Best cars for less than £300 per month

Buying a car on a PCP finance deal could allow you to drive a more prestigious model by spreading the cost. Here we've picked our top 10 new car deals for less than £300 per month...

Best cars for less than £300 per month

Volvo XC40 with Target Price logo

The most common way to buy a new car in the UK is through a PCP finance deal. This type of finance arrangement allows you to buy a car for around the same price as a three-year-old one, because you're financing only a fraction of its total price.

If you have a monthly budget of around £300 for your next car, you've plenty of choice in the market. The cars available at this price point include premium hatchbacks, family and large SUVs and even electric cars.

Here, we count down the top 10 deals from our Target Price research, which reveals the most you should pay for a new car. Each deal is based on a deposit of 15% of the price of the car, combined with the manufacturer's finance discount allowance (if applicable).

If you find one you like, simply click on the relevant link to find out more or see how much we can save you through our free New Car Buying service.

10. Mercedes A-Class

Mercedes A-Class A250e AMG Line front

Model A200 Sport | Target PCP £289 per month | Target Price (on the road) £25,512 | The deal four years PCP finance with 4.6% APR. Limit of 10,000 miles per year

The A-Class is Mercedes' rival for premium hatchbacks that include the Audi A3 and BMW 1 Series. It offers a stunning interior with a feature-packed infotainment system, and is good to drive. It's pricey, though, which is why our discounts are worth paying attention to. This 161bhp A200 petrol-engined version is our recommended choice, making for for effortless progress while keeping running costs sensible. Sport trim won't leave you wanting for kit, either.

Save money on a new Mercedes A-Class with What Car?, or read our full review

9. Volkswagen T-Roc

Volkswagen T-Roc front

Model 1.5 TSI EVO SEL DSG | Target PCP £275 per month | Target Price (on the road) £25,810 | The deal four years PCP finance with 4.9% APR and a finance contribution of £1250. Limit of 10,000 miles per year

If a comfortable ride and an impressive array of safety kit is high on your list of priorities, the T-Roc deserves a place on your new car shortlist. This version comes with a 1.5-litre petrol engine and an automatic gearbox, so will make light work of any urban commutes. The extra kit that SEL trim brings is worth having; it comes with LED lights, 18in alloy wheels and sports seats, as well as Volkswagen's digital instrument panel.

Save money on a new Volkswagen T-Roc with What Car?, or read our full review

8. Seat Ateca

Seat Ateca front corner

Model 1.5 TSI EVO FR DSG | Target PCP £262 per month | Target Price (on the road) £24,402 | The deal four years PCP finance with 5.3% APR and a finance contribution of £2500. Limit of 8000 miles per year

The Ateca is one of the most well-rounded new cars on sale, with a spacious interior, keen pricing and some of the best handling in the family SUV class. This version gives you a peppy 1.5-litre petrol engine, and FR trim comes with sports seats, automatic lights and wipers and a sporty body kit.

Save money on a new Seat Ateca with What Car?, or read our full review

7. Skoda Kodiaq

Skoda Kodiaq 2021 front right tracking

Model 1.5 TSI SE Drive [7 Seat] | Target PCP £281 per month | Target Price (on the road) £26,611 | The deal four years PCP finance with 3.9% APR and a finance contribution of £3000. Limit of 10,000 miles per year

That you can buy a seven-seat SUV that's as good as the Kodiaq for just £281 per month represents nothing short of a great deal. And the Kodiaq is a great SUV, too, with a spacious interior and a decent haul of kit on SE Drive versions. This 148bhp 1.5-litre petrol-engined version is ideal if you mainly drive in town, and is fine for the occasional trip with all seven seats filled too.

Save money on a new Skoda Kodiaq with What Car?, or read our full review

6. Audi A4

Audi A4 35 TDI Sport S tronic

Model 35 TFSI Sport | Target PCP £283 per month | Target Price (on the road) £25,361 | The deal four years PCP finance with 3.3% APR and a finance contribution of £4250. Limit of 8000 miles per year

The A4 is a five-star executive saloon, offering class-leading interior quality and tonnes of equipment as standard. This 148bhp 35 TFSI petrol engine, though, is the baby of the range, and while it has ample power for most situations, be aware that it needs to be worked hard when joining faster roads. Meanwhile, Sport trim gets you a more aggressive look than you get with entry-level A4 Technic trim.

Save money on a new Audi A4 with What Car?, or read our full review

5. Volkswagen Touran

MPV of the Year - Volkswagen Touran

Model 1.5 TSI SE DSG| Target PCP £252 per month | Target Price (on the road) £24,252 | The deal four years PCP finance with 4.9% APR and a finance contribution of £3600. Limit of 10,000 miles per year

If you need to transport seven people but don't fancy a large SUV, the Volkswagen Touran makes a fine alternative; indeed, we named it as our MPV of the Year at the most recent What Car? Awards. This 148bhp engine is the only choice if you want petrol power, but it offers pretty punchy acceleration even if all seven seats are filled. Meanwhile, there's no need to look beyond SE trim, since this gets you 16in alloys, air conditioning and even adaptive cruise control as standard. This version also comes with an automatic gearbox.

Save money on a new Volkswagen Touran with What Car?, or read our full review

4. Renault Zoe

Renault Zoe front cornering

Model 80kW R110 Iconic| Target PCP £287 per month | Target Price (on the road) £37,590 | The deal four years PCP finance with 4.9% APR and a finance contribution of £2750. Limit of 8000 miles per year

The Zoe is a fantastic electric car with value at its core, thanks to a combination of low running costs and decent real-world range. This R110 version can take you for around 200 miles between charges in real-world conditions. Iconic trim will have you well covered for kit, but we still recommend adding automatic emergency braking from the options list.

Save money on a new Renault Zoe with What Car?, or read our full review

3. Ford Puma

Ford Puma

Model 1.0 Ecoboost mHEV 155 Titanium | Target PCP £251 per month | Target Price (on the road) £21,146 | The deal three years PCP finance with 2.4% APR. Limit of 9000 miles per year

The Puma is a former What Car? Car of the Year and remains our top choice in the small SUV market. Not only is it enjoyable to drive and every bit as practical as growing family could want, but because this version is a mild hybrid, it also has the capacity to lower your running costs too. Titanium trim is our top pick, despite being the entry level choice, and gets you 17in alloy wheels, automatic lights and wipers, and climate and cruise controls.

Save money on a new Ford Puma with What Car?, or read our full review

2. Seat Leon

Seat Leon 2020 front

Model 1.5 TSI EVO FR | Target PCP £260 per month | Target Price (on the road) £22,945 | The deal four years PCP finance with 4.9% APR and a finance contribution of £1500. Limit of 8000 miles per year

The latest Leon is the best family hatchback you can buy. It's great to drive, has loads of space in the back and is well equipped – in fact, the FR version you get here comes with luxuries that include climate control, dynamic indicators, rain-sensing wipers and sports suspension. This 1.5-litre petrol engine is a peach, too, endowing the Leon with acceleration that's close to what some hot hatchbacks can manage.

Save money on a new Seat Leon with What Car?, or read our full review

1. Volvo XC40

Volvo XC40 front

Model 1.5 T3 R Design | Target PCP £298 per month | Target Price (on the road) £30,021 | The deal four years PCP finance with 5.9% APR. Limit of 8000 miles per year

The best car you can buy for less than £300 per month is again the best car in its class, the Volvo XC40. Our reigning Family SUV of the Year and former overall Car of the Year is great to drive, has a stylish interior with plenty of space, and comes loaded to the rafters with key safety kit. The 161bhp 1.5-litre petrol engine you get here is our favourite, too, and has enough power to satisfy the needs of most drivers. Meanwhile, R Design trim gives the XC40 a sporty look.

Save money on a new Volvo XC40 with What Car?, or read our full review

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