There’s always a preconception that buying a new car has to be ludicrously expensive, but if you’re happy to go down the finance route then there are some great options available for not a significant amount of money.
So should you have a limited monthly budget, or just want to keep your spend to a minimum, what are your options? Here we’ve picked five great options for less than £200 per month. Note that all offers were correct at the time of writing, but will be subject to change,
There are many reasons why the Ford Fiesta is the UK’s best-selling car, but its affordability plays a key part, with this hatchback available for well within our £200 per month budget.
The Fiesta is also great to drive and well-equipped too – all versions now come with an eight-inch touchscreen, 16-inch alloy wheels and a heated windscreen. With the EcoBoost petrol engine under the bonnet, it’s also got a decent amount of punch to it, as well as low running costs.
Currently Ford is also offering it with a £1,000 deposit contribution, as well as zero per cent APR – making it terrific value to finance.
Model: Ford Fiesta 1.0 EcoBoost 95PS Trend 5dr
Monthly payments: 36 x £165
Customer deposit: £5,108
Deposit contribution: £1,000
Total at end of contract: £11,048
Optional final payment: £5,992
Total paid to own the car: £17,040
Cash price: £18,040
Annual mileage allowance: 9,000Enquire on a new Ford Fiesta
Though Skoda might be launching a new generation of its Fabia supermini soon, the outgoing car is still a fantastic option where value for money and practicality is concerned.
And it seems even more attractive if you finance it, when virtually the full range is available for under £200 a month. Our pick, though, would be for an SE model, which comes with rear parking sensors, air conditioning and a 6.5-inch touchscreen with smartphone mirroring.
Like the Fiesta, it’s also currently available with zero per cent APR, along with an additional £750 deposit contribution from Skoda.
Model: Skoda Fabia SE 1.0 MPI 60
Monthly payments: 48 x £170
Customer deposit: £1,437
Deposit contribution: £750
Total at end of contract: £9,597
Optional final payment: £4,192
Total paid to own the car: £13,789
Cash price: £14,635
Annual mileage allowance: 10,000Enquire on a new Skoda Fabia
Importantly, though, a low budget doesn’t mean you have to sacrifice when it comes to badge quality, and you might be surprised to learn that you’re able to get behind the wheel of a new Audi for less than £200 per month – if only just.
Though it will be the German firm’s entry-level model – the A1 – this junior Audi still looks the part and gets a high-quality interior, too. This budget will also get a mid-spec Sport version – bringing with it larger alloy wheels, cruise control and rear parking sensors, in addition to the regular Technik model.
Though the APR rate might be higher than others on this list, Audi is currently offering a £500 deposit contribution for a new A1.
Model: Audi A1 Sport 25 TFSI
Monthly payments: 44 x £198.69
Customer deposit: £4,500
Deposit contribution: £500
Total at end of contract: £13,242.36
Optional final payment: £9,492.90
Total paid to own the car: £22,745.26 (including £10 option to purchase fee)
Cash price: £20,945
APR: 4.5 per cent
Annual mileage allowance: 10,000Enquire on a new Audi A1
Fiat 500 Electric
Electric cars are known to be quite pricey, but you might be surprised to learn that you’re able to get behind the wheel of a brand new EV for under £200 a month.
And here it’s one of our favourite new electric cars – the Fiat 500, which is just arriving in showrooms. Though this budget will only get you the smaller 24kWh battery, that’s still capable of 115 miles on a single charge. It might not sound a lot, but if you live in a town or city and don’t travel far, it should prove plenty. It’s also equipped with 50kW rapid charging capability, too, meaning quick charges on the move will be possible in as little as half an hour.
With a £4,000 deposit, the new electric 500 sneaks in just under the £200 per month marker.
Model: Fiat 500 Action 24kWh
Monthly payments: 35 x £194.24
Customer deposit: £4,000
Deposit contribution: £500
Total at end of contract: £10,798.40
Optional final payment: £11,371
Total paid to own the car: £22,539.40 (including £10 option to purchase fee)
Cash price: £20,495 (incl government grant)
APR: 5.4 per cent
Annual mileage allowance: 8,000Enquire on a new Fiat 500
Last but not least is the Dacia Sandero, and given it’s the UK’s cheapest new car, it’s no surprise that it undercuts all other models in this list to finance. This new car gets more grown-up looks, and is even based on the same platform as the latest Renault Clio. With more space, a higher quality throughout and more standard kit, it’s a huge step up from its predecessor.
In fact, the Sandero represents such remarkable value for money, that you can actually get it for less than £99 per month, and only with a £993 deposit. It truly is a brand new car for the price of a used one. Yet, even if you fancy a top-spec model, which comes with all the bells and whistles, this is still available for under £150 per month with a £2,000 deposit.
Model: Dacia Sandero Access SCe 65
Monthly payments: 48 x £99
Customer deposit: £993
Deposit contribution: N/A
Total at end of contract: £4,851
Optional final payment: £3,733
Total paid to own the car: £8,584
Cash price: £7,995
APR: 6.9 per cent
Annual mileage allowance: 6,000Enquire on a new Dacia Sandero