Best new cars for under £400 a month

Got a budget of £400 per month for a brand new car? You're in luck, we've got some seriously good deals for you right here

Simon Ostler James Mills
Dec 12, 2019

If you're in the market for a new car and you're wondering what you can get for £400 per month, you'll be pleased to know that there is a vast selection of desirable cars that fall within this budget, with a £5,000 deposit.

You may even decide to go for a used car, in which case £400 per month can get you even more for your money and is definitely worth a though before making your final decision.

Mew car deals at this price point come in all shapes and sizes. So whether you want the space and practicality of an SUV, the cheap running costs of an electric hatchback, or something a little more sporty and exuberant, we've got something here to suit.

Whether it's the car of your dreams or the car that best meets your day-to-day needs, BuyaCar has done the legwork for you. Here are the best value finance deals for the best brand new cars available for less than £400 per month.

 

Best new cars for under £400 per month

1. Volvo XC40

Our pick Volvo XC40 Momentum D3 AWD Auto
List price £43,474
Annual mileage allowance 8,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£397 x 48£4,000£0£39,545£19,0435.9%

 

The Volvo XC40 is a relatively entrant on the compact-SUV market. Competing against the likes of the Range Rover Evoque and Audi Q3 is tough, but Volvo has done what it always does and put out an achingly stylish and high-quality car.

While it's not the cheapest car on this list, the XC40 more than makes up for it in Momentum trim with a selection of economical engines that hugely reduce the cost of driving it. As a family choice, this is one you don't want to miss.

Volvo V90 buyers' guide

2. Range Rover Evoque

Our pick Range Rover Evoque D180 S AWD auto
List price £39,015
Annual mileage allowance 8,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£400 x 49£5,000£0£19,246£54,5495.9%

The Range Rover Evoque may be stylish and luxurious inside, but it’s still hugely capable when scrambling across a mountainside. That’s especially true with this model as it includes four-wheel drive and a punchy diesel engine that should prove reasonably economical when you need it to be, but suitably powerful when you're in a hurry.

There’s no finance discount here and relatively high interest charges, however the Evoque is so desirable that it’s high resale value shrinks your monthly PCP payments - as you’re only effectively paying the difference between its price new and what it’s expected to be worth at the end of the contract. That helps you to get a £39,015 model for just about £400 per month.

Range Rover Evoque buyers' guide

3. Mazda MX-5 RF

Our pick Mazda MX-5 RF 2.0 184hp GT Sport Nav
List price £29,495
Annual mileage allowance 9,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£399 x 36£4,000£2,000£14,361£31,5553.9%

 

Fancy an exciting sports car that doubles as a stylish convertible for cruising along the coast and a quiet hard-topped machine for commuting to work? The Mazda MX-5 RF covers all the bases. Even the most indulgent model, with a powerful 2.0-litre, 184hp petrol in GT Sport Nav version and a nifty folding hard top roof is comparatively affordable.

So much so that a three-year PCP finance plan is very affordable for a fun sports car. And while that in itself is reason enough to put a smile on your face, wait until you drop the top, open up the engine and hit the road. You’ll be grinning like a Cheshire cat.

Mazda MX-5 buyers' guide

4. Skoda Kodiaq

Our pick Skoda Kodiaq 2.0 TDI 150 Edition (7 seats) DSG
List price £35,620
Annual mileage allowance 10,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£392 x 35£5,500£2,750£19,222£35,3573.9%

 

If you prefer your SUVs in seven-seat form, the Skoda Kodiaq is a great contender, as it offers plenty of space in all three rows of seats and includes tonnes of kit in Edition form. Other plus points include a large boot that’s usable even if all seats are in use and a reasonably punchy diesel engine connected to a slick automatic gearbox.

It’s one of the largest, most comfortable and best equipped cars for the money. As this model does without four-wheel drive, it’s also relatively economical for a car of this size.

Skoda Kodiaq buyers' guide

5. Nissan Leaf

Our pick Nissan Leaf e+ Tekna
List price £35,895
Annual mileage allowance 10,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£398 x 48£6,000£1,000£25,104£39,2304.9%

 

The Leaf is Britain’s best-selling electric car, but is it any good? Yes, actually, it is. This is an honest family car, one with five seats, plenty of space and safety features, all the creature comforts you could wish for and a good-size boot for carrying everything busy families need to take with them.

More significantly, it is relaxing to drive, has adequate performance and will travel for up to 168 miles before you’ll need to plug in the battery, while the running costs of this electric car should offer significant savings to motorists switching from petrol or diesel models.

Nissan Leaf buyers' guide

6. Toyota RAV4

Our pick Toyota RAV4 Hybrid 2.5 Dynamic AWD

List price £37,490
Annual mileage allowance 8,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£397 x 35£6,000£0£20,282£38,1921.9%

 

Like the looks and high driving position of an SUV but want the fuel savings of a hybrid? Look no further than the RAV4 Hybrid. This money gets you a well equipped two-wheel drive Dynamic model, which offers greater fuel economy compared to the four-wheel drive equivalent.

With low interest charges and low depreciation - meaning this RAV4 should be worth a lot when you hand it back at the end of the PCP finance contract - this Toyota is available for well under £400 per month on a 36-month contract.

Toyota RAV4 buyers' guide

7. Skoda Octavia Estate

Our pick Skoda Octavia Estate 2.0 TSI 245hp vRS Challenge DSG
List price £32,435
Annual mileage allowance 10,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£392 x 47£3,500£2500£21,940£33,5874.8%

 

From the school run to the motorway run, tip run to the dog run, the Octavia Estate is just about as practical as medium-size family cars get. It boasts a 610-litre boot, which is more than large enough for most loads, and has plenty of back seat space for bulky, high-backed child seats or rapidly growing teenagers.

Don’t think it’s boring, though. This version packs a muscular 245hp petrol engine, the sportiest trim Skoda offers and rockets to 62mph in just 6.7 seconds. It’s strong value on finance, too, thanks to a £2,500 deposit contribution discount, which makes it a great all rounder for the money.

Skoda Octavia buyers' guide

8. Alfa Romeo Stelvio

Our pick Alfa Romeo Stelvio 2.0 TP 200hp AWD
List price £38,945
Annual mileage allowance 10,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£392 x 47£5,000£4,500£23,046£38,8505.0%

 

SUVs might be one of the most popular types of cars currently flying out of showrooms, but how many drivers think of Alfa Romeo when researching which SUV to buy?
We’d give it serious thought. The Stelvio looks good, is terrific to drive and surprisingly dependable for an Alfa Romeo, especially as an everyday family car.

Pick the 200hp petrol model, which comes with all-wheel drive in entry-level form, and you’ll have an SUV that’s both satisfying to drive and affordable to run.

Alfa Romeo Stelvio buyers' guide

9. Audi A4 Avant

Our pick Audi A4 Avant 40 TFSI 190 S Line S tronic
List price £37,190
Annual mileage allowance 8,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£398 x 47£5,250£4,250£23,959£38,4804.8%

 

After an upmarket car complete with plenty of room for passengers and luggage, petrol power and a slick automatic gearbox? This Audi A4 Avant could be for you. Yes, there’s a diesel version with the same power on tap, but that’d cost you around £30 per month more and if you don’t cover that many miles this petrol engine should prove economical enough.

To get this A4 for less than £400 per month you won't have to skimp too much on your miles either, with an 8,000-mile allowance up there with the best on this list. Stepping up to 10,000 miles per year isn't exactly price either, coming in at £412 per month with the same deposit and contract length.

Audi A4 Avant buyers' guide

10. Ford Kuga

Our pick Ford Kuga Vignale 2.0 TDCI 180 AWD auto
List price £37,200
Annial mileage allowance 6,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£395 x 36£7,250£3,200£21,453£34,0000%

 

A new Ford Kuga may be in the pipeline, but there’s lots going for the current model - especially the fantastic value PCP finance offers. Not only do you benefit from 0% APR - meaning you pay no interest - but Ford also throws in a £3,200 finance discount.

As a result, you can get a powerful diesel version in luxurious range-topping Vignale specification coming with an automatic gearbox, four-wheel drive and a panoramic sunroof, plus change from the £400-per-month budget. Better still, this is on a relatively short 36-month contract, so you can trade up sooner.

Just be aware that Ford doesn’t offer 10,000-mile-per-year contracts, so you’ll have to stick to a pretty strict 6,000 miles per year with this deal. It’s still great value, though and if you don’t want to spend this much on a Ford, there are loads of slightly less well equipped Kugas for barely £300 per month. That could be a wise move, since this SUV is getting on a bit compared with newer models, so the less you pay, the more it makes sense.

Ford Kuga buyers' guide

 

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