Introduction: Finding the Best Small Cheap Cars in the UK
If you’re looking for a budget-friendly small car in the UK, there are plenty of options that offer great value, fuel efficiency, and low running costs. Whether you need a compact city car for easy parking, a fuel-efficient hatchback, or a reliable commuter vehicle, finding an affordable small car doesn’t mean compromising on quality.
In this guide, we’ve rounded up the best small cheap cars in the UK, covering their features, pros, and pricing to help you make an informed decision. From brand-new budget cars to used bargains, explore the best options for your budget in 2025.
1. Dacia Sandero – The Cheapest New Car in the UK 🏆
💰 Price: From £13,795
⛽ Fuel Economy: Up to 53.3 mpg
⚡ Engine Options: 1.0-litre petrol, 1.0-litre Bi-Fuel (LPG)
Why It’s a Great Choice:
✔ The cheapest new car available in the UK
✔ Spacious for a small car, with a generous 328-litre boot
✔ Good fuel efficiency and low insurance costs
The Dacia Sandero is a no-frills budget car that delivers practicality, reliability, and affordability. It’s the ideal choice for those who want a new small car without breaking the bank.
💡 Best For: First-time buyers, budget-conscious drivers
2. Kia Picanto – A Reliable City Car with Great Warranty 🚗
💰 Price: From £13,665
⛽ Fuel Economy: Up to 58.9 mpg
⚡ Engine Options: 1.0-litre or 1.2-litre petrol
Why It’s a Great Choice:
✔ 7-year warranty – the best in its class
✔ Small, nimble, and perfect for city driving
✔ Low insurance and maintenance costs
The Kia Picanto is one of the best small city cars in the UK, offering great build quality, a long warranty, and efficient performance. It’s compact yet practical, making it perfect for urban commutes.
💡 Best For: City drivers, those who want a long warranty
3. Hyundai i10 – Affordable, Comfortable & Well-Equipped 🚙
💰 Price: From £15,420
⛽ Fuel Economy: Up to 56.5 mpg
⚡ Engine Options: 1.0-litre or 1.2-litre petrol
Why It’s a Great Choice:
✔ Spacious for a city car, with 5 seats
✔ Good safety features and technology for the price
✔ Reliable engine and low running costs
The Hyundai i10 is slightly more expensive than some rivals, but it offers higher-quality materials, better interior space, and strong reliability. It’s one of the best all-round small cheap cars in the UK.
💡 Best For: Commuters, small families, those wanting a balance of affordability and features
4. Toyota Aygo X – A Fun, Small Crossover-Style Hatchback 🚘
💰 Price: From £15,990
⛽ Fuel Economy: Up to 58.9 mpg
⚡ Engine Options: 1.0-litre petrol
Why It’s a Great Choice:
✔ Eye-catching crossover-inspired design
✔ Compact and perfect for city driving
✔ Efficient and reliable
The Toyota Aygo X blends the agility of a small city car with the bold styling of a mini crossover. It’s fuel-efficient, affordable, and fun to drive, making it a great budget-friendly choice.
💡 Best For: Urban drivers looking for style and efficiency
5. Fiat Panda – Quirky, Cheap, and Practical 🏡
💰 Price: From £14,740
⛽ Fuel Economy: Up to 49.6 mpg
⚡ Engine Options: 1.0-litre petrol mild hybrid
Why It’s a Great Choice:
✔ Simple, practical, and easy to drive
✔ Affordable with low running costs
✔ Good visibility and interior space
The Fiat Panda has been around for decades, and its boxy, no-nonsense design makes it a practical small car for budget-conscious buyers. It’s an excellent choice for those who prioritise practicality over high-tech features.
💡 Best For: Budget-conscious families, practical-minded drivers
Best Used Small Cheap Cars in the UK 💷
If you’re looking for a second-hand small car on a budget, here are some of the best used options that offer great reliability and value:
1. Ford Fiesta (2018-2022)
💰 Used Price: From £6,000
✔ Fun to drive, reliable, and fuel-efficient
✔ Widely available with many trim options
2. Volkswagen Up! (2015-2021)
💰 Used Price: From £5,500
✔ Small but well-built with a premium feel
✔ Excellent fuel economy and low running costs
3. Vauxhall Corsa (2017-2022)
💰 Used Price: From £5,500
✔ Cheap to run, practical, and widely available
✔ Good resale value and low insurance costs
💡 Best Tip: Look for cars with full service history and low mileage to get the best long-term reliability.
Things to Consider When Buying a Small Cheap Car in the UK
1. Running Costs
- Check insurance group, fuel economy, and road tax costs.
- Cars with smaller engines (1.0-1.2L) are usually cheaper to insure and fuel-efficient.
2. Warranty & Reliability
- Kia (7 years) and Hyundai (5 years) offer the best warranties.
- Toyota and Honda are known for their long-term reliability.
3. Space & Practicality
- If you need a big boot, consider Dacia Sandero or Hyundai i10.
- If you mostly drive in the city, a Kia Picanto or Toyota Aygo X is a great option.
4. Resale Value
- Cars like the Volkswagen Up! and Ford Fiesta hold their value better over time.
Final Thoughts: Which Small Cheap Car is Right for You?
🚗 Best Overall Budget Buy: Dacia Sandero – The cheapest new car in the UK.
🏙️ Best City Car: Kia Picanto – Perfect for tight urban spaces.
💡 Best for Features & Warranty: Hyundai i10 – Well-equipped and reliable.
🌱 Most Stylish: Toyota Aygo X – A small car with big personality.
🛣️ Best Used Small Car: Ford Fiesta – A reliable and fun second-hand choice.
No matter what your budget is, there are plenty of great small cheap cars in the UK to choose from. Whether you’re looking for a brand-new bargain or a used gem, the key is to balance affordability with reliability and running costs.
🚘 Start your search today and find the perfect small cheap car for your needs!
FAQs About Small Cheap Cars in the UK
1. What is the cheapest new small car in the UK?
The Dacia Sandero is currently the cheapest new car in the UK, starting at £13,795.
2. What is the best small car for cheap insurance?
The Kia Picanto and Hyundai i10 are in low insurance groups, making them affordable to insure.
3. What’s the best cheap small car for motorway driving?
The Dacia Sandero and Ford Fiesta handle motorway speeds well while staying fuel-efficient.
4. What small car holds its value best?
The Volkswagen Up! and Toyota Aygo X have good resale value compared to other budget models.
