Britain's cheapest new cars 2021

A brand new car for less per month than a number of TV subscriptions? Yes, it can be done; these are Britain's cheapest new cars

BuyaCar team
Jun 21, 2021

For similar money to an all-out TV package with entertainment and sports channels, you could drive away in a brand new car. You'll need a pretty hefty deposit - a few thousand pounds in most cases - but a brand new car could be within reach, even if you're on a budget of £100 to £200 per month on PCP finance.

Buying a new car can get pretty expensive very quickly, but you don't have to spend big money to get a flashy car with all the kit. If you're looking for basic, no-frills transport to get you from A to B, there are plenty of options that could cost you no more per month than the combined cost of a couple of takeaways every week. We've listed the cheapest 10 based on their official prices, but new car discounts can cut the cost even further. Opting for a finance deal can make things even more affordable.

Brand new cars in this low-end price range normally require some sort of compromise - particularly when it comes to the amount of equipment on board. You'll likely need to pay a bit more for things like air-conditioningBluetooth or even remote central locking in some cases. It's also worth noting that all the cars listed below are powered by petrol engines, which are usually best suited to those who cover lower mileages rather than people planning to trawl up and down the motorway all day, every day.

You don't even have to get a brand new car. If you're keen to get more for your money, not to mention a much wider choice of models, then there are plenty of other options available to you here on BuyaCar. This will open the doors to diesel models, more powerful engines, and even more kit like heated seats, cruise control and large touchscreens. But if a low-cost, brand new car appeals to you, then take a look below at the cheapest models you can buy.

Cheapest new car 2021

1. Dacia Sandero

Dacia Sandero list price from £7,995*
Used deals from £4,499
Monthly finance from £97**

Ever since it first arrived here in 2013, the Dacia Sandero has held the position as the cheapest new car on the market. Now there's a new version, but it's still cheaper than anything else you can buy - by quite a margin - at £7,995.

The main reason for this low-budget price tag is the fact that the Sandero is incredibly simple. It makes use of small engines from Dacia's sister brand Renault, and does away with practically everything that isn't needed to make the car move.

So, in the cheapest and most basic spec, you get five doors, four wheels, a steering wheel and electric front windows. There's also a selection of useful safety equipment on board including airbags, anti-lock brakes and two Isofix points in the back. If all you're looking for is a car that will get you from A to B, what more do you need?

As the Sandero is so affordable, you can get a better-equipped version of the Sandero for less than the second cheapest car on the list. For £8,995, Essential trim brings body-coloured bumpers on the outside, while inside there's air-conditioning, cruise control and a media system with Bluetooth and a digital radio.

DACIA SANDERO BUYERS' GUIDE

2. Citroen C1

Citroen C1 list price from £12,945*
Used deals from £4,295
Monthly finance from £99**

The Citroen C1 is closely related to the Peugeot 108 and Toyota Aygo under the skin, yet it comes in at £400 less than the Aygo, and £375 less than the 108. 

The C1 closely resembles the 108 in terms of shape, though the 108 is 9mm longer, but they offer near identical interiors and boot space. Engine choice is the same too, with a 1.0-litre 72hp petrol the only option across both ranges.

In fact, the only thing setting these two apart, and the only reason why these three models differ in price is the simplicity of the C1 in its most basic three-door Touch form. There's no real tech to speak of, with only power steering on hand to make give you a sense that you are still in the 21st century.

CITROEN C1 BUYERS' GUIDE

3. Kia Picanto

Kia Picanto list price from £11,200*
Used deals from £4,790
Monthly finance from £99**

Every Kia Picanto comes with a seven-year warranty. So if you keep it for that long - without the worry of major repair bills - the list price works out at just £1,570 per year, which is excellent value. In reality, it'll probably still be worth a reasonable amount at this stage, which will reduce the overall cost further.

Fuel costs shouldn't be enormous either, as the engines are reasonably economical. That said, the cheapest 1.0-litre engine isn't particularly powerful, so you'll need to work it hard to make swift progress, which increases fuel consumption.

In entry-level 1 specification, you'll have steel wheels and no air-conditioning, but the front windows are electric. Equipment might be sparse, but it feels well-built, and the Picanto has recently been updated, so the newest models will feature improvements to the engine, styling and interior tech.

KIA PICANTO BUYERS' GUIDE

4. MG 3

MG 3 list price from £12,300*
Used deals from £5,500
Monthly finance from £108**

The MG 3 has seen its base price rise dramatically since it was first launched back in 2013. The manufacturer dropped the entry-level Explore trim, meaning the cheapest option is now the Excite model starting at over £12,000. As a result, there are plenty of cheaper alternatives available with arguably more to offer.

The ride of this MG is a little firm and bumpy while the engine needs to be worked hard for maximum performance, though it is very quick for a new car of this price. Anyone looking for strong performance for this kind of price, though, would be better off opting for a cheap used hot hatchback, as there are some fantastic options for less than £12,000.

Standard equipment is also fairly basic in Excite trim, as there is Bluetooth, air-conditioning and rear parking sensors along with a digital radio, but a potentially better equipped Dacia Sandero in Comfort trim is around £2,000 cheaper.

MG 3 BUYERS' GUIDE

5. Toyota Aygo

Toyota Aygo list price from £13,345*
Used deals from £4,690
Monthly finance from £93**

Underneath the metal, Toyota's Aygo is virtually identical to the Citroen C1 and Peugeot 108, but it's just a fraction cheaper and also comes with a five-year warranty, compared with the three years offered by the other two.

It's still not as good value as the cheapest Hyundai i10 though, which comes with five doors. The basic Aygo X only has three doors and you'll need to pay more if you want two additional doors for rear seat passengers.

At this price, the Aygo lacks Bluetooth, air-conditioning and alloy wheels but does have USB and aux-in capabilities for playing music in the car and charging your devices, plus front electric windows and remote central locking.

TOYOTA AYGO BUYERS' GUIDE

6. Hyundai i10

2020 Hyundai i10 front

Hyundai i10 list price from £13,025*
Used deals from £10,769
Monthly finance from £180**

The key here is not that Hyundai has made a cheap small car, but the fact that it's made one of the best that you can buy at this kind of price. The i10 is a mature and practical small car that still manages to offer an element of enjoyment for the driver behind the wheel.

This fresh new model launched in 2020 can accommodate four adults who’ll be fairly comfortable for short journeys, and it’s stable at higher speeds, so you won’t feel as if you’re about to be blown across the carriageway when you overtake lorries. You would be forgiven for feeling like you're driving something much bigger - this is a very capable small car.

The cheapest SE trim is also equipped with features such as cruise control, a digital radio and air-conditioning, while more expensive versions add luxuries such as a heated steering wheel, Android Auto and Apple CarPlay. There's also a very useful five-year, unlimited mileage warranty, so it's a good option if you want to go used, as you'll still have many years of warranty cover left with nearly new and more recent used models.

HYUNDAI I10 BUYERS' GUIDE

7. Volkswagen Up

VW Up list price from £12,910*
Used deals from £4,780
Monthly finance from £102**

The Up is another model that has been given a recent update, with a new trim structure and improved levels of equipment, which makes it more appealing, though more expensive, too. The Up once shared much of its mechanical parts with the now electric Seat Mii and Skoda Citigo, which are both still available in their original petrol guises on BuyaCar with some excellent value used car deals available.

For drivers who are looking for compact dimensions, reasonable rear space and an excellent feeling of quality, the Up will probably be a better choice than any of the other cars on this list too. It may be small, but it feels very upmarket.

Even at the lowest price point, the Up comes with alloy wheels, air-conditioning and a five-inch media display with a digital radio and Bluetooth connectivity for your smartphone. There's also a height-adjustable driver's seat, Isofix child-seat mountings, electric front windows and a one-piece folding back seat. Like with most things, you're getting what you pay for here, as the Up more than lives up to its relatively high price.

VOLKSWAGEN UP BUYERS' GUIDE

8. Peugeot 108

Peugeot 108 list price £13,320*
Used deals from £4,115
Monthly finance from £82**

The Peugeot 108 shares the same mechanical parts as the Citroen C1 and Toyota Aygo above, but it is more expensive due to having been more recently updated.

Other differences come in the shape of warranty. The 108 comes with a three-year warranty instead of the five years of cover available with the Aygo, but both cars have a similar level of equipment including electric front windows and a USB socket. The cheapest version of each comes with three doors - five-door models cost more.

However, the front design of the cars varies considerably, so it's worth looking at all three to see which appeals most to you and which is available with the best deals. The 108 is also available with Peugeot's Just Add Fuel deal, which rolls finance, insurance, tax and servicing costs into one monthly payment. Depending on the offers available, it's worth comparing new car discounts, which could make any of these the cheapest option.

PEUGEOT 108 BUYERS' GUIDE

*List prices correct as of May 2021

**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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