Like with most things, you’re getting what you pay for here, as the Up more than lives up to its relatively high price. Engine choice is the same too, with a 1.0-litre 72hp petrol the only option across both ranges. That said, the cheapest 1.0-litre engine isn’t particularly powerful, so you’ll need to work it hard to make swift progress, which increases fuel consumption.

A safety pack is also a good idea because the Panda’s safety credentials aren’t up to standard you’d expect in a modern car. In entry-level 1 specification, you’ll have steel wheels and no air-conditioning, but the front windows are electric. Fiat used rounded-off squares liberally when designing the Panda, and there are a host of quirky touches to find.

Total amount payable to buy car: £11,926 It’s also worth noting that all the cars listed below are powered by petrol engines, which are usually best suited to those who cover lower mileages rather than people planning to trawl up and down the motorway all day, every day. Even at the lowest price point, the Up comes with alloy wheels, air-conditioning and a five-inch media display with a digital radio and Bluetooth connectivity for your smartphone. Monthly finance from £110** There’s also a selection of useful safety equipment on board including airbags, anti-lock brakes and two Isofix points in the back to safely attach child seats.

For similar money to an all-out TV package with entertainment and sports channels, you could drive away in a brand new car. **Representative PCP finance — Ford Fiesta: But if a low-cost, brand new car appeals to you, then take a look below at the cheapest models you can buy. At least the engine is a modern 1.0-litre mild hybrid petrol; with the tiniest bit of electrical assistance, and the Panda is comfortable on longer trips. The cheapest version of each comes with three doors — five-door models cost more. Used deals from £6,290 VW Up list price from £13,250* So if you keep it for that long — without the worry of major repair bills — the list price works out at just £1,635 per year, which is excellent value.

The cheapest Fiat Panda is still quite basic, but at least it now includes air-conditioning and a touchscreen to connect your phone to. The 108 comes with a three-year warranty instead of the ten years of cover available with the Aygo (previously five years), but both cars have a similar level of equipment including electric front windows and a USB socket. The 108 gains its place on this list because it’s £1,135 cheaper than the Aygo, but the well-equipped and well-warrantied Toyota is well worth a look too. You’ll likely need to pay a bit more for things like air-conditioning, Bluetooth or even remote central locking in some cases, while smaller cars tend to be cheaper than larger alternatives.

Monthly finance from £129** Officially confirmed for the UK, the Ami is an electric quadricycle that’s projected to start from just £6,000. The cheapest SE trim is also equipped with features such as cruise control, a digital radio and air-conditioning, while more expensive versions add luxuries such as a heated steering wheel, Android Auto and Apple CarPlay. Of the many available options, we think it’s worth going for the safety pack and the pack that adds split-folding rear seats and a fifth seat if you can afford it, as the latter will make the Panda more versatile.

Peugeot 108 list price £12,785* Deposit: £0 The manufacturer dropped the entry-level Explore trim, meaning the cheapest option is now the Excite model starting at over £12,000.

Britain's cheapest new cars 2021

A brand new car for less per month than a number of TV subscriptions? Yes, it can be done; these are Britain's cheapest new cars


p> Used deals from £5,450 You would have to put up with a 28mph top speed and a relatively short electric range, however, so a used petrol or electric car would still make more sense for the majority of people. Equipment might be sparse, but it feels well-built, and the Picanto has recently been updated, so the newest models will feature improvements to the engine, styling and interior tech. The Up once shared much of its mechanical parts with the now electric Seat Mii and Skoda Citigo, which are both still available in their original petrol guises on BuyaCar with some excellent value used car deals available. It makes use of small engines from Dacia’s sister brand Renault, and does away with practically everything that isn’t needed to make the car move.

Used deals from £4,790 Buying a new car can get pretty expensive very quickly, but you don’t have to spend big money to get a flashy car with all the kit. Monthly finance from £120** Monthly finance from £112** It may be small, but it feels very upmarket. In reality, it’ll probably still be worth a reasonable amount at this stage, which will reduce the overall cost further.

Every Kia Picanto comes with a seven-year warranty. Our rates start from 6.9% APR. There’s no real tech to speak of, with only power steering on hand to make give you a sense that you are still in the 21st century. Hyundai i10 front three quarters view There’s also a height-adjustable driver’s seat, Isofix child seat mountings, electric front windows and a one-piece folding back seat. Now there’s a new version, but it’s still cheaper than anything else you can buy — by quite a margin — at £9,845.

This will open the doors to diesel models, more powerful engines, and even more kit like heated seats, cruise control and large touchscreens. You would be forgiven for feeling like you’re driving something much bigger — this is a very capable small car. The rate you are offered will depend on your individual circumstances. Used deals from £4,944 Anyone looking for strong performance for this kind of price, though, would be better off opting for a cheap used hot hatchback, as there are some fantastic options for less than £12,000. The ride of this MG is a little firm and bumpy while the engine needs to be worked hard for maximum performance, though it is very quick for a new car of this price.

48 monthly payments of £192 Used deals from £5,698 It’s a more practical alternative to the retro Fiat 500, with more space for passengers and their things. You don’t even have to get a brand new car. The Peugeot 108 shares the same mechanical parts as the Citroen C1 and Toyota Aygo above, but it is more expensive due to having been more recently updated.

Opting for a finance deal can make things even more affordable. These are available in the UK but don’t have the same profile as proper cars — although the new Citroen Ami may change that. You get an industry-leading 10-year warranty and even the £13,920 entry-level Aygo x-play specification offers smartphone integration and a reversing camera.

The C1 closely resembles the 108 in terms of shape, though the 108 is 9mm longer, but they offer near identical interiors and boot space. There’s also a very useful five-year, unlimited mileage warranty, so it’s a good option if you want to go used, as you’ll still have many years of warranty cover left with nearly new and more recent used models. If you’re interested in making the switch to electric power, you can check out our list of the cheapest electric cars. Ever since it first arrived here in 2013, the Dacia Sandero has held the position as the cheapest new car on the market. Monthly finance from £190** The main reason for this low-budget price tag is the fact that the Sandero is incredibly simple.

For drivers who are looking for compact dimensions, reasonable rear space and an excellent feeling of quality, the Up will probably be a better choice than any of the other cars on this list too. Other differences come in the shape of warranty. Brand new cars in this low-end price range normally require some sort of compromise — particularly when it comes to the size of the car and amount of equipment on board.

The MG 3 has seen its base price rise dramatically since it was first launched back in 2013. Citroen C1 list price from £12,945* Hyundai i10 list price from £13,195* The 108 is also available with Peugeot’s Just Add Fuel deal, which rolls finance, insurance, tax and servicing costs into one monthly payment. Fiat Panda list price from £13,130* There are plenty of small cars on sale that will prove to be more economical over longer distances, though. As the Sandero is so affordable, you can get a better-equipped version of the Sandero for less than the second cheapest car on the list. Monthly finance from £98** BuyaCar is a credit broker, not a lender.

If you want your small car to be fun and characterful, the Fiat Panda is definitely worthy of your shortlist. Depending on the offers available, it’s worth comparing new car discounts, which could make any of these the cheapest option. If all you’re looking for is a car that will get you from A to B, what more do you need?

Mileage limit: 8,000 per year Check out our guide to the cheapest used electric cars for more information. The key here is not that Hyundai has made a cheap small car, but the fact that it’s made one of the best that you can buy at this kind of price. If you’re keen to get more for your money, not to mention a much wider choice of models, then there are plenty of used cars available to you here on BuyaCar. Used deals from £4,999 The Up is another model that has been given a recent update, with a new trim structure and improved levels of equipment, which makes it more appealing, though more expensive, too.

If you’re looking for basic, no-frills transport to get you from A to B, there are plenty of options that could cost you no more per month than the combined cost of a couple of takeaways every week. For £8,995, Essential trim brings body-coloured bumpers on the outside, while inside there’s air-conditioning, cruise control and a media system with Bluetooth and a digital radio. You’ll need a pretty hefty deposit — a few thousand pounds in most cases — but a brand new car could be within reach, even if you’re on a budget of £100 to £200 per month on PCP finance. Total cost of credit: £2,426 Monthly finance from £115** However, the front design of the cars varies considerably, so it’s worth looking at all three to see which appeals most to you and which is available with the best deals.

So, in the cheapest and most basic spec, you get five doors, four wheels, a steering wheel and electric front windows. Optional final payment to buy car: £2,923 The Citroen C1 is closely related to the Peugeot 108 and Toyota Aygo under the skin, yet it comes in at £975 less than the Aygo, and £160 less than the 108. APR: 9 This fresh new model launched in 2020 can accommodate four adults who’ll be fairly comfortable for short journeys, and it’s stable at higher speeds, so you won’t feel as if you’re about to be blown across the carriageway when you overtake lorries. *List prices correct as of October 2021 Kia Picanto list price from £11,450* Dacia Sandero list price from £9,845* The i10 is a mature and practical small car that still manages to offer an element of enjoyment for the driver behind the wheel.

Fuel costs shouldn’t be enormous either, as the engines are reasonably economical. As a result, there are plenty of cheaper alternatives available with arguably more to offer. We’ve listed the cheapest 10 based on their official prices, but new car discounts can cut the cost even further. Used deals from £11,269 If you are only expecting to cover a very small number of miles and can get by without needing much space, then even a microcar might work for you.

MG 3 list price from £12,495 * In fact, the only thing setting these two apart, and the only reason why these three models differ in price is the simplicity of the C1 in its most basic three-door Touch form. Monthly finance from £107** Amount borrowed: £9,500 Standard equipment is also fairly basic in Excite trim, as there is Bluetooth, air-conditioning and rear parking sensors along with a digital radio, but a potentially better equipped Dacia Sandero in Comfort trim is around £1,000 cheaper. Used deals from £5,295

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