5 great new cars for less than £200 per month

Looking to finance an affordable new car? Here are five great options

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, 

Ford Fiesta

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

APR: 0%

Annual mileage allowance: 9,000

Enquire on a new Ford Fiesta

Skoda Fabia

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

APR: 0%

Annual mileage allowance: 10,000

Enquire on a new Skoda Fabia

Audi A1

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: 10,000

Enquire 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: 8,000

Enquire on a new Fiat 500

Dacia Sandero

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: 6,000

Enquire on a new Dacia Sandero