Low cost car finance deals

On a budget and don't have cash for a car? We've picked out eight great cars available for less than £125 per month on PCP finance

Sam Naylor
Feb 27, 2021

There are several factors that come into play when you’re considering a low cost finance deal. It might be low cost because it offers a low interest rate (displayed with a low APR) - which means that you're not paying much extra to take finance - or maybe it’s low cost when you get it because the deposit is small.

However, here we’re considering low cost car finance to mean deals where the monthly payments are below £125 per month. That’s certainly at the lower end that most people will expect to pay for their next car, but that doesn't mean that you don't still get plenty of choice.

In fact £125 per month is so low that you could compare it to some TV packages or mobile phone contracts. The fact that you can get into a car for this kind of monthly cost will be really appealing to a number of drivers - probably you, if you’re reading this. Just bear in mind that in many cases with car finance you'll need to put down a deposit, so it's worth bearing in mind the cost of this alongside the monthly payments, though often this can be as low as £0 if you wish.

We’ve picked out eight cars below that are available now on BuyaCar for less than £125 per month on PCP finance. We’ve chosen models that cover a broad spectrum of the car market, from city cars to SUVs, so there should be something to suit you.

We’ve included family cars with enough room for four people plus luggage, as well as practical models that are great for dog owners who need lots of boot space and smaller cars that will be perfect for younger drivers who need something cheap to insure.

No matter what kind of car you’re looking for on a low cost finance deal, read on to find our top picks for some great low cost car finance options available on BuyaCar now.

Low cost car finance

1. Kia Picanto

Our pick Kia Picanto 1.25 2 EcoDynamics
Used deals from £7,700
Monthly finance from £0*

The Kia Picanto is a small hatchback that’s designed for life in the city. It’s really easy to drive, costs very little to purchase and should prove to be reliable and cheap to run as well.

Its small 1.3-litre engine means that it is cheap to insure and fuel costs should be low, too, so it’s easy to overlook the fact that performance isn’t one of its strong points. The Picanto makes a great first car, or a car for a young driver, because of this.

It has room for adults in the back seat, but they won’t want to spend a lot of time there as it’s a little cramped, and the boot is small too. Yet for short trips, commuting to work or those who drive alone, the low cost Kia Picanto is a great choice.


2. Mazda 2

Our pick Mazda 2 1.5 SE
Used deals Limited stock

The Mazda 2 is a small hatchback - also known as a supermini - that you might not have considered, because other cars such as the Ford Fiesta tend to be more common and prominent. Yet the Mazda 2 is a great car in many ways, and is available with low finance costs.

It’s great fun to drive, so those who love being behind the wheel will enjoy the Mazda. It’s also comfortable and relatively quiet inside, so it’s even good on longer trips, though it excels at doing shorter journeys. The interior is high quality as well, so it’s a nice place to spend time, however long the journey.

The Mazda 2 is also stylish on the outside, and while it could have a bigger boot and more passenger space, it’s good enough considering its size and cost. Manual models are the ones to pick as they’re the most fun - the shifter is a delight to use.


3. Vauxhall Astra

Our pick Vauxhall Astra 1.6 CDTi EcoFlex SRi Nav
Used deals from £8,000
Monthly finance from £0*

If you’re thinking of getting a Vauxhall Astra, make sure you choose the post-2016 model. It was a huge improvement over the previous-generation car, as it was more fun to drive, more comfortable and had a nicer interior as well.

You’ll have a limited choice at under £125 per month but cars are available at this low cost - you just have to look a bit harder. You’ll find that diesel models are the best value, as many drivers are staying away despite newer diesel models offering low emissions - yet these models are efficient and quiet, so make a great buy for higher mileage drivers.

The Astra is roomy and makes an appealing family car, yet in diesel form it also works well as a motorway cruiser. SRi Nav specification comes with sat-nav as standard, so it’s a good trim to choose and it’s the most common version around. The Astra might look a little dull, but it’s not to be overlooked - it’s much better than it seems at first glance.


4. Ford B-Max

Our pick Ford B-Max 1.0 EcoBoost Titanium
Used deals from £7,000
Monthly finance from £0*

The Ford B-Max is a small people carrier that has a really clever trick up its sleeve: a set of sliding rear doors and no central pillar between front and rear doors. This means it’s incredibly practical for loading people into the back seats - the opening is essentially the entire side of the car.

This means it’s a really practical family car despite being relatively small. Its size also means it’s more efficient - since it’s lighter - and easier to drive and park than other people carriers, although of course it can’t match larger models for boot space.

The B-Max is related to the Fiesta hatchback, so it has a lot of the same stand-out features including the efficient and fun-to-use 'EcoBoost' engine range (they are 1.0-litre petrols with turbochargers to boost performance) and delightful handling around corners that will put a smile on your face on a twisty road.


5. Volkswagen Golf Estate

Our pick Volkswagen Golf 2.0 TDI SE Nav Estate
Used deals from £14,999
Monthly finance from £272*

The Volkswagen Golf is a brilliant family car, and it’s possibly even better as an estate. In this form it has extra boot space, with a wide opening and a square shape that makes it great for dog owners or anyone who wants to load and unload large loads easily.

The VW Golf is good to drive, comfortable, efficient, full of tech and has an upmarket interior, so it ticks so many boxes. It’s a great all-rounder, equally at home at low and high speed, in the city or out in the countryside.

A 2.0-litre diesel model makes sense if you plan on towing a trailer, as many estate owners do, because it produces lots of muscle at low engine speeds, or if you tend to do shorter trips then there are small petrol engines that should be cheap to run as well, while still offering decent performance.


6. Peugeot 2008

Our pick Peugeot 2008 1.6 BlueHDi Allure
Used deals from £7,900
Monthly finance from £168*

The Peugeot 2008 is a small SUV that’s available at a very low cost on finance, and it has enough practicality to work as a family car for many drivers. There’s enough room in the back for kids and the boot is a good size and easy to load and unload.

Your best option for short trips is a petrol engine but the best value models at the moment are the 1.6-litre diesels. This is because many buyers are shunning this fuel type, yet if you can make use of diesel models' low fuel consumption when on higher speed roads - and pick one that meets the latest emissions standards to avoid current diesel emissions charges in certain cities - then a diesel 2008 could be a great choice.

It’s also easier to drive than the petrol model because you don’t have to change gear as often. The 2008 has the stylish SUV looks that many drivers are drawn to, and while the interior quality could be better, it at least has an interesting design to match the exterior looks.


7. Dacia Duster

Our pick Dacia Duster 1.5 dCi Laureate
Used deals from £8,000
Monthly finance from £0*

If you need a more practical SUV with more room inside and more ground clearance for taking off the tarmac, the Dacia Duster is pretty much your only choice with a budget of less than £125 per month.

That’s not a bad thing because the Duster is a great car in its own right - it has plenty of room in the back seats (even for adults), a big boot and chunky tyres with good clearance for heading into grassy car parks and down gravel tracks. You might even find a four-wheel drive model within budget if you look hard enough, but two-wheel drive versions are fine for most and cost less to finance and should use less fuel.

The Duster is basic inside - the most basic Access versions don’t even have a radio as standard - but if you choose a Laureate model it has much more standard kit, including air-conditioning. The Dacia is comfy and fun to drive, too, so avoid the entry-level model and you get plenty of car for the cash.


8. Seat Leon

Our pick Seat Leon 1.2 TSI SE Technology
Used deals from £11,750
Monthly finance from £0*

If you want an all-round family car that also looks stylish, consider the Seat Leon. Its sharp bodywork is attractive - and gets even more so when you consider the low cost finance it’s available with.

The Leon is comfortable, good to drive and comes with a range of excellent engines. The turbocharged 1.2-litre petrol engine is a highlight because it’s incredibly quiet, yet performance is good and fuel economy should be impressive.

The Leon is also roomy inside, and adults won’t have any issues getting into the back seats. There’s a big boot that will swallow even the biggest load of food shopping, and the cabin looks smart and comes with a good amount of equipment as standard.


*Representative PCP finance - Ford Fiesta:

48 monthly payments of £192
Deposit: £0
Mileage limit: 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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