Once upon a time, the cheapest new cars on sale in the UK were mostly exercises in compromise. Built in creaky old factories, often by brands from the Eastern Bloc, they were designed to hit a low price point by being based on cast-off technology, often decades old. They came with minimal equipment, questionable safety, and a driving experience that could charitably be described as interesting.
Fast forward a three decades and the world looks very different indeed. Today’s budget-friendly cars are often refined, generally safe, and sometimes well-equipped. Thanks to shared platforms, modern safety regulations, and clever engineering, the cheapest cars now punch well above their weight. Sure, you’re not going to get the last word in tech and excitement, but you will get a solid, reliable car that’s perfectly suited to everyday life – and a whole lot more satisfying to own than a Lada Riva.
To help you find the best value, we’ve pulled together a list of the 10 cheapest new cars you can buy in the UK right now. The selection includes everything from electric city cars to petrol-powered superminis – ranked from least to most expensive based on the cash price of the cheapest model in their range.*
The cheapest new cars on sale
Best for: Buyers who want maximum space and practicality for the lowest price


It's considerably less expensive than just about all its supermini rivals, too, and competitive finance and leasing deals are also available. It wasn't that long ago, they were comfortably below £10,000, but the British buying public just didn't go for those most basic versions. We ran one for more than a year and never grew tired of asking friends how much money they thought it cost.
To find out more, read our full Dacia Sandero review
Pros
- Cheapest new car you can buy now
- Well-judged interior
- Large enough for a small family
Cons
- Not the last word in refinement
- Rubbish Euro NCAP score
Best for: Eco-conscious city drivers looking for the cheapest electric car


It's aimed at city dwellers on a limited budget, and as such it's very much limited by how far it will go. Its claimed 137-mile electric range could help to dramatically lower your running costs. But we think it's a compromise too far, offering sub-standard performance, far less safety kit than we'd like to see, and a worrying lack of grip on wet roads.
To find out more, read our Dacia Spring review
Pros
- Cheapest electric car
- Decent equipment
- Smallness makes it great in cities
Cons
- Safety performance is dire
- Sub-standard handling
Best for: Those who like the idea of SUV styling without the SUV price


From a purely pragmatic view the Sandero Stepway is more expensive but not necessarily any better. But from an emotional view the Stepway offers a nice halfway house between a Sandero and Dacia’s full-fat SUV, the Duster.
To find out more, read our full Dacia Sandero Stepway review
Pros
- Comfortable ride
- Spacious interior
- Fantastic value for money
Cons
- Lacks refinement
- More expensive than regular Sandero
Best for: Drivers seeking an ultra-compact electric car that's easy to live with


It's far from perfect, but that's to be expected for the money. Some of the cabin materials are quite harsh and the weedy 94hp motor barely has enough waft to motivate the T03 out of its own way. The seats aren't very comfortable, either. Compared to the Spring in terms of overall usability, though, it's in a different league.
To find out more, read our full Leapmotor T03 review
Pros
- Easy to steer around town
- Well equipped for the price
- Decent driving dynamics
Cons
- Not that comfortable
- Only one weak motor
Best for: Being well-built with a strong warranty and low running costs


It’s also more fun to drive than you might expect, with tidy handling and a willing engine that makes it feel nippy around town. Despite its compact dimensions, it’s cleverly packaged too, with enough space inside for four adults and a decent boot for the class. Add in Kia’s reassuring seven-year warranty and the Picanto continues to be a strong choice for new drivers or anyone looking for a fuss-free runabout.
To find out more, read our full Kia Picanto review
Pros
- Easy to drive
- Well-equipped
- Long warranty
Cons
- Not as versatile as a larger car
- Automatic gearbox is terrible
Best for: Those who want small-car convenience with big-car tech and refinement


What sets the little Hyundai apart is just how grown-up it feels, especially for a car in this price bracket. Despite its tiny footprint, it’s packed with tech, offering features like Apple CarPlay, lane-keeping assistance, and a surprisingly slick touchscreen interface — all of which help make it feel like a much bigger, more expensive car.
To find out more, read our full Hyundai i10 review
Pros
- Exceptional interior space compared with other city cars
- Classy, easy to use dashboard
- Lots of safety equipment
Cons
- A bit pricey
- Automatic gearbox is atrocious
Best for: City dwellers who want cool looks in a compact, user-friendly package


That said, don’t be fooled by the jacked-up ride height and SUV cues – this is still very much a city car at heart. Its compact dimensions make it brilliant for urban life, helped by a tight turning circle, light steering and superb visibility that take the stress out of town driving. It’s genuinely fun to nip around in, and its composed ride at lower speeds gives it a feeling of polish you don’t always get in this class. On faster roads it’s not the most eager performer, especially when fully loaded, but it’ll get the job done with a bit of patience.
To find out more, read our full Toyota Aygo X review
Pros
- Comfortable around town
- Functional cabin
- Good MPG
Cons
- Tiddly engine struggles on open road
- Bad rear leg room
Best for: Drivers who want a cool hybrid that stands out from the crowd


Despite its compact dimensions, the Grande Panda offers a surprisingly spacious interior, comfortably seating five adults — a testament to Fiat's clever design. The hybrid powertrain delivers a balance of performance and efficiency, ideal for both city commutes and longer journeys. Inside, the cabin is adorned with eco-friendly materials, including recycled plastics and vibrant accents, creating an environment that's both funky and sustainable. It's due to land later in 2025, but you can order one now.
To find out more, read our full Fiat Panda Grande Panda review
Pros
- Funky retro design stands out
- Spacious interior
- Affordable hybrid
Cons
- Limited trim choices
- Not refined at speeds
Best for: Comfort fans who value soft suspension and a stylish interior


It's powered by a 1.2-litre PureTech petrol engine delivering 100hp, which delivers adequate performance in town, but it feels out of its depth on the motorway. Inside, the C3 majors on comfort with soft seats and suspension, ensuring a smooth ride over rough road conditions. You get a responsive 10.25-inch central touchscreen with wireless Apple CarPlay and Android Auto. In short, it's comfortable, economical and feels very grown up – a cracking all-round package.
To find out more, read our full Citroen C3 review
Pros
- Distinctive and stylish design
- Comfortable ride quality
- Spacious interior for its class
Cons
- Sluggish performance
- Interior materials feel cheap
Best for: Being the cheapest full hybrid with excellent performance to boot


It's one of the fastest cars in its class too, with old-school hot hatch-rivalling acceleration, which is a bonus if you want fun as well as frugality. This is aimed squarely at cost-conscious buyers who want new-car peace of mind without stretching their budget. It won’t match a Toyota Yaris Cross or Renault Clio E-Tech for interior polish, but if you’re after a simple, affordable hybrid for town driving with strong warranty backing and low cash price, the MG3 Hybrid+ deserves a look. An even cheaper non-hybrid version's on its way, too – but we've not tried that yet.
To find out more, read the full MG3 Hybrid+ review
Pros
- Strong acceleration
- Good spec for the money
- Roomy in the rear
Cons
- So-so interior quality
- A bit unrefined when pushed
- Still an unknown for dealer support
FAQs: Cheapest cars buying guide
Why are there no new cars under £10,000 anymore?
It wasn’t that long ago you could pick up a brand-new car for well under £10,000, but those days are firmly behind us. The reason? A combination of rising manufacturing costs, higher safety and emissions standards, and the global effects of inflation. Even basic new cars must now meet strict rules around crash protection, pedestrian safety and emissions, which require expensive engineering, sensors and software. That drives up the cost of production significantly.
Additionally, customer expectations have evolved. Features like air conditioning, infotainment systems with Apple CarPlay, and active safety tech are now expected even in entry-level models. Manufacturers would struggle to offer a sub-£10k car without removing these essentials, which most buyers would reject. Instead, brands are focusing on offering the best value at a slightly higher price point, which is why the cheapest cars now sit comfortably in the £14,000-£18,000 range.
What is the difference between a car and a quadricycle?
Quadricycles, like the Citroen Ami, are not cars – even though they have four wheels and a roof. They’re classified in law as light quadricycles or heavy quadricycles, depending on weight and power. The Ami, for example, is limited to 28mph and has no airbags or advanced safety systems. As such, it only needs to meet less stringent regulations than a proper passenger car, particularly in areas like crash protection and structure.
That’s why we don’t include the Ami in this list. While it’s the cheapest four-wheeled new vehicle you can buy in the UK, and is fun in the right circumstances, it’s not comparable to the others in terms of usability, comfort, or safety. For urban commuters or short-range drivers it might still be appealing, but it lacks the versatility, space and security expected of an actual car.
What’s the cheapest electric car I can buy?
If you’re looking for an electric car on a tight budget, the Dacia Spring is the cheapest option. It’s currently priced from £14,995. Designed for city driving, it offers a range of around 140 miles and comes with the key essentials – think digital dials, a touchscreen and air-con. It’s simple, no-frills motoring, but that’s precisely what helps keep costs low.
Bear in mind that EVs under £20,000 are still rare, and most electric cars tend to sit in a higher price bracket. That made the Spring something of a gamechanger when launched – especially for urban drivers who want to go electric without breaking the bank. But we find it almost impossible to recommend given its lack of decent safety kit and questionable road manners. A secondhand Corsa Electric makes much more sense.
Are cheap new cars safe?
Yes, in absolute terms. All new cars sold in the UK must pass stringent crash safety tests and meet legal safety requirements. Even the most affordable models typically include features like anti-lock brakes, electronic stability control (ESC), multiple airbags, and autonomous emergency braking (AEB) as standard.
However, cheaper models may not score as highly in independent crash tests such as Euro NCAP compared to more expensive cars. That’s often because they lack optional driver assistance systems. However, safety technology has come a long way, and you can be confident that any new car sold in the UK today meets a basic standard of protection – even the Dacia Spring.
Are any of these cars available with automatic gearboxes?
Yes, several of the cheapest new cars on the market offer automatic transmissions, though usually as an optional extra, and not always on the base trim. Models like the Hyundai i10 and Toyota Aygo X can be ordered with an automatic, while the MG3 Hybrid+ comes with one as standard due to its hybrid drivetrain.
Automatic versions usually cost more than their manual counterparts, and they may also slightly reduce fuel economy. However, they make driving in heavy traffic more relaxing and are increasingly popular with urban buyers. Just be sure to double-check which transmission options are available for the trim level you’re interested in, as it might significantly jack up the price.
Why are so many of the cheapest cars made by Dacia?
Dacia has become a household name for budget-conscious buyers by offering no-frills, reliable transport at a fraction of the cost of many rivals. It achieves this by using tried-and-tested Renault components, keeping design and tech simple, and minimising options that would push the price up. That’s why the Sandero, Sandero Stepway and Spring dominating the entry-level market
Rather than chasing premium aspirations, Dacia is refreshingly honest about what it offers: good-value motoring that focuses on functionality over flair. You might not get all the bells and whistles, but you’ll get a solidly built car with everything you need for day-to-day use – and often with surprisingly good space and practicality for the money.
Is it better to buy a cheap new car or a secondhand one?
That depends on your priorities. A new car will come with a full manufacturer warranty, zero mileage, and the peace of mind that it hasn’t been abused by a previous owner. You’ll also get the latest safety tech and infotainment features, and won’t need an MoT for the first three years – all of which make for a lower-stress ownership experience.
On the other hand, a used car can offer more size, power or features for the same budget – or much less. A lightly used example of a bigger or more premium model might appeal if you value comfort or performance. But remember, used cars come with the risk of hidden faults, wear and tear, and reduced warranty coverage. Weigh up the pros and cons carefully based on how you plan to use the car.
Are finance deals available on these cars?
Yes, most of the cars listed here are available with PCP (Personal Contract Purchase) or PCH (Personal Contract Hire) or more traditional car finance deals. Monthly payments can be surprisingly low, especially on cars with stronger residual values. Some manufacturers even offer 0% finance on selected trims – though that often requires a larger up-front deposit.
If you’re looking to keep costs down month-to-month, finance can be a useful option – just be aware of the total amount payable over the term. The cheapest monthly figure may involve a balloon payment at the end of a PCP deal or restrictions on annual mileage. As always, shop around and compare offers from dealers and independent brokers before committing.
Will these cars be banned in cities in future?
There’s growing concern about air quality, and some cities are introducing restrictions on older petrol and diesel vehicles – but the good news is that all the cars on this list meet the latest emissions standards. That means they’re currently allowed in places like London’s ULEZ (Ultra Low Emission Zone) without additional charges.
However, rules are evolving, and some cities are considering tighter regulations or even zero-emission zones in the coming years. If you mostly drive in urban areas, it might be worth looking at hybrid or fully electric options like the MG3 Hybrid+ or Leapmotor T03 to future-proof your purchase. As ever, check with your local authority for the latest info.
Which of these cars is best for motorway driving?
While all the cars in this list are capable of motorway use, some are better suited than others. The Dacia Sandero, Hyundai i10 and Kia Picanto, for example, offer relatively good refinement and comfort for the class, and can cruise at 70mph without too much fuss. They’re great choices if you occasionally need to head out of town.
Cars like the Leapmotor T03 and Dacia Spring are more at home in city environments. Their lower power output and limited range (for EVs) make them less ideal for long-distance journeys. If you’re planning to do regular motorway miles, it’s worth prioritising a car with a bit more power and comfort — even if it costs slightly more upfront.
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