Buying a new car doesn't always mean spending a fortune. There are several advantages to choosing a lower-priced brand-new model. For one, new cars come with full manufacturer warranties, offering peace of mind for at least 3–5 years. You also get the latest safety features, infotainment systems, and updated emissions standards, all with zero previous wear and tear.

‍

More importantly, affordable new cars often sit in lower insurance groups and offer better fuel efficiency or electric range. With lower repair costs in the first few years and no MOT required for the first three, these models can be smart financial decisions, especially for city drivers or those who want reliable transport on a tight budget.

‍

How to Choose the Best Cheap New Car

‍

The cheapest car on the lot might not always be the best fit. When looking at budget new cars, think beyond just the price. Consider how many passengers you’ll carry, how much boot space you’ll need, and whether you’ll be driving mostly in the city or on the motorway. Some compact cars are great for urban driving but less suited for long-distance comfort.

‍

Additionally, factor in ownership costs. That includes insurance, fuel economy (or charging costs for EVs), road tax (which is free for many EVs), and servicing intervals. Look for features like air con, Bluetooth connectivity, and lane-keeping assist, many budget cars now include these as standard. 

‍

‍

Top 10 Cheapest New Cars in the UK (2025 Edition)

‍

1. Citroën Ami

‍

• Price: From £7,695
  
  
• Overview: Technically a quadricycle, not a car, but fully electric and perfect for short urban commutes.
  
  
• Why it’s cheap: Limited to 28 mph and very basic, but unbeatable on price for a new EV.
  
  

2. Dacia Sandero

‍

• Price: From £14,715
  
  
• Overview: One of the UK’s most affordable true 5-door hatchbacks. Spacious, reliable, and easy to drive.
  
  
• Why it’s cheap: Basic interior, but well-built and backed by Renault Group reliability.
  
  

3. Dacia Spring (Electric)

‍

• Price: From £14,995
  
  
• Overview: One of the cheapest electric cars available with real-world range around 140 miles.
  
  
• Why it’s cheap: Small size and no-frills interior, but good value for urban EV drivers.
  
  

4. Leapmotor T03

‍

• Price: From £15,995
  
  
• Overview: A newcomer to the UK EV scene, offering surprising range and tech for a low price.
  
  
• Why it’s cheap: Chinese startup brand breaking into the UK with competitive pricing.
  
  

5. Kia Picanto

‍

• Price: From £16,695
  
  
• Overview: A reliable city car with excellent build quality and a solid warranty.
  
  
• Why it’s cheap: Small footprint and modest engine keep costs down, but still refined.
  
  

6. Toyota Aygo X

‍

• Price: From £16,845
  
  
• Overview: Compact crossover design with Toyota’s excellent reliability and efficiency.
  
  
• Why it’s cheap: Entry-level trim is minimal but includes essentials like reversing camera and smartphone integration.
  
  

7. Hyundai i10

‍

• Price: From £17,100
  
  
• Overview: Spacious for a city car, with solid tech, warranty, and good residual values.
  
  
• Why it’s cheap: Competitive pricing from a reliable Korean manufacturer.
  
  

8. MG3

‍

• Price: From £17,245
  
  
• Overview: A practical supermini with more interior space than you’d expect at this price.
  
  
• Why it’s cheap: Less premium feel, but loads of kit included even on base models.
  
  

9. Fiat Grande Panda

‍

• Price: From £18,035
  
  
• Overview: Funky looks, simple controls, and a heritage name brought into 2025.
  
  
• Why it’s cheap: Value-oriented Italian design with minimal running costs.
  
  

10. Citroën C3

‍

• Price: From £17,995
  
  
• Overview: A full-sized hatchback with funky styling and decent tech even in base trim.
  
  
• Why it’s cheap: Budget-oriented trims with smart use of interior materials.
  
  

‍

Tips to Get the Best Deal on a Budget New Car

‍

Compare Deals from Dealers

‍

Prices for budget cars can vary significantly between dealerships. Compare offers online and in person, and ask about extras, such as, free servicing, reduced deposits, or insurance packages - all can make a big difference.

‍

Look at Manufacturer Finance Options

‍

One of the most budget friendly options is getting your car on finance. While you end up paying more in total (unless you can get a 0% APR deal from a manufacturer), you don’t have to suffer the massive upfront cost. This can be more cost-effective and is definitely something to consider if you have stable income. Not sure where to look? Well you can always start with Ayan - we make car finance simple. Head over to ayan.co.uk and start your application.

‍

Consider Pre-Reg or Nearly-New Cars

‍

Dealers often register cars to hit sales targets, then resell them with just a few miles at a significant discount. You could save £1,000+ this way while still getting nearly-new condition.

‍