Best new cars for under £500 per month
With a generous budget of £500 per month, you can get into some truly top cars
If you’re fortunate enough to have £500 a month to spend on a new car then you’ll have plenty of choice at the premium end of the market, ranging from executive saloons to all-electric family SUVs.
There are even some Auto Express award winners to be found within your budget, such as the Nissan Ariya and Hyundai Ioniq 5 - both of which have held our prestigious Car of the Year title.
Car deals can change very frequently, and most of the current offers with the lowest monthly payments are Personal Contract Hire (PCH) leasing deals. These contracts allow you to lease a car over a set period of time, but you will not have the chance to own it. We’ve linked to our partners at Leasing.com to help you find the very latest prices.
If you’d rather own your new car, or have the option of doing so, then we’ve also listed some Personal Contract Purchase (PCP) deals. At the end of these finance plans you will be given the option of a balloon payment, pay this and the car will be yours. The PCP offers here are sourced directly from the manufacturers.
Scroll down for our pick of the best cars you can currently get for less than £500 per month on finance…
Best new cars for under £500 per month
- Alfa Romeo Tonale
- BMW 5 Series
- Hyundai Ioniq 5
- Mercedes GLB
- Nissan Ariya
- Renault Megane E-Tech
- Range Rover Evoque
- Skoda Enyaq iV
- Tesla Model Y
PCP Deals
Alfa Romeo Tonale - £421 per month
- Model: Tonale 1.5 MHEV Ti Auto
- Deposit: £3,792
- Term: 48 months
- Type: Personal Contract Hire
- Engine: 1.5-litre 4cyl hybrid
- Seats: 5
- Economy: 49.6mpg
- Boot space: 500 litres
You have to be really sold on the looks of the Tonale, because it seems pricey amidst larger and more polished rivals in this category. But it does deliver on the aesthetic front, and stands out nicely in a class which is, let’s face it, generally short on styling flair.
Alfa Romeo has done a great job with the dynamics, too, transforming some rather old Jeep underpinnings to create a sharp and satisfying compact SUV to drive. The cabin looks great, too, but the quality could be a little better.
View the latest Alfa Romeo Tonale deals at Leasing.com…
BMW 5 Series - £470 per month
- Model: 5 Series 520d M Sport auto
- Deposit: 4,231
- Term: 48 months
- Type: Personal Contract Hire
- Engine: 2.0-litre 4cyl diesel
- Seats: 5
- Economy: 57.6mpg
- Boot space: 530 litres
Another New Car Awards winner, this time in the Large Company Car category, but the 5 Series could seriously be considered the best model in BMW’s current range. Highlights include a luxurious interior, which comes with one of the best infotainment set-ups around.
It also looks great, and the style is far less divisive than that of some of its stablemates, particularly in the sporty M Sport trim of this version. Even though this is ‘just’ the 520d we’re looking at, this 5 Series will still prove brilliant to drive.
View the latest BMW 5 Series deals at Leasing.com…
Hyundai Ioniq 5 - £415 per month
- Model: Ioniq 5 125kW SE Connect 58kWh
- Deposit: £3,743
- Term: 48 months
- Type: Personal Contract Hire
- Powertrain: 58kWh battery, 1x e-motor
- Seats: 5
- Range: 238 miles
- Boot space: 527 llitres
The Ioniq 5 was our Car of the Year in 2021, and although it has more rivals to worry about now, it remains one of the best EVs on the market. Its boxy, retro-futuristic looks are still attention-grabbing some time after the car’s launch, and underneath that striking body is a highly efficient electric powertrain.
It also comes with prices starting from £43,150, which translates to fairly high leasing costs, so even this entry-level SE Connect car with the smaller battery is £454 a month. It’s worth it, though.
View the latest Hyundai Ioniq 5 deals at Leasing.com…
Nissan Ariya - £483 per month
- Model: Ariya 160kW Advance 63kWh
- Deposit: £2,958
- Term: 48 months
- Type: Personal Contract Hire
- Powertrain: 63kWh battery, 1x e-motor
- Seats: 5
- Range: 250 miles
- Boot space: 466 litres
The Ariya impressed us so much in 2022 that it snagged the overall victory in our Car of the Year awards. The cabin represents a huge improvement for Nissan, adopting a slick design that features controls embedded into a huge and premium-feeling block of wood stretching across the dashboard.
For this budget you’ll have to settle for the smaller battery, but the official electric-only range is still healthy, and when you do need to top up, 130kW rapid-charging capability means you won’t be hanging around for long.
View the latest Nissan Ariya deals at Leasing.com…
Renault Megane E-Tech - £454 per month
- Model: Megane E-Tech EV60 160kW Techno 60kWh
- Deposit: £4,089
- Term: 48 months
- Type: Personal Contract Hire
- Powertrain: 60kWh battery, 1x e-motor
- Seats: 5
- Range: 280 miles
- Boot space: 440 litres
The Megane E-Tech is nothing like the car it replaces. It represents a big step forward for interior design and tech, made possible by the Renault-Nissan Alliance’s new CMF-EV electric car platform.
Helped further by impressive driving dynamics and a strong electric powertrain, the E-Tech made it to the top of the Small Company Car category at our 2022 New Car Awards. The mid-range Techno models come with bigger wheels, a Google-based infotainment system and wireless phone charging, while all models get 130kW rapid-charge capability.
View the latest Renault Megane E-Tech deals at Leasing.com…
Range Rover Evoque - £414 per month
- Model: Evoque 2.0 D165 R-Dynamic S 2WD
- Deposit: £3,722
- Term: 48 months
- Type: Personal Contract Hire
- Engine: 2.0-litre 4cyl diesel
- Seats: 5
- Economy: 45.3mpg
- Boot space: 472 litres
The previous Evoque left the Range Rover badging to do a lot of the heavy lifting, but that’s not the case for the current car. The much sleeker-looking model has a vastly improved and tech-packed interior, and as ever, it’s considerably more capable than its rivals if you’re planning to take the Evoque off-road.
This one will struggle more than other derivatives, however, because it’s the two-wheel-drive version, fitted with a 2.0-litre diesel engine and combined with the mid-range R-Dynamic S trim grade.
View the latest Range Rover Evoque deals at Leasing.com…
Tesla Model Y - £499 per month
- Model: Model Y RWD 5dr auto
- Deposit: £4,489
- Term: 36 months
- Type: Personal Contract Hire
- Powertrain: 85kWh battery, 1x e-motor
- Seats: 5
- Range: 283 miles
- Boot space: 971 litres
Although the build quality of Tesla’s products is still under scrutiny, the US company has the edge over rivals when it comes to electric powertrain tech. So, even though this is a basic single-motor version of the Model Y, it’s still well worth a look.
It’s quick, and unlike with many EVs, you stand a good chance of getting close to the official range figure. The interior layout won’t be to everyone’s liking, though, because it does away with a traditional instrument cluster in favour of a single, centrally mounted screen.
View the latest Tesla Model Y deals at Leasing.com…
PCH deals
Mercedes GLB - £489 per month
- Model: GLB 200 D AMG Line Premium
- Deposit: £7,583.63
- Term: 48 months
- Type: Personal Contract Purchase
- Engine: 2.0-litre 4cyl diesel
- Seats: 7
- Economy: 49.6mpg
- Boot space: 570 litres
Unlike some of its premium SUV rivals, the Mercedes GLB has the advantage of being offered with seven seats - making it an ideal choice for families who enjoy a touch of luxury.
The GLB is far from being the most entertaining Mercedes to drive, but it makes up for this with an impressive level of ride comfort. It’s even quite economical for a car of its size, too, with the 2.0-litre diesel engine on offer here being capable of returning over 49mpg.
View the latest Mercedes finance deals…
Skoda Enyaq iV - £469 per month
- Model: Enyaq iV 80
- Deposit: £8,585
- Term: 48 months
- Type: Personal Contract Purchase
- Powertrain: 82kWh battery, 1x e-motor
- Seats: 5
- Range: 339 miles
- Boot space: 585 litres
The Enyaq iV is the first purpose-built electric car to wear a Skoda badge, and the brand has truly hit the ground running with this family SUV. Not only is the Enyaq iV highly practical and well put together, it’s comfortable and offers plenty of battery range, too.
Step inside and you’ll see that the Skoda’s on-board kit is pretty generous; with alloy wheels, LED headlights, climate control, cruise control and rear parking sensors all fitted as standard. What’s more is that the Enyaq iV boasts a full five-star safety rating from Euro NCAP.
View the latest Skoda finance deals...
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