Audi Q2

Peugeot 5008

Suzuki Swift

Volkswagen Tiguan

Nissan Ariya

New Audi A3 Saloon

Fiat 600e

Volkswagen T-Cross

the-best-cars-for-less-than-pound400-per-month

This type of financing is great, because it allows you to buy 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). All deals are for three years, with a limit of 10,000 miles per year.

Editor's note: Images are illustrative and may not reflect trim levels

Slideshow story - click right-hand arrow above to continue

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

Ford builds some of the most popular cars in the UK, including the Fiesta and Focus hatchbacks.

This success is partly down to longevity and the fact that there’s a Ford dealer around every corner. However, it’s also because Fords tend to offer good value and be among the best cars in their respective classes to drive.

The company’s huge range also helps; it offers everything from the small – but surprisingly practical – Ka+ to the large and lavishly equipped Edge SUV.

Meanwhile, other highlights of the range include the S-Max and Galaxy people carriers, the Mondeo executive car and the Ranger pick-up.

FORD

GALAXY

Target Price cost per month: £352

Target Price (on the road): £30,702

The deal: 3 years PCP finance with 0% APR

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.

10: Ford Galaxy 2.0 Ecoblue 150 Titanium

The 2.0-litre diesel engine you get here is our pick of the range, while Titanium trim gets you more goodies than you could reasonably want.

10: Ford Galaxy 2.0 Ecoblue 150 Titanium - interior

Audi is a brand that sets the standard for interior quality, and this, combined with its vast and ever-growing model line-up, has helped it become one of the ‘big three’ German prestige car makers, along with BMW and Mercedes-Benz.

The A3 hatchback, A4 executive saloon and Q7 SUV are all common - yet upmarket - sights on UK roads.

At least some of Audi's success over the past 30 years can be attributed to the growth in sales of vehicles with four-wheel drive; the company arguably led the way in bringing 4x4 technology into the mainstream, with its Quattro coupé in the early 1980s.

Today, most Audis are available with at least the option of four-wheel drive, while the list of SUVs from the brand includes the Q2, Q3, Q5 and Q7.

AUDI

Target Price cost per month: £360

Target Price (on the road): £30,302

The deal: 3 years PCP finance with 6.5% APR and a finance contribution of £2400

The Q3 is Audi's premium family SUV, making it a rival for the BMW X1 and Mercedes-Benz GLA.

9: Audi Q3 35 TFSI Sport S tronic [Comfort and Sound Pack]

It's suitably plush inside, with a high-quality interior and a big boot. This 1.5-litre turbo petrol version is reasonably peppy, too, while the Comfort and Sound Pack gets you an uprated stereo and a rear-view camera among other things.

9: Audi Q3 35 TFSI Sport S tronic [Comfort and Sound Pack] - interior

Target Price cost per month: £353

Target Price (on the road): £29,441

The deal: 3 years PCP finance with 6.6% APR and a finance contribution of £3750

The Audi TT Roadster is fantastic to drive and, so long as you don’t need more than two seats, surprisingly easy to live with.

8: Audi TT Roadster 40 TFSI Sport S tronic

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.

7: Audi TT Roadster 40 TFSI Sport S tronic - interior

Volvo is now a true rival to the likes of Audi, BMW, Jaguar and Mercedes-Benz, offering an alternative take on premium executive cars to a rapidly growing fanbase.

After a string of strong launches – notably with the Mk2 XC90 and XC60 SUVs – it struck gold in early 2018 when it launched its smallest SUV, the XC40. When our testers compared the car with its rivals, they concluded that it was the best launch of the previous 12 months, earning it our coveted overall Car of the Year Award.

The good news is that, like many car makers, Volvo now uses the same structure underneath most of its cars – so if they get it right on one model, it usually bodes well for the rest. That’s the case here, with Volvo’s subsequent saloon and estate launches complementing the SUVs and making for a generally extremely appealing line-up.

VOLVO

Target Price cost per month: £357

Target Price (on the road): £31,580

The deal: 3 years PCP finance with 2.9% APR and a finance contribution of £2000

Fancy an estate car that mixes high-quality Scandinavian design with lots of space? If so, the Volvo V60 could be just the ticket. It has a smart and airy interior, well-struck ride and handling and lots of space for both people and luggage.

7: Volvo V60 D4 Momentum Plus auto

Momentum Plus is the cheapest trim level but still gets you sat-nav, rear parking sensors, dual-zone climate control and a powered tailgate.

7: Volvo V60 D4 Momentum Plus auto - interior

Mercedes’ line-up is vast – ranging from the A-Class family hatchback through to staple saloons such as the C-Class and E-Class, and onwards towards multiple SUVs, luxury saloons and even sports cars. Coupés and convertibles are thrown into the mix as well.

As one of the ‘big three’ German brands, Mercedes most often finds itself competing with Audi and BMW but more recently has found itself fending off Jaguar and Volvo, too.

Mercedes models are known for comfort. One example of this is the E-Class, because while the Audi A6 has a plusher interior and the BMW 5 Series handles better, the E-Class is probably the most comfortable for a long motorway journey.

MERCEDES-BENZ

A CLASS

Target Price cost per month: £358

Target Price (on the road): £30,258

The deal: 3 years PCP finance with 6.2% APR

The A-Class is Mercedes' rival for premium hatchbacks such as the Audi A3 Sportback and BMW 1 Series. It offers a stunning interior featuring a class-leading infotainment system and is good to drive.

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

It can be a pricey choice, though; that's why our Target Price discounts are worth paying attention to. This A250 version is powered by a 2.0-litre petrol engine that serves up near-hot hatch levels of performance.

6: Mercedes-Benz A-Class A250 AMG Line Premium auto - interior

Target Price cost per month: £370

Target Price (on the road): £30,526

The deal: 3 years PCP finance with 4.9% APR and a finance contribution of £4250

As a former What Car? Car of the Year, it's no surprise to see the Audi A4 featuring on this list. It's a great performer in every respect, offering an exceptionally refined range of engines an opulent interior.

5: Audi A4 35 TDI Sport S tronic

The 2.0-litre diesel engine you get as part of this deal has enough power for most situations, while Sport trim offers styling enhancements to give your saloon a more aggressive look.

5: Audi A4 35 TDI Sport S tronic - interior

Hatchbacks, SUVs, hybrids, electric cars: Renault makes them all, in a variety of shapes and sizes, meaning&nbsp;it has a line-up designed to tempt pretty much everyone.

From the roadside, the standout feature of all its cars is design, with them instantly recognisable as members of the Renault family, without being so similar that they fall&nbsp;into the Russian doll trap. However, in terms of ability they're a mixed bag,&nbsp;ranging&nbsp;from very good to no better than average.

Models that fall into the former camp include the Clio small hatchback and Megane E-Tech electric car, while the smaller Zoe electric car is also impressive in most respects; it's just a pity Renault omits key safety kit.

On the other hand, the Captur, Arkana and Austral SUVs are all outclassed by several rivals.

Renault has some exciting new models planned, including a new Scenic (this time it will be an electric SUV instead of a conventionally powered MPV) and two cars that reimagine classic Renaults: the 4 and 5.

RENAULT

Target Price cost per month: £397

Target Price (on the road): £25,546

The deal: 3 years PCP finance with 4.9% APR and a finance contribution of £2000

The Zoe is a small electric car which offers a decent range and, as you might expect, terrifically low running costs.

With this i version, you own the car as well as its battery, so there are no other fees to consider, while Dynamique Nav trim gets you plenty of kit.

4: Renault Zoe R110 i Dynamique Nav

The 109bhp electric motor of the R110 model offers brisk acceleration, too.

4: Renault Zoe R110 i Dynamique Nav - interior

E CLASS

Target Price cost per month: £399

Target Price (on the road): £36,900

The deal: 3 years PCP finance with 5.5% APR and a finance contribution of £4458

Is there anything that the Mercedes-Benz E-Class Estate can't do? After all, it's comfortable, luxurious, spacious and economical, and it has the appeal of a premium badge, too.

3: Mercedes-Benz E-Class Estate E220d 4Matic AMG Line Premium 9G-Tronic

Go for the E220d diesel and you'll enjoy a responsive 192bhp 2.0-litre engine, while AMG Line Premium cars come positively loaded with kit – including keyless entry, a panoramic sunroof and 19in alloy wheels.

3: Mercedes-Benz E-Class Estate E220d 4Matic AMG Line Premium 9G-Tronic - interior

Land Rover is synonymous with SUVs, and especially with the Defender – the rugged runabout that has seen service in war zones across the world, but also as part of the Queen’s personal garage.

If off-road prowess is one of Land Rover’s core values, though, the other is luxury. Indeed, the Range Rover, Range Rover Sport and Range Rover Velar are among the best luxury SUVs you can buy.

The Discovery, meanwhile, is a practical rival for the Audi Q7 and BMW X5, while the stylish Evoque (which is available as a three-door convertible as well as a traditional SUV) goes head to head with Audi’s Q3 and BMW’s X1.

In the coming years, we’ll see a new road-biased ‘Road Rover’ as well as an all-new Defender.

LAND ROVER

RANGE ROVER

Target Price cost per month: £372

Target Price (on the road): £37,574

The deal: 3 years PCP finance with 5.9% APR

The new Range Rover Evoque is one of the most stylish SUVs you can buy, but there's plenty of substance to back up those looks, too. It's well equipped, offers a great driving position and should hold its value very well.

2: Range Rover Evoque 2.0 D180 S

RANGE ROVER EVOQUE

Our recommended D180 diesel offers smooth acceleration and has enough punch to execute a swift overtake on the motorway.

2: Range Rover Evoque 2.0 D180 S - interior

XC40

Target Price cost per month: £358

Target Price (on the road): £30,710

The deal: 3 years PCP finance with 5.9% APR

Volvo's smallest SUV is brimming with both style and kit, spacious inside and one of the very best cars in its class to drive. It's so good, in fact, that it has been our favourite family SUV for the past two years.

1: Volvo XC40 D3 R-Design

This D3 diesel model is our pick of the line-up, not least because it feels so relaxing to drive. R-Design trim is loaded with kit, too, including tinted glass, ambient lighting and leather trim.

1: Volvo XC40 D3 R-Design - interior

The 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...

LATEST DEALS:

The 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.....

Best estate cars 2024 – the top choices for luggage capacity

Genesis GV60 long-term test

New Ferrari Purosangue & Lotus Eletre vs Bentley Bentayga

Cars coming soon: the new cars in 2024 worth waiting for

The best SUV discounts

Best snow foam lances 2024: which snow foam guns are best?

Win tickets to the Silverstone Festival with the What Car? Reliability Survey

Best used estate cars for less than £10,000

New Renault Symbioz mixes hybrid power with a family-friendly interior

Also consider

Quick search

Tools & services

Legal bits

Information