Top 10 best cars under £200 per month 2022
There are some real bargains out there if you’ve got £200 or less per month to spend on finance payments
If you've got £200 a month set aside for a new car, you're actually in a great position to drive something really special.
PCP finance deals make new cars more affordable, which is why these types of finance agreements are the most popular way to buy a car. You pay an initial deposit, then a series of monthly payments with much of the cost deferred to the end of the deal. Once you reach the end of your contract, you can pay the optional final payment and keep the car, hand the car back and walk away or use any ‘equity’ you’ve built up towards another deposit on a new car.
We’ve focused on PCP deals for this article, but you might also want to consider personal leasing. You’ll never get the chance to own the car but the monthly payments can sometimes be lower. There’s Hire Purchase too, where the final gets dropped, you just pay a deposit, some monthly payments and then you own the car.
Carmakers offer enticing deals from time-to-time, so it’s worth checking out our deals of the week and leasing deals pages for the latest hot deals on the market. For now though, from city cars to seven-seat MPVs, here are some of the best cars on PCP finance for under £200 per month.
Best cars to buy on PCP finance for £200 a month:
The Volkswagen Polo is one of the classiest superminis you can buy and has grown in size to the point that it is now as big as the 1997 Volkswagen Golf. It also has great build quality and a host of technology including an infotainment screen. It offers a sophisticated driving experience, especially if you avoid the entry-level 79bhp model.
If you want to enjoy the Polo’s qualities for minimal outlay, you can drive a brand new 1.0-litre Life model with the preferable 94bhp engine for our £200-a-month budget. The deal requires roughly £3,500 as a deposit.
Peugeot clearly took inspiration from its history with the 208 as there are hints to the 205 hatchback model of the 1980s dotted around the exterior. Not only does the 208 have eye-catching styling but the interior impressed us for how premium it felt compared to rivals.
Although the 208 isn’t the cheapest car to buy, the entry-level Active model just sneaks into our £200 a month budget. However, it requires an extra £1,000 deposit over the Volkswagen Polo deal.
The Skoda Fabia doesn't get called practical without reason. In the boot you’ll find hooks to hold bags in place and space for an ice scraper to be housed behind the petrol cap. The spacious Skoda Fabia makes our list with the 108bhp engine in SE Comfort trim.
The payments are split over 47 months, matching the Volkswagen Polo, but the Skoda has a more powerful engine.
If you want something that is fun to drive then the Kia Ceed ‘2’ model is under budget on a 36-month agreement. It’s also a great place to spend time, with an interior that rivals a Volkswagen Golf for fit and finish. You’ll get an eight-inch touchscreen and reversing camera. The Ceed model benefits from one of the largest boots in its class. A deposit of around £4,000 is required, but the Ceed is good-value for a car of this size.
The Honda Jazz offers a ‘self-charging’ hybrid engine that maximises fuel efficiency and makes it smooth to drive. We found a deal on the SR model which comes equipped with front and rear parking sensors and a slick infotainment system as standard. You’ll also get one of the most practical superminis around, with a big boot and Honda’s clever Magic Seats.
The Jazz SR is £199 a month but needs a larger deposit than most of our list at around £5,000. It does have low running costs and great fuel efficiency to offset some of that higher initial payment.
The fashionable C4 has memorable looks along with a spacious interior for a family. The Sense model is the entry-level one but still comes with a 10-inch touchscreen and automatic climate control.
On the inside, the C4 has comfortable and smartly upholstered seats, and a tablet holder in the dashboard so your front passenger can watch their own screen.The C4 does require the largest deposit on our list at over £5,000, but you’d need more for a comparable Volkswagen Golf. The £200 payments continue for 47 months.
Hyundai has made the Bayon feel compact on the outside but surprisingly spacious on the inside. This is the smallest SUV Hyundai makes, offering a higher seating position than the i20 it is based on. If you like to change your car more often then the Bayon is the car for you if you have a £200 monthly budget. A payment of £199 a month can be had over two years with a deposit of roughly £4,800, with Hyundai offering 0% APR at the time of writing.
The SE Connect model has Apple CarPlay and Android Auto as standard on the inside and heated folding wing mirrors on the outside. You also get a rear-view camera and sensors to make manoeuvring in a tight spot easier.
The MINI continues to be a stylish and desirable city car that offers great driving dynamics. We’ve found a Cooper Classic model in budget so you’ll get a 8.8-inch infotainment screen, DAB radio, and bluetooth connectivity. Against the competition the MINI still retains the unique handling that it is so famed for and makes it a fun car when out on the open road.
The Cooper Classic model is just under budget at £199 a month for a four-year agreement with a deposit in the region of £4,500. That also gets you the attractive no-cost ‘Moonwalk Grey’ paintwork or, for those wanting to stand out, ‘Zesty Yellow’ is also a no cost option.
If you need seven seats or want to keep your deposit amount to a minimum then the Dacia Jogger is the car for you. The Essential model only requires a deposit of less than two months’ payments to keep it in the £200-a-month budget.
Don’t let the price fool you into thinking that the Dacia will feel cheap though. Air conditioning and rear parking sensors are standard. The modern three-cylinder turbocharged engine delivers a nice amount of low down power and returns good fuel economy.
The Suzuki Swift is great to drive with low running costs. It’s also easy to manoeuvre and has enough performance around town. The styling makes it stand out from the crowd and there’s good standard equipment including LED headlights and radar braking support.
The small Suzuki features mild-hybrid technology to increase efficiency but won’t give the silent driving of a full-hybrid model like the Honda Jazz. It is the only car on our list to break the budget coming in at £209 a month, but it only requires a smaller deposit of around £2,700.
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