First car finance: starting at less than £100 per month

Find a modern car at an affordable price with first car finance: reliable and stylish cars are available from well under £100 per month

BuyaCar team
Nov 18, 2020

You might have passed your theory and aced your practical, but the most daunting test could still be to come: applying for finance on your first car. Young drivers are at a disadvantage when it comes to taking out finance, as they haven't had much of a chance to show lenders that they can be responsible and pay back loans on time.

This means that persuading a lender to approve you for finance, as a young driver, can be tough. If you don't have a large savings pot, however, finance can still provide an affordable - and achievable - way of getting your first car, particularly if you're looking for one with modern features and the latest safety equipment.

There are a range of options providing affordable payments and flexibility on a wide range of new and used cars. And if your credit rating isn't yet strong enough to apply for finance on your own, then there is also the possibility of guarantor finance, where a relative agrees to meet the payments if you fail to do so.

Scroll down for more information on your options, or click below to search for cars for young drivers that are available with affordable finance.

First car finance options

First things first, we'll make sure you're clued up on all the technicalities of car finance. Whether you decide to go with PCP finance - which offers low monthly payments plus a large optional final payment at the end of the contract that you must pay if you want to own the car - or Hire Purchase (HP) - which comes with higher monthly payments but means you automatically own the car at the end of the contract with no large payment needed - you'll be up to speed in no time and ready to start planning your course to your first car.

Alongside the typical finance options, you might also want to consider Just add fuel deals which roll the cost of the car, plus insurance, breakdown cover and servicing into one monthly payment, so all you have to do is pay this and for the cost of fuel.

This kind of deal can make budgeting for your first car a much simpler process, with just the single number to worry about. Since this is only available on new cars, however, and includes many elements in the one payment, don't expect that monthly payment to be cheap.

Guarantor finance

Going for guarantor finance can take some of the stress out of getting car finance for young drivers. This works by ensuring that the guarantor, who is typically a family member, makes the monthly payments if you fail to do so. The loan is paid to the guarantor, and they release it to you.

You’re responsible for making the payments, but the guarantor has final responsibility for your loan - if you miss a payment, it's down to the guarantor to pay it. Be aware that if they fail to do so it can also negatively impact their credit score as well as yours. BuyaCar works with a panel of lenders which offer guarantor car finance.

Best first car finance under £100 a month

1. Vauxhall Corsa

Used deals from £4,700
Monthly finance from £84

Vauxhall's supermini is one of the best all-round cars that you can buy for this price range. Cars like this offer so much space, equipment and performance that people wonder why they’d need a bigger car. It's not as nimble as a Fiesta around corners, or as fashionable as a Fiat 500, but it's a great in-between for a low cost.

VAUXHALL CORSA BUYERS' GUIDE

2. Dacia Sandero

Used deals from £4,290
Monthly finance from £85

This generation of Dacia Sandero was officially the cheapest new car for sale in the UK when new, and initially had an eye-catching price tag of £5,995, which later increased to £6,995. And while that is inexpensive, you won’t find a new one for less than £100 per month.

On the used market you can expect to find three-year old models for less than £100, however. These are typically much better equipped than the most basic new Sandero, which at the time did without a radio, electric windows, air-conditioning and alloy wheels to hit those attention-grabbing low starting prices. There's no need to skimp with a used model, though.

DACIA SANDERO BUYERS' GUIDE

3. Skoda Citigo

Used deals from £4,195
Monthly finance from £95
The little Citigo is a fun and stylish enough first car for image-conscious young drivers, but it's also safe and sensible enough to please many parents, which is handy if yours are helping you to get your first car. The Citigo should also appeal to those downsizing from a larger car, as while it’s a tiddly city car, the interior has a big car feel and quality to it.

SKODA CITIGO BUYERS' GUIDE

4. Fiat Panda

Used deals from £4,499
Monthly finance from £89

The Fiat Panda is a fun and affordable city car that is very similar mechanically to the more expensive Fiat 500. Its upright shape gives plenty of space inside and a light and airy feel, while it’s also cheap to run and has a certain no-nonsense charm about it. If you want a small car that's easy to drive but offers lots of space for tall mates, the Panda is a good bet.

FIAT PANDA BUYERS' GUIDE

5. Kia Picanto

Used deals from £4,332
Monthly finance from £96

If this car was on The Apprentice, it would say that it’s USP (Unique Selling Point) is its seven-year warranty, which is unmatched by any of its rivals and ensures your peace of mind when getting a used model, should anything go wrong. Team that with neatly cute looks and it’s a real contender for your first car.

KIA PICANTO BUYERS' GUIDE

6. Seat Ibiza

Used deals from £5,142
Monthly finance from £104

The Seat Ibiza’s sharply chiselled lines ensure that it looks distinctive and is one of the most fashionable cars in this price range. It’s fun to drive, and is practical enough for most young families, let alone young people. Petrol engines are zippy and there are a slew of high-spec options available

SEAT IBIZA BUYERS' GUIDE

7. Vauxhall Astra

Used deals from £5,180
Monthly finance from £113

The Astra is one of the best cars of this size for running costs, with very efficient turbocharged petrol and diesel engines delivering highly impressive fuel economy figures - useful if you have to cover high mileages and want to cut your fuel bills. A large touchscreen media system dominates the dashboard and there’s been a general step up in quality compared to previous generations. It's bigger than other cars in this price range, too.

VAUXHALL ASTRA BUYERS' GUIDE

Best first car finance under £150 a month

1. Suzuki Swift

Used deals from £4,790
Monthly finance from £108

This little Suzuki might just be the most agile and fun car on this list. It’s well known for its ability to dart in and out of traffic with ease, and even the least powerful petrol engine is smooth and quick to rev, which makes the car feel nippy. The car's boxy shape makes it easy to get into, but it does cut interior space.

Previous-generation models are the cheapest, but some versions of the latest car (pictured), which went on sale in 2017, have just started to sneak under the £150-per-month mark and into the £125-per-month range, making it a great choice.

SUZUKI SWIFT BUYERS' GUIDE

2. Ford Fiesta

Used deals from £4,950
Monthly finance from £108

The Ford Fiesta was britain's best-selling car before it was replaced by a new model in 2017 (which instantly became the UK's best-seller). It's easy to see why. The small hatchback matches the Suzuki Swift mentioned above in terms of agility and being fun to drive, but it’s also stylish and comfortable with low running costs. It offers better overall quality than the Suzuki too.

Diesel and petrol engines provide good fuel economy, but its downfall is its dated interior and lack of space in the back. Otherwise it’s a class act through and through.

FORD FIESTA BUYERS' GUIDE

3. Audi A1

Used deals from £7,490
Monthly finance from £131

With a budget of £150 per month, you're able to afford a more upmarket badge on your bonnet - such as the four rings of this Audi. The A1 has a beautifully finished interior in comparison to other small cars, and its junior Audi styling makes it one of the best looking cars of this type.

As there is now a newer version of the A1 on sale, this previous model is better value than before, too. The original A1 has a huge selection of petrol and diesel engines on offer, too. Best avoid the Sport suspension, though; it’s too firm for town driving around the UK.

AUDI A1 BUYERS' GUIDE

4. Mini Hatchback

Used deals from £5,800
Monthly finance from £124

With more character than most cars this size, along with sporty performance that will put a smile on your face, the Mini Hatchback is a fun first car that's reasonably affordable. Strong demand means that it holds its value well, making PCP finance monthly payments lower than you might expect, too.

MINI HATCHBACK BUYERS' GUIDE

5. Volkswagen Polo

Used deals from £5,900
Monthly finance from £122

We’ve possibly left the most sensible car for last. The Volkswagen Polo is brimming with safety technology such as automatic emergency braking at low speeds, as well as boasting a very high quality interior. The inside of the car is also relatively large in comparison to rivals, so this is definitely a first car for the more sensible driver.

VOLKSWAGEN POLO BUYERS' GUIDE

 
Representative PCP finance - Ford Fiesta Titanium:

Monthly payments over 48 months: £192
Deposit: £0
Mileage allowance: 8,000 per year
Optional final payment to buy car: £2,923
Total amount payable to buy car: £11,926
Total cost of credit: £2,426
Amount borrowed: £9,500
APR: 9.9%

Buyacar is a credit broker, not a lender. Our rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances.
 

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