Although usually it’s much pricier to buy a new car rather than a used car, searching at the cheaper end of the market reveals that there are still some good deals out there. And that applies whether you’re using a car finance lender to make monthly payments with a PCP or lease, or forgoing finance deals and buying outright.
At the cheapest end of the spectrum, car buyers can say goodbye to brands such as Ford, Volkswagen and Audi, but there are still some great new cars on offer, in a range of body styles. City cars and small hatchbacks can be had for bargain-basement prices, most with useful features such as air conditioning and parking sensors. What’s more, because the cars on this list tend to be small, they are also generally quite light, which means good mpg (if indeed they use liquid fuel at all, because plenty of the cheapest cars on offer these days are electric). Throw in the fact that all will come with a warranty, and you have the potential for tiny running costs.
With that said, here are details of the 10 cheapest new cars on sale in the UK. The prices in this guide are regularly checked and updated, however do note that they are subject to change. Keep scrolling down the page for more information about each car.
The 10 Cheapest New Cars in the UK
- Citroen Ami (from £7,695)
- Dacia Spring (from £11,990)
- Leapmotor T03 (from £12,995*)
- Dacia Sandero (from £14,765)
- Dacia Sandero Stepway (from £16,065)
- Kia Picanto (from £17,095)
- MG 3 (from £17,495)
- Hyundai i10 (from £18,350)
- BYD Dolphin Surf (from £18,675)
- Fiat Grande Panda (from £18,995)
*: After temporary self-funded grant, see below for more details
1. Citroen Ami - from £7,695
Fancy a lightweight two-seater with electric performance, for just eight grand? Well, you can have just that. OK, OK, so the Ami isn’t exactly the sort of two-seater you probably had in mind. Instead, it’s a tiny electric car (technically classed as a quadricycle) designed specifically for gadding about town. And that really is all it’s useful for, given that its top speed is limited to just 28mph, and it has a range of just 46 miles on a good day. But as a cheap runabout for second-car use, it could be handy for commutes, school runs, or trips to the supermarket. Just be aware that while the Ami is zero-emissions, it also offers close to zero comfort, with no air-conditioning, a bumpy ride and the kind of glacial acceleration that could well irritate fellow motorists.
Citroen Ami Review
2. Dacia Spring - from £11,990
Who said electric cars are expensive? For quite some time now, it's been a persistent battle between the Dacia Spring and the Leapmotor T03 EVs for the title of cheapest 'proper' car on our list (sorry, Ami!). The bragging rights have gone back and forth seemingly countless times, with both brands repeatedly employing aggressive tactics, including the introduction of temporary self-funded grants in an effort to undercut each other. But right now, those bragging rights sit with Dacia, because while Leapmotor have recently introduced yet another self-funded discount (more on that in a moment), Dacia has, as of July 2026, decided to just slice a whole four grand off the price of the Spring, taking the entry price down to just £11,990. Yikes. The Spring has recently been revised (although you wouldn't know it as it looks absolutely identical to before) and significantly improved, with a new battery and uprated powertrains. The base version now has 68bhp and can cover 0-62mph 12.3 seconds, rather better than the 20-odd seconds of the old entry-level Spring. The range stands at 140 miles.
3. Leapmotor T03 - from £12,995 (after self-funded grant of £3,000, base price £15,995)
We've just been talking about the rivalry between the Dacia Spring and the Leapmotor T03 at this end of the new car market, and the temporary self-funded grants that both brands have previously used in order to undercut each other on price. And as of July 2026, Leapmotor doubled the grant offered previously on the T03 from £1,500 to £3,000, taking the price of the car down to £12,995. However, that's been trumped by Dacia's decision - at pretty much the same time - to simply slice a cool four grand from the list price of the Spring, giving the Romanian brand the advantage right now. That said, we're absolutely convinced that Leapmotor's marketing bods are already busy thinking up clever new ways in which they can undercut the Dacia once again, continuing the brinkmanship between the two firms. And if - or inevitably, when - that happens, those bragging rights we mentioned will likely change hands yet again: don't worry, we'll keep you posted. It's not quite that simple, though. While the entry-price of the T03 is now significantly undercut by the Spring, the Leapmotor is more comparable - in terms of power, performance, and equipment level - with the higher-grade version of the Spring. But Dacia's price cuts mean that even the equivalent version of the Spring now undercuts the T03, albeit by just a fiver. Over to you, Leapmotor.
Leapmotor T03 Review
4. Dacia Sandero - from £14,765
The Sandero's position on this list has moved up and down in recent years (we update it as often as we can to reflect regular price changes). It once stood at the very top, famously, and although it's no longer as headline-grabbingly affordable as it once was, it still ranks as the cheapest car of its size and, crucially, it doesn’t feel quite as bargain-basement as it actually is thanks to a well put-together interior and some upmarket design cues. Beneath the skin sit proven Renault mechanicals, and it’s decent to drive, too, with slick handling and a reasonably comfortable ride that makes it perfectly tolerable not only on short A-to-B urban runs, but also longer motorway journeys. And if you’re willing to pay a bit more, you can upgrade to the Sandero Stepway, which gains a taller ride height and chunky SUV-esque looks.
Dacia Sandero Review
5. Dacia Sandero Stepway - from £16,065
The Dacia Sandero Stepway is a jacked-up version of the Sandero supermini that features higher up on this list. It’s still not a proper SUV like Dacia’s Duster, but with its chunky body cladding and moderately elevated ride height, the idea is that it takes on some of that aesthetic, and in fairness, it does a pretty good job in that regard. Like the regular Sandero, it also boasts a modern interior and decent driving characteristics. If you're in the market for a small crossover with a very competitive list price, the Sandero Stepway is far from a bad option.
Dacia Sandero Stepway Review
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6. Kia Picanto - from £17,095
The Kia Picanto used to sit a bit further towards the top of this list, but a recent facelift has brought modest price hikes that have seen the car shuffle down the order a bit. Having said that, the facelift means the Picanto is now better - and better looking - than ever, and the fact that it's still cheap enough for inclusion on this list is good news. Even in its most basic of trim levels, the Picanto is a great little car to drive, with perky handling and a reasonably comfortable ride. Then there’s the space: like its close relation, the Hyundai i10 (see below), the Picanto is a roomy little car, with space for four adults and a usefully sized boot. It boasts excellent fuel economy and a very low insurance group, too, and while the entry-level version isn’t very well equipped, you do get most of the essential stuff, plus a robustly built and smartly styled interior. Oh, and the Picanto comes with a whopping seven-year warranty. Think of it this way, then: you’re paying £2,442 for each year of warranty, and you get a free brand-new car thrown in. What a deal!
Kia Picanto Review
7. MG 3 - from £17,495
When this second-generation version of the MG 3 supermini was first released in mid-2024, it was offered exclusively with a self-charging-hybrid powertrain. And while it was impressively affordable for a hybrid, the sophistication of the running gear on board prevented it from being cheap enough for this list. MG has sorted that now, though, and the Hybrid+ version has been joined in the MG 3 range by a petrol-only version. This version is even cheaper as a result, to the tune of around two grand, and that wedges the car firmly within our list of the cheapest cars on sale. We haven’t driven this derivative yet, but the numbers sound fairly promising. It has a 1.5-litre engine with 113bhp, making it capable of 0-62mph in 10.8 seconds, and official WLTP figures say it’ll return an average of 46.3mpg. We also expect the same mix of smart styling, impressive quality, decent practicality and generous equipment that we observed with the Hybrid+ version.
MG 3 Review
8. Hyundai i10 - from £18,350
Like most of the other cars here, the Hyundai i10 is designed for use in the city, but inside it majors on practicality and interior space, which means you can fit in four adults – and a decent amount of luggage – with relative ease. What’s more, the i10 can boast one of the smartest interiors of any car on this list, with high-quality materials that belie its price. And while it isn’t quite as sharp to drive as some of its rivals, it’s perfectly pleasant, not to mention surprisingly comfortable for such a small car, and competent on the motorway, too. But the real cherry on the cake is the five-year, unlimited-mileage warranty.
Hyundai i10 Review
9. BYD Dolphin Surf - from £18,675
The BYD Dolphin Surf may have an utterly absurd name, but that kinda suits the cheerful, happy-go-lucky character of this charming little electric city car form China. The entry-level Active version is still impressively well equipped, with vegan-leather upholstery, a 10.1-inch rotating touchscreen, Apple CarPlay and Android Auto. It's 30kWh battery also makes it good for an official WLTP range of 137 miles, which isn't bad for the money. It's impressively practical for such a small car, too: there are only four seats, but they're surrounded by a good amount of room, and there's a very decent 308-litre boot. What's more, it's an easy car to drive, with light controls, a comfortable ride and strong refinement.
BYD Dolphin Surf Review
10. Fiat Grande Panda - from £18,995
In truth, we could've included two Fiat models in this berth on our list, because the entry-level versions of the Grande Panda and the new petrol-powered 500 (it was previously only available in EV form, until a petrol powertrain was retro-fitted) have exactly the same starting price. However, we've gone for the Grande Panda here because it has a superior powertrain, better practicality, and it's just as stylish as the smaller 500. But, if the retro styling of the 500 is more your jam, then you have that option, too. Go for the Panda, and your nineteen grand (less a fiver) gets you a 108bhp mild-hybrid powertrain with fuel economy of around 56mpg, and standard equipment including rear parking sensors, air-conditioning, and a 10.25-inch touchscreen infotainment system. It's a comfortable and characterful little car to drive, too, so once you're done feeling smug about how little you've paid for it, you'll enjoy driving it and owning it, too.
Fiat Grande Panda Review
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(All prices correct at time of publication but are subject to change and should be independently verified by checking the relevant manufacturer websites.)
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