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
A brand new car for less than £200 per month is easier to find than you may have first thought. Thanks to a variety of affordable finance deals there are some genuine bargains to be found, and we’ve done the hard work for you.
The up-front price of a car has become less and less relevant in recent times. For most motorists, it’s about how much they’ll have to pay a month to get behind the wheel, and one of the most popular ways to do this is leasing.Â
Also known as Personal Contract Hire, leasing is best thought of as a long-term rental agreement, because you never own the car. Leasing is ideal for people who are happy to hand back the vehicle at the end of the agreement. It lets them take advantage of typically lower monthly payments than a Personal Contract Purchase (PCP) or Hire Purchase (HP) arrangement because you aren’t building up any equity to own the car in the end. That said, there are some tempting PCP and HP offers out there if you do ultimately want to take ownership of the car.
These prices are representative of the kind of deals that are available on the UK market at the time of publication. For each model, we've linked to our Auto Express Find a Car deals pages. These pull together the best deals from a range of top providers so that you can find out exactly what's available right now.
Citroen C3 Origin - £168 per month
- Model: C3 Origin 1.2 PureTech Plus
- List price: £21,990
- Powertrain: 1.2-litre 3-cylinder petrol, FWDÂ Â
- Power: 83bhpÂ
- 0-62mph: 12.5 seconds
The cheapest lease we could find using our benchmark terms is a bit of a shock, because the Citroen C3 undercuts a host of city cars, including Citroen’s own Ami. Don’t confuse this Citroen C3 Origin with the all-new model, though, because the main reason for this bargain price is because it is the outgoing car and stocks are being cleared.
Even so, it is temptingly cheap if you only want a basic supermini. An advanced payment of just over £1,000 and less than £170 a month gets you a modern-looking and spacious hatch. As with all of the Citroen range, the C3 has been tuned for comfort rather than driving fun, which means it suits anyone who usually winces when they see a pothole. The 83bhp 1.2-litre engine won't suit enthusiastic driving, especially because it’s not that economical when compared with rivals.
See our Citroen C3 Origin dealsÂ
Dacia Spring - £199 per month
- Model: Spring Expression 65
- List price: £15,995 Â
- Powertrain: 27kWh battery, 1x e-motor, FWD
- Power: 64bhp Â
- 0-62mph: 14.0 seconds
Cars don’t get much cheaper than the Dacia Spring. The electric city car costs around the same as a petrol-powered rival to buy outright, and leasing costs are comparable too, starting at £186 for the lower-powered 45 model. We’d recommend finding the extra £12 per month needed on a lease to get the 65 though, which makes the Spring nippier.
While the Dacia EV might cost the same as a petrol rival to lease or buy, the real savings come with the running costs. Top up the battery overnight using a cheap energy tariff and it will cost less than £2.50, but could take you more than 130 miles. That’s the equivalent of about 260mpg in a petrol car. The Spring is fairly practical, too, and although the rear-seat space is tight, the 308-litre boot is bigger than some models from the class above.
Hyundai i10 - £195 per month
- Model: i10 1.0 Advance
- List price: £16,030
- Powertrain: 1.0-litre 3-cylinder petrol, FWDÂ Â
- Power: 66bhpÂ
- 0-62mph: 14.8 seconds
City cars with petrol engines are a dying breed, but the Hyundai i10 is our favourite. It might have a small price and tiny dimensions, but the i10 has a remarkably grown-up feel and is surprisingly spacious for a city car, with enough room for four adults and a couple of small suitcases.
Our sub-£200-per-month budget will only stretch to the very cheapest i10, called the Advance. But even on this entry-level model the standard kit is extensive, including 15-inch alloy wheels, an eight-inch touchscreen with Apple CarPlay and Android Auto, a multifunction steering wheel, keyless entry, rear parking sensors and even a reversing camera.
However, the 66bhp three-cylinder engine makes do without any hybrid help, so it can feel stretched once you venture onto faster roads.
Nissan Leaf - £180 per month
- Model: Leaf N-Connecta
- List price: £30,945 Â
- Powertrain: 39kWh battery, 1x e-motor, FWDÂ Â
- Power: 147bhp Â
- 0-62mph: 11.5 seconds
Surely this can’t be right – a brand-new family-sized electric car that costs less per month than the cheapest petrol city cars? We double checked and there is no catch, but you will have to be quick if you want one.
The Nissan Leaf went out of production last year but the company is still clearing stocks at knockdown prices, which means it looks like a real bargain. Even the range-topping Tekna comes in below our budget, at £194.13 per month, but the N-Connecta and Shiro models are almost as well equipped and cost just £179.89.
The range of 168 miles and a 50kW maximum charging speed look a little low compared with more modern EV rivals, but will still be enough for many motorists. The running costs are minuscule as long as you can top up the battery at home. If you are currently spending more than £120 a month on fuel for your old petrol-powered banger, the low leasing cost of the outgoing Leaf might look irresistible.
Renault Clio - £176 per month
- Model: Clio 1.0 TCe 90 Evolution
- List price £18,595 Â
- Powertrain: 1.0-litre 3-cylinder petrol, FWDÂ Â
- Power: 89bhp Â
- 0-62mph: 12.5 seconds
Surprisingly, the Renault Clio’s lease cost undercuts most alternatives with lower list prices, including the Renault’s relations from budget-brand Dacia. It feels like a proper car compared with smaller alternatives, too.
The latest facelift has added more style and brought the looks bang up to date, while the interior has also been upgraded. The tech essentials are fitted as standard, too, with two seven-inch screens, plus smartphone links. There is lots of space in the front, and while the rear seats will be a little tight for adults, kids will rarely complain. The boot is where the Clio really lifts itself above the city-car rivals, though: at 391 litres, it’s bigger than a Volkswagen Golf’s.
Our £200 budget is only going to get you the entry-level TCe 90 model, which has an 89bhp three-cylinder engine paired with a six-speed manual gearbox. Performance is adequate, though, and it’s also reasonably refined.
Suzuki Swift - £199 per month
- Model: Swift 1.2 Motion
- List price: £19,199
- Powertrain:Â 1.2-litre 4-cylinder petrol, FWDÂ
- Power: 81bhpÂ
- 0-62mph: 12.5 seconds
You might expect a car with hybrid technology to be out of our budget, but the Suzuki Swift sneaks in just 70p per month below our £200 limit, with an initial payment of £1,388.78. That gets you the cheapest Motion trim, but it's a car with a list price of more than £19,000 and the generous kit list includes heated front seats – something that is usually reserved for top-spec versions of rivals.
The engine’s specification stacks up well, too, with the mild-hybrid system giving the four cylinders a helping hand. This, together with the Swift’s light weight, helps achieve an impressive 64.2mpg fuel economy figure. It also means the Swift is great fun to drive; while it’s no hot hatch, the way the steering and chassis have been tuned means the Suzuki is more rewarding than any other budget car on a twisty B-road.
More of the best new car deals
- Best cars for under £200 a month
- Best cars for under £300 a month
- Best cars for under £400 a month
- Best cars for under £500 a month
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