Best new cars for under £200 per month

A brand new car for less than £200 per month is easier to find than you may have first thought. Thanks to a variety of affordable finance deals there are some genuine bargains to be found, and we’ve done the hard work for you.

The up-front price of a car has become less and less relevant in recent times. For most motorists, it’s about how much they’ll have to pay a month to get behind the wheel, and one of the most popular ways to do this is leasing. 

Also known as Personal Contract Hire, leasing is best thought of as a long-term rental agreement, because you never own the car. Leasing is ideal for people who are happy to hand back the vehicle at the end of the agreement. It lets them take advantage of typically lower monthly payments than a Personal Contract Purchase (PCP) or Hire Purchase (HP) arrangement because you aren’t building up any equity to own the car in the end. That said, there are some tempting PCP and HP offers out there if you do ultimately want to take ownership of the car.

The car market is in a strange place right now, with numerous challenges, including demand often outstripping supply due to production problems, so bargain deals aren’t as abundant as they once were, but there are still a number to choose from.

Where possible, we’ve stuck to 48-month contracts with a deposit based on nine months’ worth of payments. This spreads the deposit over four years rather than two or three, while giving longer to save up a downpayment for whatever car comes next. 

These prices are representative of the kind of deals available on the UK market at the time of publication. For each model, we've linked to our leasing partner site leasing.com, which pulls together leasing deals from a range of top providers, so that you can check on exactly what's available for that car on the market right now.

Best new cars for under £200 per month

• Citroen C3
• Dacia Jogger
• Fiat 500
• Mazda 2
• Nissan Micra
• Skoda Scala
• Suzuki Swift
• Toyota Aygo X
• Volkswagen up!

PCH deals

Citroen C3 - £194 per month

• Model: C3 1.2 PureTech C-Series Edition
• Deposit: £1,748
• Term: 48 months
• Type: Personal Contract Hire
• Engine: 1.2-litre 3cyl petrol
• Seats: 5
• Economy: 51.4mpg
• Boot space: 300 litres

In recent years, there’s been a renewed focus on providing comfort over handling sharpness in the Citroen range, and that extends even to the stylish little C3. Fitting in with that ethos is this C-Series Edition, which adds a soft-touch artificial-leather dash among other upgrades. 

The exterior decals on this special edition won’t suit everyone, but few will be able to argue with the cosseting ride, efficient three-cylinder engine and the well sized boot. The C-Series Edition also gets Citroen’s distinctive ‘Air Bumps’ on the doors.

View the latest Citroen C3 deals at Leasing.com...

Dacia Jogger - £174 per month

• Model: Jogger 1.0 TCe Essential
• Deposit: £1,573
• Term: 48 months
• Type: Personal Contract Hire
• Engine: 1.0-litre 3cyl petrol
• Seats: 7
• Economy: 49.6mpg
• Boot space: 565 litres

In terms of bang for buck, there’s no better car on this list. The Dacia Jogger is an odd vehicle to pigeonhole, being part-estate and part-crossover with a dash of MPV, but don’t worry about that. All you need to know is it’s a seven-seater for just £174 a month, albeit paid over 24 months rather than 48, so you’ll need to worry about your next deposit a bit sooner. 

When you don’t need its full human-carrying capacity, removable seats make for a giant boot. Proving its great value, the next-cheapest seven-seater we found costs in excess of £200 more a month than the Jogger.

View the latest Dacia Jogger deals at Leasing.com…

Fiat 500 - £171 per month

• Model: 500 1.0 Mild-Hybrid Pop
• Deposit: £1,538
• Term: 48 months
• Type: Personal Contract Hire
• Engine: 1.0-litre 3cyl petrol
• Seats: 4
• Economy: 53.3mpg
• Boot space: 185 litres

The Fiat 500 (not to be confused with an EV which has the same name) is an old car now, and that shows in its ergonomics and the way it drives. But if you want an affordable little runabout that’s stylish both inside and out, look no further. 

For this kind of money, you’ll have to stick to the entry-level ‘Pop’ trim, but the Italian city car still comes with a decent amount of equipment, including parking sensors plus Apple CarPlay and Android Auto connectivity. And most importantly, it’ll make you smile every time you look at it.

View the latest Fiat 500 deals at Leasing.com…

Mazda 2 - £195 per month

• Model: Mazda2 1.5 Skyactiv G 75 SE-L
• Deposit: £1,753
• Term: 48 months
• Type: Personal Contract Hire
• Engine: 1.5-litre 4cyl petrol
• Seats: 5
• Economy: 58.9mpg
• Boot space: 280 litres

For just a little more a month and a small increase in deposit size over the MG3 below, you could be driving the far-more-convincing Mazda 2. 

It’s getting on a bit, but the 2’s minimalistic cabin still looks great, and as far as driving fun goes, it’s unrivalled at this price point. It doesn’t matter that this version has a mere 74bhp to its name; Mazda nails the dynamic fundamentals of all its cars, regardless of output, so even a low-powered 2 is a hoot to drive. It manages all this while being spacious and cheap to run. 

View the latest Mazda 2 deals at Leasing.com...

Nissan Micra - £181 per month

• Model: Micra ​​1.0 IG-T 92 Tekna
• Deposit: £1,869
• Term: 48 months
• Type: Personal Contract Hire
• Engine: 1.0-litre 3cyl petrol
• Seats: 5
• Economy: 51.4mpg
• Boot space: 300 litres

Long known for its bubble car-like looks, the Micra has grown up into a stylish, sharply designed supermini. There’s plenty of substance, with the Nissan offering great practicality and fantastic build quality. 

But it’s older than a lot of its rivals, many of which are better to drive, and come with better-performing and more efficient engines, including mild-hybrids. But for this kind of money, the Nissan looks a whole lot more tempting. The Micra is no longer available for order, so this deal will only be available for the remaining stock.

View the latest Nissan Micra deals at Leasing.com...

Skoda Scala - £194 per month

• Model: Scala 1.0 TSI 110 SE Technology
• Deposit: £1,754
• Term: 48 months
• Type: Personal Contract Hire
• Engine: 1.0-litre 3cyl petrol
• Seats: 5
• Economy: 51.4mpg
• Boot space: 467 litres

The Octavia is a lot bigger than the average C-segment hatchback, so Skoda created the Scala to slot between that car and the Fabia supermini. The results are, it must be said, not awfully exciting, but from a value perspective, the Scala is hard to beat. 

For less than £200 a month, you’re getting a very practical car with an impressive 467-litre boot and a tried-and-tested turbocharged three-cylinder engine. Our pick gets the 108bhp version of that motor and the well equipped SE Technology grade. 

View the latest Skoda Scala deals at Leasing.com...

Toyota Aygo X - £191 per month

• Model: Aygo X 1.0 VVT-i Edge 5dr Auto
• Deposit: £1,715
• Term: 48 months
• Type: Personal Contract Hire
• Engine: 1.0-litre 3cyl petrol
• Seats: 5
• Economy: 56.5mpg
• Boot space: 226 litres

The Aygo is no longer a city car; it’s been reimagined as a micro SUV, becoming the Aygo X, pronounced ‘Aygo Cross’. The transformation has resulted in a funky car that stands out from the crowd, but isn’t as practical as you might think. 

It’s very affordable, though, comfortably coming in at less than £200 a month. This deal is for a car with Edge trim, which builds on the already well specced Pure model with larger wheels, automatic air-conditioning and front foglights. The edition we’ve selected also has a CVT automatic gearbox.

View the latest Toyota Aygo X deals at Leasing.com...

PCP deals

Suzuki Swift - £189 per month

• Model: Swift SZ-L 1.2 Dualjet
• Deposit: £3,042.76
• Term: 48 months
• Type: Personal Contract Purchase
• Engine: 1.2-litre 4cyl petrol mild-hybrid
• Seats: 5
• Economy: 59.7mpg
• Boot space: 264 litres

The latest Suzuki Swift is arguably the brand’s most appealing supermini yet. Suzuki clearly paid close attention to fierce rivals such as the Vauxhall Corsa and Toyota Yaris when designing the Swift, it’s well-built and offers appealingly low running costs. 

For £189 a month you could get a Suzuki Swift SZ-L. This is powered by a 1.2-litre mild-hybrid powertrain so you’ll be able to enjoy impressive fuel efficiency without too much effort. Standard equipment is rather good, too, with 16-inch alloy wheels, LED headlights and advanced radar brake support all included.

View the latest Suzuki finance deals...

Volkswagen up! - £188.49 per month

• Model: up! 1.0 65PS 5-speed Manual 3 Door
• Deposit: £2,842
• Term: 48 months
• Type: Personal Contract Purchase
• Engine: 1.0-litre 3cyl petrol
• Seats: 4
• Economy: 54.6mpg
• Boot space: 251 litres

The Volkswagen up! Is the oldest model in its current lineup - it was originally launched in 2011 - but some impressive engineering and a series of updates throughout the years mean it’s still a top city car choice.

This deal is for a petrol-powered up! in the base trim. Admittedly, there aren’t many creature comforts - with the only notable features being a DAB radio, USB connectivity and air conditioning - but if you’re after a straightforward and dependable car, the up! Is definitely worth considering.

View the latest Volkswagen finance deals...

More of the best new car deals

• Best cars for under £200 a month
• Best cars for under £250 a month
• Best cars for under £300 a month
• Best cars for under £350 a month
• Best cars for under £400 a month
• Best cars for under £500 a month

Looking for a second-hand car instead? Check out our list of the best used car finance deals...