These days, the vast majority of new car purchases are made on Personal Contract Purchase (PCP) deals. This type of financing is great for drivers, because it allows you to buy a new car which you might otherwise have been unable to afford.
A monthly budget of £400 for a new car is acheivable for many of us, and the good news is that for that price you can drive some of the best new cars on the market.
Here, we've picked our top 10 new cars to buy for £400 per month or less. This list has been compiled our Target Price research, which shows you the most you should pay for a new car. Each of these deals is based on 15% of the value of the car, combined with the manufacturer's finance discount contribution (if there is one). All deals are for three years, with an annual mileage limit of 30,000 miles.
10. BMW X1 sDrive 18d SE 5dr
Target price cost per month: £350 Target price (on the road): £26,163 The deal: 3 years PCP finance with 4.9% APR
The original BMW X1 was one of the very first premium small SUVs, and this latest version remains one of the best on the market. This two-wheel drive sDrive version saves you money over the more expensive four-wheel drive xDrive models, and the diesel engine is responsive from low revs with plenty of pulling power.
9. Jaguar XF 2.0d 180 R-Sport 4dr Auto
Target price cost per month: £392 Target price (on the road): £33,238 The deal: 3 years PCP finance with 4.9% APR and a finance contribution of £1250
Jaguar's mid-size executive saloon competes with rivals including the BMW 5 Series and Mercedes-Benz E-Class, and while both of those cars are arguably nicer inside, the XF is still fun to drive. It's well equipped, too, and this R-Sport model gets you more aggressive styling, front parking sensors and larger alloy wheels.
8. Audi Q2 1.4 TFSI Sport 5dr
Target price cost per month: £346 Target price (on the road): £24,369 The deal: 3 years PCP finance with 6.3% APR
The Q2 is Audi's smallest SUV model, and has charmed plenty of buyers in the growing SUV market. This is because it's desirable and offers a classy interior with plenty of modern technology. It's also good to drive, and its resale values should be strong compared with those of its key rivals. Just bear in mind that class favourites such as the Nissan Juke and Mini Countryman are cheaper to buy.
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