Best new cars for less than £500 per month

£500 per month is a serious wad of cash. Choose to spend it wisely with our list of the the best new cars for £500 a month

Simon Ostler
Jun 10, 2021

If you’ve found yourself with £500 per month to spare on a new car then you should strap in for a joyride through this list of hugely desirable and exciting models that are all available within this budget.

Whether you’re after a high-performance coupe, a luxurious saloon or a tech-laden SUV, there’s at least one model to fit the bill within this price range. It’s all upmarket brands within this price range too, with top quality options from the likes of BMW, Audi, Jaguar and more. Needless to say you'll be the talk of your street if you park some of these on your driveway.

However, with all that said, it is worth taking a moment to consider what else you could be looking at if you were to opt for a nearly new car instead. New cars lose value quickly, so even looking at a six-month-old version of an identical car could see you saving thousands over the course of a four-year PCP finance contract.

We have some great value used and nearly new deals available now on BuyaCar, which in some cases come at vastly reduced prices compared with brand new equivalents, and many will have only covered a handful of miles. Check out our list of the best used cars for less than £500 per month to get an idea of what you could be driving at this kind of price.

If you're keen to get hold of a brand new model with your hard-earned money, though, this list of great value finance deals showcase the best options currently available to you for less than £500 per month. All quoted prices are accurate as of June 2021.

Best new cars for under £500 per month

1. Audi Q3

Our pick Audi Q3 35 TDI Quattro S tronic Black Edition
List price £40,360
Annual mileage allowance 10,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£48447£4,0006.0%£17,434£45,474

 

The Audi Q3 is a typical Audi featuring plenty of cutting-edge technology. Even at its most basic, the Q3 comes with Audi's exceptional 10.1-inch touchscreen media system with 3D sat-nav, digital radio, Bluetooth, Apple CarPlay, voice control and an accompanying 10.3-inch digital instrument display behind the steering wheel.

This model is the Black Edition spec, which among other upgrades features 19-inch diamond-cut alloy wheels and sportier exterior styling finished with a selection of black details including the front grille, window trims and roof rails.

The 35 TDI is a 150hp 2.0-litre diesel engine with plenty of punch to get this mid-sized SUV moving, and the addition of Quattro four-wheel drive will also give the Q3 a more secure feel on the road. 

Nearly new deals from £30,000
Monthly finance from £449*
AUDI Q3 BUYERS' GUIDE

2. BMW 4 Series

Our pick BMW 420i M Sport Coupe
List price £40,465
Annual mileage allowance 10,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£47048£4,0002.9%£15,273£43,332

 

The new BMW 4 Series is here, and the German brand has gone all out on its redesign of the front end. That enlarged grille is about as polarising as it gets when it comes to public reaction, but if you're partial to this striking new visage then the new 4 Series might be the car for you.

The 4 Series Coupe treads a complicated path between practicality and performance. Even in this least-powerful 420i form, the 2.0-litre petrol engine produces 184hp which can drag you from 0-62mph in 7.5 seconds, but all the while this large coupe offers four seats and a reasonable 440-litre boot. It's no family car, but there is a good amount of day-to-day usability here from what looks on the outside like a sports-focused car.

M Sport models are the base spec for this model, but there is plenty here to trick you into thinking you're sitting in a top of the range model. The leather steering wheel feels posh, behind which the bank of screens display relevant information through BMW's iDrive media system which is compatible with Android Auto and Apple CarPlay.

Nearly new deals from £36,911
Monthly finance from £492*
MORE DETAILS ON THE BMW 4 SERIES

3. Ford S-Max

Our pick Ford S-Max 2.5 Duratec 190 FHEV CVT FWD Titanium
List price £36,540
Annual mileage allowance 9,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£47736£4,0000%£13,132£34,290

 

There are seven good reasons to choose a Ford S-Max as your family car – the seven comfortable and independently adjustable seats that make this a hit with kids and parents alike.

However, there’s currently another powerful incentive to invest in an S-Max. Ford is offering 0% APR on its Ford Options finance plan, which is not to be sniffed at when it’s saving your household budget several thousand pounds over the course of the three years. Unless you only do a small number of miles each year, we’d pick the economical diesel engine and pair it with an automatic gearbox, as both will go a long way to keeping parents’ stress levels to a minimum.

Nearly new deals from £31,987
Monthly finance from £514*
FORD S-MAX BUYERS' GUIDE

4. Jaguar XF

Our pick Jaguar XF P250 RWD Automatic R-Dynamic S
List price £35,340
Annual mileage allowance 10,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£48347£4,0003.82%£11,996£38,695

 

Jaguar has long been associated with upmarket quality, and the XF drips with panache. Within that smooth exterior, the cabin is slick and lit up with 10-colour ambient lighting, while front passengers will be treated to electrically adjustable and heated seats.

In terms of tech, the 11.1-inch touchscreen media system features Android Auto and Apple CarPlay, a 360-degree camera, front and rear parking sensors and cruise control.

The 2.0-litre petrol engine brings excellent performance, too - 0-62mph takes just 6.5 seconds - while direct steering and well-engineered handling make this luxurious saloon an exceptional car to drive.

Nearly new deals Limited stock
JAGUAR XF BUYERS' GUIDE

5. Range Rover Evoque

Our pick Range Rover Evoque P300e AWD Automatic PHEV S
List price £44,650
Annual mileage allowance 10,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£49647£4,0004.9%£23,104£50,934

 

Whether you view it as a baby Range Rover, a hot accessory for fashionistas or simply a striking SUV for those that value aesthetics above all else, one thing is certain: the Evoque is a smash-hit.

The original model sold like hot cakes for Land Rover. Now a second-generation is aiming to build on the success. It's on sale now, and highlights include a new range of engines that come with mild hybrid tech, to make your fuel go further, and a bit more space in the cabin to enhance the level of comfort on offer.

This particular model is the P300e plug-in hybrid that offers the opportunity for outstanding fuel economy if you make the most of its electric driving capabilities. It's a Range Rover, so you can be sure that everything inside will be of the highest quality, too.

Nearly new deals from £31,970
Monthly finance from £438*
RANGE ROVER EVOQUE BUYERS' GUIDE

6. Skoda Kodiaq

Our pick Skoda Kodiaq 2.0 TDI 200 4x4 DSG Sportline
List price £41.310
Annual mileage allowance 10,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£48047£4,0003.9%£15,858£45,167

 

Simply clever, says Skoda, about its cars. Sure enough, the Kodiaq is a genius in disguise. This is one of the most practical and versatile seven-seat cars money can buy, especially within its price range.

However, we appreciate that there may be those who still look down their nose at a Skoda. In which case, take a look at the SportLine trim, which gives the Kodiaq the look of a BMW – we’ve had plenty of comments from other drivers saying just that. The 150hp diesel engine is all you’ll need, and with four-wheel drive and an automatic gearbox, you won’t have to worry about the next Beast from the East or heavy traffic on the daily commute.

Nearly new deals from £32,644
Monthly finance from £432*
SKODA KODIAQ BUYERS' GUIDE

7. Volkswagen Golf R

Our pick Volkswagen Golf R 2.0 TSI 4Motion 320 7-Speed DSG
List price £39,295
Annual mileage allowance 10,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£47247£4,0004.6%£16,403£43,839

 

Yes, there are more exciting hot hatchbacks. And yes, there are others that stand out of the crowd and will get you noticed. But part of the appeal of the venerable Golf R is that it is understated to look at and that bit more sophisticated to drive.

With a responsive 2-litre turbocharged engine that has a crisp growl at the top of its rev range, well-balanced handling, and an interior that is special without having to resort to tacky design features, this is one of our favourite hot hatches.

Nearly new deals from £20,397
Monthly finance from £278*
MORE DETAILS ON THE VOLKSWAGEN GOLF

8. Kia e-Niro

Our pick Kia e-Niro 2 64kWh Long Range
List price £34,945
Annual mileage allowance 10,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£46437£4,0004.9%£14,984£38,173

 

The Kia e-Niro got off to a slow start when it first launched, partly because so many people wanted to buy one. Now those initial stock hiccups have been overcome, Kia's electric SUV has become one of the most popular electric cars in Britain.

This is the latest 64kWh Long Range version which offers an even more impressive battery range of up to 282 miles per charge according to Kia. In '2' trim, the e-Niro is reasonably equipped, although cheaper non-electric alternatives are likely to offer more at lower prices.

If you're happy to pay the additional premium for an electric car, though, then you should still get along just fine with the 8.0-inch touchscreen media display featuring digital radio, Android Auto, Apple CarPlay, a reversing camera, cruise control and rear parking sensors. 

Nearly new deals from £29,995
Monthly finance from £535*
KIA NIRO BUYERS' GUIDE

*Representative PCP finance - Ford Fiesta:

48 monthly payments of £192
Deposit: £0
Mileage limit: 8,000 per year
Optional final payment to buy car: £2,923
Total amount payable to buy car: £11,926
Total cost of credit: £2,426
Amount borrowed: £9,500
APR: 9.9%

BuyaCar is a credit broker, not a lender. Our rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances.

 

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