Lifestyle Guides

Cheapest new cars on the market

If you're looking for a brand new car but have a tight budget, there's still plenty of choice. 

Cheapest cars collage

We've looked at the 10 cheapest vehicles on sale in the UK and amongst the bargain buys there's an SUV, an estate car, supermini and city cars. The cars available are priced from £6,995 to £10,995 (in April 2020). 

What's more, most have fairly low running costs because they’re small cars with economical engines – and one even comes with the peace of mind of a seven-year warranty.

Here are the top 10 cheapest new cars in the UK market today.

1) Dacia Sandero - from £6,995

Dacia-Sandero

The Dacia Sandero is still the cheapest new car on the UK market. The supermini-sized vehicle from Renault's Romanian budget brand, Dacia, represents a lot of car for the money, with space for five people and 320 litres of luggage capacity (expanding to 1,200 litres with the rear seats folded). 

The cheapest Access SCe75 model ihas a 1.0-litre petrol engine that can return up to 48.7mpg with CO2 emissions of 114g/km. 

Every new Dacia is covered by a standard three-year/60,000-mile warranty package.

2) Dacia Logan MCV - £8,495 

Dacia Logan MCV estate

If you're looking for maximum bang for your buck, then the no-frills Dacia Logan MCV is hard to beat. The cheapest new estate car money can buy has a huge 573-litre boot that expands to 1,518 litres with the rear seats flipped. 

The entry-level (SCe75) model comes with the same 1.0-litre petrol engine as the basic Sandero and fuel economy is up to 49.6mpg and CO2 emissions are 115g/km. 

The Logan also comes with a three-year/60,000-mile warranty package.

3) Dacia Sandero Stepway - £9,195

Dacia Sandero Stepway

Offering more of a crossover feel than the basic Sandero, the Sandero Stepway is another competent affordable offering from Dacia. A 4cm raised ride height, roof bars and other styling enhancements deliver a slightly more rugged look. 

Like the Sandero, it has a 320-litre boot that can be expanded to 1,200 litres by folding down the 60:40 split rear seats. Again, the basic SCe75 model has a 1.0-litre petrol engine – this time capable of up to 46.3mpg, while CO2 emissions are 118g/km.  

And as with the other Dacias, it comes with a three-year/60,000-mile warranty package.

4) MG 3 - £9,495

MG 3

MG's bargain basement five-door hatchback offers a supermini for city car money. There's enough space for adults front and back, and it boasts a decent 320 litres of boot space (expanding to 1,262 litres). 

Powered by the largest engine in the top 10 cheapest cars (a 105bhp 1.5-litre petrol with a five-speed manual gearbox), fuel economy is up to 42.3mpg and CO2 emissions are 140g/km. 

Crucially for some, the MG 3's generous warranty cover lasts for seven years, or up to 80,000 miles (whichever occurs soonest). 

5) Toyota Aygo - £9,825

Toyota Aygo

Developed alongside the Citroen C1 and Peugeot 108 city cars, the Aygo has the most radical design of the three. Fun to drive and cheap to run, it's well built and powered by a frugal, yet eager, 1.0-litre three-cylinder petrol engine capable of up to 56.4mpg, while CO2 emissions are a low 93g/km. 

Like its French cousins, space is a little tight in the back and the boot capacity (168 litres) is modest. The Aygo comes with Toyota's five-year/100,000 mile warranty for your peace of mind.

6) Kia Picanto - £10,195

Kia Picanto

The award-winning Kia Picanto is a well-equipped, nippy city car, backed up by a generous seven-year warranty. It's fun to drive too, while fuel economy is up to 55.3mpg and CO2 emissions are just 101g/km. 

It's cosy in the back and luggage capacity is 255 litres (1,010 litres with the rear seats down). All in all, one of the best little cars on the market.

7) Citroën C1 - £10,520

Citroen C1

The cheeky Citroën C1 was developed alongside the Toyota Aygo and Peugeot 108 city cars and is a familiar sight on UK roads. More than 70,000 have been sold since it launched in 2014 and it's available with three or five doors and as an ‘Airscape’ cabrio. 

Cheap to run, its thrummy three-cylinder engine is good for up to 59mpg, while CO2 emissions are a low 108g/km. There's a useful 196 litres of boot space, expanding to 780 litres with the back seats flipped. 

8) Mitsubishi Mirage - £10,550

Mitsubishi Mirage

Facelifted inside and out for 2020, the surprisingly spacious baby of the Mitsubishi range is powered by a 1.2-litre, three-cylinder petrol engine which can return up to 56.5mpg with CO2 emissions as low as 105g/km. 

It also comes with peace of mind thanks to a decent five-year warranty.

9) Fiat Panda - £10,855

Fiat Panda

The evergreen Fiat Panda has been Italy's biggest-selling car for several years. It's not popular just because of its bargain price – it looks funky, it's fun and easy to drive, and it's deceptively spacious (225 litres of boot space, expanding to 870 litres with the rear seats folded). 

Fuel economy from its 1.2-litre petrol engine is up to 57.6mpg and CO2 emissions are 111g/km. The Panda comes with a basic three-year/60,000-mile warranty package.

10) Dacia Duster - £10,995 

Dacia Duster

The standard front-wheel drive (the 4x4 version costs considerably more) Duster SUV is spacious, rugged and a surprisingly decent drive. 

The cheapest model in the range comes (TCe 100) features a new 1.0-litre three-cylinder turbo petrol engine capable of up to 46.3mpg and with emissions of 120g/km. It also comes with a three-year/60,000-mile warranty package. 

In short, the Duster is remarkably good value.

I'm an experienced journalist, digital editor and copywriter, now specialising in motoring. I’m editor of Automotive Blog and have worked across the media in newspapers, magazines, TV, teletext, radio and online for household names including the BBC, GMTV, ITV and MSN. I’ve produced digital content in the financial sector for Lloyds Bank, Nationwide and the Money Advice Service. I'm married with two children and live near Bath in Somerset.

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