10 best new cars for less than £200 per month

Fancy a new small car, family hatchback or even an SUV? All can be yours for £200 per month or less if you buy on a PCP finance deal. Here are our top 10 picks.....

These days, the vast majority of new cars are bought through PCP finance deals, and it's easy to see why.

Volkswagen Polo, Skoda Octavia, Suzuki Vitara, Kia Picanto compilation image

For less than £200 a month, you can have some of the best cars on sale today, whether you're looking for a small hatchback, a family car or even an SUV.

Here, we count down the top 10 deals from our Target Price research, which reveals the most you should pay for a new car. Each deal is based on 15% of the value of the car, combined with the manufacturer's finance discount allowance, and are for three years, with a 30,000-mileage limit.

Editor's note: All images are purely illustrative and do not necessarily reflects mentioned trim levels

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10: Suzuki Ignis 1.2 Dualjet SZ3

Suzuki Ignis 1.2 Dualjet SZ3

Target Price cost per month: £184

Target Price: £11,569

The deal: Three years' PCP finance at 6.9% APR

Don't be fooled by its small size, because the Suzuki Ignis is one deceptively spacious SUV.

10: Suzuki Ignis 1.2 Dualjet SZ3 - interior

Suzuki Ignis 1.2 Dualjet SZ3 - interior

It's also fun to drive and ruthlessly efficient, and this 1.2-litre petrol-engined version is efficient, too. SZ-3 may be the entry-level trim, but it still gets you Bluetooth, electric front windows and air conditioning.

9: Skoda Fabia 1.0 TSI 95 SE

Skoda Fabia 1.0 TSI 95 SE

Target Price cost per month £197

Target Price £13,085

The deal: Three years' PCP finance with 4.9% APR and £2000 finance deposit allowance

The Skoda Fabia is a former What Car? Car of the Year and still one of the best small hatchbacks you can buy.

9: Skoda Fabia 1.0 TSI 95 SE - interior

Skoda Fabia 1.0 TSI 95 SE - interior

It's a practical, quiet and composed choice, build quality is top-notch and it's still relatively cheap even in our favourite spec.

8: Volkswagen Up 1.0 Move Up 5dr

Volkswagen Up 1.0 Move Up 5dr

Target Price cost per month: £168

Target Price: £11,081

The deal: Three years' PCP finance with 0% APR

The Up is Volkswagen's smallest and cheapest model, but it still has all the strengths of the brand's bigger models: it's a refined cruiser that strikes an excellent balance between comfort and driving fun and has a classy interior.

8: Volkswagen Up 1.0 Move Up 5dr - interior

Volkswagen Up 1.0 Move Up 5dr - interior

Move Up trim gets you air conditioning, electric front windows and split-folding rear seats.

7: Hyundai i10 1.2 Premium SE

Hyundai i10 1.2 Premium SE

Target Price cost per month: £164

Target Price: £11,372

The deal: Three years' PCP finance with 4.9% APR and £1500 finance deposit allowance

Although its title as City Car of the Year was taken by the Kia Picanto at our 2018 Awards, the Hyundai i10 remains one of the best cars of its type.

7: Hyundai i10 1.2 Premium SE - interior

Hyundai i10 1.2 Premium SE - interior

It's reasonably spacious, has a sophisticated touchscreen infotainment system and comes with a peppy 1.2-litre petrol engine. This version is in our recommended Premium SE specification, too.

6: Ford Fiesta 1.0 Ecoboost 125 ST-Line

Ford Fiesta 1.0 Ecoboost 125 ST-Line

Target Price cost per month: £196

Target Price: £16,195

The deal: Three years' PCP finance with 0% APR and £1000 finance deposit allowance

The Ford Fiesta is consistently the best-selling new car in the UK, and it's easy to see why.

6: Ford Fiesta 1.0 Ecoboost 125 ST-Line - interior

Ford Fiesta 1.0 Ecoboost 125 ST-Line - interior

The vast model range ensures there's a version to suit everyone and, despite not being especially practical, its great driving style and generous safety kit ensure the Fiesta is one the best small cars around. This is our recommended version, too.

5: Suzuki Vitara 1.0 Boosterjet SZ4

Suzuki Vitara 1.0 Boosterjet SZ4

Target Price cost per month: £193

Target Price: £16,699

The deal: Three years' PCP finance with 0% APR

The Vitara can represent real value for money, thanks to its generous standard equipment and spacious interior.

5: Suzuki Vitara 1.0 Boosterjet SZ4 - interior

Suzuki Vitara 1.0 Boosterjet SZ4 - interior

It's also reasonably spacious inside and has a range of capable engines, of which this peppy 1.0-litre turbo petrol is our favourite.

4: Mazda MX-5 1.5 SE+

Mazda MX-5 1.5 SE+

Target Price cost per month: £193

Target Price: £16,43

The deal: Three years' PCP finance with 4.1% APR and £2000 finance deposit allowance

If you're looking for a sporty car that won't cost you a fortune to buy and run, there's no better choice than the Mazda MX-5.

4: Mazda MX-5 1.5 SE+ - interior

Mazda MX-5 1.5 SE+ - interior

It combines a soft-top roof that's quick and easy to fold with hugely entertaining handling and tempting pricing, and it even averages almost 50mpg in real-world conditions.

3: Kia Picanto 1.25 3

Kia Picanto 1.25 3

Target Price cost per month: £174

Target Price: £11,534

The deal: Three years' PCP finance with 5.9% APR and £1000 finance deposit allowance

The previous Kia Picanto was an also-ran in the city car class, but this latest model is a clear winner; in fact, it's been named our City Car of the Year for the past two years.

3: Kia Picanto 1.25 3 - interior

Kia Picanto 1.25 3 - interior

It's spacious by class standards, offers tidy handling and is backed up by Kia's market-leading seven-year warranty.

This 3-spec model comes with lots of kit, too, including climate control, cruise control, a rear-view camera and a 7.0in infotainment touchscreen.

2: Skoda Octavia 1.0 TSI S

Skoda Octavia 1.0 TSI S

Target Price cost per month: £199

Target Price: £14,297

The deal: Three years' PCP finance with 5.9% APR and £2500 finance deposit allowance

The Octavia might look a little bland next to rival family hatchbacks, but it's a class leader in most other respects.

2: Skoda Octavia 1.0 TSI S - interior

Skoda Octavia 1.0 TSI S - interior

It's spacious, good to drive and comes with a generous array of standard equipment. It's so good, in fact, that we named it our Family Car of the Year at the 2019 What Car? Car of the Year Awards.

1: Volkswagen Polo 1.0 Evo 80 SE

Volkswagen Polo 1.0 Evo 80 SE

Target Price cost per month: £191

Target Price: £14,933

The deal: Three years' PCP finance with 6.9% APR and £1500 finance deposit allowance

The Volkswagen Polo is the best small car you can buy right now, offering a superb interior that's surprisingly spacious, a peppy range of engines and impressive refinement – all qualities we praise in the larger Golf too.

1: Volkswagen Polo 1.0 Evo 80 SE - interior

Volkswagen Polo 1.0 Evo 80 SE - interior

This naturally aspirated petrol engine is more sluggish than our recommended 94bhp turbocharged unit, but it should be fine if you'll mainly be driving in town.

And if you can stretch your budget slightly, upgrading doesn't cost a lot.