In a world where a run-of-the-mill Vauxhall Astra is nearly £26,000, and a Ford Focus is over £28,000 it may seem mad to see a new car for around £10,000, but there are still some manufacturers making genuinely cheap new cars.  

We’ve rounded up the top 10, sorted by lowest price first, for your perusal. All our prices have been taken from current cars for sale on Autotrader.

What’s the Best Way to Buy a New Car?

Your personal circumstance determines which is the most cost-effective method of buying a new car, mainly how long you intend to keep it, and if you will want to upgrade it in the near future. 

For example, Personal Contract Purchase (PCP) is great if you want to change your car every 2 or 3 years or don't mind paying a large ‘balloon’ payment at the end of the term to keep the car. Hire Purchase (HP) is better suited to those wanting a new car for 5+ years, as it allows you to buy it outright, over a set period of time.

For more in-depth information on ways to buy a new car, check out our guide here. 

9 Cheapest Cars To Buy

1. Citroen Ami - £7,695

Whilst not a ‘real’ car in its home country, the Citroen Ami is considered a motor vehicle in the UK, and thus gets to top our list of cheapest new cars, even if it is mostly made of plastic! 

The Ami is aimed at young adults and city dwellers, with its 28 mph top speed and sub 500kg weight, it's certainly not a car to be taken anywhere near a motorway, but for driving around city centres, it may be better than cycling. 

At £7,695 the Ami is by far the cheapest brand-new car listed on Autotrader, with its 6.3kWh battery and front-to-back styling (the front and rear bumpers are the same to save on tooling costs!) it’s certainly one to consider for out and out cheapness. 

2. Kia Picanto - £12,195

The Picanto is a perfect small car, it has a frugal but revvy 1.0-litre petrol engine, a 5-speed manual gearbox and only costs £12,195 off the forecourt. Alongside Kia’s 7-year warranty as standard, the Picanto represents excellent value if you just need an A to B car. 

Further savings come when running the car, it will do nearly 60 miles to the gallon, and only costs £185 per year to tax. Insurance will be low too, as the Picanto falls into group 1, most drivers aged 25 and over wouldn’t expect to pay more than £500 per year (location depending). 

3. MG MG3 - £12,425

MG has re-entered the market with a very wide range of vehicles on offer, from this small super mini right up to the brand new MG HS SUV. This shape MG3 was introduced in 2018 but the car it is based on was designed in 2011 by the UK team of automotive company SAIC. 

Performance is not too shabby from the 1.5-litre petrol engine, at 107 horsepower, certainly more than most of the other cars on this list, but the engine design shows its age by only achieving 42 MPG, something Japanese cars, such as the Suzuki Swift, have been achieving for nearly 20 years.  

Thankfully other concerns over build quality would be remedied by the 7-year warranty, possibly introduced to compete with the Kia. Nevertheless, the MG3 is a cheap way to get into a small, back-to-basics car. 

4. Citroen C3 - £13,745

The C3 is the smallest car Citroen makes, replacing the Saxo and the AX before that. It is classed as a supermini, and is one of the better-equipped cars in the category, especially at this price point. The current generation is the third one since 2002, with a fourth planned for next year.  

Powered by a modern 1.2 turbo petrol engine, which is capable of achieving 55 mpg and delivers 107 horsepower. Just the right balance of economical city driving with a small amount of long-distance and motorway thrown in.

Citroen has always focussed on the styling and innovation of their cars, and the new C3 is no different, with a striking front and side profile sprinkled with just enough modern features such as LED daytime running lights and body-coloured door handles. 

5. Hyundai i10 - £13,499 

Another well-equipped small car is the i10, shipping with air conditioning, Bluetooth and touchscreen infotainment system, cruise control, lane keeping and reversing camera. Truly impressive for less than £14,000. 

It has also received high praise by various outlets including What Car? and Top Gear, for its driving feel, high levels of tech and comfort on the road.  

Hyundai offers a 5-year warranty as standard, slightly less than the Kia or Dacia, but it is an unlimited mileage warranty, so if you intend to do mega miles in the first few years of owning your new car, the Hyundai might be worth considering.  

6. Dacia Sandero - £13,795 

Since Dacia, a company originally from Romania, were bought by Renault, they have begun producing some quality utilitarian vehicles, with just enough modern tech to be competitive and enjoyable in the modern market.  

The cheapest Sandero comes with a 1.0L naturally aspirated engine producing 65 horsepower. Whilst it’s not going to be winning any traffic light Grand Prix, what it can do is deliver over 50 MPG with a very low insurance group, meaning it’s cheap to insure. 

Dacia is keen on giving their customers plenty of tech, too. The car we found on Autotrader at £13,795 had cruise control, a DAB radio and tyre pressure monitoring, features few of the other cars offer. 

7. Fiat Panda - £14,740 

The Panda has been around since the 1980s and has become a very popular small car both in Italy and across Europe. Designed as a cost-effective but safe method of transportation, the new Panda is far removed from the original. 

Standard features include air conditioning and a great infotainment system, with cruise control and park assist available on the higher City Life trim models.

In terms of engines, you can pick from multiple, with the 85hp TwinAir turbocharged unit found in the 500, and the hybrid version using the same engine being the most popular. The latter achieved over 50 MPG. 

8. Peugeot 208 - £18,800 

Replacing the popular 207, the 208 is a great small car for those looking for plenty of styling features and creature comforts. The interior is as bright as the exterior, with coloured trims and buttons coming as standard.

Other than an electric version, only one engine choice is available for each fuel type, a 1.2-litre petrol unit with three power output choices, and one diesel. For the best of both worlds, we’d suggest either the 100hp or 130hp petrol engine, both achieving MPG figures over 50, but with quite a bit more power than the other options.  

9. Suzuki Ignis - £17,800

The new Ignis is a complete redesign of the older, much more basic car of the mid-2000s, with funky body-coloured plastic mouldings and door trims, it certainly stands out among the more sedate small cars.  

With an optional 4-grip 4-wheel drive system, there is something for everyone when specifying the Ignis, although the most basic model, the SZ3 comes with air conditioning, Electric windows and a DAB radio with Bluetooth connectivity.  

Engine choices are limited to one, a 1.2 hybrid system, but that’s not always a bad thing, as Suzuki has clearly worked hard to make it efficient, outperforming many small petrol cars on this list at nearly 56 MPG. 

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