Looking to buy or lease a brand new car, but don't want to spend too much cash on it? Then you'll want to read our guide to the best cheap new cars out there.
Not all that long ago, buyers had their pick of loads of cheap small cars on the new car market, and many models had bargain-basement list prices or finance deals that weren't much more expensive than a good phone contract. Time have changed, however. Manufacturers struggle to make enough profit on cars that are small and cheap, and so many such models have now been withdrawn from sale as brand new cars. Remember the days when you could get a brand new runabout for less than £10,000? Well, those days are now well and truly over.
Don't worry, as there are some brilliant car deals out there, including some excellent PCP deals and 0% APR deals.
To be clear, the following list is of cheap cars that we recommend. There are a few models outside of this list with slightly lower price tags, but these are cars that we don't think are good enough to recommend. So, buy one of the below, and you can be confident of getting a great car for the lowest price possible.
Cheapest new cars to buy in the UK 2024
1. Dacia Sandero
Price: from £13,795
The Dacia Sandero has, for a long time, been renowned for being the cheapest new car you can buy in the UK. When the second-generation Sandero first went on sale in 2021, it had a headline-grabbing starting price of just £7,995, but these days, the cheapest version will set you back almost £14,000. That's not just because the world has gone bananas and everything costs way more than it used to (which it admittedly has!). It's also because Dacia no longer offers the cheapest, most basic variants with breathless engines and hardly any equipment.
As a result, the Sandero lost its cheapest car mantle to the Kia Picanto for a short period not so long ago, but because that car has now been facelifted and the cheapest versions have been dropped from the range, the Sandero once again finds itself at the top (or rather, bottom) of the car-price pile.
The now-entry-level version of the Sandero, the Essential, can be had with either the TCe 90 turbocharged petrol engine - which is a good little unit - or the TCe 100 Bi-fuel, which is also pretty sweet and also runs on Liquid Petroleum Gas (LPG) as well as regular petrol (LPG is way cheaper). Again, good news.
Admittedly, you do pay for that low price in other areas. The interior is a little bland, the car only has a two-star Euro NCAP crash test rating, and although quite comfortable, the Sandero is far from being the most dynamically polished car you'll ever drive. Still, given the low price, you might still be surprised that the Sandero is as good as it is in each of these areas.
2. Citroen C3
Price: from £14,150
The Citroen C3 You! is a budget variant of the French firm's supermini contender, helping to make up for the fact that the smaller Citroen C1 is no longer on sale. Starting from £14,150, it's a full £3,500 cheaper than the next trim level up. Predictably, it has a lot less equipment as a result, but there's still a decent amount, with LED headlights, cruise control, DAB radio and a touchscreen infotainment system. It's also a great buy for those who find the Dacia Sandero too dull to look at, with a funky design inside and out, and a pleasant cabin with very comfortable seats.
To drive, the Citroen C3 majors on comfort, with a soft ride and light steering. It cruises along nicely as a result, although the 83PS 1.2-litre petrol engine delivers pretty sedate performance.. At least you're unlikely to get caught speeding.
3. MG3
Price: from £14,335
The MG3 is the car that truly re-launched the MG brand under its Chinese ownership in 2013. The car might be getting on a bit, then, although it was revised extensively in 2018, and it's still a fun and honest little hatchback with prices starting at a little over £14,000. You also get a comprehensive seven-year-warranty, limited to 80,000 miles.
There are lots of colours and personalisation options to choose from, and the interior is intelligently designed, with all versions getting a fairly large touchscreen mounted in the centre of the dashboard. It's not exactly luxurious inside, though, with some cheap-feeling plastics on show. By the standards of most other cars on this list, though, equipment levels are pretty generous.
The MG3 is more fun to drive than you might expect, too, with plenty of grip and agile handling. The ride is on the firm side, though. There is just one engine available, a 1.5-litre petrol, which puts out a perky 106PS, but it needs revving hard to get the best out of it, and isn't very efficient.
4. Kia Picanto
Price: from £15,595
We've always loved the Kia Picanto, and not just because it's so affordable. It has a cabin that's surprisingly spacious, meaning four reasonably tall adults can travel in comfort, and even bring a bit of luggage along for the ride. The interior is also smartly trimmed, and the Kia Picanto is a lively, agile, yet surprisingly civilised car to drive.
Even better, Kia has recently given the teeny Picanto a thorough facelift, so it looks sharper than ever inside and out, and comes packed with even more tech and features. Starting prices have risen a bit as a result of the entry-level 1 model being dropped from the range, but that one was too sparsely kitted anyway, so most will happily spend a bit more on their Picanto in order to get a few more creature comforts.
5. Hyundai i10
Price: £16,030
The Hyundai i10 shares a great deal with the Kia Picanto we just mentioned, so it's no surprise to see it feature in this list as well. Hyundai doesn't offer a stripped-out bargain-basement version, so all versions come generously equipped. For instance, the entry-level Advance trim comes with niceties including alloy wheels, cruise control, a reversing camera, rear parking sensors and an 8.0-inch touchscreen infotainment system with DAB radio, Apple CarPlay and Android Auto.
The Hyundai i10's talents don't stop with plentiful creature comforts, either. It's impressively roomy for a city car so four adults travel comfortably, and five can squeeze in (and it will be a squeeze) at a push. The boot is very decent, too: not big enough for a pushchair perhaps, but enough for a weekly shop. Best of all, the Hyundai i10 is a great little car to drive, with a comfortable ride, easy controls and agile handling.
6. Toyota Aygo X
Price: £16,140
The original Toyota Aygo immediately became city car royalty when it was first released in 2005, thanks to its funky looks, cheery demeanour and affordable price. You can no longer buy a regular Aygo as a brand new car, but Toyota still offers something that's just as dinky and arguably even more cheerful, the Toyota Aygo X. This teeny little city runabout taps into the fashion for crossover-style looks with its jacked-up suspension and chunky body cladding. You can also get it with an opening canvas roof for some open-air fun.
Sure the cabin isn't the roomiest, and there are plenty of hard plastics on display, but the interior design is smart, and a decent amount of kit is supplied. The 72PS 1.0-litre petrol engine means the Aygo X is no ball of fire, but it moves along well enough if you're prepared to keep the revs on the boil. The handling feels composed and planted, while the ride is comfortable enough.
7. Suzuki Ignis
Price: £17,949
The Suzuki Ignis is the Japanese brand's 4x4-inspired city car, making it similar in character - that character being cheerful and charming - as the Toyota Aygo X we just mentioned. Even so, the Ignis looks like nothing else on the road, with its matchbox dimensions and bluff off-roader styling.
The tall body also makes it deceptively spacious for a car with such a small footprint, too, and boot space isn't bad, either. The budget gets you a car with the same 83PS 1.2-litre mild hybrid powertrain as the bigger Swift supermini (more on that in a moment), so performance is modest but fine, and running costs are low. The car feels very easy to drive and manoeuvrable in town, and rides comfortably enough most of the time.
8. Renault Clio
Price: from £18,095
The latest version of the Renault Clio was first released in 2019, but when it underwent an extensive facelift in 2023, Renault dropped the entry-level turbocharged petrol models, leaving only the E-Tech hybrid version, and this sent the purchase prices of the entry-level car rocketing. Not long after, however, Renault reversed that decision: recognising that many folk were struggling with the cost of living and simply couldn't stretch to the hybrid model, the French company did the decent thing. That means you can now get the Clio in low-end Evolution trim, with the excellent TCe 90 turbo petrol engine, for just over £18,000.
It's a brilliant little car, too. The facelift made the looks much sharper, while the interior is roomy, stylish, high in quality and packed with a very decent slice of standard equipment. The Clio also happens to have the biggest boot in the class when the hybrid drivetrain isn't specified. It's a comfortable and composed car to drive, with a smooth ride and impressive refinement.
9. Suzuki Swift
Price: from £18,699
The previous Suzuki Swift used to feature a little higher up this list because it was considerably cheaper than this new Suzuki Swift, which arrived in 2024. Thankfully, however, the latest car is still cheap enough to just about sneak onto this list.
The new Swift is actually very similar in character to the Swifts that have gone before it, and that is to say that it's a stylish and fun little car that majors on generous kit and affordable prices. It's sharper to look at than ever before, too, and the interior is a big step up over its predecessor's (although are still a few slightly manky plastics dotted about), while even more kit is provided as standard.
The Suzuki Swift is good fun to drive, helped by its very low weight, with sharp handling and an edgy ride. The entry-level price gets you a 1.2-litre mild hybrid petrol engine with 82PS. That's not much, but the other advantage of the car's low weight is that the engine is strong enough to pull it around with reasonable purpose.
10. Skoda Fabia
Price: £19,730
Just scraping into this list is the excellent Skoda Fabia. It's easily the biggest, most practical car here, and that's perhaps why it's not the cheapest, but you do get a lot for your money.
The Fabia used to be a lot more affordable at the entry level but it was also a lot more basic. Today's entry-level price gets you a Skoda Fabia SE Comfort with equipment such as alloy wheels, LED headlights, a 6.5-inch colour touchscreen with smartphone connectivity and the very latest safety and driver assist equipment.
You also get a logical, high-quality interior with plenty of space: it's very nearly as roomy as cars from the class above, with enough space for four adults to stretch out comfortably. The 380-litre boot is also easily the largest here (it's only one litre short of the Volkswagen Golf's), while Skoda's practical Simply Clever features are a great touch.
The Fabia is impressively refined, a trait it shares with Skoda’s larger cars. Road- and wind noise is well suppressed, while the well-balanced suspension means decent handling and a very smooth ride.
The most popular small car used to be the Ford Fiesta, but in 2023, Ford stopped building it. Since then, the Ford Puma has been the best-selling small car and the most popular car altogether.
Prices for most new small hatchbacks tend to start at around the £20,000 these days, but there are a few - including the ones on this list - that start considerably lower than that.
The cheapest small car when buying new is the Dacia Sandero, with prices starting from around £14,000. However, that's a lot more than the £8,000 it cost when it was first launched.
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