’s getting on for four-years old now too, which means that it regularly has offers attached in order to keep sales up.

£299 will afford you a top-of-the-range Black Edition model. These get 18in wheels, lower and stiffer suspension (fortunately it’s possible to specify the standard set-up at no charge) and additional finishes, as well as hues of special paint colours.

This is with the entry level 35 TFSI petrol engine, which is a two-litre with 150bhp. It certainly has enough grunt for most people, however, motorway munchers would be better off with a diesel.
Audi A4 buying guide

PCP finance example

Audi A4 Black Edition 35 TFSI
List price £35,630 (See latest discounts) Mileage limit 10,000 per annum

2. Ford Focus

The Ford Focus was the second best-selling car of April 2019, and there are good reasons for the Focus’ success.

It’s taken the formula for the previous model (more fun to drive than it needs be, comfortable ride, good value) and improves upon it - adding space and taking away needless dashboard buttons.

There are a staggering nine trim levels to choose from, and £300 gifts you a fair few choices. £250 a month will get you into a ST Line model with larger wheels and a neat rear spoiler plus keyless start.

£280 will get you into a ST Line X model. These get a bigger entertainment screen bigger alloy wheels, as well as front and rear facing cameras.
Ford Focus buying guide

PCP finance example

Ford Focus ST Line X 1.0 125ps
List price £21,900 (See latest discounts) Mileage limit 9,000 per annum

3. Seat Tarraco

Seat’s poshest car ever only went on sale last year, but it’s been busy winning legions of fans since. Seating for seven ensures that it’s vast enough to cope with the needs of a large family, while it’s also a lot more handsome than Seat’s other seven-seater, the Alhambra MPV.

£299 gets you two options; Xcellence spec with a petrol engine, or SE Technology with a diesel one. The diesel engine is better suited to hauling around the weight of the Tarraco, but Xcellence spec does come with more goodies.

PCP finance example

Seat Tarraco 1.5 TSI Xcellence 
List price £30,410 (See latest discounts) Mileage limit 10,000 per annum

4. Kia Ceed Sportswagon

Kia’s latest Ceed is closer than ever in terms of quality to the Volkswagen Golf and Ford Focus. The Sportswagon however has one more thing going for it - its huge 625-litre boot.

The more expensive Ford Focus estate can only hold 608-litres, while the Kia also gets a class-leading seven year warranty.

‘3’ trim rewards you with 17-inch wheels and an eight-inch touchscreen. This price also brings with it the most powerful petrol engine, a 1.4-litre turbo with 138bhp, which is the best petrol engine on offer. Especially if you regularly travel fully-laden.
Kia Ceed buying guide

PCP finance example

Kia Ceed SportsWagon '3' 1.4
List price £28,340 (See latest discounts) Mileage limit 10,000 per annum

5. Jaguar XE

The freshly redesigned Jaguar XE brings with it a host of new features. On the outside everything is tauter, but inside is where the largest changes can be seen and felt. There are now two touchscreens, and wireless charging. And there’s a new gear selector too.

£299 will get you a 200bhp petrol engine capable of 0-62mph in 7.2 seconds. It also comes in R-Sport trim. These cars get 18-inch alloy wheels and a special R-Sport branded leather steering wheel. Sports suspension also comes as standard which firms up the ride and gives a more dynamic driving experience.

The term of 49 months is one of the longest here, but there’s no denying the 0% APR makes it very tempting.
Jaguar XE buying guide

PCP finance example

Jaguar XE R-Sport 2.0 i4
List price £34,565 (See latest discounts) Mileage limit 10,000 per annum

6. Renault Megane R.S

Fast. Sophisticated. Practical. The Renault Megane RS really can do it all. It’s virtually as practical as a diesel Megane, yet when the mood strikes you it becomes one of the fastest a to b cars on sale today.

It might not be quite as quick as the Honda Civic Type R in a straight line, but it’s a lot less jarring over potholes. Plus the Civic Type R costs £110 more per month.

Your heart will love its 280bhp engine, rear-wheel steering, and alcantara-lined interior. And your head will simply adore the 0% APR finance and relatively low deposit.
Renault Megane buying guide

PCP finance example

Renault Megane R.S 280
List price £27,810 (See latest discounts) Mileage limit 15,000 per annum

7. Volvo XC40

The small crossover section has really taken off in recent years. While cars like the Nissan Juke were the forebears, you’ll be relieved to find out that there are much better cars in the segment now.

Chief of them, is the XC40. Cool Swedish design (just look at that angular rear window) meets a practical and safe shape.

For £300, you’ll just squeeze in to an XC40 with the smallest petrol engine, and the cheapest trim level. Still, you’re hardly slumming it. Alloy wheels, 9in central touchscreen with sat-nav, and Apple CarPlay/Android Auto come as standard.

It should be noted that this is with a PCH (Personal Contract Hire) deal. This is essentially long term-rental for a fixed period, with no option of buying outright at the end.
Volvo XC40 buying guide

PCH example

Volvo XC40 T3 FWD Momentum 
(See latest discounts) Mileage limit 10,000 per annum

8. Toyota Corolla Hybrid

For many, the Toyota Prius has the right technology, but the wrong look. It’s hard be nonchalant when everyone (in London at least) thinks you’re an Uber driver.

The same can’t be said for the new Corolla. It’s handsome in a subtle way, especially when teamed with a contrasting roof colour, like in the example above.

In the hybrid version an on-board battery powers an electric motor, which assists either a 1.8-litre, or 2.0-litre petrol engines. The electric mode only lasts a couple of miles, but overall mpg should be as high as 65.

Design spec models come with 17-inch alloy wheels, LED front fog lights, and an eight-inch touchscreen.
Toyota Corolla buying guide

PCP finance example

Toyota Corolla Hybrid Design 
List price £26,370 (See latest discounts) Mileage limit 8,000 per annum

9. Vauxhall Insignia Grand Sport

If you think SUVs and crossovers are just a bit gauche, then a traditional, large family hatchback could be just the ticket.

Vauxhall’s Insignia Grand Sport is one of the best around. Its swooping lines are elegant, while it has a broad range of engines, and an even broader range of trim selections - 8 in total.

£289.17 per month gifts you an Insignia Grand Sport with a 1.5-litre petrol engine, in SRI spec. This is just below mid table in the spec table championship - but it has a touchscreen entertainment system, Apple CarPlay and Android Auto, parking sensors, and dual-zone climate control.
Vauxhall Insignia Grand Sport buying guide

PCP finance example

Vauxhall Insignia Grand Sport SRI
List price £23,370 (See latest discounts) Mileage limit 6,000 per annum