The cheapest cars to buy on a PCP finance deal

From city cars to small hatchbacks and even SUVs – here's our round-up of the cheapest new cars you can buy on a PCP finance deal.....

If you want to buy a new car, you have two options.

Car compilation image

You can either buy the car outright with a cash purchase, or you can get a finance deal.

One of the most popular ways of buying a new car in the UK is through a Personal Contract Purchase (PCP) deal.

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).

Let us do the legwork

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At the end of your PCP, you can either pay the GFV in full and own the car outright, walk away from the deal entirely, or give the car back and 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, and collected the cheapest new car PCP deals from as little as £105 per month.

10: MG3 1.5 Vi-Tech Excite

MG3 1.5 Vi-Tech Excite

Target Price cost per month: £149

Target Price (on the road): £10,122

The deal: 3 years PCP finance with 5.9% APR and £1000 finance deposit allowance

The MG3 is already very cheap to buy, and young drivers will appreciate its low insurance rating.

10: MG3 1.5 Vi-Tech Excite - interior

MG3 1.5 Vi-Tech Excite - interior

There are downfalls, though, because its petrol engine returns poor fuel economy and the MG3 will lose its value faster than many key rivals.

9: Mazda 2 1.5 75 SE+

Mazda 2 1.5 75 SE+

Target Price cost per month: £148

Target Price (on the road): £11,240

The deal: 3 years PCP finance with 4.1% APR and £2250 finance deposit allowance

9: Mazda 2 1.5 75 SE+ - interior

Mazda 2 1.5 75 SE+ - interior

Mazda's smallest model offers impressive real-world fuel economy and an easy-to-use infotainment system, plus even entry-level models come with air conditioning. Rivals are more fun to drive, though.

8: Toyota Aygo 1.0 VVT-i X-Play

Toyota Aygo 1.0 VVT-i X-Play

Target Price cost per month: £141

Target Price (on the road): £10,857

The deal: 3 years PCP finance with 0% APR

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.

8: Toyota Aygo 1.0 VVT-i X-Play - interior

Toyota Aygo 1.0 VVT-i X-Play - interior

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.

7: Kia Rio 1.25 1 5dr

Kia Rio 1.25 1 5dr

Target Price cost per month: £136

Target Price (on the road): £10,528

The deal: 3 years PCP finance with 5.9% APR and £1500 finance deposit allowance

7: Kia Rio 1.25 1 5dr - interior

Kia Rio 1.25 1 5dr - interior

We like the Rio's refined range of petrol engines, and this 1.25-litre petrol option should suit you well if you live in the city.

The Rio is also well equipped, with even entry-level versions offering air-con, Bluetooth connectivity and electric windows.

6: Dacia Duster 1.6 SCe Access

Dacia Duster 1.6 SCe Access

Target Price cost per month: £131

Target Price (on the road): £9949

The deal: 3 years PCP finance with 6.9% APR

6: Dacia Duster 1.6 SCe Access - interior

Dacia Duster 1.6 SCe Access - interior

That's right – you can drive a sizeable SUV for just £131 per month. And the Duster is a whole lot of car for your money.

It's spacious, available with four-wheel drive and can even be relatively cheap to run.

5: Hyundai i10 1.0 S 5dr

Hyundai i10 1.0 S 5dr

Target Price cost per month: £130

Target Price (on the road): £8700

The deal: 3 years PCP finance with 4.9% APR and £500 finance deposit allowance

Until the arrival of the latest Kia Picanto, the Hyundai i10 was a class leader in the city car segment.

5: Hyundai i10 1.0 S 5dr - interior

Hyundai i10 1.0 S 5dr - interior

And it remains an excellent option, with a reasonable amount of space inside and a nicely settled ride around town.

Entry-level S models come with electric front windows, central locking, a CD player and a USB socket.

4: Kia Picanto 1.0 1 5dr

Kia Picanto 1.0 1 5dr

Target Price cost per month: £130

arget Price (on the road): £8882

The deal: 3 years PCP finance with 5.9% APR and £650 finance deposit allowance

4: Kia Picanto 1.0 1 5dr - interior

Kia Picanto 1.0 1 5dr - interior

Our reigning city car champion offers tidy handling, a good-size boot by the standards of the class and excellent infotainment on upper trim levels. It's good to drive and reasonably practical.

3: Fiat 500 1.2 Pop Dualogic 3dr

Fiat 500 1.2 Pop Dualogic 3dr

Target Price cost per month: £114

Target Price (on the road): £12,457

The deal: 3 years PCP finance with 0% APR

3: Fiat 500 1.2 Pop Dualogic 3dr - interior

Fiat 500 1.2 Pop Dualogic 3dr - interior

Fiat's compact city car has plenty of style, and backs up its funky looks by being nimble around town. Just bear in mind that practicality is slightly hindered by it having only three doors.

2: Fiat Panda 1.2 Pop

Fiat Panda 1.2 Pop

Target Price cost per month: £106

Target Price (on the road): £9608

The deal: 3 years PCP finance with 0% APR

2: Fiat Panda 1.2 Pop - interior

Fiat Panda 1.2 Pop - interior

The Panda may be getting a bit long in the tooth, but it's still an appealing city car, thanks to its cheap running costs, funky looks and the availability of four-wheel drive should you need it.

1: Dacia Sandero 1.0 SCe Access

Dacia Sandero 1.0 SCe Access

Target Price cost per month: £105

Target Price (on the road): £6714

The deal: 3 years PCP finance with 6.9% APR and £250 finance deposit allowance

It shouldn't come as any surprise to find that the UK's cheapest new car is also the cheapest car on this list.

1: Dacia Sandero 1.0 SCe Access - interior

Dacia Sandero 1.0 SCe Access - interior

Okay, at this price you can only get the cheapest Access trim, which doesn't even come with air conditioning or a stereo, but if you're looking for ultra-cheap transport with no frills then it's an appealing choice.

Thankfully, stepping up to our recommended Ambiance version won't cost you much more.