The cheapest car deals on PCP finance

PCP finance is by far the most popular way of buying a new car. But what are the most tempting deals of all?...

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by
George Hill
Updated09 April 2024

Worried about paying a large sum of money for a new car? Fear not, because a Personal Contract Purchase (PCP) deal can be one of the most affordable ways of getting a new car on your driveway.

But what exactly is a PCP deal? Well, it allows you to pay for a new car with monthly payments. In most cases, it requires a deposit of around 10% of the car's value and usually lasts for between three to five years. At the end of the deal, you have the option to buy the car outright.

Renault Clio with Target Price logo

So, if that sounds like it could be for you, we've made a list of the cheapest PCP deals in the UK – with the lowest price starting from just £146 per month for a Fiat 500 Hybrid. Don't think you have to sacrifice some creature comforts for a cheap price, though, because our list includes a wide range of models, including small cars, small SUVs and even a convertible.

If any of them take your fancy, you can follow the links to read our full new car reviews. Or, to find more prices, search our free New Car Deals pages.

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Distinctive looks
  • Easy to drive around town
  • Plenty of customisation options

Weaknesses

  • Poor driving position
  • Unsettled ride
  • Coarse-sounding engine

Version 1.0 Mild Hybrid 500 | Target PCP £146 | Target Price £15,922 | The deal Four years' PCP finance with 7.9% APR and £2525 finance contribution. Limit of 8000 miles per year

The Fiat 500 Hybrid is one of the most affordable small cars around, and presents itself as a credible option if you're not tempted by the fully electric (and more expensive) Fiat 500 Electric. It offers similarly stylish looks, and its tiny dimensions make it ideal for driving around town. Don't be fooled by the hybrid name, though, because it's only a mild hybrid, meaning a tiny electric motor helps boosts the engine to improve performance and fuel economy. It can't run solely on electric power for short distances like a regular hybrid can. 

Rear our in-depth Fiat 500 Hybrid review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Really tidy handling
  • Frugal 1.0 MPi petrol engine
  • Excellent infotainment and equipment on 3 trim

Weaknesses

  • 1.0 MPi petrol engine isn't very quick
  • Firm(ish) low-speed ride
  • A Dacia Sandero is much roomier

Version 1.0 GT-Line [Auto] [4 seats] | Target PCP £156 | Target Price £16,267 | The deal Three years' PCP finance with 7.9% APR and £1000 finance contribution. Limit of 8000 miles per year

The Kia Picanto is currently the cheapest new car you can buy outright in the UK, so it's not too surprising to see it on this list. Despite it's keen pricing, the Picanto is a commendable small car with a smart interior, tidy handling and frugal engines. It's worth noting that while the version quoted here isn't the cheapest version you can buy outright, it is the cheapest version on PCP finance. Mind you, this is no bad thing, because it's much better equipped than the entry-level version, and includes an 8.0in touchscreen, electrically adjustable door mirrors and automatic headlights as standard.

Rear our in-depth Kia Picanto review

Our pick: 1.0 VVT-i Edge 5dr

0-62mph: 14.9 sec
MPG/range: 58.9mpg
CO2 emissions: 110g/km
Seats: 4
Boot: 226 litres
Insurance group: 6A
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Cheap to run
  • Good level of safety kit
  • Warranty of up to 10 years

Weaknesses

  • Cramped in the back
  • Smaller boot than rivals
  • Lacklustre performance

Version 1.0 VVT-i Edge | Target PCP £160 | Target Price £15,955 | The deal Three and a half years' PCP finance with 4.9% APR and £900 finance contribution. Limit of 8000 miles per year

The Aygo X blends small car affordability with chunky SUV styling. And while it's an SUV in name only, it's a decent offering that's good to drive, cheap to run and well equipped. The Edge trim quoted here is our favourite version, and comes with 18in alloy wheels, automatic headlights and air conditioning as standard. All models come with a good amount of safety kit, too, including automatic emergency braking (AEB), lane-keep assist and six airbags.

Rear our in-depth Toyota Aygo X review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Very comfortable for a small car
  • Smart and high-quality interior
  • Punchy and frugal 1.2 Puretech 100 petrol engine

Weaknesses

  • Steering wheel design can cause issues
  • So-so infotainment system
  • Rivals are more fun to drive

Version 1.2 PureTech Active | Target PCP £169 | Target Price £16,986 | The deal Four years' PCP finance with 6.9% APR and £2500 finance contribution. Limit of 8000 miles per year

Small cars aren't renowned for ride comfort, but the Peugeot 208 excels in this area. It has a more supple ride than the Audi A1 and VW Polo, and it remains impressively smooth on even the bumpiest of roads. On top of that, it also has a smart, high-quality interior, although upper trims get plusher materials and more kit as standard than this entry-level Active version. That said, it does come with automatic LED headlights, rear parking sensors and automatic wipers.

Rear our in-depth Peugeot 208 review

Our pick: 1.0 Tce Bi-Fuel Expression 5dr

0-62mph: 11.6 sec
MPG/range: 52.3mpg
CO2 emissions: 109g/km
Seats: 5
Boot: 328 litres
Insurance group: 14E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Amazingly good value
  • Lots of space for passengers and luggage
  • Comfortable ride

Weaknesses

  • Poor safety rating compared with rivals
  • There are more entertaining small cars to drive
  • Some other small cars are quieter

Version 1.0 TCe Bi-Fuel Expression | Target PCP £171 | Target Price £14,551 | The deal Four years' PCP finance with 7.9% APR and £500 finance contribution. Limit of 8000 miles per year | Star rating 4

Cheap small cars can feel compromised in areas such as quality and driving dynamics, but the Dacia Sandero bucks that trend. It's comfortable to drive, practical and even reasonably well equipped. This Bi-Fuel version can also run on liquefied petroleum gas (LPG) as well as regular unleaded. So, if you live near a petrol station that stocks LPG, your running costs could be miniscule.

Rear our in-depth Dacia Sandero review

Our pick: 1.0 TSI SE Comfort 5dr

0-62mph: 10.7 sec
MPG/range: 55.8mpg
CO2 emissions: 115g/km
Seats: 5
Boot: 380 litres
Insurance group: 11E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Huge boot
  • Roomy interior with clever features
  • Fairly supple ride

Weaknesses

  • Renault Clio has a smarter interior
  • Not as practical as the Honda Jazz
  • Entry-level engine only suited to town driving

Version 1.0 MPi 80 SE Comfort | Target PCP £172 | Target Price £18,731 | The deal Four years' PCP finance with 5.9% APR and £2250 finance contribution. Limit of 8000 miles per year

Sharing underpinnings with the VW Polo brings some benefits, because the Skoda Fabia has a similarly comfortable ride and a spacious interior. It also shares the same engines as its German cousin, including this 79bhp 1.0-litre unit. While it's not our favourite engine (that's the 94bhp turbocharged unit), it should be cheap to run and good for driving around town. Of course, the main benefit of choosing the Fabia over the Polo is that it's cheaper to buy – especially on PCP finance.

Rear our in-depth Skoda Fabia review

Our pick: 1.0 TCe 90 Techno 5dr

0-62mph: 12.2 sec
MPG/range: 54.3mpg
CO2 emissions: 119g/km
Seats: 5
Boot: 284 litres
Insurance group: 11E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Smart interior is packed with equipment
  • Good ride and handling balance
  • Practical boot

Weaknesses

  • Tight for taller adults in the rear seats
  • Slightly firm low-speed ride
  • High boot loading lip

Version 1.0 TCe 90 Evolution | Target PCP £178 | Target Price £16,280 | The deal Four years' PCP finance with 7.9% APR and £1000 finance contribution. Limit of 8000 miles per year

If you're looking for a small car, the Renault Clio is the best you can buy. We named it our 2024 Small Car of the Year on account of its competitive pricing, smart interior, comfortable ride and practical boot. While this Evolution version isn't our favourite (that's Techno), it does still come well equipped, with full LED headlights, automatic windscreen wipers and keyless start offered as standard.

Rear our in-depth Renault Clio review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Decently equipped
  • Stylish interior
  • Efficient engines

Weaknesses

  • Poor to drive
  • AEB is not standard on lower trims
  • Cramped rear seats

Version 1.2 PureTech Plus | Target PCP £181 | Target Price £15,819 | The deal Four years' PCP finance with 7.9% APR. Limit of 8000 miles per year 

Even though the Citroën C3 is very well priced if you're buying it outright, it's not quite as cheap some rivals on PCP finance. That said, it does a good job of turning heads with its stylish exterior and interior design. This Plus version is the mid-level trim, which means it's fairly well equipped with a 7.0in t0uchscreen, automatic windscreen wipers and rear parking sensor included as standard. It's not as good to drive or as practical as the Dacia Sandero.

Rear our in-depth Citroën C3 review

Our pick: 1.2 Premium 5dr

0-62mph: 12.6 sec
MPG/range: 51.4mpg
CO2 emissions: 125g/km
Seats: 5
Boot: 252 litres
Insurance group: 6E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Comfortable and quiet to drive
  • Five seats and decent rear space
  • Good amount of kit as standard

Weaknesses

  • Three-star Euro NCAP safety rating
  • Non-turbocharged 1.0-litre engine is a bit lacklustre
  • Slow automatic gearbox

Version 1.0 MPi Advance [Auto] | Target PCP £184 | Target Price £15,278 | The deal Four years' PCP finance with 8.9% APR. Limit of 8000 miles per year | Star rating 4

The Hyundai i10 makes a great choice if you're looking for a small car on a budget. It's relatively spacious and smart inside, plus it rides and drives better than plenty of bigger, more expensive alternatives. All models come well equipped, too, with this entry-level Advance trim giving you an 8.0in infotainment screen and a reversing camera as standard. As with some other cars on this list, the entry-level 1.0-litre engine quoted here is a little underpowered and is better suited for driving around town.

Rear our in-depth Hyundai i10 review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Decent range between charges
  • Fun to drive around town
  • Stacks up well financially

Weaknesses

  • Tiny rear seats
  • Noisy on the motorway
  • Rivals have longer electric ranges

Version 24kWh 500 | Target PCP £187 | Target Price £22,131 | The deal Four years' PCP finance with 0% APR and £6175 finance contribution. Limit of 8000 miles per year 

Electric cars are infamous for their expensive price tags, but not the Fiat 500 Electric. It's the cheapest new electric car you can buy on PCP finance, and it's even good value if you're buying outright, too, once you factor in our Target Price discount. While all versions of the 500 Electric are stylish and fun to drive, it's worth noting that the 24kWh battery version quoted here has a tiny official range of just 118 miles. 

Rear our in-depth Fiat 500 Electric review

Our pick: 1.0 DiG-T N-Connecta 5dr

0-62mph: 10.7 sec
MPG/range: 48.7mpg
CO2 emissions: 133g/km
Seats: 5
Boot: 422 litres
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Smart interior
  • Good safety rating
  • Lots of toys on our recommended trim

Weaknesses

  • Choppy ride
  • So-so infotainment system
  • Hybrid isn't as fuel efficient as a Toyota Yaris Cross

Version 1.0 DiG-T 114 Acenta | Target PCP £187 | Target Price £19,442 | The deal Four years' PCP finance with 5.99% APR and £1250 finance contribution. Limit of 8000 miles per year

Value is a strong suit for the Nissan Juke, because it has a smart interior and a good safety rating compared with the likes of the Dacia Duster. The entry-level 112bhp engine quoted here is gutsy enough for most needs, just as long as you keep the revs above 2000rpm. Acenta is the lowest trim we'd recommend going for, although N-Connecta trim gives you much more kit as standard.

Rear our in-depth Nissan Juke review

12

MG3

Our pick: 1.5 Hybrid SE 5dr Auto

0-62mph: 8 sec
MPG/range: 64.2mpg
CO2 emissions: 100g/km
Seats: 5
Boot: 241 litres
Insurance group: 23A
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Attractively priced
  • Interior looks fairly smart
  • Well equipped

Weaknesses

  • Interior build quality could be better
  • Poor rear-seat versatility
  • Renault Clio is more fun to drive

Version 1.5 VTi-Tech Excite | Target PCP £187 | Target Price £13,808 | The deal Four years' PCP finance with 8.9% APR and £250 finance contribution. Limit of 8000 miles per year | Star rating 2

MG makes some of the most affordable cars on sale, and the MG3 is no exception to that. However, unlike some of MG's other models, it's not especially good value because of its bumpy ride, wheezy engine and poor safety rating. The Dacia Sandero is a much better alternative with its punchy engines, practical interior and tidy driving manners.

Rear our in-depth MG3 review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Comfortable ride
  • Spacious interior
  • Astonishing price

Weaknesses

  • Poor safety rating compared to rivals
  • Mainly cosmetic changes for the money over a regular Sandero
  • Noisy TCe 90 engine

Version 1.0 TCe Bi-Fuel Expression | Target PCP £188 | Target Price £15,987 | The deal Four years' PCP finance with 7.9% APR and £500 finance contribution. Limit of 8000 miles per year

The Sandero Stepway offers many of the benefits of the regular Sandero, including its practical interior and punchy engines, but adds a slightly raised ride height, roof rails and chunky plastic cladding to give it a more rugged look. Indeed, you also get a slightly higher driving position – a factor that many small SUV buyers crave. Expression trim gives you plenty of kit as standard, including an 8.0in touchscreen, cruise control and automatic headlights.

Rear our in-depth Dacia Sandero Stepway review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Individual looks
  • Decent head room
  • Good rear visibility

Weaknesses

  • Abysmal Euro NCAP crash test result
  • Poor rear leg room
  • Slow and poor to drive

Version 1.0 Mild Hybrid Top [Touchscreen] | Target PCP £189 | Target Price £15,517 | The deal Four years' PCP finance with 9.9% APR and £750 finance contribution. Limit of 8000 miles per year

It may be stylish and cheap, but we'd recommend avoiding the Fiat Panda. It's poor to drive and not very practical, plus Euro NCAP awarded it zero stars for safety when it was crash tested in 2018. Yes, it really did score zero stars, largely on account of its abysmal adult and child protection scores for the front and rear seats. Automatic emergency braking braking (AEB) isn't available as an option, either.

Rear our in-depth Fiat Panda review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Well equipped
  • Decent boot
  • Efficient engines

Weaknesses

  • Fiddly infotainment system
  • Below-par safety rating
  • Poor resale values

Version 1.2 Design | Target PCP £189 | Target Price £16,810 | The deal Four years' PCP finance with 7.9% APR and £2300 finance contribution. Limit of 8000 miles per year

It may not be the best all-rounder, but the Vauxhall Corsa is a competent small car, being relatively practical, cheap to run and well equipped. The version quoted here is the entry-level car, meaning it pairs a 74bhp 1.2-litre engine with Design trim. The latter gives you air conditioning, heated door mirrors and a 7.0in infotainment screen as standard.

Rear our in-depth Vauxhall Corsa review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Keen starting price
  • Sliding rear seats standard
  • Good safety rating

Weaknesses

  • Engines are relatively weak
  • Rivals have more rear seat space
  • E-Tech PHEV is disappointing to drive

Version 1.0 TCe 90 Evolution | Target PCP £191 | Target Price £19,242 | The deal Four years' PCP finance with 7.9% APR and £2000 finance contribution. Limit of 8000 miles per year 

The Captur is essentially a Renault Clio on stilts, so both cars share many of the same components. For instance, the Captur is offered with the same engine and trim options, including this 89bhp 1.0-litre petrol engine and Evolution trim. If your budget can stretch to it, we'd recommend going for the hybrid version of the Captur; it produces 143bhp, so it's a much stronger performer than the entry-level engine. It also has the ability to run on electric-only power at low speeds, which helps improve fuel economy.

Rear our in-depth Renault Captur review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Funky styling
  • Cheaper than Mini Convertible
  • Easy to drive around town

Weaknesses

  • Very limited rear seat and boot space
  • Disappointing safety rating
  • Leisurely driving pace

Version 1.0 Mild Hybrid 500 | Target PCP £193 | Target Price £18,427 | The deal Four years' PCP finance with 7.9% APR and £2525 finance contribution. Limit of 8000 miles per year

Yes, one of the cheapest cars you can get on PCP deal in the UK is a convertible. Granted, it may not be the finest offering in the class, but the Fiat 500C Hybrid offers funky looks and puny dimensions, making it ideal if you live in a city. As a package, though, it's generally outclassed by the Mini Convertible in almost every area, including comfort, quality and performance. 

Rear our in-depth Fiat 500C Hybrid review

Our pick: 1.3 TCe 130 Expression 5dr

0-62mph: 10.6 sec
MPG/range: 45.6mpg
CO2 emissions: 141g/km
Seats: 5
Boot: 445 litres
Insurance group: 19D
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Cheap to buy and run
  • Spacious boot
  • 4x4 version is very capable off road

Weaknesses

  • Some rivals are better to drive
  • Lots of hard plastics inside
  • Sparsely equipped entry-level model

Version 1.0 TCe 100 Bi-Fuel Expression | Target PCP £195 | Target Price £17,991 | The deal Four years' PCP finance with 7.9% APR and £750 finance contribution. Limit of 8000 miles per year

With its low price, good equipment levels and decent resale values, the Dacia Duster represents good value for money. However, you do have to live with certain compromises, including a cheap interior, wallowy handling and a poor Euro NCAP safety rating. The Duster's trump card compared with the likes of the Nissan Juke and MG ZS is that it's quite utilitarian, which means it can do some light off-roading if the need ever arises. Mind you, the four-wheel driver versions will be better at this if you ever need to leave the Tarmac. 

Rear our in-depth Dacia Duster review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Relatively high driving position
  • Versatile seating
  • Cheaper than many rivals

Weaknesses

  • Disappointing driving experience
  • Heavy depreciation
  • Fiddly touchscreen

Version 1.2 PureTech 110 You | Target PCP £197 | Target Price £15,423 | The deal Four years' PCP finance with 12.9% APR. Limit of 8000 miles per year 

If you're buying an SUV, you naturally want a high driving position. And thankfully, the Citroën C3 Aircross gives a pleasingly expansive view of the road, which can't be said of many small SUVs. This is great, especially when you consider its competitive pricing, but it does bring a big downside. The suspension set-up is very soft, so when you combine that with a tall body, the car handles corners very poorly. On the plus side, this entry-level engine is our pick of the range; it provides reasonable performance and cheap running costs.

Rear our in-depth Citroën C3 Aircross review

Our pick: 1.5 VTi-TECH Excite 5dr

0-62mph: 10.9 sec
MPG/range: 42.7mpg
CO2 emissions: 149g/km
Seats: 5
Boot: 448 litres
Insurance group: 15E
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Low price
  • Surprisingly smart interior
  • Standard seven-year warranty

Weaknesses

  • Limited safety aids
  • Unsettled ride
  • Performance is so-so

Version 1.5 VTi-Tech Excite | Target PCP £203 | Target Price £16,790 | The deal Four years' PCP finance with 8.9% APR and £500 finance contribution. Limit of 8000 miles per year

Despite being one of the cheapest SUVs you can get on PCP finance, the MG ZS offers a surprisingly classy interior, decent handling and roomy rear seats. Excite trim is also well equipped for the money, and includes LED headlights, rear parking sensors and Apple CarPlay and Android Auto smartphone mirroring as standard. The 1.5-litre engine is underpowered and not very efficient, though.

Rear our in-depth MG ZS review

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