Best new cars for under £100 per month

Got a budget for a cheap new car? These bargains are certainly tempting

Simon Ostler
Oct 27, 2021
Dacia Sandero front three quarters view

Wondering whether you'd be able to get yourself a brand new car for less than £100 per month? It might not seem likely, but we're pleased to say that there are a couple of options available to you.

Due to the gradual rise in car prices each year, there are very few new cars left on sale that can be considered 'cheap' - the latest Dacia Sandero is available from £9,845, but stands alone now as the only new car on the market for under £10,000. Even the likes of the Kia Picanto and Toyota Aygo are now considerably more expensive to buy with cash.

Fortunately there is the option of car finance, which has become by far the most common way for drivers to get hold of a brand new car. Instead of having to save up for a huge cash expense, splitting up that cost into a series of monthly payments makes purchasing a car much more affordable in the short term. Our in depth guides will help you make the right choice when it comes to sealing the deal.

You should also consider the value of going for a used car instead, because you might be surprised by far your £100 per month will stretch. It's no secret that used cars are far cheaper than new cars, but that doesn't mean you're sacrificing any of the quality. In fact, with used car finance you could find yourself driving something much more exciting than if you were to spend the same money on a new car.

You only need to take a look at what's on offer for less than £10,000 with BuyaCar to see what an opportunity used car buying can be. Where you're looking at small and basic models here, the alternative is much more exciting. We've highlighted some used options below to show you what else could be on offer from under £100 per month.

But, if it's a brand new car you're after, then you'll find your options are restricted to a single model - the Dacia Sandero. We've taken deals with a maximum deposit of £2,750 here, but bear in mind that you can pay a larger deposit if you're intent on making those monthly payments as small as possible.

Best new cars for under £100 per month

Dacia Sandero Essential

Our pick Dacia Sandero TCe 100 Bi-Fuel Essential
List price £10,445
Annual mileage limit 8,000

Monthly paymentsDepositDeposit contribution discountOptional final paymentTotal amount payable if buying car when contract endsAPR
£99 x 48£2,500£0£4,699£11,9405.9%


Essential trim was the mid-range model for the new 2021 Sandero, but entry-level Access was dropped making this the cheapest version, and it includes a media system that Dacia calls Media Control. It includes radio, Bluetooth, a USB port, and a smartphone dock that pops up from the dashboard. You install the free app onto your phone and use it as a sat-nav or music player with voice control.

There's also the inclusion of two Isofix points in the back seats, which turns the Sandero into a perfectly workable family car, while cruise control takes the stress out of long motorway journeys.

We've chosen the more powerful turbocharged petrol engine here. It's much more capable than the 65hp 'SCe' petrol engine whether you're cruising along the motorway or just popping to the shops, but it's equally as efficient so it's a no brainer if you can afford the additional monthly cost.

This feels like a much more effective use of your money if you have the extra income to spend, in fact its the best new car currently available for less than £100 per month. But if you have a £2,500 deposit to hand, there are still plenty of other enticing deals to be found on the used car market.

Used deals from £6,399
Monthly finance from £118*

Used cars for under £100 per month

1. Fiat 500

Fiat 500 front three quarters view

Used deals from £5,995
Monthly finance from £118*

Where the Dacia Sandero might be considered a little 'beige', the Fiat 500 is a much more distinctive and characterful alternative. With retro styling that still holds up more than a decade after it first launched, this is a delightfully chic Italian city car.

While the cheapest versions within our £100 per month budget are the most basic Pop models, the Fiat 500 image and ownership experience remains untarnished. Equipment levels are similar to what's on offer from the most basic Sandero, the headlines are electric windows and a USB port, but it's the interior styling that helps the Fiat to outshine the Dacia.

The bold and colourful panels are fitted with proper rotary dials for the radio, and the whole thing feels like much more of an event than the decidedly grey Sandero. If you'd rather drive something with a bit of pizzazz, the Fiat 500 is more likely to suit your tastes.

In terms of engines, the cheapest Fiat 500s on offer are powered by a 1.2-litre petrol engine producing 69hp. This is slightly more powerful than the cheapest Sandero, and the fact the Fiat is much lighter makes it feel like a more spritely and energetic car to drive.


2. Hyundai i10

Used deals from £5,100
Monthly finance from £101*

The Hyundai i10 is something of an underrated choice. As an all-round package, it's one of the very best small cars available at this kind of price. For less than £100 per month there's plenty of space and comfort on offer, while it's also very enjoyable to drive.

SE models are the most common within budget, these feature air-conditioning, a USB port, cruise control and a height-adjustable driver's seat, but you may also come across Premium trim, which features a smattering of leather, an upgraded sound system and Bluetooth connectivity. All i10 models also feature plenty of safety kit and two Isofix points in the rear seats, making this very usable as a small family car.

The 66hp 1.0-litre petrol engine lacks punch, but it is smooth and offers excellent fuel economy, which is bound to appeal to drivers who enjoy travelling on the cheap.

When you're trying to find the very best cheap cars around, do not overlook the Hyundai i10, it's great quality, exceptionally practical considering its size, and brilliant value for money all things considered.


*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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