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
Oct 29, 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.

At this price point, you’re looking at the SE model, complete with smartphone connectivity and a seven-inch 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.

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 - the Ford Fiesta - for well within the £200 budget. There are loads of different specs available, but you can't go wrong with one of these in Trend trim. This comes with a 6.5-inch media display, 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.

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 offers 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 model 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 also offers PCH leasing deals that may be cheaper if you’re not interested in buying outright, but these are dealt with by individual dealerships.

Skoda Octavia buyers' guide

4.Mazda MX-5

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

 

The Mazda 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 90s - a lightweight body, naturally aspirated engine, and power sent to the rear wheels. This results in a car that darts through bends with a nimbleness that's lacking in plenty of more modern, more high-tech and more expensive alternatives.

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

Mazda MX-5 buyers' guide

5.Renault Zoe

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

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 if you go for a PCP finance deal. Sub-£200 per month 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 trim, complete with, you’ve guessed it, a Beats stereo system in it. Also treat yourself to the 80hp 1.0-litre petrol engine, as the base 65hp engine can feel a bit weedy.

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 per month will get you a Move Up model with the least-powerful 60hp engine - which is fine if you rarely travel at motorway speeds.

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 per month 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.

Regardless of all that, as one of the cheaper options on this list, the Skoda Citigo represents an alternative approach to picking your next car, and is definitely worth a second glance.

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 for much 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.

Dacia Duster buyers' guide

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