The 10 best cars for less than £400 per month

A new car doesn't have to break the bank; thanks to our Target Price discounts, we've got great PCP deals on SUVs, plush executive saloons and spacious estates.....

These days, the majority of new car purchases are made on personal contract purchase (PCP) deals.

Car compilation image

This type of financing is great news for buyers, because it allows you to run a new car that you might otherwise have been unable to afford.

A monthly budget of £400 for a new car is achievable for many of us, and the good news is that you can end up driving some of the best new cars on the market for that sort of money.

Here, we've picked our top 10 new cars you can have for £400 per month or less. This list has been compiled using our Target Price research, which reveals 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).

Editor's note: Images are purely illustrative and may not reflect specified trim levels

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10: Audi A5 40 TFSI S line S tronic

Audi A5 Sportback front

Target Price cost per month: £351

Target Price (on the road): £32,273

The deal: Four years PCP finance with 5.9% APR and a finance contribution of £2750, limit of 8000 miles per year

The A5 is essentially a sleeker version of Audi's A4 executive saloon, and that's a good thing, because the A4 is a former What Car? Car of the Year and still ranks among the best executive cars.

10: Audi A5 - interior

Audi A5 Sportback - interior

True, the A5 is priced higher, but big discounts are available, and it's a comfortable, quiet and classy choice.

9: Honda CR-V 2.0 i-MMD Hybrid SE 2WD eCVT

Honda CR-V Hybrid front three quarters

Target Price cost per month: £379

Target Price (on the road): £30,316

The deal: Three years PCP finance with 5.9% APR and a finance contribution of £750, limit of 10,000 miles per year

This version of Honda's large SUV has the potential to save you lots of money on fuel, because it's a hybrid, and that means it can cover short distances on electric power alone. Add in decent rear seat space and a vast boot and the CR-V also scores on the practicality front.

9: Honda CR-V - interior

Honda CR-V Hybrid - interior

SE versions are our recommended choice, coming with useful kit such as smartphone mirroring, dual-zone climate control and 18in alloy wheels.

8: Ford Galaxy 2.0 Ecoblue 150 Zetec

Ford Galaxy Titanium 2.0 EcoBlue 150PS

Target Price cost per month: £380

Target Price (on the road): £29,023

The deal: Three years PCP finance with 0% APR, limit of 9000 miles per year

If you're in need of a big family MPV, few will suit you better than the Ford Galaxy. It has plenty of space inside for both people and luggage, and, unlike many other cars in this market, is good to drive.

8: Ford Galaxy - interior

Ford Galaxy Titanium 2.0 EcoBlue 150PS - interior

The 2.0-litre diesel engine you get here is our pick of the range, while Zetec trim comes well equipped with dual-zone climate control and automatic wipers.

7: Audi Q3 Sportback 35 TFSI Edition 1 S tronic

Audi Q3 Sportback front three quarters

Target Price cost per month: £375

Target Price (on the road): £36,023

The deal: Four years PCP finance with 6.5% APR and a finance contribution of £2150, limit of 8000 miles per year

The Q3 Sportback takes everything that we like about the regular Audi Q3 family SUV – its high-quality interior, for example – and packages it up into a sleeker shape. And despite that sloping roofline, there's only a small impact on the Q3's practicality.

7: Audi Q3 Sportback - interior

Audi Q3 Sportback 2019 RHD dashboard

This 148bhp 1.5-litre petrol engine is our recommended choice, because its mild hybrid technology gives you small bursts of electric assistance, helping you get up to speed faster.

6: Mercedes A-Class A250 AMG Line Premium Plus auto

Mercedes A-Class driving

Target Price cost per month: £355

Target Price (on the road): £31,713

The deal: Four years PCP finance with 5.9% APR, limit of 10,000 miles per year

The A-Class is Mercedes' rival for premium hatchbacks such as the Audi A3 Sportback and BMW 1 Series. It offers a stunning interior and is good to drive. It can be a pricey choice, though; that's why our Target Price discounts are worth paying attention to.

6: Mercedes A-Class - interior

Mercedes A-Class - interior

This A250 version is powered by a 2.0-litre petrol engine that serves up near-hot hatch levels of performance.

5: Volkswagen T-Roc 2.0 TSI R 4Motion

Volkswagen T-Roc R nose - blue with German plates

Target Price cost per month: £364

Target Price (on the road): £34,986

The deal: Four years PCP finance with 4.9% APR and a finance contribution of £1250, limit of 10,000 miles per year

The T-Roc R is a cracking sports SUV that doesn't cost the Earth to buy. Why is it so good? Well, in addition to offering sharp handling and coming with a strong, flexible engine, it's also well equipped.

5: Volkswagen T-Roc - interior

Volkswagen T-Roc R dashboard - blue LHD

And don't think that the T-Roc R sacrifices practicality in favour of sportiness, either, because there's still decent space inside for both people and luggage.

4: Audi TT Roadster 40 TFSI Black Edition S tronic

Audi TT Roadster front three quarters

Target Price cost per month: £355

Target Price (on the road): £32,542

The deal: Four years PCP finance with 6.6% APR and a finance contribution of £3750, limit of 8000 miles per year

The Audi TT Roadster is fantastic to drive and, as long as you don’t need more than two seats, surprisingly easy to live with.

4: Audi TT Roadster - interior

Audi TT Roadster 40 TFSI Sport S tronic - interior

Its controls are light yet precise, its fully electric roof can be raised or lowered quickly and its interior is one of the classiest around.

3: Skoda Superb Estate 2.0 TDI CR SE Technology

Skoda Superb Estate 2019 wide left cornering RHD

Target Price cost per month: £397

Target Price (on the road): £25,546

The deal: Four years PCP finance with 7.9% APR, limit of 10,000 miles per year

At the most recent What Car? Awards, we again named the Skoda Superb Estate as the best car in its class. Why? well, in terms of space there's nothing that can beat it, with limo-like interior space and a boot to match.

3: Skoda Superb Estate - interior

Skoda Superb Estate 2019 dashboard RHD

Its 2.0-litre diesel engine offers impressive low-down pull and strong fuel economy, while SE Technology trim comes with leather upholstery, heated front seats and privacy glass.

2: BMW 5 Series Touring 520d MHT M Sport auto

BMW 5 Series Touring front three quarters

Target Price cost per month: £352

Target Price (on the road): £37,516

The deal: Four years PCP finance with 2.9% APR and with £1750 finance contribution, limit of 8000 miles per year

The BMW 5 Series Touring is based on our favourite luxury saloon, the 5 Series saloon. It follows, then, that the Touring offers many of the same qualities – namely a plush interior, comfortable ride and top-notch infotainment system.

2: BMW 5 Series Touring - interior

BMW 5 Series Touring 520d xDrive M Sport

We've been impressed by its massive storage space and its strong range of engines, now with fuel-saving mild hybrid technology.

1: BMW 3 Series 330e M Sport auto

BMW 3 Series Saloon 2019 wide front tracking shot RHD

arget Price cost per month: £376

Target Price (on the road): £34,614

The deal: Four years PCP finance with 4.9% APR, limit of 8000 miles per year

BMW's plug-in hybrid version of the 3 Series scooped two separate category trophies in the latest What Car? Awards, showing just how good it is. It offers the same wonderful driving experience that we've come to expect from the 3 Series, while also having the potential to slash your fuel and tax bills.

1: BMW 3 Series - interior

BMW 3 Series Saloon 2019 dashboard RHD

Don't think BMW has skimped on the equipment, either, because M Sport gets you plenty of tech and goodies, as well as a beefier look. This 3 Series is the ultimate car you can buy for less than £400 per month.

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