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Best new car deals 2022 – Best PCP finance deals


The golden rule when buying a new car is to do your research. This is a big purchase and there could be a brilliant new car deal out there on the very model you’ve been considering, or even a low cost finance package that means you can afford a car you thought was out of your price range. 

Trawling through endless lists of new car finance deals can be a bit of a slog, of course, and that’s why we’ve compiled this list of the best deals currently on the market. We’ve looked at finance packages from all of the major car manufacturers to find the best new car deals for 2022. We’re focusing on Personal Contract Purchase (PCP) plans, since most people use this type of finance to buy new cars but we also have a page of leasing deals for those who prefer that car finance method.

There are three main things you need to keep an eye out for when new car bargain hunting. The deposit, monthly repayments, and optional final payment are all key to getting a great deal, and if you’re not sure about what those are, read our handy PCP finance guide. 

It’s also important to know the APR interest rate, the length of the agreement, the mileage limit and the size of any deposit contributions the manufacturer will make. Most of our deals assume you’ll be putting down a deposit of around 10 to 15 per cent, and will be covering around 8,000 miles a year but the flexibility of PCP car finance means you’ll be able to adjust the deals to your own requirements. 

With the cost of almost everything going up, it’s more important than ever to bag yourself a great deal on a new car. A parts shortage in the car industry means that significant deposit contributions are few and far between, but we’ve picked the cars that offer the best value. If you can stump up a large initial deposit, you’ll lower your monthly payments and the overall amount of interest paid.

Best new car deals 2022

Below you’ll find the best new car finance deals we can find on new cars that our reviewers rate. We hope there’s a bargain here for you…

Top 10 best new car deals 

  1. Hyundai i20 – £185 per month
  2. Renault Captur – £199 per month
  3. Toyota Corolla – £229 per month
  4. Peugeot 508 SW – £479 per month
  5. Kia XCeed – £300 per month
  6. Volkswagen Polo – £219 per month
  7. Ford Puma – £280 per month
  8. Hyundai Tucson – £323 per month
  9. Volvo XC90 – £659 per month
  10. Mazda MX-5 – £309 per month

Kia Picanto – £182 per month

  • Model: Kia Picanto 1.0 MPi Shadow
  • Per month: £182
  • List price: £14,650
  • Deposit: £3,000
  • APR: 6.9%
  • Deposit contribution: £500
  • Number of payments: 36
  • Final payment: £6,405

The Kia Picanto is one of the most spacious cars in its class, with five doors, a reasonable amount of rear legroom and a sizeable 255-litre boot. Not only is it bigger inside than you might expect, but it’s loaded with useful tech and cost-effective to run. The Picanto also comes with Kia’s seven-year/100,000-mile warranty, which is more generous than Ford or Volkswagen offer. 

Look beyond the sensible stuff, though, and you’ll find it’s smartly styled and boasts an interior that has more than a hint of premium appeal, plus great connectivity. As you’d expect, the Picanto is a doddle to drive, with light steering, assured handling and decent refinement, meaning this city slicker is just as at home on the open road. 

Renault ZOE – £289 per month

  • Model: Renault ZOE GT Line+ R135 EV50 Rapid Charge
  • Per month: £289
  • List price: £31,995
  • Deposit: £7,927
  • APR: 0%
  • Deposit contribution: £750
  • Number of payments: 24
  • Final payment: £16,382

When it comes to affordable EVs, there’s little to touch the Zoe. A refresh last year added a larger 52kWh battery that upped the range to a claimed 245 miles, while the option of 50kW rapid charging takes the stress out of longer journeys.

Its interior is surprisingly roomy and full of tech, including excellent connectivity, and features eco-friendly recycled materials. The Zoe is also easy to drive, with light controls, good performance and excellent visibility. If you’re still nervous about taking the plunge with an EV, tempting zero-per-cent finance deals should help make your mind up.

Best supermini deals

Hyundai i20 – £185 per month

  • Model: Hyundai i20 Premium 100PS
  • Per month: £185
  • List price: £21,235
  • Deposit: £6,400
  • APR: 5.9%
  • Deposit contribution: £1,000
  • Number of payments: 24
  • Final payment: £10,851

You shouldn’t overlook the i20 – it’s a distinctive, spacious and sensibly priced supermini. Previous generations of this small Hyundai have been rather vanilla, but the new one is a lot more characterful. If you can live with some cheap interior plastics, the i20 offers plenty of standard equipment; the mid-spec Premium trim gets diamond-cut alloy wheels, large infotainment screens and automatic wipers.

The deposit required for this deal is undeniably stout, but you can adjust the amount and the mileage to suit. Halve the deposit and you’ll be paying £327 per month.

Renault Clio – £214 per month

  • Model: Renault Clio TCe 90 Evolution
  • Per month: £214
  • List price: £18,795
  • Deposit: £4,052
  • APR: 0%
  • Deposit contribution: nil
  • Number of payments: 24
  • Final payment: £9,607

Our current supermini champ proves that downsizing doesn’t mean you have to compromise on quality, tech or driver appeal. Full of French design flair and featuring a surprisingly roomy interior, the Clio is a small car that thinks big. 

The grown-up feel continues with nimble handling, a cushioned ride and strong refinement. Then there’s the peppy 89bhp 1.0-litre triple that sips fuel, while Evolution trim has all the kit you’ll need: a slick seven-inch touchscreen with good connectivity, parking sensors and air-con. Attractive zero-per-cent finance is the cherry on top of this tasty cake.

Volkswagen Polo – £219 per month

  • Model: Volkswagen Polo Life 1.0 95PS
  • Per month: £219
  • List price: £19,795
  • Deposit: £3,061
  • APR: 6.6%
  • Deposit contribution: £750
  • Number of payments: 47
  • Final payment: £8,894

For decades the Polo has been near the top of the sales charts – and it’s not hard to see why. Mixing grown-up driving dynamics with decent practicality and great value for money, it’s one of the best superminis in the business. 

A recent facelift has delivered fresher looks and updated tech, yet Volkswagen is already offering a good-value service plan and healthy deposit contributions. There’s a Polo for every taste and budget, but we reckon the best place for your cash is the Life trim, with its alloy wheels, air-con, cruise control and an eight-inch touchscreen with DAB radio and smartphone mirroring.

Best hatchback deals

Kia XCeed – £300 per month

  • Model: Kia XCeed 1.5 ‘3’
  • Per month: £300
  • List price: £24,765
  • Deposit: £4,000
  • APR: 6.9%
  • Deposit contribution: £2,500
  • Number of payments: 36
  • Final payment: £10,444

The Kia XCeed wears a big accolade now – it topped the list of the best cars to own in our 2022 Driver Power survey. People who previously bought an XCeed seem to have very little to complain about. Besides slightly high running costs, the XCeed excels in terms of styling, practicality, value, safety features and ride quality.

When it comes to value, the XCeed might surprise you. While many SUVs cost considerably more than the hatchbacks they’re based on, the XCeed almost matches the price of the Ceed. Throw in Kia’s larger deposit contribution for the XCeed (at the time of writing) and the lengthy warranty and you’re onto a winner.

Mazda 3 –  £369 per month

  • Model: Mazda 3 e-SkyActiv X GT Sport
  • Per month: £369
  • List price: £30,375
  • Deposit: £3,508
  • APR: 5.4%
  • Deposit contribution: £1,000
  • Number of payments: 48
  • Final payment: £12,307

The Mazda 3 might be one of the most stylish cars fighting the corner of the family hatchback, and the high-spec GT Sport trim adds bigger wheels and window tints to the basic recipe.

There are numerous positives even once you’ve taken in the design. For instance, the 3 has an intuitive interior that doesn’t rely on touchscreen controls. It is also one of the best-driving mid-size hatchbacks, and the mild-hybrid e-SkyActiv X petrol promises efficiency on par with a modern diesel engine.

Toyota Corolla –  £229 per month

  • Model: Toyota Corolla 1.8 Hybrid Design
  • Per month: £229
  • List price: £30,015
  • Deposit: £8,156
  • APR: 1.9%
  • Deposit contribution: £1,250
  • Number of payments: 41
  • Final payment: £12,307

Until recently, Toyota had struggled to make an impact in the compact hatch class. Yet that all changed when the Corolla arrived in 2019. The British-built machine handles sweetly and rides smoothly, while its hybrid engines offer refinement and up to 60mpg. 

There’s a choice of hatch, saloon and estate bodystyles, and they all deliver an upmarket interior and the latest tech. Plus Toyota is currently offering low-interest finance and a deposit contribution of up to £1,250. While the 2.0-litre will only cost a few pounds extra over the 1.8-litre, just bear in mind you do lose a little boot space.

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.

Looking to sell your current car quickly and for a good price? We’ve partnered with Motorway to bring you the best offer from its network of UK dealers…



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