Cheapest New Car UK 2024 – Most Affordable Cars Under £16,000

Are you looking for the cheapest new car in the UK for 2024? Well, you’re at the right place, as we’ve researched and ranked the most affordable cars under £16,000, including both cash price and PCP financing options! Whether you’re looking for a car with the lowest monthly payment or seeking the best value outright purchase, we have everything you’re looking for.

In these days of rising prices, £16,000 will not stretch very far to buy a car. Buying & maintaining a vehicle is one of the highest monthly expenses you will face, as fuel and insurance costs steadily increase. For less than £200 a month, you can have a weekly takeaway or daily caffeine fix, or better still, you can take to the open road! So, let’s find the cheapest new car in the UK for 2024.

What Are Your Best Options?

It turns out that for under £16,000, a relatively low point of entry in today’s economy, there are a tonne of fantastic cars that you can buy brand-new (except for one, which goes slightly above that budget). We’ve done all the research on affordable new cars that money could buy here in the UK in 2024, and here’s where we ended up with:

Make/Model	Monthly Fee	Deposit	Lease Term (Years)
Citroën Ami	£145	£0	3
Kia Picanto	£215	£0	4
Dacia Sandero	£193	£0	4
MG 3	£239	£0	4
Citroën C3	£229	£0	4
Fiat Panda	£163	£3,490	4
Dacia Sandero Stepway	£210	£0	4
Suzuki Ignis	£249	£0	4
Hyundai i10	£170	£0	4
Toyota Aygo X	£207	£0	4

NOTE: Prices were accurate at the time of writing and are subject to change throughout the year. All pricing information is sourced from the manufacturer’s websites. PCP costings depend on variables such as initial deposit, loan term agreement and agreed mileage. So, you can use these as a fair indication of monthly costs, but they might not be accurate in every case.

Cheapest New Car UK 2024 – 1) Citroën Ami

• Price: £7,695

Now, if you’re looking for the absolute cheapest new car in the UK for 2024, the Citroën Ami takes the crown! This rather tiny, all-electric city car is unlike anything else that you can find on the market. It’s pretty small, though, and designed for urban commuting. As such, the Ami is classified as a quadricycle… Super compact, lightweight, and incredibly efficient!

It’s powered by a 5.5kWh battery, allowing you to go as far as 43 miles on a full charge. It doesn’t sound like much, but it’s perfect for short trips and city driving. With a top speed of just 28mph, it isn’t made for motorways in mind. But, I’ve found it fantastic for zipping around town. And, it fully charges from a standard 3-pin plug in just 3 hours.

Inside, the Ami is minimalist but functional. Therefore, you get space for 2 people at most, a panoramic roof, and smartphone connectivity for navigation. Best of all, with quirky styling and ultra-low running costs, it’s a great budget-friendly choice. Despite its size, it punches far above its weight class, as one of the cheapest ways to go electric in 2024.

• Monthly Price: £145
• Deposit: £0
• Lease Term: 3 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 2) Kia Picanto

• Price: £13,665

Should you be looking for a cheap, yet well-equipped new car, the Kia Picanto is one of the best budget-friendly options that you can find in 2024. This compact city car might be small on the outside, but it’s shockingly spacious inside! As such, it offers seating for 4 adults and a decent boot capacity for its size.

Powering the Picanto is a 1.0-litre or 1.2-litre petrol engine, delivering a great balance of fuel efficiency and performance. For those of you who do a lot of urban commuting and short trips, the Kia Picanto is cheap to run. Plus, Kia offers you a comprehensive 7-year warranty, making it one of the most reliable and well-covered new cars in this price range.

Meanwhile, the updated 2024 model comes with a modern, refreshed design, a user-friendly 8-inch touchscreen with Apple CarPlay and Android Auto, as well as available safety features like lane-keeping assist and automatic emergency braking. Best of all, it has nimble handling and a tight turning circle, making it perfect for city driving.

• Monthly Price: £215
• Deposit: £0
• Lease Term: 4 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 3) Dacia Sandero

• Price: £13,795

For a long time, the Dacia Sandero remains one of the UK’s cheapest and most affordable cars, offering unmatched value for money. It’s bigger than most other cars that you’d find in this price range, which makes it a great budget-friendly option for families or those needing extra space. It offers a comfy ride, generous boot space, and efficient engines all around!

Speaking of, under the hood, you’ll get a 1.0-litre petrol engine with either 67hp or 90hp, keeping your running costs low and offering solid fuel economy. Sure, it’s not the fastest, but it’s among the most comfortable, refined, and easy-to-drive cars in this price range, whether you’re in the city or on the motorway. Plus, for 2024, the Dacia Sandero has been updated.

Among the many new add-ons and upgrades include DAB radio, smartphone connectivity, LED headlights, and air conditioning as standard. Overall then, it’s a pretty solid list of standard equipment. Elsewhere, Dacia’s no-frills approach means that you get an uber-reliable, well-built car without unnecessary extras, keeping prices low.

• Monthly Price: £193
• Deposit: £0
• Lease Term: 4 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 4) MG 3

• Price: £13,820

Marking the revival of the once-iconic British brand, the MG 3 stands out as one of the best-value superminis you can buy in the UK. It offers a sporty design, great practicality, and a generous features list at an incredibly low price. You’ll get a fun-to-drive hatchback that brings with it incredibly sharp styling, a roomy interior, and a peppy engine.

When you pop open the bonnet, powering the MG3 is a 1.5-litre petrol engine producing 106hp, making it one of the most powerful cars in its price range. Moreover, it offers very good handling and a comfortable ride, making it a solid choice for city and motorway driving alike. Aside from that, you could pick between an automatic or manual transmission.

Step inside the MG 3, and you’ll find an 8-inch touchscreen with Apple CarPlay, Bluetooth connectivity, a leather steering wheel, and rear parking sensors as standard. All in all, the MG 3 is a practical and well-equipped hatchback that gives you a lot of car for your money.

• Monthly Price: £239
• Deposit: £0
• Lease Term: 4 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 5) Citroën C3

• Price: £13,995

The new Citroën C3 is a very stylish and comfy supermini that offers a refined driving experience for not a whole lot of money. For a budget-friendly price, you’ll be able to experience a bold, modern design, including Citroën’s signature Airbump panels and a wide range of customisation options. The C3 brings a touch of personality to the supermini segment.

Under the bonnet, the C3 comes with a 1.2-litre PureTech petrol engine, delivering you a smooth and efficient drive with great fuel economy. It’s also a versatile choice for city commuters and long-distance drivers alike, as it is available with either a manual or automatic transmission, alongside superb handling for such a tiny car.

Step inside, the Citroën C3 impresses with its plush seats, soft-touch materials, and spacious cabin. Among the many standard equipment that you get for your hard-earned cash is a 7-inch infotainment system with Apple CarPlay and Android Auto, cruise control, and lane departure warning, offering great value for money in its class!

• Monthly Price: £199
• Deposit: £0
• Lease Term: 4 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 6) Fiat Panda

• Price: £14,740

The Fiat Panda is an infinitely charming and practical city car that continues to stand the test of time! With its compact dimensions, high driving position, and rugged charm, you’ll find that it’s the ideal choice for those of you who need an affordable and versatile runabout.

Meanwhile, under the bonnet, the new Fiat Panda is powered by a 1.0-litre mild-hybrid petrol engine, delivering excellent fuel economy while keeping running costs low. You’ll also be glad to hear that it’s easy to drive. In short, it features light steering and good visibility, making it perfect for tight city streets and urban commutes.

Take a step inside, and you’ll find that the Fiat Panda comes with a simple but functional cabin, with comfy seating and a user-friendly infotainment system. Standard features include air conditioning, Bluetooth connectivity, and a DAB radio. Or, if you need more rugged capability, the Panda Cross variant offers extra ground clearance and all-wheel drive!

• Monthly Price: £163
• Deposit: £3,490
• Lease Term: 4 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 7) Dacia Sandero Stepway

• Price: £15,295

Now, if you live the affordability of the Dacia Sandero, but you want a higher driving position and more rugged styling, then maybe the Dacia Sandero Stepway is the perfect alternative for you! It blends SUV-inspired looks with hatchback practicality, offering great value for money. In fact, it’s one of the cheapest new car options in the UK for 2024.

Powering the Stepway is a 1.0-litre turbocharged petrol engine, providing a balance of efficiency and performance. Once you get moving, it’s comfortable to drive, with that raised ride height further improving visibility, just as the soft suspension absorbs bumps fantastically well. Sure, it’s not a full-blown SUV, but it still offers roof rails and protective body cladding.

Once you step inside, the Dacia Sandero Stepway comes with modern features like a high-tech infotainment system with Apple CarPlay and Android Auto, air conditioning, and rear parking sensors as standard. There’s even plenty of space for all your passengers and luggage, making it an excellent choice for families on a budget, too!

• Monthly Price: £210
• Deposit: £0
• Lease Term: 4 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 8) Suzuki Ignis

• Price: £15,295

On the other hand, you could opt for the new Suzuki Ignis. It’s a compact city car with a unique mini-SUV design, making it one of the most distinctive and practical budget cars available in 2024! Yet, despite its small footprint, the Ignis offers an abundance of interior space, a high driving position, and impressive fuel efficiency.

Under the bonnet, then, the Ignis is powered by a 1.2-litre Dualjet mild-hybrid petrol engine, delivering great fuel economy, potent performance, and low running costs. Meanwhile, as the Ignis has a lightweight build, it ensures that you can enjoy nippy handling, while optional ALLGRIP four-wheel drive makes it one of the few city cars that can tackle rougher terrain.

Inside, the Ignis is jam-packed with neat features for such a cheap car. This includes a 7-inch touchscreen infotainment system, Apple CarPlay, Android Auto, air conditioning, and a rearview camera. On top of that, the Ignis’ funky, customisable interior adds to its charm, making it a fun and stylish option for city driving.

• Monthly Price: £249
• Deposit: £0
• Lease Term: 4 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 9) Hyundai i10

• Price: £15,420

Moving onwards, we have the Hyundai i10; one of the most well-rounded and affordable city cars you can buy in 2024. It offers you refinement, practicality, and modern technology at an affordable price. Yet, despite its tiny size, the i10 provides surprisingly spacious seating for 5 passengers and a 252-litre boot, making it a standout choice in its class!

When you take a peek under the bonnet, you’ll find a 1.0-litre or 1.2-litre petrol engine, both offering smooth performance and excellent fuel economy. As a result, this means that the Hyundai i10 is well-regarded for its quiet cabin, comfortable ride quality, and precise handling. As such, this makes it as good for motorway trips as it is for urban driving.

The cabin of the Hyundai i10 is a superb place to spend time in. You’ll get a lot of equipment as standard, including air conditioning, a nice infotainment system, Apple CarPlay, Android Auto, and advanced safety tech such as lane-keeping assist and autonomous emergency braking. It proves that for a low price, you can still find fantastic cars!

• Monthly Price: £170
• Deposit: £0
• Lease Term: 4 Years
• Manufacturer Offers

Cheapest New Car UK 2024 – 10) Toyota Aygo X

• Price: £16,130

Alright, this one goes slightly over our £16,000 budget, but the Toyota Aygo X is a stylish and fun-to-drive compact crossover city car. Being designed to stand out, you’ll find that it features a raised ride height and bold design, and it even combines SUV-inspired looks with city car agility. In short, it’s perfect for urban driving, making it easy to navigate tight streets!

In tandem with its higher driving position to offer you better visibility, under the Toyota Aygo X’s bonnet, you’ll find a 1.0-litre three-cylinder petrol engine. It doesn’t just deliver great fuel economy (up to 58.8 mpg), but you can be assured that it’ll keep your running costs low. You even have the option of picking between an automatic or manual transmission.

Step inside the Aygo X, it features a modern and well-equipped cabin, including a 7-inch touchscreen infotainment system (upgradable to 9 inches), Apple CarPlay and Android Auto, and a suite of safety features such as adaptive cruise control, lane departure warning, and automatic emergency braking. It’s a well-rounded package for a low price!

• Monthly Price: £207
• Deposit: £0
• Lease Term: 4 Years
• Manufacturer Offers

Of course, choosing a budget-friendly car, especially in today’s economy, isn’t just about price. It’s also about finding yourself a car that suits your needs and lifestyle the most… Whether you’re looking for the best fuel economy, the most spacious interior space, or the longest warranty, here are some of our top picks for the best cheap new cars money could buy:

The Category Winners

• Best for Low Running Costs (Toyota Aygo X) – With an impressive fuel economy rating of up to 58.8 mpg, the Aygo X is one of the most fuel-efficient petrol cars today. This ought to massively help you with keeping your running costs low.
• Best for Warranty & Long-Term Ownership (Kia Picanto) – Backed by a comprehensive and lengthy 7-year/100,000-mile warranty, the new Kia Picanto offers unbeatable reliability and long-term value. This would be a nice boon for long-term owners.
• Best for City Driving & Easy Parking (Citroën Ami) – An unsurprising winner, at just 2.41 metres long, the Ami’s tiny footprint makes it perfect for squeezing into tight urban spaces. If you live in the city then and struggle for parking space, it’s a must-have!
• Best for Space & Practicality (Dacia Sandero Stepway) – With a whopping 328 litres of boot space, the Sandero Stepway is the most practical choice for families on a budget. Not only does it come with a huge boot space, but your interior space is respectable for its class, too.
• Best for Going Electric on a Budget (Citroën Ami) – The Ami is currently the cheapest brand-new EV in the UK, allowing you to electrify without breaking the bank! It offers 43 miles of range for low-cost, zero-emission city driving.
• Best for a Crossover Feel on a Budget (Toyota Aygo X) – With SUV-inspired styling and a raised ride height, the new Toyota Aygo X delivers a rugged look in a compact package. It won’t be able to off-road, of course, but it does give you that elevated driving position.

Pros & Cons Cheat Sheet

In case you need a quick look and comparison of all the pros and cons of the cars we mentioned earlier, here’s the quick little cheat sheet that we’ve prepared:

Car	Pros	Cons	Worth Noting
Citroën Ami	Ultra-cheap EV, perfect for city driving, low running costs	Not motorway-legal, only 28 mph top speed, very basic interior	Classified as a quadricycle, so insurance may differ from regular cars
Kia Picanto	7-year warranty, fun to drive, good build quality	Small boot, rear space is tight	Strong resale value and low insurance costs
Dacia Sandero	Spacious for the price, simple and reliable, cheapest “proper” car	Basic interior, minimal tech in base models	No hybrid/electric options are available
MG 3	Sporty handling, decent equipment levels, affordable pricing	Older platform, lower safety rating	New MG 3 Hybrid+ model expected soon
Citroën C3	Comfortable ride, unique design, frugal engine options	The infotainment system feels outdated	New-gen C3 will launch in 2024 with an electric variant
Fiat Panda	Rugged styling, good visibility, practical design	Feels dated, lacks advanced safety tech	One of the last city cars with a mild-hybrid option
Dacia Sandero Stepway	SUV-style looks, extra ride height, very practical	The base model is quite basic, not a true SUV	Same price as the standard Sandero, but with added versatility
Suzuki Ignis	Funky design, optional AWD, lightweight and efficient	Small boot, slightly firm ride	One of the few cheap cars with AWD capability
Hyundai i10	High-quality interior, smooth ride, well-equipped	Pricier than rivals, basic engine options	One of the safest cars in this category
Toyota Aygo X	Efficient engine, crossover styling, Toyota reliability	Not the most spacious, smaller rear seats	Feels more premium than most city cars