The rising cost of motoring is a serious concern for drivers in the UK – and we know that from the latest RAC Report on Motoring.
Almost a third of drivers (31%) told us in 2024 that the rising cost of living has prevented them from changing to a newer car sooner. But a key concern is also the rising purchase price of new cars – even the cheapest new cars aren’t as cheap as they used to be.
A late 2024 paper from automotive data firm JATO Dynamics reveals the average retail price of a new petrol or diesel car rose by a staggering 29% from 2019 to 2024 – a good deal more than the inflation in those five years.
Does that mean there aren’t any affordable cars around? Not quite. As this list of the top 10 cheapest new cars on sale today proves, it’s still possible to buy a dependable new car at a relatively low price.
A budget of just under £15,000 will get you access to the cheapest car on this list, which still offers enough space for four adults and a decent tally of comfort features. A growing crop of super-affordable electric cars are rapidly flooding the market, too, so we’ll be regularly updating our list of the cheapest new cars on sale today.
Prices are correct as of July 2025. You might want to check out our list of the cheapest cars to insure for new drivers to help keep costs down, too, while if you're eyeing up going electric then check out the cheapest electric cars on sale.
Cheapest new cars 2025: the shortlist
1. Dacia Sandero
Price: £14,715 Power: 90hp
The award for selling Britain’s cheapest new car once again lands at Dacia’s door, thanks to some price increases for other models in this list. You might expect a tiny city car for this price, the Dacia Sandero is a spacious supermini with plenty of room for even large adults in the rear seats - and a good-sized boot.
What’s more, the cheapest Sandero is nowhere near as basic inside as older models. You get greatly improved quality, along with a decent level of standard equipment including air-con, cruise control and even rear parking sensors. The turbocharged 1.0-litre petrol engine delivers more performance than most cars in this list, while it’s a comfortable drive too. The only black mark is the disappointing Euro NCAP safety test score.
2. Dacia Spring
Price: £14,995 Power: 45hp
The introduction of the Dacia Spring gives the Renault-owned brand the top two places in our list. It’s only a touch more expensive than the Sandero in terms of list price, although even cheaper offers are easy to find.
The Spring is a fully electric city car, offering potentially large running cost savings combined with a smooth an easy driving experience. Like the Sandero, the base Spring comes reasonably well equipped, although not in terms of performance: with just 45hp its official 0-62mph time is a yawning 19.1 seconds. It’ll do a decent 140 miles on a charge, but with cramped rear seats, a lack of refinement, poor handling and a one-star Euro NCAP rating we reckon it’ll be too compromised for most.
3. Leapmotor T03
Price: £15,995 Power: 95hp
Like the idea of a Dacia Spring but want something less basic? Step forward Stellantis-owned Chinese brand Leapmotor with the T03. It’s an extra £1000 to buy over the Dacia, but for that you get more than double the power, a longer range, rapid charging capability and a more comfortable ride.
What’s more, the Leapmotor T03 also has a bit more space in the back (albeit still only two seats) a better-quality interior and vastly more standard equipment than the Dacia, including alloy wheels, a panoramic sunroof, a rear-view camera and even adaptive cruise control – plus a load of extra safety assist tech. It’s a pity that the standard 10-inch touchscreen is frustratingly fiddly, though, while the T03’s boot is small and those driver aids can intrude.
4. Kia Picanto
Price: £16,065 Power: 62hp
The long-serving Kia Picanto has become more desirable (if a bit more expensive) in this latest generation. It looks sharper and comes better equipped, but it’s still even smaller than a Dacia Spring and is considerably better to drive in or out of town.
We love the Picanto’s keen handling, slick manual gearbox and willing (if underpowered out of town) petrol engine. We also like the surprising amount of interior space compared to its external size, the quality of the interior and the decent standard kit including all-round electric windows, a reversing camera and an eight-inch touchscreen with sat-nav and smartphone connectivity. The Sandero does give you more car for less money, but you do get a seven-year warranty with the Kia.
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5. Toyota Aygo X
Price: £16,845 Power: 72hp
Toyota’s Aygo X might have chunky mini-SUV looks, but under the skin it’ll feel familiar to buyers of the popular older Aygo models. That means a car that majors on character, simplicity and the Japanese brand’s engineering integrity.
Its funky design inside and out makes the Aygo X a desirable city car, while it also feels light and agile on the road. It’s more spacious than Aygos of old, too, but still tight in the back compared to rivals from Dacia and Hyundai.
Cheap insurance and excellent fuel economy should make it cheap to run, while the engine is characterful, but the Aygo’s lack of torque means it needs working hard, which harms refinement. You do get plenty of standard kit, though, plus an impressive four-star Euro NCAP safety rating.
6. MG 3
Price: £16,995 Power 115hp
MG is a brand now synonymous with affordability, and the latest MG 3 is its smallest and cheapest model. While it can’t quite match the Dacia Sandero in the pricing stakes, the MG counters with a more powerful petrol engine and heaps of standard equipment including adaptive cruise control, lane keep assistance, rear parking sensors and a touchscreen with sat-nav.
The MG’s keen handling also makes it more fun to drive than the Dacia, as does the revvy petrol engine. The only downsides are that other small cars like the Renault Clio are better to drive still, and more comfortable with it, while the MG3’s touchscreen is fiddly to operate, and the engine gets noisy and lacks efficiency.
7. Hyundai i10
Price: £17,100 Power: 67hp
You can think of the Hyundai i10 as the slightly bigger, more grown-up sibling to the Kia Picanto. The two have similar DNA, but the Hyundai’s more sober exterior design hides a more spacious interior and a more comfortable and quieter – if less sporty – driving experience. It really does feel like a bigger, more expensive car, which is ideal if you plan on venturing further afield.
The i10’s entry-level 1.0-litre engine gives similarly limited performance to the Picanto and Aygo X, but its easy to drive and will still sit on the motorway without too much fuss. A comprehensive five-year warranty, a high quality cabin, a decent three-star Euro NCAP rating and a spacious boot mean this could well be all the car you ever need.
8. Fiat Grande Panda
Price: £18,035 Power: 99hp
The Fiat Panda is dead: long live the Fiat Grande Panda. The boxy small car has taken on some SUV design inspiration, but it remains compact and its new shape should be very desirable. Bright colours, neat design details and an airy interior give it plenty of character, while even the base Pop trim comes well-equipped.
While the Grande Panda isn’t the cheapest car in this list, it offers ample performance thanks to a 99hp 1.2-litre turbo petrol engine with hybrid assistance. It’s also the only car in this list that comes as standard with an automatic gearbox – great for town use. There’s even a fully electric version, although it’s more expensive. It’s just a shame that the Grande Panda is yet to be tested by Euro NCAP for safety.
9. Citroen C3
Price £18,805 Power: 99hp
The all-new Citroen C3 is closely related to the Fiat Grande Panda under the skin, swapping the Fiat’s retro-inspired design with a more conventional look (and a slightly higher price). The Citroen is still a funky-looking thing, and while the interior lacks the character of its Italian sibling it’s still light, airy, comfortable and well-equipped.
That sensation of comfort extends to the Citroen’s ride, which is surprisingly plush for an affordable car. It smothers around town lumps and bumps brilliantly, although there are cars here with more refinement at high speeds. Factor in the punchy 99hp turbo petrol engine and slick six-speed manual gearbox and the C3 is pretty good fun to drive overall, and well worth a look.
10. Renault Clio
Price: £18,995 Power: 90hp
The Renault Clio has long been a favourite of motorists young and old, and the later model is arguably the best all-rounder yet. Its stylish design combines with a high-quality, well-equipped interior that makes it feel more sophisticated than its price tag suggests. What’s more, it’s the only car here to be awarded the maximum five-star Euro NCAP safety rating, giving peace-of-mind.
The base Clio also combined peppy performance with a great ride and handling balance, making this an enjoyable small car to drive in every situation. It’s not quite as roomy in the rear as the related Dacia Sandero, but it has a spacious boot. Factor in low running costs and, although the Clio isn’t the cheapest car in this list, it’s one of the best.
One to consider: Citroen Ami
At just £7,695, the Citroen Ami is less than half the price than the cheapest car at the top of this list. So why haven’t we featured it?
Well, the key reason is that it technically isn’t a car. The Ami is classed as a large quadricycle – the upside of that being that 16 year olds can drive one in the UK on a moped licence. The downside is that classification means it’s limited to just 28mph and doesn’t have to meet any of the safety regulations ‘proper’ cars are required to meet.
That, combined with a range of just 46 miles and a serious lack of comfort features, makes the Ami difficult to recommend unless you never leave town.
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