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the-10-best-cars-for-less-than-pound400-per-month

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

Slideshow story - please click right-hand arrow above to continue

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

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: £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 40 TFSI S line S tronic

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

10: Audi A5 - interior

Honda is a company that doesn’t like to follow the crowd. So, while it competes in most of the traditional sectors of the car market, in each case it does something a little bit different.

The Jazz, for example, might look like just another rival to Britain’s best-selling car, the Ford Fiesta, but it’s actually much more practical than its rivals, with a flexible boot and Tardis-like interior.

The bigger Civic is also a practical choice, but it’s mainly distinguished by having eye-catching, love-it-or-hate-it styling, despite competing in a sector of the market that’s usually more conservative than a blue rosette.

And while it may not seem so radical now, Honda’s large SUV, the CR-V, was one of the first to forego any pretence of being an off-roader and instead focus on on-road driving dynamics.

HONDA

CR-V

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 2.0 i-MMD Hybrid SE 2WD eCVT

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

9: Honda CR-V - interior

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: £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 2.0 Ecoblue 150 Zetec

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.

8: Ford Galaxy - interior

Q3 Sportback

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 35 TFSI Edition 1 S tronic

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.

7: Audi Q3 Sportback - 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: £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 A250 AMG Line Premium Plus auto

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

6: Mercedes A-Class - interior

The VW Group famously spends more money on research and development than any rival – and as a result, perhaps it should be no surprise that our testers rate its cars so consistently highly.

The fact that many of those cars use the same underpinnings also helps, because it means that if they get it right once, they have the foundations to keep on getting it right.

However, the Volkswagen brand faces plenty of tough competition, often from within, because the rapidly rising Seat and Skoda brands that are also part of the group have access to the same technology.

VOLKSWAGEN

T-ROC

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 2.0 TSI R 4Motion

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.

5: Volkswagen T-Roc - interior

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 40 TFSI Black Edition 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.

4: Audi TT Roadster - interior

Estate

One of the greatest success stories in the car world of recent decades is Skoda’s rise to become a hugely credible mainstream maker of good-value, good-sense cars.

Central to that success has been its place within the VW Group, alongside the Volkswagen brand itself, plus the likes of Seat and Audi. That has given it access to exactly the same underpinnings for its cars as the other brands, and it has complemented this by adding its own developments, from the way the cars drive and ride through to the features they have and the pricing.

The result is a range that extends from a city car to a large executive saloon, with family and large seven-seat SUVs too. There’s a wide variety of petrol and diesel engines, all of which are competitive for the class.

As a result, Skoda has a range of cars that is almost entirely class-leading or among the class leaders, and it has enjoyed long-time success at the What Car? Awards as a result.

SKODA

SUPERB

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 2.0 TDI CR SE Technology

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.

3: Skoda Superb Estate - interior

Munich-based BMW is most famous for its sports saloons, in particular the 3 Series and 5 Series. However, it actually builds almost every type of car imaginable: everything from two-seat convertibles to seven-seat MPVs.

The cheapest model in the BMW range is the 1 Series hatchback, which is a rival to the Audi A3, Mercedes-Benz A-Class and Volkswagen Golf. Meanwhile, at the other extreme is the M8&nbsp;grand tourer, which costs more than £120,000.

BMW was also quick to capitalise on the rise of the SUV and now has ten in its range: the X1, X2, X3, X4, X5, X6, X7 and XM, plus the electric iX3 and iX.

All of this makes it one of the big three German prestige brands, along with Audi and Mercedes-Benz.

5 SERIES

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 520d MHT M Sport auto

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

2: BMW 5 Series Touring - interior

3 SERIES

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 330e M Sport auto

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.

1: BMW 3 Series - interior

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...

NEW REVIEWS:

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.....

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