Best cars below £500pm
Daniel Wilkinson
We’ve covered cars under the £400pm mark here, so let’s take the next step up and see what an extra £100pm can grab you on a monthly PCP.
All of the finance examples in this article are for illustrative purposes only and quotes are accurate as of 18/11/22 – interest rates and residual values can and do change with each lender regularly so if you want accurate figures for the car you’re looking to buy, try our calculator. For each of the cars featured here, we have provided a representative example for you, your own figures may differ dependent on the mileage, price, deposit and future value of the car you run figures on.
10% Deposit options
The first few options here are all calculated with an average/recommended deposit of 10%. You can of course choose to put in whatever deposit you like up to a point, this is to keep the numbers more rounded for illustration.
We’ve picked some sporty options, along with a few to cover the SUV and electric markets. There will be many more cars you can get a great deal on in this bracket, so it’s best to try running the numbers through our calculator to see the best cars below £400pm.
BMW M2 Competition
One of our most funded cars of the last 12 months, the BMW M2 Competition offers so much bang for your buck it’s actually quite hard to find anything that offers similar for the same sort of monthly price. We’ve noticed some very solid residuals when quoting for M2s and M2 Competition models, which is why they sit so well under £500pm.
With 404bhp (up 39bhp on the standard M2) the Competition packs some real punch. The top speed, as you’d expect from BMW, is limited to 155mph, BUT the M Driver’s Pack raises that top speed to 174mph so that will be the option to look for if you’re keen on pushing the M2 Competition to its limit.
| Cash Price | £37,000 |
| Deposit | £3,700 |
| Total Payable | £46,437.83 |
| Balloon/Final Installment | £21,992.50 |
| Monthly Payment | £441.39 |
| Interest Charges | £9,427.83 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Honda E
Honda’s quirky little city EV the Honda E is a bit of a design triumph, you can’t help but find it adorable, and for getting around town it’s the perfect car. From the centred bonnet charge point to the on-screen fish tank, to the matching front and rear light surrounds that remind us of a superhero’s eye mask, there are so many quirky qualities it’s hard not to like it at all.
The E is definitely not made to be a family car, and it’s not going to be much help moving around big items, but that’s not what this is for, this is a commuter, a city car, a nip to the shops for some bread and milk car. With a quoted range of 132 miles (realistically more like 100) it makes a great little green option for those not covering huge mileage – so you can keep your Porsche ready for the weekend!
| Cash Price | £27,700 |
| Deposit | £2,770 |
| Total Payable | £33,659.83 |
| Balloon/Final Installment | £9,510 |
| Monthly Payment | £454.89 |
| Interest Charges | £5,949.83 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Ford Mustang V8 GT
An American icon, the Ford Mustang has been around for a long long time. It used to be that you could only get one in the UK via import, but in more recent times the Mustang has been seen more and more on British roads, and the 5.0L V8 is the model that every muscle car fan would want.
With 410bhp, and a 0-60 time of 4.6 seconds, the V8 certainly isn’t slow, and of course, you get the iconic V8 soundtrack (the real reason you’d buy the car). There are multiple different versions of the V8 available, with the Bullitt being one of the most sought-after models, mainly due to the manual gearbox. The Bullitt will be considerably more than a regular V8 GT though due to rarity and limited numbers of course.
| Cash Price | £33,500 |
| Deposit | £3,350 |
| Total Payable | £41,885.79 |
| Balloon/Final Installment | £18,910 |
| Monthly Payment | £417.57 |
| Interest Charges | £8,385.79 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Lexus RC Coupe
From the luxury market, we’ve brought a bit of a curveball, Lexus is always a little overlooked and there’s so much to love about them. The RC is an example of exactly what Lexus can do to rival its German counterparts, the Mercedes C-Class Coupe and the BMW 4 Series. It matches, and even in some places outmatches, the refinement of its rivals.
The build quality and refinement of the cabin, along with its striking good looks, are where the RC and Lexus as a whole shine over the German competition. Everything feels well made, and in an easily accessible place, rather than overdesigned and overcomplicated like the Mercedes can be. It’s not going to wow you with performance, but it’s not meant to, it provides a comfortable and refined experience with a touch of class.
| Cash Price | £26,000 |
| Deposit | £2,600 |
| Total Payable | £31,796.61 |
| Balloon/Final Installment | £10,202.50 |
| Monthly Payment | £404.13 |
| Interest Charges | £5,786.61 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Audi S4 Avant
As with our £400pm article, we’ve included a sporty estate, our choice here being the Audi S4 Avant. A regular S4 Saloon is also an option here, but with the amount of space the Avant offers, we had to pick it. Without hitting the SUV market, there’s really nothing else that can offer what an estate can, with enough space to fit the family, the dog and all your luggage in one place.
The reason we picked the Audi over the Mercedes and BMW options, is purely on the looks, but both do offer other options with similar specs to compete. Audi has their design language on point right now, inside and out, there’s more than one reason they’re one of the biggest-selling brands out there though. The S4 comes packed with just under 350bhp and a 0-60s of 4.7 seconds, they’re almost supercar numbers.. add to that a beautifully comfortable interior, ample tech and that stunning design language we mentioned, this is a complete package.
| Cash Price | £32,000 |
| Deposit | £3,200 |
| Total Payable | £39,121.42 |
| Balloon/Final Installment | £12,475 |
| Monthly Payment | £498.86 |
| Interest Charges | £7,121.42 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Higher Deposit Options
If you’re looking to put a little more than the average into your deposit, maybe you’re trading in a part exchange, or even downsizing your current car, a 20%+ deposit might be more achievable than you think. Offering you the chance to get into something a little more exclusive and a lower monthly payment.
Toyota Yaris GR
Yep, it had to be in here. We’ve spoken about the Yaris before here, and it’s been talked about so much already that we really don’t need to say anything else.
257bhp, 360Nm of torque, and 4-wheel drive in a hot hatch, enough said.
| Cash Price | £36,000 |
| Deposit | £7,200 |
| Total Payable | £43,425.58 |
| Balloon/Final Installment | £14,387.50 |
| Monthly Payment | £464.64 |
| Interest Charges | £7,425.58 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Toyota GR Supra
An icon of JDM lore reborn (with a little help from BMW), the gen 5 Supra is a bit of an acquired taste. The diehard JDM fans dislike the German underpinnings among other things, but what the new Supra lacks in Japanese engineering, it has in spirit. This car is fun, which is exactly what its predecessor was, and already has a cult following that is growing year after year.
With profit margins on sports cars so thin for manufacturers, Toyota and BMW decided to pair up to share development costs, so underneath the Supra is actually a BMW Z4. The tuning, weight loss and rigidity are where the car differs (bar the obvious exterior styling), designed to give the Supra a much more involved and sporty experience. The tech on the interior is all BMW, but we aren’t complaining, the iDrive system among other things are all brilliantly integrated.
| Cash Price | £41,000 |
| Deposit | £8,200 |
| Total Payable | £50,158.93 |
| Balloon/Final Installment | £20,800 |
| Monthly Payment | £450.19 |
| Interest Charges | £9,148.93 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Land Rover Discovery
Yep, a proper Land Rover for under £500pm. We picked a V6 HSE Luxury for our example, packed with as much spec as you could ask for, this is probably the most luxurious car you can get for this price bracket. That big spec gets you an amazing Meridian Sound System, TVs in the rear and 16-way memory seating among many more extras.
There’s so much more than just its luxury options here though, the Discovery has some of the best off-roading capabilities available in a road-going vehicle. We know it’s a tiny percentage of buyers that actually take their SUVs off-road, but having the option and capability to do so offers peace of mind to those that live out in the sticks, especially when that heavy snow comes and you can just drive right through it without issue.
| Cash Price | £40,000 |
| Deposit | £8,000 |
| Total Payable | £48,597.78 |
| Balloon/Final Installment | £18,167.50 |
| Monthly Payment | £477.24 |
| Interest Charges | £8,587.78 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Jaguar F-Type V6
One of our notable mentions in the £400pm category – be it a 2.0L version – the Jaguar F-Type is a British sports car staple now, and the Supercharged V6 version we’ve picked here offers such a different experience to the 2.0L. Yes, it’s not the V8, but that Supercharged V6 offers 335bhp to the rear wheels, pushing the F-Type to 60 in around 5 seconds – true sports car credentials.
Not only are you buying a sports car though, but this is a Jaguar, and they don’t scrimp on the extras. Plenty of tech to keep you busy, supple leather seating, and most importantly a switchable exhaust, producing a fantastic noise whether open or closed. You won’t get a better 2-seater experience in this price range, Jaguar just got it right with the F-Type and kept making it better and better.
| Cash Price | £39,000 |
| Deposit | £8,000 |
| Total Payable | £47,132.89 |
| Balloon/Final Installment | £16,367.50 |
| Monthly Payment | £484.37 |
| Interest Charges | £8,122.89 |
| Representative APR | 8.8 % |
| Term | 48 Months |
Notable Mentions
Porsche 718 Cayman
A higher mileage, 2.0L model, but still an extremely fun car that will no doubt provide hours of fantastic driving experiences and put the Porsche seed in the back of your head ready for the next car.
Maserati Levante
A little more of an exotic option in the SUV market, the Levante is a looker that’s for certain. Realistically more of a cosmetic choice than a logical one, but Maserati is a name steeped in history, and they make some beautiful cars.
Tesla Model 3
A standard range model, but you know for a fact it already comes with a bunch of spec. Realistically you probably won’t get full self-drive capabilities for this sort of money, but if that doesn’t bother you, this is a huge step into the EV market and a lot of car for the money.
Alpine A110
One of the best driving experiences out there in terms of small, light sports cars, the A110 offers so much in a tiny package. The only real comparable at this price is a Lotus, which is no doubt a fabulous driver’s car, but they don’t quite hold their value like the A110s have so far.
Wrapping up
Obviously, there are many more options available at this price bracket for you to choose from, but with interest rates changing constantly at the moment, and waiting lists for new cars still being at a high, the cars that are available for this price will change. The best way to check figures for a vehicle is to use our finance calculator and run them when it’s comfortable for you. The figures on our calculator are accurate and precise, and what you see is what you get, we don’t reel you in with a headline rate and change it behind your back. You can change your mileage/deposit and term to get the figures that suit you, then apply online!
Our expert team are on hand if you have any queries, just call on 01943 660703.