Car finance: best new cars for less than ?300 per month

  • Choose from seven-seat SUVs to exciting hot hatches
  • 0% APR finance available on a number of these models
  • Choosing a lease can cut your monthly payments

If you're new to the idea of financing a car, you might really be surprised by what's out there for ?300 per month. Although the quality of car in this price bracket is brilliant, the thing to write home about in this price range is the sheer brevity on offer.

At anything less than ?300 per month, you're only really looking at a select few cars. But ?300 affords you posh saloons, crossovers, large SUVs, estates, sports cars, electric cars and the big traditional MPVs.

This list consists of the best lease and PCP (personal contract purchase) finance deals around. Leasing (sometimes called PCH or Personal Contract Hire) is essentially a form of renting. You pay an initial payment, then a series of monthly payments. Then that's it. You hand the car back.

PCP (Personal Contract Purchase) deals involve a deposit and a series of monthly payments. Then you choose if you want to buy at the end, with what is often referred to as a balloon payment.

Leasing is usually better if you don't want to buy a car. PCP is better if you want to keep your buying options open.

And you can check out the best deals for all budgets below:

Looking to learn more about car finance? Watch our video guides to PCP finance, PCH leasing and Hire Purchase, or visit our car finance calculator to find out how much you can afford to borrow.

Best new cars for under ?300 a month 2020

LEASE: VW e-Golf

Best new car for ?300 a month for: zero emissions driving

White 2018 Volkswagen e-Golf

Not many electric cars fall into the sub ?300 per month category. Why is the Golf going cheaply? There's an all-new Golf just around the corner. And the e-Golf in particular is being phased out completely - to be replaced by the ID.3.

This means that if you opt for the electric Golf now, it might look old hat by the time your lease deal is up. You shouldn't care though. For ?300 you get an electric car capable of doing 120-180 miles between charges that looks, and feels, just like a regular Golf.*

Leasing price: from per month

LEASE: Mazda 6

Best new car for ?300 a month for: a simple but elegant saloon

2018 red Mazda 6

Handsome, understated, and noticeably cheaper than saloons of this size from the likes of Audi, BMW, or Mercedes-Benz. Inside the Mazda 6 has all the tech you'd come to expect from a premiumish saloon, but it's engineered into the car in a very different way.

While the infotainment is touchscreen, when you're driving, you control it via a rotary dial. This means less time looking at the screen, and more time looking at the road. To drive it's not quite as sporting as premium German brands, but it rides with aplomb and is pillowy on the motorway.*

Leasing price: from £199 per month

LEASE: Volvo XC40

Best new car for ?300 a month for: chic crossover vibes

2018 blue Volvo XC40

The smallest of Volvo's SUV range brings Volvo ownership to buyers at a lower entry point. Despite it being the cheapest of the Volvo lot, it doesn't compromise on style, or safety. It rides well too - it's much smoother than many cars of this size. And the interior is swisher than the norm as well.

The 1.5-litre engine available in this offer is frugal, and Momentum trim brings with it a raft of safety software, a 12-inch infotainment screen, and 18-inch alloy wheels.*

Leasing price: from £254 per month

*These deals are indicative examples of some packages available as of 30 January 2020 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. Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited. Terms, conditions and exclusions apply.


PCP: Alfa Romeo Giulia

Best new car under ?300 a month for: Italian flair

2019 grey Alfa Romeo Giulia

A whopping great ?6,000 deposit contribution brings this classy Italian saloon down to the ?300 per month mark.

Technically, this deal is for last year's car. The differences between the new and previous-generation car are hard to spot. The new car has a nicer interior and a slightly different front end. But that's pretty much it.

You still get an achingly pretty saloon that's brilliant to drive, and a powerful 200hp engine. The Nero Edizione is a special edition that comes with a snazzy push-button ignition, Apple CarPlay/Android Auto, and black 18-inch alloy wheels.**

Alfa Romeo Giulia Saloon Special Edition 2.0 TB Nero Edizione Auto

  • Monthly cost: ?289 (24 payments)
  • Deposit: ?6,499 (including deposit contribution of ?6,000)
  • Total amount payable by customer to buy car: ?32,788
  • Cash price: ?35,995
  • Mileage allowance: 8,000 miles per year
  • APR: 3.9%

Alfa Romeo Giulia PCP deal

PCP: Ford Fiesta ST

Best new car under ?300 a month for: driving pleasure

2018 Ford Fiesta ST

One of the best hot hatches ever made. It even won our Car of the Year award for 2019.

Its 1.5-litre engine makes 200hp and it sounds brilliant. There are three different driving modes, which affect how sharp the throttle is and how parpy you want the exhaust.

The steering is delightfully direct, making it feel really quick and urgent. The Recaro seats are divine - snug with plenty of lumbar support.**

Ford Fiesta ST-2

  • Monthly cost: ?245 (36 payments)
  • Deposit: ?4,164.46 (including ?1,000 deposit contribution)
  • Total amount payable by customer to buy car: ?22,359.46
  • Cash price: ?22,195
  • Mileage allowance: 9,000 miles per year
  • APR: 2.9%

Ford Fiesta ST PCP deal

PCP: Seat Tarraco

Best new car under ?300 a month for: off-roader looks

2019 black Seat Tarraco

There's no denying that the Tarraco offers a huge amount of space for sub ?300 per month. But it's not all space and no luxuries.

The Seat shares mechanical bits with the likes of the Skoda Kodiaq and Volkswagen Tiguan Allspace and it's proven to be reliable too.

On the outside it hides its size well, and the light bar stretching between the rear lights make it look ultra-modern. Inside you sit high up, and diesel and petrol engines are on offer.**

Seat Tarraco Xcellence 1.5 TSI EVO

  • Monthly cost: ?289 (47 payments)
  • Deposit: ?4,809 
  • Total amount payable by customer to buy car: ?30,410
  • Cash price: ?30,410
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Seat Tarraco PCP deal

PCP: Mazda CX-5

Best new car under ?300 a month for: ergonomically designed crossovers

2017 red Mazda CX-5

Officially the largest car Mazda sells in the UK. It seats five adults in comfort and like with the Mazda 6 found further up this list, its interior is a lesson in ergonomics and design. Nothing is confusing, and everything is where you'd expect it to be.

It looks good too, especially in Mazda's Soul Red. And it's just that bit more enjoyable to drive than other cars of this size.

Mazda also offers a 0% APR deal on the same car with a shorter contract, but the monthly costs are higher.**

Mazda CX-5 SE-L Nav +

  • Monthly cost: ?289 (42 payments)
  • Deposit: ?4,109.50 (including ?1,500 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: ?29,531
  • Cash price: ?27,200
  • Mileage allowance: 9,000 miles per year
  • APR: 3.9% 

Mazda CX-5 PCP deal

PCP: Ford S-Max

Best new car under ?300 a month for: size

2019 grey Ford S-Max

MPVs might seem like an outdated concept because of the seven-seat SUV. But one important thing to consider with MPVs is that they put practicality above all else. The S-Max seats seven and even has clever folding rear seats that fold completely flat at the touch of a button.

There's acres of space in the middle row, and up front, the windscreen is wide and tall, making it very easy to see out of. In fact, all round visibility is brilliant in the S-Max.

And it's holding one ace up its sleeve yet. Despite its size, it just doesn't feel all that different to drive than a regular hatchback.**

Ford S-Max ST-Line

  • Monthly cost: ?289 (36 payments)
  • Deposit: ?11,620 (including ?2,000 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: ?35,510
  • Cash price: ?37,510
  • Mileage allowance: 9,000 miles per year
  • APR: 0% 

PCP Ford S-Max PCP deal

What to read next:

** These deals are indicative examples of some packages available as at 21 January 2020, 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.

Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated consumer hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited.