The Just Add Fuel scheme groups motor insurance, servicing costs, road fund license, warranty and roadside assistance into a single payment to make things easier for motorists.
Jon Goodman, Peugeot UK Managing Director said: "Our research showed that customers were looking for a complete peace of mind motoring package that would cover all their motoring costs, including insurance and servicing."
Under the Just Add Fuel scheme, buyers would be protected from rising insurance or servicing costs for a three year period.
As the name suggests, fuel is the only motoring cost not included in the scheme, which is the first of its kind used by Peugeot in the UK.
The scheme is intended to cut down on paperwork and simplify budgeting, says Peugeot, as manufacturers get more creative in the wake of the scrappage scheme and with a future hike in VAT on the horizon.
The monthly payment includes three years car insurance and routine servicing costs and as a bonus, Peugeot is offering the chance to drive a new car every five years.
Newly qualified drivers qualify for the scheme, with a 107 Millesim available with insurance cover for over 21s.
As with all Peugeot models, the free Nokia 5230 Smartphone with inbuilt satellite navigation is included free with any new Peugeot purchase.