The cheapest cars to buy on a PCP finance deal
Buying a new car doesn't have to break the bank, and we've found great deals on new cars starting from just £97 per month...
The cheapest cars to buy on a PCP finance deal
One of the most popular ways of buying a new car in the UK is through a Personal Contract Purchase (PCP) deal; indeed, more than 80% of us buy a car in this way. This type of finance allows you to buy a new car for around the same price as a three-year-old one, because you're usually only financing around half the value of the car. The other half of the car's price is called the Guaranteed Future Value (GFV).
At the end of your PCP, you can pay the GFV in full and own the car outright, or either give the car back and walk away from the deal entirely or put any extra worth of the car – called ‘equity’ – above its pre-agreed, GFV towards a new replacement.
PCP deals are so popular because they allow you to buy a car that might otherwise have been out of your budget. It can be hard work to find the best such deals, but What Car?'s team of mystery shoppers have done the hard work for you.
Here, they've collected the cheapest new car PCP deals from as little as £97 per month. If you want to find out more about any of the car listed below, simply click the links through to our full reviews, or to our free New Car Buying service.
10. Peugeot 108
Model 1.0 72 Allure | Target PCP £139 per month | Target Price (on the road) £11,073 | The deal four years PCP finance with 5.9% APR and £3025 finance deposit contribution. Limit of 8000 miles per year
The 108 makes a good case for itself as a city car; you get plenty of standard equipment, including 14in steel wheels, LED daytime running lights and auxiliary and USB audio connections. Add to that low running costs and a 1.0-litre engine that's happy to be revved hard, and you've got a compelling combination, even if rivals are more spacious.
9. Suzuki Ignis
Model 1.2 Dualjet SZ3 | Target PCP £138 per month | Target Price (on the road) £14,153 | The deal four years PCP finance with 0% APR. Limit of 8000 miles per year
If you want a small car which mixes the chunky looks of an SUV with the low running costs of city car, then the Ignis is worth looking at. It's exceptionally economical, but also has a generous amount of space on board. This version comes with a peppy 1.2-litre petrol engine.
=8 Subaru XV
Model 1.6i Lineartronic SE | Target PCP £137 per month | Target Price (on the road) £27,196 | The deal three years PCP finance with 4.9% APR. Limit of 8000 miles per year
That you can get a car as spacious and as capable off-road as the Subaru XV for less than £140 per month shows why PCP deals are so popular. Rivals have more powerful engines and are more practical, but there's little denying that, at this price, the XV represents astounding value for money.
=8 Hyundai i10
Model 1.0 MPi SE | Target PCP £137 per month | Target Price (on the road) £11,780 | The deal four years PCP finance with 4.6% APR and £500 finance deposit contribution. Limit of 8000 miles per year
We think that if you're going to mainly be driving on city streets, the latest Hyundai i10 is the best car for the job. It offers a bit more leg and head room than its closest rivals, so that even tall people won't complain about sitting in the back, and the 1.0-litre petrol engine you get here is strong enough to feel nippy on urban roads.
6. Toyota Aygo
Model 1.0 VVT-i X-Play TSS | Target PCP £134 per month | Target Price (on the road) £11,594 | The deal four years PCP finance with 0% APR and £500 finance deposit contribution. Limit of 8000 miles per year
Toyota's city car is cheap to buy and even cheaper to run, plus it makes plenty of sense if you'll mainly be driving on tight city streets. It's well-built inside, too, and offers plenty of scope for you to personalise your car. And despite its small size, there's still enough space in the Aygo's boot to cope with a heavy load of shopping
5. Citroën C1
Model 1.0 VTI 72 Sense 3dr | Target PCP £130 per month | Target Price (on the road) £10,181 | The deal four years PCP finance with 3.9% APR and £1650 finance deposit contribution. Limit of 8000 miles per year
It's not as spacious as rival city cars, but the C1 is at least cheap to buy and run, and offers buyers some degree of personalisation. Mid-range Sense trim comes with everything you're likely to want, including a 7.0in infotainment touchscreen, height-adjustable driver's seat and air conditioning.
4. MG 3
Model 1.5 VTI-Tech Excite | Target PCP £127 per month | Target Price (on the road) £11,902 | The deal four years PCP finance with 0% APR. Limit of 8000 miles per year
The MG 3 is already very cheap to buy, and young drivers will appreciate its low insurance rating. There are shortcomings, though; its petrol engine returns poor fuel economy and it will lose its value faster than many key rivals.
=3 Mitsubishi Mirage
Model 1.2 Verve| Target PCP £121 per month | Target Price (on the road) £10,161 | The deal four years PCP finance with 2.9% APR. Limit of 10,000 miles per year
We're yet to drive the latest Mirage, but this version comes with a 1.2-litre petrol engine which should be well suited to town journeys. Verve models get air conditioning, a USB port to charge your phone, Bluetooth connectivity and keyless entry as standard.
=3 Kia Picanto
Model 1.0 '1' [four seats]| Target PCP £121 per month | Target Price (on the road) £9435| The deal three years PCP finance with 2.9% APR. Limit of 8000 miles per year
The Picanto is a good city car with tidy handling and even a decent amount of space. Entry level '1' trim may be pretty bare in terms of kit, but you still get a trip computer, remote central locking and electric front windows. More good news is that it doesn't cost a lot more to upgrade to one of the better-equipped trims.
1. Dacia Sandero
Model 1.0 SCe Access| Target PCP £97 per month | Target Price (on the road) £9419 | The deal four years PCP finance with 6.9% APR. Limit of 8000 miles per year
Yes, you really can put a new car on your driveway for less than £100 per month – and a truly great one at that. You see, we think the latest Sandero is so good that we named it as our overall Car of the Year for 2021, thanks to its low price, generous space and comfy ride. It's worth noting that, for this price, you'll be getting the most basic Sandero which doesn't even come with air conditioning, but the good news is that our recommended Comfort model won't cost you a lot more.
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