The 10 best 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.

Car compilation image

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 four years, with a 36,000-mileage limit, unless otherwise stated.

Editor's note: Images are purely illustrative and may not reflect mentioned trim levels

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10: Suzuki Ignis 1.2 Dualjet SZ3

Suzuki Ignis 2019 front

Target Price cost per month: £151

Target Price: £11,885

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

Don't be fooled by its small size, because the Suzuki Ignis is one deceptively spacious SUV. It's also fun to drive and ruthlessly efficient, and this 1.2-litre petrol-engined version is efficient, too, with mild hybrid technology designed to lower your fuel bills by giving the engine small amounts of electrical assistance. 

10: Suzuki Ignis 1.2 Dualjet SZ3 - interior

Suzuki Ignis 2019 interior

SZ-3 may be the entry-level trim, but it still gets you Bluetooth connectivity, electric front windows and air conditioning.

9: Skoda Fabia 1.0 TSI 95 SE

Skoda Fabia

Target Price cost per month: £157

Target Price: £14,924

The deal: Four years' PCP finance with 0% APR and £1250 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 S 1.0 MPI 60PS - 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: Seat Ibiza 1.0 TSI 95 FR

Seat Ibiza

Target Price cost per month: £172

Target Price: £15,040

The deal: Four years' PCP finance with 6.3% APR and £1750 finance deposit allowance

While it's the Volkswagen Polo which rules the roost when it comes to small cars, the Seat Ibiza still gets our top five-star rating and is cheaper to buy.

8: Seat Ibiza 1.0 TSI 95 FR - interior

Seat Ibiza - interior

It's great to drive, too, as well as being remarkably spacious.

7: Audi Q2 30 TFSI Sport

Audi Q2 front - 19 plate

Target Price cost per month: £199

Target Price: £20,594

The deal: Four years' PCP finance with 6.3% APR and £2150 finance deposit allowance

The Q2 is the smallest SUV Audi makes, and impresses with its high-quality interior and tidy handling. The 30 TFSI petrol engine you get here is most at home in the city, but that doesn't mean longer trips are out of the question.

7: Audi Q2 30 TFSI Sport - interior

Audi Q2 - interior

Our recommended Sport trim gets you a decent haul of goodies, too, including 17in alloy wheels, sat-nav and cruise control.

6: Ford Fiesta 1.0 Ecoboost 125 ST-Line

Ford Fiesta ST-Line 1.0 3 Door EcoBoost 100PS

Target Price cost per month: £181

Target Price: £17,604

The deal: Four years' PCP finance with 1.2% 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 ST-Line 1.0 3 Door EcoBoost 100PS - 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

Target Price cost per month: £173

Target Price: £16,965

The deal: Four 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 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 front

Target Price cost per month: £176

Target Price: £16,149

The deal: Four years' PCP finance with 3.9% 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 front

Target Price cost per month: £167

Target Price: £11,645

The deal: Four 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 2 auto - 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 1.5 TSI SE Drive

Skoda Octavia

Target Price cost per month: £195

Target Price: £17,199

The deal: Four years' PCP finance with 4.9% 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 1.5 TSI SE Drive - interior

Skoda Octavia Estate 1.5 TSI SE L DSG - 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 TSI 95 SE

Volkswagen Polo front and side

Target Price cost per month: £168

Target Price: £14,729

The deal: Three years' PCP finance with 4.9% APR and £1000 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 TSI 95 SE - interior

Volkswagen Polo - interior

This 94bhp turbocharged 1.0-litre petrol engine is the one we recommend for its mix of performance and fuel economy, while SE trim gets you 15in alloy wheels, electric rear windows and a leather steering wheel to go with the already generous standard equipment of S models.

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