Cheapest car finance deals

Need an affordable but reliable second-hand car? These cars could be yours for less per month than many mobile phone contracts

Christofer Lloyd
Oct 25, 2019

Itching to get a new car, but working under some tight budget restraints? That's not going to be an issue, as for just £80 per month - with only a small upfront deposit - you could get the keys to a number of fresh, low-mileage cars that should cost you barely anything to run.

And if even that’s a little too much for you, fear not, as you could get change from £70 per month with less than £500 as a deposit on some of these models. And we’re not talking high-mileage bangers here, for this money you can get a well looked after three-year old small car that has covered less than 30,000 miles.

Go for a slightly older car and you can even get a practical family-friendly hatchback within budget. All for less per month than dozens of mobile phone contracts. All of these sub-£80-per-month cars are available on four-year PCP finance deals with a £500 deposit at the time of writing (8,000-mile-per-year limit, 9.9% APR).

PCP finance gives you the choice to make an optional final payment to buy the car at the end of the contract or hand it back with nothing left to pay (provided you’ve stuck to the pre-agreed mileage limit and have kept the car in good condition).


If you know you want to own the car, you could also opt for Hire Purchase (HP). Rather than having a large final payment at the end of the contract, with HP you pay a bit more every month but automatically own the car at the end of the contract. As you’re paying off the balance faster, you also end up paying less interest with HP, so it's worth deciding which type of finance best suits you before signing on the dotted line. To get your head around car finance, have a look at our helpful guide to all your car finance options.

Read on for our pick of the best used cars you could be driving for less than £80 per month.

Best used cars for under £80 per month

1. Peugeot 108

Best used car under £80 per month for value

Latest Peugeot 108 deals from £4,295
Monthly finance from £77

Not sure you can afford £80 per month for a car? You could put a three-year old Peugeot 108 city car on the drive from around £65 per month. With sub-30,000-mile cars available for this budget, you shouldn’t have to spend much keeping the 108 running, either.

Fuel costs should be minimal and insurance similarly affordable. Maintenance costs on such a simple, relatively new car shouldn’t prove too pricey either. If you want one of the most affordable, trouble free ways to stay on the road, this could be it.

Peugeot 108 buyers' guide

2. Citroen C1

Best used car under £80 per month for style

Latest Citroen C1 deals from £4,495
Monthly finance from £79

Don’t like the look of the Peugeot 108 above and want something that looks a little funkier? How about the Citroen C1. Despite being virtually identical under the skin to the Peugeot, the C1 looks a lot more dramatic inside and out, with prices and finance costs that are every bit as low.

As with the Peugeot, therefore, a three-year old car that has covered less than 30,000 miles should be within budget. This means you shouldn’t have to spend much to keep it going and thanks to that small 1.0-litre engine fuel bills should be equally affordable.

Citroen C1 buyers' guide

3. Ford KA

Best used car under £80 per month for a fun drive

Latest Ford Ka deals from £4,150
Monthly finance from £84

The latest Ford Ka, the Ka+, has grown bigger and more sensible, but this model - on sale from 2008 to 2016 - is much more style focused, with three doors only and a fun drive.

Low prices mean it’s still a sensible buy, however. Put down a £500 deposit and you should have change from £80 per month for a sporty looking Zetec model if you shop around.

You can expect a slightly older and higher-mileage car for your money, but as it’s a simple city car, reliability shouldn’t cause too many problems if you stick to the petrol engine.

Ford Ka buyers' guide

4. Smart Forfour

Best used car under £80 per month for a quirky interior

Latest Smart ForFour deals from £4,990
Monthly finance from £96

With five doors and a decent amount of interior space, the Smart Forfour is a much more practical proposition than the cheapest versions of other city cars, which often come with only three doors - meaning climbing in and out of the back seats can be a bit of a challenge.

More notable than this, however, is the style of the interior; the Forfour feels quirky inside and out, making it a fun proposition for less than £80 per month. Value is strong, too, with three-year old, low-mileage models available within budget. With fewer Forfours for sale than other small cars, however, you may have to wait to track one down in this price range.

Smart Forfour buyers' guide

5. Vauxhall Meriva

Best used car under £80 per month for practicality

Latest Vauxhall Meriva deals from £4,991
Monthly finance from £101

The other cars in our roundup may be compact city cars, but you can afford a far more practical family car for your £80-per-month budget, too; the Vauxhall Meriva.

In addition to being a much larger car - freeing up space for children, child seats and pushchairs - it has rear-opening back doors, making it far easier to get children in and out.

This makes the Meriva a great value family car for those on a budget, with four-year old average-mileage models within reach, even if you’re on a tight budget.

As the Meriva didn't sell in the greatest numbers, this is another car where you may have to wait a little while for a model to fall into this price range, but if you're patient it could pay off, as you get a much bigger car for your money here. 

Vauxhall Meriva buyers' guide


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