The cheapest cars to buy on a PCP finance plan

Buying a new car doesn't have to break the bank, and we've found great bargains on new cars starting from just £105 per month...

One of the most popular ways of buying a new car in the UK is through a Personal Contract Purchase (PCP) plan; indeed, more than 80% of us buy a car in this way.

Kia Picanto with Target Price logo

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 plans are 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 price, but What Car?'s team of mystery shoppers have done the hard work for you. And right now, with many wary of public transport for obvious reasons, getting a great worry-free new car for a low price is very important.  

Here, they've collected the cheapest new car PCP plans from as little as £105 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 New Car Buying service.

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10. Fiat Tipo 1.4 Easy

Fiat Tipo 1.4 Easy

Rival family hatchbacks are better to drive, but the Tipo offers a generous amount of space and a decent level of standard kit. Even entry-level Easy trim still comes with automatic emergency braking, too.

Save money on a new Fiat Tipo with What Car? >>

Fiat Tipo (cont.)

Fiat Tipo 1.4 Easy - interior

Target Price cost per month: £139
Target Price (on the road): £12,660
The plan: four years PCP finance with 5% APR and a financial contribution of £2250. Limit of 8000 miles per year

Read our full Fiat Tipo review >>

 

9. Hyundai i20 1.2 MPi S Connect

Hyundai i20

The i20 offers a very spacious interior and a refined range of engines, which help to make long journeys that bit more relaxing. It also comes with lots of equipment as standard, including a 7.0in infotainment system, air conditioning and automatic headlights.

Save money on a new Hyundai i20 with What Car? >>

Hyundai i20 (cont.)

Hyundai i20 - interior

Target Price cost per month: £138
Target Price (on the road): £11,708
The plan: 4 years PCP finance with 4.8% APR and a financial contribution of £2000. Limit of 8000 miles per year.

Read our full Hyundai i20 review >>

8. Suzuki Ignis 1.2 Dualjet SZ3

Suzuki Ignis 2020 front cornering

If you want a tiny car that 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.

Save money on a new Suzuki Ignis with What Car? >>

Suzuki Ignis (cont.)

2017 Suzuki Ignis 1.2 SZ-T auto - interior

Target Price cost per month: £135
Target Price (on the road): £14,009
The plan: 4 years PCP finance with 0% APR. Limit of 8000 miles per year

Read our full Suzuki Ignis review >>

7. Kia Picanto 1.0 '1' [4 seats]

Kia Picanto front tracking - 69 plate

The Picanto is a fantastic 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.

Save money on a new Kia Picanto with What Car? >>

Kia Picanto (cont.)

Kia Picanto dashboard - 69-plate car

Target Price cost per month: £132
Target Price (on the road): £8985
The plan: 36 months PCP finance with 4.9% APR and £100 financial contribution. Limited of  8000 miles per year.

 

6. Toyota Aygo 1.0 VVT-i X-Play TSS

Toyota Aygo 1.0 VVT-i X-Play

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.

Save money on a new Toyota Aygo with What Car? >>

Toyota Aygo (cont.)

Toyota Aygo

Target Price cost per month: £128
Target Price (on the road): £11,204 
The plan: 4 years PCP finance with 0% APR and a financial contribution of £500. Limited of 8000 miles per year

Read our full Toyota Aygo review >>

5. Citroen C1 1.0 VTi 72 Feel

Citroën C1 Urban Ride front

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 Feel trim is fairly well equipped and gets you a neat touchscreen infotainment system, air conditioning and a height-adjustable driver's seat.

Save money on a new Citroen C1 with What Car? >>

Citroen C1 (cont.)

Citroën C1 Urban Ride dashboard

Target Price cost per month: £127
Target Price (on the road): £9797
The plan: 4 years PCP finance with 3.9% APR and £3000 financial contribution. Limit of 8000 miles per year

Read our full Citroen C1 review >>

4. MG 3 1.5 VTi-Tech Explore

MG 3

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.

Save money on a new MG 3 with What Car? >>

MG 3 (cont.)

MG 3 - interior

Target Price cost per month: £126
Target Price (on the road): £11,910
The plan: 4 years PCP finance with 0% APR. Limit of 8000 miles per year

Read our full MG 3 review >>

3. Peugeot 108 1.0 72 Active 5dr

Peugeot 108 1.0 72 Active 2-Tronic

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.

Save money on a new Peugeot 108 with What Car? >>

Peugeot 108 (cont.)

Peugeot 108 1.0 72 Active 2-Tronic - interior

Target Price cost per month: £123
Target Price (on the road): £9637
The plan: 4 years PCP finance with 5.9% APR and £3150 finance deposit allowance. Limit of 8000 miles per year

Read our full Peugeot 108 review >>

2. Mitsubishi Mirage 1.2 Verve

Mitsubishi Mirage front

We're yet to drive the latest Mirage, but this version comes with a 1.2-litre petrol engine that 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.

Save money on a new Mitsubishi with What Car? >>

Mitsubishi Mirage (cont.)

Mitsubishi Mirage interior

Target Price cost per month: £116 
Target Price (on the road): £8505 
The plan: 4 years PCP finance with 6.9% APR. Limit of 10,000 miles per year

1. Dacia Sandero 1.0 SCe Essential

Dacia Sandero 2019 front right tracking

It shouldn't come as any surprise to find that the UK's cheapest new car is also the cheapest car on this list. Essential models aren't as bargain-basement as you might be expecting inside, and come with air conditioning, remote locking, electric front windows, Bluetooth connectivity and a DAB radio. Be aware, however, that an all-new Sandero will go on sale in the UK in the Spring.

Save money on a new Dacia Sandero with What Car? >>

Dacia Sandero (cont.)

Dacia Sandero 2019 dashboard RHD

Target Price cost per month: £105 
Target Price (on the road): £7709 
The plan: 4 years PCP finance with 6.9% APR and £250 financial contribution. Limit of 8000 miles per year

Read our full Dacia Sandero review >>

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