Britain's cheapest new cars 2021

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

BuyaCar team
Jan 12, 2021

For £90 per month, you could get yourself a TV package with a couple of sport or films bundles included. Or you could drive away in a brand new car - if you can put down a reasonable deposit, that is.

Car ownership might sound expensive, but if you're looking for basic, no-frills transport, then there are still plenty of options that will cost you no more per month than the cost of a weekly takeaway. We've listed the cheapest 10 based on their official list prices, but new car discounts can cut the cost even further, while instead 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 specification. You may have to pay more for air-conditioningBluetooth and 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 do 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 want to get more for your money and greater choice, then there are plenty of other options available to you on the used car market, including here on BuyaCar. But if a low-cost, brand new car appeals to you, than take a look below at the cheapest models you can buy.

Cheapest new cars 2021*

*List prices correct as of January 2021

1. Dacia Sandero

Dacia Sandero list price from £7,995
Used deals from £4,290
Monthly finance from £85**

The Dacia Sandero has long been the cheapest new car on the market. Its simplicity combined with the use of hand-me-down components from parent company Renault mean it can be produced and sold at an alarmingly low price. 

There was a time when the very cheapest Sandero would see you missing out on the most basic of amenities such as electric windows, air-conditioning or even a radio. Dacia saw fit to finally remove that model from the range, so instead we are left with a much more suitably equipped car, with all of those features included along with other convenience functions such as a height adjustable steering wheel.

Despite the removal of the Access models that were once on sale for just £6,995, the Sandero still only starts from £7,995, meaning it retains its title as the cheapest car on sale by quite a way.


2. Citroen C1

Citroen C1 list price £10,315
Used deals from £4,299
Monthly finance from £79**

The Citroen C1 is the second member of the tech-sharing Peugeot 108 and Toyota Aygo family, yet it comes in at £1,425 less than the Aygo, and £1,770 less than the 108. That's a big difference when you take into account the relative similarity between the three.

The C1 closely resembles the 108 in terms of shape, 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 3-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.


3. Kia Picanto

Kia Picanto list price from £10,995
Used deals from £4,381
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, which will reduce the cost further.

Fuel costs shouldn't be enormous either, as the engines are reasonably economical - that said, the cheapest 1-litre engine isn't particularly powerful, so you'll need to rev it 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.


4. MG 3

MG 3 list price from £12,195
Used deals from £6,078
Monthly finance from £115**

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 to you with arguably more to offer. The ride of the MG is firm and bumpy while the engine lacks performance. Anyone looking for top-level performance at this kind of price would be better off opting for a cheap used hot hatchback.

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


5. Toyota Aygo

Toyota Aygo list price from £12,440
Used deals from £4,199
Monthly finance from £78**

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 and you'll need to pay more if you want two 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 front electric windows and remote central locking.


6. Peugeot 108

Peugeot 108 list price £12,785
Used deals from £4,299
Monthly finance from £79**

The Peugeot 108 shares the same mechanical parts as the Citroen C1 and Toyota Aygo above, but it is much 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 available with the Aygo, but both cars have a similar level of equipment including front electric 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, which is likely to make one more appealing than the others. 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.


7. Hyundai i10

2020 Hyundai i10 front

Hyundai i10 list price from £12,820
Used deals from £10,295
Monthly finance from £155**

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. It's 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.

The cheapest SE trim is also equipped with features such as cruise control, digital radio and air-conditioning, while more expensive versions will add luxuries such as a heated steering wheel, Android Auto and Apple CarPlay. There's also a very useful five-year, unlimited mileage warranty.


8. Volkswagen Up

VW Up list price from £13,105
Used deals from £4,100
Monthly finance from £98**

Another model that has been given a recent update, with a refreshed trim structure and improved levels of equipment making the Volkswagen Up a better, yet more expensive car. The Up once shared much of its mechanical parts with the now discontinued Seat Mii and Skoda Citigo, which are both still available on BuyaCar with some excellent value used car deals.

For buyers who are looking for compact dimensions, reasonable rear space and excellent build quality, it will probably be a better choice than any of the other cars on this list too.

Even at the lowest price point, the Up comes with alloy wheels, air-conditioning and a 5.0-inch media display with 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.


**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.


Latest best cars & vans

  1. Best BMWs with reversing cameras

  2. Best hybrid car in the UK

  3. Best electric cars for towing a caravan