Best new cars for under £100 per month

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

Simon Ostler
Jun 4, 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 £7,995, 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

1. Dacia Sandero Access

Our pick Dacia Sandero SCe 65 Access
List price £7,995
Annual mileage limit 8,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£65 x 48£2,500£0£5,495£9,2476.9%


The Dacia Sandero is the Holy Grail of affordable cars, and this Access variant is the Sandero in its cheapest form. The cheapest, and most basic. The Sandero Access is the cheapest new car for sale in the UK, but aside from four wheels and an engine, there isn't much else included for your money. It won't look as colourful as the one we've got in the picture either, Access models will be identifiable by their white paint and black plastic bumpers.

A new version of the Sandero was launched in 2021, with updated styling and a refreshed interior. Prices have risen by £1,000 compared to the old model it replaced, but it has maintained its standing as the cheapest new car you can buy. 

It's still available for less than £100 per month, substantially less in the case of this Access model. A lack of any tech aside from the mandatory safety features is one reason for the low price; the highlight in terms of driver convenience is the electric front windows - there is no radio or air-conditioning.

The 65hp 1.0-litre petrol engine is pretty meagre, too. There's no acceleration to speak of, 0-62mph takes 16.7 seconds, but with fuel economy figures of around 50mpg it is efficient for a petrol car.

In the grand scheme, the fact is you are getting a brand new car - that you can drive - for just £65 per month - similar money to a TV and broadband package. Whether you consider this to be the best use of your money, when there are several far more exciting and better equipped used cars available at a similar cost, is another matter.


Used deals from £4,295
Monthly finance from £97*

2. Dacia Sandero Essential

Our pick Dacia Sandero TCe 90 Essential
List price £9,995
Annual mileage limit 8,000

Monthly paymentsDepositDeposit contribution discountTotal amount payable if returning car when contract endsTotal amount payable if buying car when contract endsAPR
£96 x 48£2,500£0£7,495£11,6566.9%


If the basic nature of the Sandero in Access trim doesn't appeal to you, then there is another option. It's still a Sandero, but this one comes with a better engine, and more convenience features - including a radio and air-conditioning.

Essential trim is the mid-range model for the new 2021 Sandero, 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 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 £6,990
Monthly finance from £127*

Used cars for under £100 per month

1. Fiat 500

Fiat 500 front three quarters view

Used deals from £4,985
Monthly finance from £104*

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 £4,799
Monthly finance from £106*

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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