Best new cars for under £200 per month

From sporting convertibles to SUVs, with a smattering of hatchbacks in between. Find your perfect car for under £200 per month

Murray Scullion
Aug 27, 2019

Competitive car finance deals mean that there are hundreds of models to choose from for less than £200 per month.

You'll find the biggest selection among used cars for £200, but if you're looking for a brand new vehicle that's built to your specification, then you're not short of options either. From little hatchbacks to family-sized crossovers, convertibles and electric cars, you should be able to find a car that suits you, for around £6.70 per day.

The most common type of finance is a Personal Contract Purchase (PCP) agreement. This makes cars more affordable because the monthly payments don't cover the full price. You essentially just pay what the car loses in depreciation

This also means that a large chunk of the car's overall cost is deferred until the end. You can either choose to pay it and own the car, or return your car with nothing more to pay - and move onto another PCP deal.

Leasing is also a popular option, and is sometimes even cheaper than PCP. It's a long-term car hire agreement: at the end you simply hand the car back. You'll probably spend less with a used car on finance, but many buyers like the ability to regularly upgrade their car for a brand new version with the latest specification.

Click below to search all of the new and used cars available within the budget or scroll down for our top ten picks. All prices are based on manufacturer quotes, but these are often cheaper when combined with BuyaCar discounts.

 

Best new cars for under £200 per month

1. Hyundai Kona

Our pick Hyundai Kona SE

List price £18,605 Annual milage limit 10,000

Monthly paymentsNumber of installmnetsDepositRepresentative APROptional final paymentTotal cost of finance
£191.5837£3,6005.4%£7,807£19,804.38

 

The Kona is Hyundai’s smallest crossover: combining the mechanical parts from a standard hatchback with extra height for a raised driving position and extra practicality. It looks distinctive in a range of eye-popping and garish colours, and is generally a comfortable and practical all-round car.

For that price you’re looking at the SE model, complete with smartphone connectivity and a 7in touchscreen media system, but you'll need a deposit of around £3,600 to bring your monthly payments to below £200 - and that’s including the £1,000 Hyundai deposit contribution.

Latest used Hyundai Kona deals from £11,995
Used monthly finance from £170
Hyundai Kona buyers' guide

2. Ford Fiesta

Our pick Ford Fiesta Trend

List price £15,995 Mileage allowance

Monthly paymentsNumber of installmnetsDepositRepresentative APROptional final paymentTotal cost of finance
£173,0636£2,7500%££

 

You too can have Britain’s most popular car, well within the £200 budget. There are loads of different specs available, but you can't go wrong with the Trend trim. This comes with a 6.5inch media screen, LED daytime running lights, and the ability to use Apple CarPlay and Android Auto.

Less than £200 per month will get you a three-door Fiesta in a standard colour like race red, with the zippy 1.0-litre engine and a six-speed manual gearbox. It also allows you the option to purchase the car outright after the agreement for £6,003.

Latest used Ford Fiesta deals from £5,200
Used monthly finance from £98
Ford Fiesta buyers' guide

3. Skoda Octavia

Our pick Skoda Octavia S

Monthly paymentsList priceDepositTermRepresentative APR
 £195.67£18,315£2,75048 months5.9%

 

The Skoda Octavia has an enormous amount of space. And considering it's the price of a much smaller Ford Focus, it's not short on equipment either. For £200 per month you’re looking at the base-spec with a 1.0-litre engine. But this shouldn’t put you off.

There’s more than enough power for day-to-day business, while standard equipment includes keyless entry, Apple CarPlay and Android Auto. Skoda offers PCH leasing deals that may be cheaper if you’re not interested in buying outright, but these are dealt with by individual dealerships.

Latest used Skoda Octavia deals from £7,795
Used monthly finance from £126
Skoda Octavia buyers' guide

4.Mazda MX-5

Monthly paymentsList priceDepositTermRepresentative APR
£193.76£19,495£4,00036 months4.1%

 

Mazda’s MX-5 has long been king of the affordable sports car hill.

It follows a recipe that’s been baked into every MX-5 since the nineties - a lightweight body, naturally aspirated engine, and power sent to the rear wheels. This results is a car that darts through bends with a nimbleness that's lacking in plenty of modern, high-tech cars.

For sub £200 you won’t be getting the most powerful 2.0-litre engine, but the 1.5-litre is still fast enough for some, and is super responsive too.

Latest used Mazda MX-5 deals from £12,695
Used monthly finance from £194
Mazda MX-5 buyers' guide

5.Renault Zoe

Monthly paymentsList priceDepositTermReprsentative APR
£199£22,220£2,59936 months4.9%

An electric car for sub £200 per month? No, your eyes are not deceiving you.

The Zoe is as easy, if not easier, to drive than a regular small car because it doesn’t have gears or a traditional gearbox.

Your £200 will get you a sat-nav, parking sensors, as well as keyless entry. It’s important to remember that this doesn’t include mandatory battery hire cost - which changes on how much you use the car. This starts at £59 per month.

Latest used Renault Zoe deals from £7,795
Used monthly finance from £132
Renault Zoe buyers' guide

6. Volkswagen Polo

Our pick Volkswagen Polo Beats

Monthly paymentsList priceDepositTermRepresentative APR
£187.28£15,735£1,90048 months5.2%

 

High residual values make the Volkswagen Polo a bit of a bargain via a PCP deal. Sub-£200 for the one of the best-made superminis around certainly makes it easy to recommend.

Speaking of which, the Polo’s superiority does depend on its spec. We’d go for the Beats spec, complete with, you’ve guessed it, a Beats stereo system in it. Also treat yourself to the 80PS 1.0-litre petrol engine, as the base 65PS engine can feel a bit weedy.

Latest used Volkswagen Polo deals from £9,750
Used monthly finance from £150
Volkswagen Polo buyers' guide

7. Volkswagen Up

Our pick Volkswagen Move Up

Monthly paymentsList priceDepositTermRepresentative APR
£133.65£11,165£2,60147 months0%

 

Well below the £200 budget is the Volkswagen Up. Volkswagen’s APR of 0% is generous, although you'll need a deposit of £2,600 to bring your monthly payments down to this level. 

Alternatively, you can choose to cut your deposit to a minimum; you'll still be paying less than £200 per month, even if you're accepted for a no-deposit agreement.  

The up! is a solid little city car that feels grown up, thanks to Volkswagen's quality interior. It’s tiny, so not one for growing families, but it’s fun to drive and great for the city. Your £200 will get you a Move Up model with the least-powerful 60hp engine - which is fine if you rarely travel at motorway speeds.

Latest used Volkswagen Up deals from £4,995
Used monthly finance from £91
Volkswagen Up buyers' guide

8. Skoda Citigo

 

Monthly paymentsList priceDepositTermRepresentative APR
£117.45£10,515£1,051.5048 months4.9%

 

The Skoda Citigo is mechanically identical to the Volkswagen Up but available for less than £125 per month, with a deposit of a smidge over £1000 - useful for those who need a car immediately with a minimal upfront cost.

For £124 it has just as much practicality and performance as the Up, which is to say that it's limited. The 60hp engine is not the fastest, but powerful enough for around town.

Latest used Skoda Citigo deals from £4,490
Used monthly finance from £77
Skoda Citigo buyers' guide

9. Dacia Duster

Our pick Dacia Duster Comfort

Monthly paymentsPrice DepositTermRepresentative APR
£179£15,400£3,41649 months6.9%

 

The Dacia Duster offers SUV size for supermini money. It’s big and comfortable, and looks cool in a very basic kind of way. And you can have one easily for less than £200 per month.

For £179 you can afford a car in mid-range Comfort trim, with body coloured bumpers as well as Bluetooth and digital radio.

Latest used Dacia Duster deals from £6,192
Used monthly finance from £115
Dacia Duster buyers' guide

10. Vauxhall Corsa

Our pick Vauxhall Corsa Active 

Monthly paymentsPriceDepositTermRepresentative APR
£173.45£11,735£1,99548 months6.9%

 

Vauxhall has recently ditched its Help to Buy scheme, where you put a relatively high deposit down, had low monthly payments, then have the option to buy it at the end. But there are still plenty of well-priced cars.

A three-door Corsa in Active spec is pretty basic, but the deposit and monthly costs are low. It feels and looks its age, and is missing the latest safety equipment like automatic emergency braking.
However, even the very cheapest Corsas come with cruise control, electric front windows, heated windscreen and Bluetooth, to connect your phone wirelessly.

Latest used Vauxhall Corsa deals from £4,250
Used monthly finance from £76
Vauxhall Corsa buyers' guide

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