Best new car deals 2022 - saloons, estates, and sports cars
The best saloon, estate, and sports car deals on the market in the UK
Best saloon deals
BMW 3 Series - £439 per month
- Model: 3 Series 320i M Sport
- Per month: £439
- List price: £38,190
- Deposit: £4,389
- APR: 3.9%
- Deposit contribution: £1,852
- Number of payments: 48
- Final payment: £14,938
Few cars can match the all-round appeal of the evergreen BMW 3 Series, which continues to keep its nose ahead of the competition. Brilliant to drive, eye-catchingly styled and boasting a classy interior that’s packed with tech, the German machine is one of our favourite compact executive cars.
There’s a wide range of powerful and efficient petrol and diesel engines, plus the brilliant plug-in hybrid 330e and the fire-breathing 503bhp M3. The former is now offered as a Touring version for the first time, with the estate adding extra versatility, while optional four-wheel drive brings all-weather security. Yet for most buyers, the balanced talents of the 320i saloon will be hard to beat.
BMW 5 Series - £489 per month
- Model: 5 Series 520d M Sport
- Per month: £489
- List price: £45,585
- Deposit: £4,619
- APR: 2.9%
- Deposit contribution: £4,278
- Number of payments: 48
- Final payment: £16,785
If you want to make a statement in the corporate car park, then look no further than the BMW 5 Series. As with the smaller 3 Series, there’s something for everyone, with saloon and Touring bodystyles, a supercar-baiting M5 and the company car tax-busting 530e and 545e PHEVs.
For its blend of talents, however, the 520d is still a top choice. The interior is vast and beautifully finished, while the infotainment is one of the best in the business. It’s not a cheap car to buy, but strong residuals help offset the premium, while BMW’s current low-interest-rate finance packages look tempting.
Best estate deals
Mercedes E Class - £508 per month
- Model: E-Class E 220 d AMG Line Estate
- Per month: £508
- List price: £45,910
- Deposit: £6,000
- APR: 6.1%
- Deposit contribution: £2,591
- Number of payments: 48
- Final payment: £17,650
Our favourite large executive car, the E-Class has all-round ability that takes some beating. Handsome lines, a luxurious interior and the lure of the three-pointed star are the car’s obvious strengths, but the Mercedes’ appeal is more than skin deep.
It’s packed with tech, such as the MBUX infotainment, and autonomous driver aids. There’s a choice of saloon, estate, coupé and cabriolet bodystyles, while the combination of back-road poise and hushed long-haul refinement means the E-Class is great to drive. There’s also a wide choice of engines, including petrol and diesel plug-in hybrids.
Skoda Octavia - £290 per month
- Model: Octavia Estate 1.5 TSI SE
- Per month: £290
- List price: £24,675
- Deposit: £4,000
- APR: 4.4%
- Deposit contribution: £2,500 plus £199 service plan
- Number of payments: 48
- Final payment: £8,143
Hard-working family cars don’t come much better than the latest Octavia. Scooping the Family Car and Estate Car gongs in our 2021 New Car Awards, the Skoda is a sensible and great-value machine that mixes just the right amount of style and substance.
Based on the same MQB platform as the VW Golf, it blends assured handling with a comfy ride and a range of engines, including frugal diesels, PHEVs and a rapid vRS hot hatch (also available as a diesel, petrol and PHEV, making it unique in the segment). There’s lots of kit available, including an easy-to-use 10.25-inch infotainment system.
All versions are roomy, with loads of space, but it’s the estate that’s the real load star, with a cavernous maximum capacity of 1,700 litres.
Best sports car deals
Mazda MX-5 - £289 per month
- Model: MX-5 1.5 SE-L
- Per month: £289
- List price: £24,755
- Deposit: £4,076
- APR: 4.9%
- Deposit contribution: £1,500
- Number of payments: 48
- Final payment: £8,982
The world’s best-selling roaster gets better and better. With its revvy naturally aspirated engines, gloriously precise manual gearshift and agile and adjustable rear-wheel-drive handling, the MX-5 makes every journey an event to be savoured.
You can drop the roof (there’s a choice of fabric and folding hardtop) in seconds and add wind-in-the-hair thrills to the car’s long list of merits. Put the roof back up and you’ll appreciate the beautifully built, snug interior. Basic is best with the MX-5 and the 130bhp 1.5-litre SE-L delivers a perfect blend of performance, efficiency and tech.
How does PCP finance work?
More than 90 per cent of the new cars sold in the UK are purchased using some kind of finance, so while list prices are often referred to, monthly figures and deposits are arguably more relevant. Most car makers have their own version of a Personal Contract Purchase (PCP) and they all work in the same way.
PCPs are best thought of in three parts: the deposit, the monthly repayments, and the optional final payment. The deposit is the cash you’ll put down up front. This can either be a straightforward lump sum, the value of your part-exchange, a deposit contribution from the manufacturer, or a combination of all three.
The size of the deposit will affect the size of your monthly repayments. These are typically made over a 24, 36 or 48-month period, but can be scaled up or down to suit your circumstances. The final part is the optional final payment, which is sometimes referred to as the ‘balloon payment’. Your deposit and monthly payments only go part of the way to paying off the car; in fact, they’re actually paying off its depreciation over the time you’ll have it. To own the car you’ll need to pay the full amount off, but not every buyer does.
Many drivers use the car’s ‘equity’ as the deposit on their next one. This ‘equity’ is made up of overpayments you may have made, since makers often overestimate how much a new car will depreciate to play it safe. This quirk of PCPs means you might not necessarily have to find a big deposit each time you take out a new deal.
If you don’t want to own the car outright or roll any ‘equity’ into a new deal, your third option is to hand the car back with no additional payments, and walk away.
Other ways to finance
Few buyers have the means or motivation to spend tens of thousands of pounds in one go. So while PCP deals are the most popular finance option, retailers also have an alternative, called Personal Contract Hire (PCH).
PCH
Also known as personal leasing, PCH deals require less capital up front. After an ‘initial rental’ or up-front payment, you make a series of regular payments until the agreement ends, after which you hand back the car and walk away.
While there’s no large deposit, unlike a PCP, which offers a reasonable degree of flexibility, a PCH will tie you in for the duration, with no option of handing the car back early without a financial penalty.
Hire purchase
Not many people choose hire purchase now, but it’s still possible to take out an old-fashioned HP agreement on a new car.
Put down a deposit then make monthly repayments that, unlike with a PCH or PCP deal, pay off the value of the car. At the end of the term you own the car outright.
HP agreements are secured against the vehicle, so tend to offer more attractive interest rates than those offered with unsecured bank loans, for example.
Cash, cards & loans
The days of cash being king are long gone in the new-car market and you may find the deals offered via this purchase method are less attractive than those available were you to take out a PCH or PCP deal.
Credit cards offer a level of consumer protection but have heavy interest rates. A bank loan with an attractive interest rate is another route. You’ll pay cash for the car, so dealer discounts are harder to come by.
Choosing the right car for you
The cars listed above are our considered recommendations, but they won’t suit everyone. You should spend time ensuring that the model you choose has the space, style, economy, and performance you need.
Once you’ve drawn up your shortlist, call round dealers to book test drives, and put the car to good use. Make sure you, and anyone else who will be driving it, is satisfied and can find a suitable driving position behind the wheel.
Take the kids along to ensure they can get comfortable, too, and that it’s easy to get child seats in and out. And if you have hobbies with specific requirements, make sure the car is up to the job.
