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Best new cars for under £500 per month

Executive cars and large SUVs, take your pick with a hefty budget of at least £500 per month

With £500 a month at your disposal, you’ll be able to make use of some excellent new car deals on some of the executive cars and large SUVs on the market today. What’s more, for your convenience we’ve collated the best deals around right here.

Finance deals are an increasingly popular method of buying cars, largely thanks to low prices and affordable deposits in dealerships throughout the land. The different deals vary considerably model to model, but the majority of the ones we've picked out here have a deposit of around 10-15 per cent. 

So, if you have that kind of money sitting in your bank, you can drive away in cars such as the Lexus ES and Mercedes E-Class. If you're looking for even more space, though, the seven-seat Kia Sorento might be on your radar.

All of the deals in the following list are Personal Contract Purchase (PCP) schemes, which require an initial deposit (unless otherwise stated) and a set number of monthly installments thereafter. At the end of the contract, you’ll have the option of paying a final lump sum for the car, using the vehicle’s remaining value to trade in for a new model, or simply hand back the keys and move on.

Best new cars for under £500 per month

Kia Sorento - £401 per monthLexus ES - £436 per monthJaguar XE - £450 per monthHyundai Ioniq Plug-in - £464 per monthMercedes E-Class - £499 per month

Kia Sorento - £401 per month

Model: Kia Sorento 2.2 CRDi KX-2List price: £33,650Deposit: £3,565 (£2,500 contribution)Monthly payments: £400.69Number of payments: 36APR: 1.49%Optional final payment: £15,047.50Total to pay by customer if returning: £17,989.84Total to pay by customer if buying: £33,037.34

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Under the skin, the Kia owes much to the Hyundai Santa Fe. The pair ride on the same platform, share the same 2.2-litre diesel and both get a similarly intuitive infotainment system.

The changes between the two are mainly cosmetic: the Kia gets a slightly more conservative look both inside and out, yet it still manages to feel finished to a good standard on the inside.

Equipment is generous throughout the range. Alloy wheels range from 17 to 19 inches in diameter, while the likes of a panoramic roof, LED lights, climate seats and a reversing camera are available depending on which trim level you go for.

Lexus ES - £436 per month

Model: Lexus ES 300hList price: £35,155Deposit: £4,000 (£2,000 contribution)Monthly payments: £436.47Number of payments: 41APR: 5.9%Optional final payment: £15,817.50Total to pay by customer if returning: £21,895.27Total to pay by customer if buying: £37,712.77

If rock-bottom running costs are on top of your ‘must have’ list, and you need a quiet executive car in which to waft from A to B, then the Lexus ES could be just the ticket.

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There’s only one powertrain choice – the 215bhp 2.5-litre petrol-electric hybrid – but the resulting fuel and tax advantages could save you thousands over a three-year lease. The ES is much better to drive than Lexus models of old, and the plush interior takes the fight to cars in the class above.

It’s a shame the infotainment is so fiddly – it’s an unnecessary weak point alongside accomplished systems from BMW or Audi. Basic cars come loaded with kit, while top-spec cars leave you wanting for nothing.

Jaguar XE - £450 per month

Model: Jaguar XE D180 SList price: £34,555Deposit: £3,724 (£4,000 contribution)Monthly payments: £449.86Number of payments: 36APR: 3.9%Optional final payment: £13,002Total to pay by customer if returning: £19,918.96Total to pay by customer if buying: £32,920.96

We love the XE – even more so since the car was updated last year. While it can’t compete with the BMW 3 Series when it comes to space and practicality, it’s much closer regarding driving dynamics.

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The car represented a real return to form for Jaguar when it arrived in 2015, offering sharp, rear-wheel-drive handling, excellent steering and punchy engines. Since it was treated to that mid-life nip and tuck, any complaints about the laggy infotainment system and build quality have disappeared; the XE now offers far superior materials and a slick 10-inch touchscreen.

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Go for the D180 diesel and you’ll benefit from ultra-low running costs, too.

Hyundai Ioniq Plug-in - £464 per month

Model: Hyundai Ioniq 1.6 GDi Plug-in Hybrid Premium SEList price: £31,950Deposit: £3,500 (£1,000 contribution)Monthly payments: £463.69Number of payments: 36APR: 4.9%Optional final payment: £12,667.68Total to pay for customer if returning: £20,192.84Total to pay for customer if buying: £32,860.52

The Ioniq is Hyundai’s crack at making a Prius rival – and it’s a solid effort.

Our preference is the plug-in, which combines a 1.6-litre petrol engine with a battery that offers an electric-only range of around 30 miles. Plug it in every time you park, and you could – should – end up completing most urban journeys while using no petrol. Efficiency aside, the Ioniq is also one of the best cars Hyundai makes. The cabin is spacious for four, the boot can cope with a family’s luggage and the powertrain has enough pep to cope with the occasional longer journey.

Mercedes E-Class - £499 per month

Model: Mercedes E 220d SEList price: £39,430Deposit: £7,000 (£0 contribution)Monthly payments: £498.41Number of payments: 48APR: 5.9%Optional final payment: £14,000Total to pay by customer if returning: £30,923.68Total to pay by customer if buying: £44,923.68

The latest Mercedes E-Class is a brilliant all-rounder. Its impressive blend of performance and low running costs make it a fantastically easy car to live with.

Not all versions come with Merc’s fully digital dashboard, but it’s worth seeking one that does because it really lifts the interior, giving it a whiff of the more expensive S-Class from behind the wheel.

Ride comfort is top-notch, especially on SE-spec cars, plus the refined 2.0-litre diesel is among the best in the business. There are some fantastic deals to be had, but don’t be afraid of buying one with a few miles on the clock – these cars are built to last.

Looking for more new car deals? Check out our comprehensive round-up of the best deals available right now... 

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