The 10 cheapest new cars you can buy - reviewed and rated

Looking to replace your car but think you can't afford to buy new? Well, these models might make you think again – especially after you've factored in our Target Price discounts...

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by
George Hill
Updated18 November 2024

For many of us, a new car is one of the biggest investments we'll make. And with the constant march of new technology and new features appearing on cars, the price of most new cars is only going one way – up.

Despite that, there are still some new cars which are cheaper than you might imagine, yet which are still every bit as desirable as more expensive models. These models prove that even though you're on a budget, you don't have to compromise on key areas including practicality, comfort and style. In this story, then, we're naming the 10 cheapest new cars you can buy.

Kia Picanto with Target Price logo

Our list of cars includes a variety of body styles, including hatchbacks and small SUVs, as well as multiple power options, including mild hybrid and fully electric cars.

What's more, many of the cars quoted here have some big discounts available, so it's worth checking our free New Car Deals service to see our latest deals. If any of the cars do take your liking, you can follow the review links to find out more about each car.

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Surprisingly spacious for two
  • Low purchase and running costs
  • Zippy city acceleration

Weaknesses

  • Limited range
  • 28mph top speed
  • Safety concerns

Version Ami | List price £7975 | Target Price £7875

You might think that the Ami's super-low price is unbelievable for an electric car, but here's a secret – the Ami isn't technically a car at all. It's actually classed as a quadricycle rather than a full-size car, which means you can drive one in the UK at just 16 years old, and even less in Europe.

Once you get past its Instagrammable looks, the Ami isn't what you'd call quick. Indeed, its electric motor produces just 8bhp and its top speed is limited to 28mph. The result is that you feel slow on most roads, even those limited to 20mph. Plus, with a range of just 46 miles, you won't be going far without needing to plug in to recharge.

There's evidence of cost-cutting inside the Ami, with most fittings being made from hard plastics. Then there's the exposed metal frame and plastic structure which you can see when you look around it, which acts as a constant reminder of compromised safety standards. While it's undeniably cheap, then, we'd suggest that if you can afford to, you'd be better off with a small electric car instead.

Read our in-depth Citroën Ami review

Our pick: 1.0 2 5dr

0-62mph: 15.4 sec
MPG/range: 54.3mpg
CO2 emissions: 116g/km
Seats: 5
Boot: 255 litres
Insurance group: 3E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Really tidy handling
  • Decent real-world fuel economy
  • Great infotainment and well-equipment as standard

Weaknesses

  • Engine line-up is among the slowest of any new car
  • Quite firm low-speed ride
  • A Dacia Sandero is much roomier

Version 1.0 2 | List price £15,595 | Target Price £14,074

Kia has just launched a new Picanto, which means it has a new look inside and out. Unfortunately, the price has also changed, because this new version is more expensive than the previous car – but only just.

As a small car package, the Picanto is impressive; it's good to drive, with tidy handling and a comfortable driving position, plus the interior is smart to look at. You also get a surprising amount of kit as standard, even with the entry-level 2 trim. It comes with an 8.0in infotainment touchscreen, rear parking sensors and a rear-view camera as standard.

Despite being quite underpowered, the entry-level 62bhp 1.0-litre engine is compelling thanks to its economical nature. But if your budget can stretch to it, we'd recommend going for the 1.2-litre unit; it's noticeably quicker and more flexible at low revs.

Read our in-depth Kia Picanto review

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Our pick: 27kWh Extreme 65 48kW 5dr Auto

0-62mph: 13.7 sec
CO2 emissions: 0g/km
Seats: 4
Boot: 308 litres
Insurance group: 25A
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Decent low-speed ride
  • Cheaper than other electric cars
  • Nippier than you’d expect

Weaknesses

  • Terrible safety rating
  • Limited real-world range
  • Slow charging rate

Version Electric 45 Expression | List price £14,995 | Target Price £14,135

If you compare it to the Citroën Ami, the Dacia Spring is a very capable electric car. It's powered by a small 26.8kWh (total) battery that delivers an official range of 140 miles (as opposed to 46 miles), plus you get a choice of two electric motor options, with either 44bhp or 64bhp. It's a great option if you live in a city, plus you can easily keep up with low-speed traffic.

If you compare the Spring to other small electric cars, such as the Citroën e-C3, it suddenly doesn't sound so appealing. The e-C3 in entry-level form produces 111bhp, which means it can go from 0-62mph in 10.4sec, plus its 43.7kWh (usable) battery delivers an official range of 199 miles. It's also a more practical and comfortable car, but it is more expensive.

Read our in-depth Dacia Spring review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Decently equipped
  • Stylish interior
  • Efficient engines

Weaknesses

  • Poor to drive
  • AEB is not standard on lower trims
  • Cramped rear seats

Version 1.2 PureTech You | List price £14,150 | Target Price £14,150

Citroën has launched a new generation of the C3, but if you want a more value-focused alternative, you can still buy the previous version, which is called the C3 Origin.

As you might expect from a car at this price point, the entry-level You trim comes with very little equipment as standard. The only 'luxuries' you get are cruise control, manual air-conditioning and heated side mirrors. The Dacia Sandero is far better value overall.

In other areas, the C3 Origin is poor to drive, plus the 82bhp entry-level engine is pretty lethargic; it feels underpowered and you need to work it hard just to keep up with traffic (for reference, 0-62mph takes 12.5sec). You also have to pay extra for some important safety kit, including automatic emergency braking (AEB).

Read our in-depth Citroën C3 review

Our pick: 1.2 Advance 5dr

0-62mph: 12.6 sec
MPG/range: 53.3mpg
CO2 emissions: 124g/km
Seats: 5
Boot: 252 litres
Insurance group: 6E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Comfy and quiet for a small car
  • Remarkably roomy in the rear
  • Well equipped as standard

Weaknesses

  • Disappointing safety rating
  • Entry-level engine is a bit lacklustre
  • Slow-witted automatic gearbox

Version 1.0 Advance | List price £16,330 | Target Price £14,490

The Hyundai i10 is one of the best small cars you can buy on a budget. No matter which version you go for, you get a relatively spacious and smart-looking interior and a comfortable ride. In fact, overall, it feels more polished to drive than the closely-related Kia Picanto.

It's also very practical for its size, with a good amount of leg room for rear passengers. The boot is a good shape, too, although the Picanto's is ever so slightly bigger. 

The entry-level 1.0-litre three-cylinder petrol engine is strong enough in town and is efficient. Advance trim comes with automatic lights, air conditioning, electric door-mirror adjustment and a leather-wrapped steering wheel and gearlever as standard.

Read our in-depth Hyundai i10 review

Our pick: 1.0 Tce Bi-Fuel Expression 5dr

0-62mph: 11.6 sec
MPG/range: 52.3mpg
CO2 emissions: 109g/km
Seats: 5
Boot: 328 litres
Insurance group: 14E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Amazingly good value
  • Lots of space for passengers and luggage
  • Comfortable ride

Weaknesses

  • Poor safety rating compared with rivals
  • There are more entertaining small cars to drive
  • Some other small cars are quieter

Version 1.0 TCe Bi-Fuel Essential | List price £14,495 | Target Price £14,495

The top 10 list of Britain's cheapest new cars is constantly changing, and the Dacia Sandero is a car that's often found near the top spot.

So, what's the Sandero like? Well, it's actually a better car than some of its pricier rivals, including the MG3. It's more practical and more comfortable than that car, plus it's surprisingly well equipped in mid-level Expression trim. This entry-level Essential trim is less so; it comes with cruise control, front electric windows and air conditioning as standard.

Usefully, this Bi-Fuel version can run on cheaper liquefied petroleum gas (LPG) as well as regular unleaded, which means it should also be very cheap to run if you live near a petrol station that stocks it. It's worth noting that Euro NCAP gave the Sandero just two stars for safety.

Read our in-depth Dacia Sandero review

Our pick: 1.0 VVT-i Edge 5dr

0-62mph: 14.9 sec
MPG/range: 58.9mpg
CO2 emissions: 110g/km
Seats: 4
Boot: 226 litres
Insurance group: 6A
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Cheap to run
  • Good level of safety kit
  • Warranty of up to 10 years

Weaknesses

  • Cramped in the back
  • Smaller boot than rivals
  • Lacklustre performance

Version 1.0 VVT-i Pure | List price £16,140 | Target Price £14,702

From the pictures, it can be easy to mistake the Toyota Aygo X for a small SUV. However, in reality it's actually a small car in terms of its size.

Having been launched in 2022, the Aygo X is one of the more recent additions to the small car class. As such, it comes with loads of safety kit as standard, including automatic emergency braking (AEB), lane-keep assist and six airbags. The entry-level Pure trim is also well equipped, and comes with automatic headlights, air conditioning and a 7.0in touchscreen infotainment system. 

On the whole, the Aygo X is good to drive, with a tight turning circle and tidy handling. However, the 71bhp 1.0-litre engine is slow and unrefined. 

Read our in-depth Toyota Aygo X review

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Our pick: 1.0 TCe Bi-Fuel Expression 5dr

0-62mph: 11.9 sec
MPG/range: 48.7mpg
CO2 emissions: 113g/km
Seats: 5
Boot: 328 litres
Insurance group: 13E
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Comfortable ride
  • Spacious interior
  • Astonishing price

Weaknesses

  • Poor safety rating
  • Mainly cosmetic changes for the money over a regular Sandero
  • Noisy TCe 90 engine

Version 1.0 TCe Bi-Fuel Essential | List price £15,295 | Target Price £14,795

The Sandero Stepway is essentially a Dacia Sandero but with some extra ruggedness, including a more heavily sculpted bonnet, roof rails, chunky plastic wheel arch extensions and an increased ride height.

Like the Sandero, it's a brilliant small car with a spacious interior for its size, a big boot and a comfortable ride. It also comes with a similar line-up of engines and trim levels. The version quoted here features the same Bi-Fuel 1.0-litre petrol engine as the regular Sandero, which means you can flip between LPG and petrol by using a switch next to your knee. In terms of performance, it produces 99bhp as opposed to 89bhp for the non-LPG version, so it gives you some useful extra performance when accelerating.

Essential trim offers the same amount of kit as the regular Sandero, which means you get cruise control, front electric windows and air conditioning as standard.

Read our in-depth Dacia Sandero Stepway review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Frugal economy from mild-hybrid engines
  • Infotainment system is easy to use
  • Even entry-level trim is well equipped

Weaknesses

  • Poor refinement
  • Small boot
  • Gutless performance from all but the range–topping engine

Version 1.5 Centre-Line | List price £15,995 | Target Price £15,200

The Mazda 2 line-up is confusing, since it includes both the cheap mild hybrid version we're covering here, and the more expensive full hybrid model which is actually based on the Toyota Yaris. This mild hybrid model gives you a small taste of the latter's efficiency, since it can't go any distance on electric power alone, but its engine does receive small amounts of electric assistance to help boost your fuel economy.

Centre-Line is the cheapest trim option, and it's very well equipped, coming with cruise and climate control, automatic wipers and a touchscreen infotainment system as standard. The interior of the Mazda 2 is a fairly pleasant place to be, with soft-touch materials on top of the dashboard, and a leather-wrapped steering wheel which feels good to hold.

Read our in-depth Mazda 2 review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Well equipped
  • Decent boot
  • Efficient engines

Weaknesses

  • Fiddly infotainment system
  • Below-par safety rating
  • Poor resale values

Version 1.2 Design | List price £19,635| Target Price £15,495

Few small cars sell in such big numbers as the Vauxhall Corsa, and in most respects that popularity is well earned. There are lots of versions to choose from, meaning finding one to suit your needs shouldn't be difficult, and there's regular petrol, hybrid or fully electric power to choose from.

This 1.2-litre petrol-engined model, and with just 74bhp it's not likely to be setting any speed records. Indeed, we suspect that its 0-62mph sprint time of 13.2sec will make it feel sluggish on faster roads, and could make overtaking a drawn-out affair. 

In most respects, the Cora is competent rather than outstanding. It rides fairly well, for example, but rivals including the Audi A1, Peugeot 208 and Volkswagen Polo do it better. Similarly, its handling is sure-footed enough, but a Hyundai i20 or Seat Ibiza remain more upright through corners.

Read our in-depth Vauxhall Corsa review

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FAQs

What is the cheapest way to buy a car?

Generally speaking, buying your new car outright with cash is still the cheapest way to buy a new car overall. However, since most of us don't have the budget to buy a new car this way, the vast majority rely on PCP finance deals, which allow you to finance a small portion of car's overall value in the form of a set monthly fee. 

PCP finance deals are popular in the UK because they get you into a new car without needing to spend a lot of money – because you're only covering the loss in value your car will suffer while it's with you. You also get the option to own the car outright by paying the final 'balloon' payment at the end of your contract.

Leasing is another popular form of car financing, but differs from a PCP deal in that you don't get the option to own your car at the end of the contract – you simply hand it back and, most likely, take out a new contract.

Which car has the best value for money?

Value means lots of things to lots of people, but in the context of the cheapest new cars, we're taking it to mean the car which offers the most for the least – and that's the Dacia Sandero.

The Sandero is already one of the UK's cheapest new cars, but offers the best value because of how much space it gives you for your money. There's more interior space than in most small car rivals, for example, plus all of its engines offer decent fuel economy – and some can even run on ultra-cheap LPG fuel as well as petrol.

While the Renault Clio is a better all-rounder, and most rivals offer more safety kit, the Sandero is our top choice for value.

What is the UK's cheapest new car?

The cheapest new car you can buy in the UK is the Citroën Ami. It's significantly cheaper than the Dacia Sandero and Citroen C3 Origin for outright cost, technically because it's a quadricycle rather than a full-size car. This means it's compromised in areas such as performance and range, with its limited top speed of 28mph and official range of 46 miles. The Sandero and C3 are far more capable, as is the Dacia Spring if you're looking for a cheap electric car.

Are UK car prices dropping?

New car prices in the UK vary wildly depending on what sort of car you're thinking of buying, how you're buying it and how you want to use it, and while some cars are very expensive, others are increasingly available with big discounts.

For example, with manufacturers being encouraged to sell more electric cars because of the ZEV Mandate, discounts on such cars are on the rise. Indeed, What Car? research has found that electric car discounts were up 201.4% at the start of 2024. That’s significantly higher than the average discount across all fuels (+36.2%) and petrol cars (+9.8%).

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