Best cars for less than £150 per month

Last updated: Jan 26, 2016

It's never been easier to buy a new car. Thanks to the widespread introduction of Personal Contract Purchase (PCP) schemes, you can actually by a brand-new car for less than you’d spend per month on a used car.

That might seem too good to be true, but it's not. Yes, you’ll need an up-front deposit, which depending on the car might be a fairly large sum, but those monthly payments can be surprisingly low – you’ll find 10 of the best cars available for less than £150 a month right here.

This is thanks to the range of enticing offers carmakers provide for those buying their cars – particularly on PCPs. You might find a manufacturer or dealer willing to contribute several thousand pounds towards the deposit and you should never underestimate the potential savings you can make on a 0% APR deal. That means you won’t pay any interest.

At the end of the PCP deal, you have a number of options. You can hand the car back and walk away free to take up another deal elsewhere, or you can effectively use your car as the deposit on another PCP deal. Many buyers are happy to do this, because for a regular and manageable monthly fee, you can enjoy a new car every few years.

The other option is to pay the final ‘balloon’ payment and you can keep the car. Of course, you’ll have to budget for this – and maybe consider a bank loan to pay for it – so check the fine print before you sign on the dotted line. You can find out more about PCPs and other finance options here:

There's a huge range of bargain new cars available for less than £150 a month and we’ve listed our top picks. You’ll find family favourites such as the Ford Fiesta and the very latest version of the Vauxhall Corsa, right through to the very practical Fiat Panda and Nissan Note.

And don’t forget to check out our latest new car deals page for some special offers and never-to-be-repeated deals.

Nissan Note mini MPV

If you’re looking for huge space on a tiny budget, you simply can’t beat the Nissan Note. It’s not as boxy as the original car, but provides more room than a Ford Fiesta. Thanks to clever features like rear doors that open to almost 90 degrees, it’s exceptionally practical. You can get into a Note for as little as £115 a month, although our favourite version, the 1.2-litre Acenta, pushes over our budget at £159 a month. Either way, it’s an impressive deal. Read more.

Key points

3.8 / 5
Price 
£10,995 - £17,895

Hyundai i10 hatchback

The Hyundai i10 is a former Carbuyer Car of the Year winner and it’s still our favourite small car. That’s because it offers more space than you’d expect for such a small car, as well as a surprisingly large boot. It’s also good fun to drive and quieter than most other city cars on the motorway. The ownership experience is boosted by a five-year warranty, too. You can buy a 1.0-litre Premium complete with alloy wheels and Bluetooth for around £140 a month, but if you can stretch to a £3,800 deposit, repayments could be as low as £69 a month. Read more.

Key points

4.9 / 5
Price 
£8,995 - £13,045

Skoda Fabia hatchback

Thanks to Skoda’s excellent reputation for customer service, we recommend the Skoda Fabia ahead of its sister cars the SEAT Ibiza and Volkswagen Polo. The handsome Fabia range includes some impressive engines and technology, plus it offers plenty of space inside and feels very well built. The Fabia 1.2-litre SE model, which features our favourite engine and trim combination, just sneaks under our £150 limit, although if you have a £3,200 deposit available, the basic 1.0-litre S model can be yours for just £99 a month. Read more.

Key points

4.1 / 5
Price 
£10,750 - £18,025

Ford Fiesta hatchback

The Ford Fiesta is Britain’s biggest selling car – and for very good reasons. It’s both great fun and easy to drive and looks as stylish as cars costing far more. There are plenty of trim levels available with some excellent engines, so there’s something for everyone. The sweet spot in the range is Zetec trim, and you can buy one with a perky 1.25-litre petrol engine for just £139 a month with a £2,300 deposit. With a further £900 deposit and repayments of £159, the well-equipped Titanium model is available with Ford’s award-winning 1.0-litre EcoBoost engine. Read more.

Key points

4.4 / 5
Price 
£10,345 - £18,595

Kia Cee'd hatchback

The Kia Cee’d is the biggest car here, so it’s slightly harder to get one for less than our £150 budget. But by playing around with the length of the finance agreement and increasing your deposit, you can still buy a Cee’d within the budget. There are a range of versions available, the most interesting of which is the sporty Cee’d SR7 with a 1.4-litre petrol engine for £150 a month – as long as you can stump up a £4,500 deposit. With a £3,500 deposit, an entry-level Cee’d 1 with the same engine can be yours for £150 a month. Read more.

Key points

4.6 / 5
Price 
£14,905 - £24,295

Peugeot 208 hatchback

The stylish Peugeot 208 remains one of the best-selling small cars in Britain, and thanks to Peugeot’s excellent Just Add Fuel scheme, it’s great value, too. The 208 Allure with a 1.2-litre engine can be bought on the scheme, which includes three years’ insurance, warranty, servicing, tax and breakdown cover for £150 a month with a £4,200 deposit. Alternatively, you can lease the same car for £149 a month with a £3,000 deposit. Read more.

Key points

4.1 / 5
Price 
£12,065 - £18,615

Vauxhall Corsa hatchback

The Vauxhall Corsa is the newest model in the list, but there are still plenty of great deals available. And with a massive range of engines and trims, plus the option of practical five-door or sportier three-door models, there’s something for everyone. Like most other carmakers, Vauxhall offers the choice of a PCP deal (where you have the option to keep the car) and a leasing deal (where you don’t). There’s a great degree in flexibility with the PCP payments, but the 1.0-litre Sting model for £139 a month with a £2,700 deposit is a great deal. The same car on a 23-month lease costs just £115 a month with a £2,300 deposit. Read more.

Key points

4 / 5
Price 
£9,745 - £18,125

SEAT Mii hatchback

The SEAT Mii is virtually identical to the Volkswagen up! and Skoda Citigo, and they all offer a surprisingly ‘big car’ feel in a tiny package. The VW up! is a little more expensive than the Mii and Citigo – and you could do a lot worse than either of them. The funky Mii by Mango is available for £79 a month with a £3,255 deposit, while the Mii i-TECH is £69 a month with a £2,880 deposit. If you fancy a Citigo, there’s very little between them on price or equipment. You’re spoilt for choice. Read more.

Key points

4.8 / 5
Price 
£9,470 - £11,320

Suzuki Swift hatchback

The Suzuki Swift doesn’t sell in as great numbers as the Ford Fiesta, which is a real shame, because it’s almost as good. It’s an ideal car if you’re looking for something a little different – even if it’s not quite as cheap to run as its closest rivals. The well-equipped Swift SZ4 is available for £145 a month with a £2,120 deposit, but it’s a shame the new and improved Dualjet engine will cost another £9 a month, plus another £100 on the deposit. Swift buyers on a stricter budget can choose the entry-level SZ2 model for just £99 a month with a £1,724 deposit. Read more.

Key points

3.7 / 5
Price 
£8,999 - £14,199

Fiat Panda hatchback

The Fiat Panda is as funky as it is practical. It’s great to drive around town and is as cheap to run as it is to buy. In fact, you can get any of the Panda’s trim levels (Trekking and 4x4 apart) with a 1.2-litre engine within our budget. With a deposit of £99 and a payment of £99 a month, you could take home the basic Panda Pop model, but even the range-topping Lounge model costs just £119 a month with a £1,750 deposit. Small family car ownership simply doesn't come much cheaper. Read more.

Key points

4.2 / 5
Price 
£9,510 - £15,110