Half a grand, a monkey – £500, in other words – is a good chunk of change to spend on a car every month. And if you like the finer things in life, that kind of money opens up a whole world of possibilities when you’re looking for a new car deal. On this page, we’re highlighting some of the best cars for £500 per month that are available right now.
There’s upmarket saloons, a couple of posh SUVs, even one of the very finest sports cars on the market. You’ll find both personal contract purchase (PCP) and leasing deals.
Get a PCP deal and you pay a deposit up front, then a number of monthly payments over a set period. At the end of that period, you can then make the optional final payment to buy the car outright, or hand it back.
Leasing – also known as personal contract hire, or PCH – is much the same as renting, just over a longer term. You make an initial payment, then a series of monthly payments at the end of which you hand the car back.
If £500 a month is a bit too steep for you, check out our page rounding up the best deals available for £400 a month.
Best new cars for £500 a month 2024
The EV hot hatch that just gets it right
Beneath the performance zest lays the class-leading Ioniq 5. That means you get the same huge interior and quality feel. Its EV range is goof but not class-leading, the charging speed is exceptional though. Just note that the squared styling does conceal the fact it’s bulky, especially on narrow roads.
To find out more, read our full Hyundai Ioniq 5 N review
Pros
- Staggering performance
- Entertaining to drive
- Clever technology
Cons
- It weighs 2.2 tonnes
- And it’s enormous for a hatch
All the executive car you could ever need
Crucially, every single 5 Series now offers some form of electrification. The PHEV examples will cost you less in tax and fuel bills but will chomp into boot space. The retail price is eye-watering, but leasing rates hover around the £500 mark. Set aside a couple of quid more per month and you can even stretch to the all-electric i5.
To find out more, read our full BMW 5 Series review
Pros
- Comfortable ride
- Engaging handling
- 550e PHEV is rapid
Cons
- PHEV’s boot restricted
- It can feel bulky
BMW M2
Brilliant driver's car, no matter what it looks like
It is a serious piece of machinery, and it serves up remarkable performance – both in a straight line, and in corners. It’s also great fun to drive, loaded with kit, and it feels like a high-quality product. The M2 comes in at a little over budget but when you're talking about a car like this, it pays to stretch your finances if you can.
To find out more, read our full BMW M2 Series review
Pros
- Engaging and exciting to drive
- Comfortable and quiet when cruising
- Modern and high-quality feel
Cons
- Expensive compared with rivals
- Challenging styling
Kia EV9
Kia’s seven-seater is ideal for family life
In the name of honesty we’ll say that there are better value seven seaters for £500 per month, some of which even sport a fancier badge on the grille. However, Kia is pushing upmarket and the EV9 is proof that it can go toe-to-toe with the premium competition. It really is as comfortable and well-equipped as a Range Rover, just better value for money.
To find out more, read our full Kia EV9 review
Pros
- Comfortable ride
- Loads of technology
- Rapid 800V charging
Cons
- Cumbersome in town
- Poor climate controls
Smart-looking family-size SUV that’s comfy and practical
Even the entry-level Sport model comes with Apple CarPlay/Android Auto, satnav, heated leather seats and adaptive cruise control. The mid-ranking 40 powertrain offers 204hp. The big question is whether you thnk the kudos of the four rings on the bonnet is woirth the premium over a lower-priced, but technically simialr Skoda Enyaq iV.
To find out more, read our full Audi Q4 E-Tron review
Pros
- 300-mile range
- Five-adult space
- Smooth and quiet to drive
Cons
- Interior could be plusher
- Irritating touch controls
It doesn’t have the enjoyable edge that the Macan offers. It’s nice and polished but lacks the eagerness of the Porsche. Then there’s the relatively small boot size. The lack of a rear window will take some getting used to, but at least the rear camera is well-implemented.
To find out more, read the full Polestar 4 review
Pros
- Spacious, high-quality interior
- Good claimed range
- Satisfying to drive
Cons
- Macan is more fun
- Rivals have bigger boots
Cool, all-electric people carrier
A five-seater can be had for less than £400 per month, but its pales as a family car against a pricier seven-seater. The light, spacious interior is still a highlight, it’s simply bigger and able to swallow a larger amount of people. It’s also quiet comfortable and more than brisk enough.
To find out more, read the full Volkswagen ID.Buzz review
Pros
- Excellent driving experience
- Reasonable range per charge
- Exceedingly desirable inside and out
Cons
- Sporty GTX feels rather pointless
- Usual VW touch-control issues
Recent updates keep it at the sharp end of the grid
It’s also the best out there for long, unplanned journeys. It’s not perfect, though. The quirky styling and love-it or hate-it interior aside divide opinions, and although the quality is better than before, the BMW i4 and Hyundai Ioniq 6 are more nicely made.
To find out more, read the full Tesla Model 3 review
Pros
- Refined, easy to drive, responsive
- Electric range is very impressive
- Brilliantly-integrated route planning
Cons
- Many would prefer a hatchback
- Still questions over reliability
These deals are indicative examples of some packages available as of 25 April 2024, but are subject to change without prior notice. Everyone’s financial circumstances are different and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically.
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