Best new cars for under £200 per month

If you've got £200 to spend on a new car every month, here's our pick of the best options out there

A brand new car is in reach of more people than ever these days, and thanks largely to the popularity of affordable finance deals you can get behind the wheel of a variety of cars for less than £200 per month.

With so many manufacturer offers to choose from, we’ve trawled the internet to seek out some of the best cars available for a sub-£200 monthly budget, including some of our most highly-rated new cars in the supermini and crossover sectors like the Renault Clio, Ford Fiesta and Volkswagen T-Cross.

We’ve shared a range of manufacturer promoted offers, some of which are available online, while others can be negotiated during a visit to your local showroom. The cheapest monthly deals are invariably Personal Contract Purchase (PCP) schemes, which charge monthly fees for two to four years while you drive the car. You are then offered the choice of handing it back to the dealer or making a final lump sum payment to keep the car for good.

Whatever the type of car you’re looking for, be it a sports car, hot hatch or SUV, you’ll find PCP schemes are typically available on all of them. One of the major benefits of using such schemes is the inherent flexibility. You can negotiate deposit figures up or down, tailor the agreement length, and factor-in variables such as your predicted annual mileage and included maintenance or service plans, all of which have a bearing on your monthly payments.

• Car finance deals explained

All the above makes PCP schemes great for people who want to stretch the money as far as it will go, and buy a car that might otherwise be out of reach of their budgets. However if you want the lowest monthly payments you’ll need to put more into the initial deposit – and many people will be limited to the value of the old car they’re selling or trading-in.

As always, you must be careful not to over stretch your finances as it is all too easy to get swept away and sign for a car you can’t necessarily afford. Another thing to note is dealer interest rates, which affect your expenditure further down the line.

You also need to consider that at the end of your PCP finance plan, the vehicle won’t belong to you. You’ll have the choice of buying it outright for a fixed sum agreed in advance with the dealer, but if you don’t want it then you’ll simply hand back the keys. So think carefully about whether you’re using the deal to take full ownership of the car, or whether you just want access to it temporarily before moving on to a newer model.

Best new cars for under £200 per month

Ford Fiesta - £175 per month

  • Model: Ford Fiesta 1.0 125PS Trend
  • List price: £18,760
  • Deposit: £5,333 (£1,000 contribution)
  • Monthly payments: £175
  • Number of payments: 36
  • APR: 0.0%
  • Optional final payment: £6,127
  • Total to pay by customer if returning: £12,633
  • Total to pay by customer if buying: £18,760

There’s a lot of competition around in the supermini sector, but the Fiesta as usual is near the top of the heap.

As befits a class-leading supermini the small Ford offers loads of practicality for its size, as well as being very affordable to own and run. It’s got a great range of engines too, while an agile, nimble chassis means it’s more fun to drive than rivals. Latest versions have brought improvements to the quality feel in the cabin, upgrades to the onboard infotainment systems and more interior space, which together help to keep this Ford family favourite at the head of the pack. A zero per cent finance offer makes this a good time to buy.

• Check out the latest used prices for the Ford Fiesta on our sister site Buyacar…

VW T-Cross - £189 per month

  • Model: Volkswagen T-Cross 1.0 TSI 95PS S
  • List price: £20,210 Deposit: £4,915 (£1,000 contribution)
  • Monthly payments: £189
  • Number of payments: 47
  • APR: 5.4%
  • Optional final payment: £7,727
  • Total to pay by customer if returning: £14,808
  • Total to pay by customer if buying: £22,534

Like many cars within the VW Group, the T-Cross SUV shares a platform with its SEAT and Skoda siblings – in this case the Arona and Kamiq respectively.

Where the SEAT boasts sharp steering and the Skoda prioritises practicality, the VW sits somewhere in between. Its badge will attract plenty of buyers, but there’s substance to go with it; the T-Cross boasts an intuitive infotainment system and a spacious interior.

The range of engines is somewhat limited, but the small-capacity turbo petrol pulls the car along with reasonable efficiency and should suit most small SUV buyers down to the ground.

• Check out the latest used prices for the VW T-Cross on our sister site Buyacar…

Vauxhall Corsa - £195 per month

  • Model: Vauxhall Corsa 1.2 75PS SE
  • List price: £16,965
  • Deposit: £2,389 (£750 contribution)
  • Monthly payments: £195
  • Number of payments: 47
  • APR: 3.9%
  • Optional final payment: £6,209
  • Total to pay by customer if returning: £12,304
  • Total to pay by customer if buying: £18,513

The latest Vauxhall Corsa is a class-leading supermini that’s benefitted hugely from sharing the underpinnings of the latest Peugeot 208, and it’s a step-change from a rather lacklustre model that preceded it.

The Corsa now offers an extremely well-rounded blend of good driving feel, economy, performance and comfort, and it boasts plenty of up-to-date on-board technology too.

We’d pick the basic 1.2-litre petrol engine thanks to its impressive mix of efficiency and performance, and Vauxhall offers a Corsa SE 1.2 on a four-year PCP scheme with competitive payments of £195 per month. The deal includes a £750 deposit contribution, but you need to stump up £2,389 yourself.

• Check out the latest used prices for the Vauxhall Corsa on our sister site Buyacar…

Citroen C3 Aircross - £199 per month

  • Model: Citroen C3 Aircross  PureTech 110 S/S Feel
  • List price: £15,590 (£3.600 discount)
  • Deposit: £2,190
  • Monthly payments: £199
  • Number of payments: 47
  • APR: 3.9%
  • Optional final payment: £5,650
  • Total to pay by customer if returning: £11,543
  • Total to pay by customer if buying: £17,193

The Citroen C3 Aircross is a fashionable and quirky crossover version of the C3 supermini, so it shares all its smaller sibling’s running gear and engineering but tops it off with an attractive yet practical body that’s looks like a cross between an MPV and an SUV.

It’s as roomy inside as the old C3 Picasso, and well equipped even in entry-level Feel trim with 16-inch alloy wheels and a seven-inch touchscreen. It looks the part too, thanks to a range of body styling parts that give the Aircross an adventurous and sporty demeanour.

Buy via a PCP from Citroen’s online store, and discounts are already baked in. Our example includes £3,600 off the list price of a 1.2 petrol Feel, which brings it just under our £200 monthly limit.

• Check out the latest used prices for the C3 Aircross on our sister site Buyacar…

Renault Clio - £199 per month

  • Model: Renault Clio Play SCe 75
  • List price: £15,895
  • Deposit: £1,810 (£500 contribution)
  • Monthly payments: £199
  • Number of payments: 48
  • APR: 4.9%
  • Optional final payment: £5,967
  • Total to pay by customer if returning: £11,862
  • Total to pay by customer if buying: £17,829

The Renault Clio has always been a popular choice with British buyers, offering style, practicality and affordable running costs. In its latest iteration the Clio is our star of the supermini class, offering terrific cabin quality, high specifications and a fun drive to its more established credentials.  

Every Clio is fitted with LED headlamps, cruise control, electric folding mirrors and lane-keep assistance, and comes with sharp updated styling that’s got loads of showroom appeal. Choose an entry-level Play with the basic 1.0-petrol engine and manual gears, and a £500 contribution from Renault added to your £1,800 deposit delivers a £199 monthly payment on a four-year PCP.

• Check out the latest used prices for the Renault Clio on our sister site Buyacar…

Looking for more new car deals? Check out our comprehensive round-up of the best car deals available right now...

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