The best new cars for under £100 per month

We've scoured the market for the top car deals in the UK to find the best cars you can get for £100 per month or less

Even though new car sales dipped in the last 18 months, there's still plenty of demand for cheap motoring. Thanks to large-scale manufacturing pushing down car prices, buying a brand-new vehicle has become incredibly affordable, with the cheapest deals around enabling motorists to drive away for less than £100 per month.

Hunting through each manufacturer's website or scouring the forecourts trying to find such deals is a time-consuming affair, which is why we have collated this list of best new cars for less than £100 per month.

It wasn’t that far back in the history books when buying a cheap car meant you had to drive around in abject misery, winding windows by hand, relying on your passengers' musical talents for entertainment and enduring awful levels of comfort. Thankfully, demand from customers has raised the standard of cheap cars, meaning you can now part with relatively little amounts of money, for relatively large amounts of enjoyment.

A number of buyers are viewing these bargain basement deals as an alternative to used cars. After all, they come in at similar cost but are brand new with a full warranty attached. A great example of this is the Dacia Sandero, which has a rock bottom list price of less than £7,000, a sum which makes it the cheapest new car in the UK and an incredibly tempting alternative to a used £7k hatchback.

All of the cars in this list are either city cars or superminis, such as the SEAT Mii and Suzuki Ignis. They do come with the compromises associated with a small body and engine, but many are surprisingly spacious and you won't feel too short-changed downsizing from something larger.

Most city cars are refined, comfortable and good to drive, too - and may even save you money in the long run with superior fuel economy and insurance costs. 

All the cars listed here are offered on finance deals known as Personal Contract Purchase (PCP) schemes – so you pay a deposit at the start, followed by monthly payments. Deposits are normally flexible and can be as little as a single monthly payment. At the end of the payment term, there are normally three options - you can trade the car in for a deposit against a new model, or pay a final payment to buy the car outright. You can also simply hand the keys back and part ways.

Best cars for under £100 a month 2018

Kia Picanto - £97.97 per month

While the £100 per month limit will only stretch to the base-spec Picanto 1, Kia’s smallest offering is an incredibly practical city car in any trim. Available only as a 5-door, with four and five-seat options, the Picanto has plenty of rear legroom for adults and has a class-leading 255-litre boot.

While the 66bhp 1.0 petrol is rather lethargic, the Picanto is good to drive and is refined. The ride can be choppy around town but the quiet engine and excellent turning circle more than make up for it. Most impressively, the Picanto comes with Kia’s outstanding 7-year/100,000 mile warranty.

  • Model: Kia Picanto 1 1.0 Manual
  • Monthly payments: £97.97
  • List price: £9,720
  • Deposit: £2,500
  • Deposit contribution: £650
  • Mileage limit: 6,000
  • Instalments: 37
  • APR: 5.9%
  • Optional final payment: £3,982.50
  • Total to pay: £10,659.42

Suzuki Ignis - £98.81 per month

A real breath of fresh air in the supermini class, the funky Suzuki Ignis combines SUV looks with city car size. While the styling won’t be to everyone’s taste, there’s no denying it’s a striking looking car and a great way to stand out.

As with all Suzukis, the Ignis comes with plenty of equipment, even in the base SZ3 model. Air con, automatic headlights, and Bluetooth are all included and the 1.2 Dualjet petrol engine is good for a claimed 61mpg combined. The spacious interior is a little plasticky and the engine is noisy but the Ignis still represents great value.

  • Model: Suzuki Ignis SZE
  • Monthly payments: £98.81
  • List price: £10,499
  • Deposit: £2,500
  • Deposit contribution: £0
  • Mileage limit: 6,000
  • Instalments: 37
  • APR: 6.9%
  • Optional final payment: £5,877
  • Total to pay: £11,934.16

SEAT Mii - £99.41 per month

Along with its sister cars, the VW up! and Skoda Citigo, the SEAT Mii redefined standards in the city car class. The quality can be felt throughout, most notably in the way it drives. The good ride and sharp handling do a great job of compensating for the 1.0-litre engine’s modest performance so the little Mii is great fun in town or out on a twisting country road.

Best of all, even on the base-spec Design model, the Mii comes loaded with equipment. All paint options are free, and alloy wheels are standard along with the superb Beats Audio sound system. The glossy interior is roomy too despite the Mii’s tiny dimensions. The SEAT is a premium-feeling car for a smidge under £100 per month.

  • Model: SEAT Mii Design 5dr 1.0 12V 60PS Petrol
  • Monthly payments: £99.41
  • List price: £11,190
  • Deposit: £3,300
  • Deposit contribution: £0
  • Mileage limit: 6,000Instalments: 48
  • APR: 0%
  • Optional final payment: £3,217.50
  • Total to pay: £11,190

Dacia Sandero - £100 per month

The entry-level Dacia Sandero has the title of the UK’s cheapest new car, but that boggy-basic model isn’t what we have here. This is the Comfort model, which sits proudly at the top of the range, costing £8,795 – assuming you buy it outright.

The Sandero has long been popular with motorists who yearn for practicality and value for money. While all Sanderos are tough hatchbacks, the Comfort comes with DAB radio, a seven-inch touchscreen with sat nav, and rear parking sensors. The driving experience is predictable and safe rather than fun and exciting, but then again, with such rock-bottom prices, who cares?

  • Model: Dacia Sandero Comfort SCe 75
  • Monthly payments: £100
  • List price: £8,795
  • Deposit: £2,705
  • Deposit contribution: £250
  • Mileage limit: 6,000
  • Instalments: 37
  • APR: 4.9%
  • Optional final payment: £2,873
  • Total to pay: £9,443

Fiat 500 - £100 per month

The cute and retro Fiat 500 remains the city car of choice for fashion-conscious buyers, despite its relatively high price tag for such a small car. That said, the stylish 500 can be had for just £100 per month if you don’t mind settling for the base model.

The entry-level Pop lacks some of the kit found in higher spec cars, but retains the 500’s character and sense of fun. The punchy little 68bhp 1.2 likes to rev but becomes noisy on the motorway, while the nimble handling and soft suspension are well suited for town driving. Inside you find a classy painted dashboard and lashings of chrome as standard. Countless customisable options are also available to make your car really stand out.

  • Model: Fiat 500 1.2 Pop
  • Monthly payments: £100
  • List price: £11,810
  • Deposit: £3,367.17
  • Deposit contribution: £0
  • Mileage limit: 6,000
  • Instalments: 48
  • APR: 0.8%
  • Optional final payment: £3,952
  • Total to pay: £12,019.17

What's the best deal you've ever got on a new car? Tell us about it in the comments section below...

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