These are the cheapest new cars and what you can expect to pay to finance them

The prices of new cars have risen considerably in recent years, with the increases on smaller cars often being the most noticeable.

A new Volkswagen Polo and Toyota Yaris, for example, will each set you back more than £20,000, while our data shows that the average price of the 10 cheapest new cars is £1,110 more than this time last year at £15,095.

But there are still bargain new cars to be had, which is why we’re looking at the 10 cheapest new cars and what they’ll cost to finance, based on a three-year contract with 6,000 annual miles and a £1,500 customer deposit. All prices are correct at the time of publication.

Kia Picanto – from £13,665

With other cars receiving significant price increases over the past 12 months, the Kia Picanto’s stable pricing means it’s now the UK’s cheapest new car. This compact city-aimed model offers very low running costs but is roomier and better to drive than you might anticipate.

Now priced from £13,665, it’s a brilliant buy, particularly when you consider Kia’s seven-year warranty is included. A refreshed Picanto is due on sale in 2024, and will likely bring increased pricing, however, so you should act quickly. Kia is currently offering a £1,000 deposit contribution, and with the aforementioned terms, allows you to get behind the wheel for £197 per month with a 7.9 per cent APR rate

Dacia Sandero – from £13,795

The Dacia Sandero was Britain’s cheapest new car for more than a decade, but with the firm discontinuing the cheapest versions, it no longer holds that title. That said, it still offers remarkable value for money, with its roomy interior, refined road manners and generous equipment making it a superb choice.

It’s priced from £13,795, but if you go down the finance route, you can get behind the wheel over a three-year contract for £194 per month, courtesy of a £500 deposit contribution and 6.9 per cent APR rate.

Citroen C3 – from £13,995

The Citroen C3 is the only car in this top 10 that hasn’t increased in price over the past 12 months and remains brilliant value for money for that reason. This supermini offers a comfortable ride, funky styling and a decent level of equipment considering the price.

While the C3 costs from £13,995 on pricelists, Citroen knocks £500 off the car if you buy it through the firm’s online store. Over a three-year contract, you can finance the C3 from £211 per month, though the 12.9 per cent APR rate is very high.

MG3 – from £13,820

The MG3 is often one of those forgotten cars in the supermini class, but if you’re shopping with value for money in mind, it’s worth considering. With prices starting from £13,820, it offers a lot of car for the money when you consider its smart styling and generous equipment levels. You’ll also get MG’s seven-year warranty included.

To finance the MG3, with a £1,500 deposit and small £250 contribution from MG, you can get behind the wheel for £221 per month. The 9.9 per cent APR rate is high, however.

Fiat Panda – from £14,740

Fiat’s Panda is one of those cars that just carries on. It’s been well over a decade since it was introduced, and hardly any changes have been made to it in that time. While it’s a bit behind the pace next to many rivals, its £14,740 starting price is competitive.

Fiat couldn’t provide us with any offer of the same terms as the other deals, so this contract is over four years instead, and with a higher £2,127 deposit instead. Fiat is currently offering a £500 deposit contribution, which equates to monthly payments of £199, with a 7.9 per cent APR rate.

Dacia Sandero Stepway – from £15,295

If you want something a little more stylish to look at than the Sandero, Dacia offers a ‘Stepway’ version, bringing more eye-catching looks courtesy of its rugged appearance, while still retaining all the strengths of the standard car.

While the list price of the Stepway is £1,500 more expensive, if you look at it from a finance perspective, there’s not all that much to separate the two cars, which is available from £220 per month with a 6.9 per cent APR rate.

Hyundai i10 – from £15,420

Hyundai has updated its i10 recently, giving the model fresher styling and various interior changes. However, in the process, the price has risen quite considerably, with its £15,420 starting price almost £2,000 more than this time last year. The i10 is one of the best city cars on the market, though, with a roomy, well-built interior standing out next to rivals.

It’s quite expensive to finance, too, with Hyundai offering no finance contribution and a steep 9.9 per cent APR rate. It means the i10 costs £266 per month over a three-year arrangement.

Toyota Aygo X – from £16,130

Many manufacturers have turned their backs on the city car market in recent years, but Toyota remains dedicated to it, with the firm introducing its Aygo X recently. The level of equipment you get is seriously impressive, too, with standard equipment including 17-inch alloy wheels and a seven-inch touchscreen with Apple CarPlay and Android Auto.

While its £16,130 starting price makes it more expensive to buy outright than rivals, it’s very competitive on finance, with Toyota currently offering a £900 deposit contribution and low 4.9 per cent APR rate, This means the Aygo X is available from £215 per month over three years.

Fiat 500 – from £16,790

Fiat has put the price of the 500 up quite considerably in the last 12 months, with a £16,790 starting price almost £2,000 higher than this time last year. Nothing about the Fiat 500 has changed in that time, either, though its cool styling continues to tempt many into choosing it,

That said, Fiat is currently offering a significant deposit contribution of £2,400. Like the Panda, we coudn’t obtain deals of the same terms as the other cars, but with a £958 customer deposit, you can expect monthly payments of £199 over a four-year contract. The APR rate here is 7.9 per cent.

Dacia Duster – from £17,295

It’s a testament to Dacia’s value for money that three out of its four cars are on the list of the UK’s cheapest new cars. That also includes the Duster SUV – a completely different model to everything else in this line-up.

Offering far more space and style, it’s an ideal family vehicle. Priced new from £17,295, it’s available from £254 per month over a three-year contract with a £1,500 customer deposit.