Best new cars for under £200 per month

From city cars to SUVs, and even an electric option. Find your perfect car for under £200 per month.

BuyaCar team
May 27, 2021

On the hunt for new cars that will cost you less than £200 per month? You’re in a good position, because there are hundreds of cars that sit within this price range. It’s a popular area of the market, and car manufacturers have recognised the importance of offering something at this kind of price. While the likes of Audi, BMW and Mercedes won’t quite be within reach, upmarket brands like Volkswagen, Ford and Mini all feature here.

Competitive car finance deals mean that there are hundreds of models to choose from for less than £200 per month. The most common type of finance is Personal Contract Purchase (PCP) due to its flexibility – you can read more about how it works here.

The thought of driving a brand new car is an exciting one, but we urge you to spare a moment to consider a used car. A monthly budget of £200 can get you seriously desirable models on the used market, thanks especially to excellent finance deals with BuyaCar. Here, you can get hold of a Mercedes A-Class, a BMW 3 Series or an Audi A4. Suddenly everything feels much more intriguing - you should definitely take a look.

But if we simply can’t twist your arm far enough, read on for a comprehensive look at some of the best new cars you can get for less than £200 per month, with a deposit of £2,500 to £3,000. Take note of three-year finance plans, as you will pay less interest than a comparable four-year plan.

Best new cars for under £200 per month

1. Citroen C3

Our pick Citroen C3 PureTech 83 Shine
List price £15,355
Annual milage limit 8,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£18747£2,5003.9%£5,617£16,912

 

The dinstinctive Citroen C3 has plenty of customisation options to help you make it your own, but regardless of which model you choose, it should make for a very comfortable ride thanks to soft suspension. This does have its downsides, though, as it can feel quite vague in corners - particularly on country lanes.

The 1.2-litre petrol engine should return mpg figures in the high 40s or early 50s, but you may have to work it hard to pick up any speed which reduces fuel economy.

Shine is one level from the top, which means you get automatic headlights and wipers, alloy wheels, parking sensors, a seven-inch touchscreen media system and cruise control. If you can afford a little more per month, you might find the fuel economy in the PureTech 110 engine could save you money in the long run compared with this PureTech 83 engine.

PEUGEOT C3 BUYERS' GUIDE

2. Fiat 500

Our pick Fiat 500 70kW Action
List price £22,995
Annual mileage limit 6,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£19936£3,0005.91%£12,004£21,969

 

The Fiat 500 has sold in its thousands since re-launching in 2008, but it has remained relatively unchanged since then. Recently, the choice of standard petrol engines was replaced with one mild hybrid offering, and Fiat will continue to sell this alongside the new electric version for a while.

This next generation of 500 is only available in electric form, which means you can afford an entry-level electric car for under £200 per month on finance. That's more than can be said about other small electric cars like the Renault Zoe.

Action models come with a 94hp electric system, while high spec models produce 117hp. This base spec includes a smartphone cradle in place of a media display.

MORE ABOUT THE ELECTRIC FIAT 500

3. Ford Fiesta

Our pick Ford Fiesta 1.0 EcoBoost 100 Trend
List price £17,395
Annual mileage limit 9,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£18948£2,5001.2%£5,267£16,857

 

You too can have Britain’s most popular car - the Ford Fiesta - within the £200 per month budget. There are loads of different specs available, but you can't go wrong with one of these in Trend trim. This comes with an eight-inch media display with Apple CarPlay and Android Auto, alloy wheels, air-conditioning and plenty of standard safety kit.

Less than £200 per month will get you a three-door Fiesta with the zippy 1.0-litre engine and a six-speed manual gearbox. More expensive models use a mild hybrid system to provide a short burst of additional power and improved fuel economy, but the standard EcoBoost petrol engine will still impress.

FORD FIESTA BUYERS' GUIDE

4. Hyundai i20

Our pick Hyundai i20 1.0 100 SE Connect
List price £18,800
Annual mileage limit 8,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£19148£2,5004.8%£6,926£20,080

 

You may think that a brand new model for less than £200 per month is out of reach, but the i20 is well within reach. While many of these models have been around in their current forms for a few years, the Hyundai i20 was redesigned in 2020.

The 100hp 1.0-litre turbocharged petrol engine is well suited to this car, and promises over 55mpg. Part with a bit more cash and you have have a very smooth dual-clutch automatic transmission, too.

Entry-level SE Connect is far from sparce; equipment includes alloy wheels, an eight-inch touchscreen and a reversing camera, which is more than you get on rivals like the Skoda Fabia and Seat Ibiza

MORE ABOUT THE HYUNDAI I20

5.Mazda 2

Our pick Mazda 2 1.5 Skyactiv-G 90 SE-L Nav
List price £17,745
Annual mileage limit 8,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£18448£2,5003.4%£6,012£19,083

 

The Mazda 2 is an old model which has been around for many years, which means finance figures should be in your favour. Its larger engines make it fun to drive, but don't expect lots of power. This model is the most powerful, but only unleashes 90hp.

This is the entry-level model, but don't be put off. Inside, there's a seven-inch touchscreen with Apple CarPlay and Android Auto, while alloy wheels help to make it look more expensive outside. You also get things like automatic lights and wipers, keyless entry, air-conditioning and cruise control.

The 1.5-litre engine can produce 75hp or 90hp - for less than £200 per month the 90hp will be the best option, especially as it's just as efficient as the lesser powered version.

MAZDA 2 BUYERS' GUIDE

6. MG ZS

Our pick MG ZS 1.0 T-GDI automatic Excite
List price £18,110
Annual mileage limit 8,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£19547£2,5000%£6,252£18,110

 

A £200 per month budget doesn't have to mean small city cars - you may be surprised to find out that this crossover is on the list. The interest-free finance is a rarity these days, but you might find yourself paying more than others cars which come with a deposit contribution.

The 1.5-litre petrol engine is fun to drive, but the more expensive 1.0-litre turbocharged engine should prove more efficient, and slightly more powerful. 

The ZS range is made up of two models; entry-level Exite models come with LED headlights, a 10.1-inch touchscreen with Apple CarPlay and Android Auto, 17-inch alloy wheels, air-conditioning, rear parking sensors and cruise control. If you can afford a higher deposit, you may find that the Exclusive trim's heated front seats, 360-degree cameras, automatic wipers and fake leather seats make it a more appealing and well-rounded option. 

MG ZS BUYERS' GUIDE

7. Mini Hatch 3-door

Our pick Mini Hatch 3-door One Classic
List price £16,605
Annual mileage limit 8,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£17947£2,5003.9%£6,788£18,179

 

The iconic Mini is another car that drivers may be surprised to find on this list - the entry-level 3-door hatchback model just about makes it.

In Classic trim, the Mini comes with LED headlights, an 8.8-inch touchscreen and digital radio. It does away with some of the extras that Sport and Exclusive bring, such as cruise control, rear parking sensors and alloy wheels, but you have to buy a more expensive engine to get one of these trims, which adds even more to the cost.

The least powerful engine is known as One - it's a 1.5-litre three-cylinder petrol engine with 102hp. You can expect 50mpg for manual and automatic versions - the latter costing £1,400 more.

MINI HATCHBACK BUYERS' GUIDE

8. Nissan Micra

Our pick Nissan Micra IG-T 92 Acenta
List price £15,970
Annual mileage limit 8,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£17636£2,5000%£6,647£15,970

 

This is another example of a car with interest-free finance that doesn't come with a deposit contribution - make sure to compare the total cost of the finance against the cash price to make sure you're getting a good deal.

In this instance, the Micra in mid-spec Acenta form makes for a pretty good deal. These feature Apple CarPlay, Android Auto and digital radio on a seven-inch touchscreen, along with cruise control and air-conditioning, but no alloy wheels. 

The 1.0-litre turbocharged petrol engine suits this small car, and 50mpg isn't an unrealistic ask. Be aware that the more expensive automatic version uses a CVT transmission which doesn't have gears, but rather hold high revs under hard acceleration, and can prove quite noisy.

NISSAN MICRA BUYERS' GUIDE

9. Vauxhall Corsa

Our pick Vauxhall Corsa 1.2 75 SE
List price £15,615
Annual mileage limit 8,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£18547£2,3423.9%£6,054£17,108

 

Along with the Fiesta, the Corsa is one of the most popular small cars on this list. It's only been around since 2020, which means its efficient petrol and diesel engines meet the latest emissions standards.

You're stuck to entry-level SE trim for less than £200 per month, which is no bad thing. Standard kit includes alloy wheels, a seven-inch touchscreen and LED headlights.

The 1.2-litre petrol engine is efficient, but needs to be worked hard to pick up any pace. If you can afford it, the turbocharged 1.2-litre petrol engine with 100hp might prove more efficient in the real world, because you will be able to drive it with a lighter right foot.

VAUXHALL CORSA BUYERS' GUIDE

 

10. Volkswagen Polo

Our pick Volkswagen Polo 1.0 TSI EVO 80 Match
List price £17,400
Annual mileage limit 10,000

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£19447£2,5004.6%£6,040£19,159

 

If you don't like the look of the Fiesta or Corsa, then you might find the Polo to be more appealing. It has a simpler, more grown-up look, and has the upmarket build quality that drivers often associate with the German brand.

This is the entry-level model, although the specification list is extensive. It includes alloy wheels, front and rear parking sensors, front fog lights, automatic lights, an eight-inch touchscreen with Apple CarPlay and Android Auto, air-conditioning, cruise control, and the ability to be paired to an app to monitor things like the fuel level remotely.

The engine is efficient, but if you want an automatic gearbox, you'll need to get the more powerful 95hp 1.0-litre petrol, further adding to the cost.

VOLKSWAGEN POLO BUYERS' GUIDE

 

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