Best New Cheap Cars

The Up is the cheapest model in the Volkswagen stable, but it still feels like a VW inside, with a quality, even upmarket feel. That does mean that if you’re hell-bent on getting your hands on a new car at the cheapest price, you’ll find rivals such as the Kia Picanto and Suzuki Celerio undercut the Up. All three have similarly low running costs and deliver around 60 mpg, with the Up’s efficient three-cylinder engine switching off whenever the vehicle comes to a stop. But if the extra comfort of the VW interior and tech calls to you, the Up is worth the extra money upfront.

If you’re looking for a big car for a small price, the Dacia Logan ticks both boxes with its MCV version. It’s the cheapest estate car you can buy in the UK, and it offers a massive boot as well as a comfortable ride. The savings don’t stop once you’re on the road either, with the diesel engine providing impressive fuel economy. It’s hardly the most exciting car to drive, and the interior is basic, but at this kind of price it still feels like a good deal. When it comes to moving people and luggage around for the minimum outlay, the Dacia Logan is very difficult to beat – it’s one of the best new cheap cars available.

In a world where urban streets teem with a growing horde of small SUVs and electric cars, the Kia Picanto keeps flying the flag for the traditional city car. Not only is it cheap to buy new, but it comes with a seven-year warranty and is super-cheap to run, with a frugal engine and generally reasonable insurance. It’s intended as a no-frills small car, and does feel basic when compared with slightly pricier rivals such as the VW Up!. As a nice plus, it’s available on competitive Personal Contract Purchase finance deals. In terms of costs, the only downside is that rivals such as the Hyundai i10 hold their resale value better.

If you want the kind of features you’d get in a big car but only want to pay for a small one, the Peugeot 108 could square that circle. Buying new, you can choose from a wide range of options and personalise the car to suit your taste. The latest version also represents a major upgrade on its predecessor, with better safety, more equipment and even the option of a soft top. It’s a fun city car that’s cheap to buy and run, though it loses out to the VW Up and the Hyundai i10 when it comes to both practicality and the driving experience.

The Citroen C1 undercuts many of its small city car rivals on purchase price, including the Toyota Aygo and the Peugeot 108, both of which share its engine, gearbox and bodyshell. It’s one of the cheapest cars to run too, with a tiny petrol engine to move its small, light body, delivering impressive fuel economy. Most new C1s are sold on PCP finance deals, with some very low monthly payments available.

The Hyundai i10 might not be the cheapest new car to buy in the UK, with the Kia Picanto, the Toyota Aygo and the VW Up all costing less upfront. What the i10 does offer, though, is excellent value for money. Even the entry-level trim comes with a raft of equipment, the interior is smart and the ride and handling are worthy of a bigger, more executive car. Resale values are strong, so finance payments tend to be low, and monthly PCP costs are highly competitive. One thing to watch out for is the insurance, with premiums generally outstripping those for its rivals.

The Fiat Panda has been a classic affordable car for decades. The latest edition features a new hybrid-assisted engine, which offers an improvement on the fuel economy of earlier versions. For a modest initial outlay you’ll get a funky small car with quirky looks and plenty of character. However, judged on more tangible metrics, it often comes up short – rivals offer more mpg, cheaper running costs and much better safety scores from Euro NCAP.

There aren’t many cheap cars out there with an iconic badge on the grille, but the MG3 is one. MG made its name with affordable sports cars in the ’60s and ’70s, but the MG3 sees it move into the small hatchback market. The list price is highly competitive – even a model kitted out with the full range of options undercuts many of its rivals. Insurance premiums will be cheap too, and it comes with a seven-year/80,000-mile warranty. Less wallet-friendly are the poor fuel economy offered by its petrol engine and the resale value, which depreciates quickly.

Built on the same framework as the Citroen C1 and the Peugeot 108, the Aygo stands out thanks to its bold styling, with its distinctive X-shaped nose. Buying new will allow you to take full advantage of the customisation options available, with five trim levels and many colour combinations to choose from. Most Aygos are bought on PCP finance deals, which are competitive against the likes of the VW Up and the Hyundai i10. Running costs are cheap, with the claimed fuel economy on level pegging with its cousins the C1 and the 108.

The Skoda Citigo is pretty much the same car as the Volkswagen Up, sharing the same body structure, engines, gearbox and quality interior. The Skoda badge carries less cachet than the VW one, but if that’s not a big issue for you, you can tick the same boxes for a fraction of the price. The Citigo is cheap to run too, with inexpensive servicing and a low insurance group. As a small and lightweight car, it’s also economical with fuel.

It’s a busy marketplace for cheap cars, but you can’t go wrong with the models on this list. Ready to find your new car? Visit our cheap new cars hub for detailed information on the best cheap car deals available in the UK today.