Britain's cheapest new cars 2022

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 8, 2022

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 help to cut the cost even further. Opting for a finance deal, or even a 0% APR 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 size of the car and 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, while smaller cars tend to be cheaper than larger alternatives.

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. There are plenty of small cars on sale that will prove to be more economical over longer distances, though. If you're interested in making the switch to electric power, you can check out our list of the cheapest electric cars.

If you are only expecting to cover a very small number of miles and can get by without needing much space, then even a microcar might work for you. These are available in the UK but don’t have the same profile as proper cars - although the new Citroen Ami may change that. Officially confirmed for the UK, the Ami is an electric quadricycle that’s projected to start from around £6,000. You would have to put up with a 28mph top speed and a relatively short electric range, however, so a used petrol or electric car would still make more sense for the majority of people. Check out our guide to the cheapest used electric cars for more information.

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 used cars 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 2022

1. Citroen Ami

Citroen Ami front view

Citroen Ami list price from £7,695*

At first, the sub-£8,000 price tag looks to be a bargain for the Citroen Ami; not only is it Britain's cheapest new car, but it's also an electric car. It uses a tiny 5.5kWh battery, which is far smaller than those of the Smart EQ ForTwo (17.6kWh) and Fiat 500 Electric (24kWh), prices for both of which which exceed £22,000.

To keep the cost low, basic Amis come with little more than a smartphone cradle and various storage boxes and door nets dotted around the cabin. There are Pop and Vibe trims too, but these focus more on styling tweaks than adding extra kit. The 8hp electric motor means a 28mph top speed (which is reached in 10 seconds), so it's no good for country lanes or motorways.

Every version will be left-hand drive, including those sold in the UK, and there are many shared parts around the car including the front and rear panels, and doors. This helps to reduce production and development costs. Be under no illusion: this is no family car. The Ami best suits those needing a small runabout for town, or even delivery drivers covering a small radius.


2. Kia Picanto

Kia Picanto list price from £11,810*
Used deals from £6,999
Monthly finance from £122*

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 £1,635 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.


3. MG 3

MG 3 list price from £12,995 *
Used deals Limited stock

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 £1,000 cheaper.


4. Hyundai i10

Hyundai i10 front three quarters view

Hyundai i10 list price from £13,430*
Used deals from £12,720
Monthly finance from £218*

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 unlimited mileage five-year 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.


5. Dacia Sandero

Dacia Sandero list price from £13,595*
Used deals from £8,940
Monthly finance from £147*

When it launched in 2013, the Dacia Sandero was the cheapest new car available in the UK. The main reason for this low-budget price tag was the fact that the Sandero is incredibly simple. It made - and still makes - use of small engines from Dacia's sister brand Renault, and has done 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 to safely attach child seats. If all you're looking for is a car that will get you from A to B, what more do you need?

There have been a number of revisions to the pricing and trim levels throughout 2022, which have resuted in only the top-spec Comfort model being on sale. Prices for the 90hp petrol engine and 100hp bi-fuel engine are the same, with automatic models costing more.


6. Fiat Panda

Fiat Panda front three quarters view

Fiat Panda list price from £13,665*
Used deals from £4,500
Monthly finance from £143*

If you want your small car to be fun and characterful, the Fiat Panda is definitely worthy of your shortlist. It’s a more practical alternative to the retro Fiat 500, with more space for passengers and their things. Fiat used rounded-off squares liberally when designing the Panda, and there are a host of quirky touches to find.

The cheapest Fiat Panda is still quite basic, but at least it now includes air-conditioning and a touchscreen to connect your phone to. Of the many available options, we think it’s worth going for the safety pack and the pack that adds split-folding rear seats and a fifth seat if you can afford it, as the latter will make the Panda more versatile.

A safety pack is also a good idea because the Panda’s safety credentials aren’t up to standard you’d expect in a modern car. At least the engine is a modern 1.0-litre mild hybrid petrol; with the tiniest bit of electrical assistance, and the Panda is comfortable on longer trips.


*List prices correct as of last update

**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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