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What are the best cheap cars on the market?

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Leo Wilkinson Finance writer

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The best cheap cars prove that you don’t need to spend lots of moola to get a decent motor. Even if your budget is tight you can still find something with modern tech and styling that you’d be proud to park on your drive (if you’re lucky enough to have one).

Everyone’s concept of ‘cheap’ is different, of course, so to make things simple we’ve set a limit of £3,000 for our top 10 cheap cars. We researched our prices in April 2025 using the UK’s biggest car listings platform and excluded cars that have covered more than 90,000 miles. You’ll find city cars, hatchbacks , SUVs, an MPV and even a prestige-brand saloon here and some are available for a lot less than £3,000 – they really are bargain-tastic.

1.Ford Fiesta

If you’re shopping for a cheap car you’ll find plenty of Ford Fiestas that fit the bill. That’s because it was the UK’s best-selling new car for many years, so there are now hundreds of used examples to choose from. The good news is that as well as being a big-seller, the Fiesta is a brilliant choice as a used car.

What made the Fiesta so popular? Good looks, for a start, as well as low running costs and lots of smart features. Some versions have voice control and Bluetooth, while higher-spec cars have a heated windscreen that means no more scraping on frosty mornings! But what really sets the Fiesta apart from other low-cost cars is how good it is to drive – it’s so assured and responsive that it feels like a larger, more expensive car behind the wheel.

blue-Ford-Fiesta-parked-front

2. BMW 3 Series

So you want a car that’s great to drive and has a premium image, all for less than £3,000? Look no further than the BMW 3 Series. The model sold new between 2005 and 2011 (known as the ‘E90’ version by BMW fans) is a cracker, giving you the smooth, responsive drive and high-quality interior that BMW cars are famous for.

There are lots of versions to choose from, although the more powerful models don’t fall within our budget. It’s no biggie, since even the most affordable 3 Series has decent power and gives you that characteristic feelgood factor behind the wheel.

black-BMW-3-Series-parked-front

3. Honda Jazz

Cards on the table: if you’re after a car that’s super-stylish and fun to drive the Honda Jazz probably isn’t for you. If, however, you want a compact runaround that’s cheap to own, surprisingly practical and likely to be mega-reliable then you can’t do much better than the Jazz. 

Few used cars have such a good record for reliability as the Honda Jazz – in countless independent customer satisfaction and reliability surveys it has regularly finished at or near the top of its class over the years. Low fuel and insurance costs add to its appeal and then there’s its TARDIS-like interior and ‘magic’ rear seat, which you can flip up like a cinema seat to create extra load space behind the front seats.

blue-Honda-Jazz-parked-side

4. Fiat 500

How many cars that cost this little look so good? The Fiat 500 is one of the cheapest options if you’re looking for a modern, low-cost car yet it’s also one of the most stylish small cars around. Introduced way back in 2007, the 500 was on sale new until 2024 and hardly changed over that time. So you could pick one up for pennies and drive around in something that looks like it only recently left the showroom. 

While the most inexpensive versions have basic equipment, many versions have air conditioning and all give you very low running costs. With lots of personalisation options when new – and a number special-edition models over the years – the Fiat 500 is available in a huge combination of colours and trims. There’s sure to be one that’s just right for you. And if you like the feel of the wind in your hair you can even go for the 500C version, with its full-length folding fabric roof.

blue-Fiat-500-dynamic-side

5. Citroen Grand C4 Picasso

Seven-seaters such as the Citroen Grand C4 Picasso can be a real game-changer, whether you have a large family or just like having a car with lots of space for stuff. It’s one of the best MPVs of the modern era, with a roomy interior that feels especially light and airy because of a windscreen that extends back into the roof. 

Each of the second- and third-row seats can be folded away individually if you need more load space, or want to chuck your surfboard/bikes/outdoorsy gear in and still have space for more than two people. Despite all this practicality the Grand C4 Picasso isn’t much longer than a family hatchback and feels just as light and easy to drive. Our budget will get you the version sold new between 2007 and 2013, which is excellent value and comes with very fuel-efficient engines

red-Citroen-Grand-C4-Picasso-parked

6. Toyota RAV4

There are lots of cheap SUVs around but if you want one that isn’t too large, too old or likely to cost you an arm and a leg in running costs we suggest you look in the direction of the Toyota RAV4. 

Although £3,000 isn’t going to buy you the latest high-tech, hybrid-only model it will stretch to the version that was on sale new between 2006 and 2012. As with every RAV4 it’s likely to be extremely reliable and it’s a very practical family car, with interior that’s spacious, feels built to last and has sliding rear seats that allow you to prioritise passenger legroom, boot space or mix of the two.

black-Toyota-RAV4-parked

7. Kia Picanto

Nowadays Kia is best known for its SUVs and electric cars but it still produces one of the best city cars in the shape of the Kia Picanto. Our budget won’t stretch to the latest model but it will get you one of the previous-generation cars, which was sold new between 2011 and 2017. 

This Picanto has a lot in common with the one that’s sold new today, with a similarly stylish look on the outside and an interior that’s impressively solid and easy to use. It also has more passenger space than you might think, while the boot is small but well-shaped. The small petrol engines available all give great mpg and decent performance, and the Picanto is good to drive and a doddle to park.

silver-Kia-Picanto-parked-front

8. Nissan Leaf

If you thought £3000 wouldn’t stretch to a decent electric car, think again. Early versions of the Nissan Leaf are well within budget and one could make an excellent low-emissions runaround. 

Battery range won’t be great since these only had an official maximum of just over 100 miles when new and you’re unlikely to get as much as that now. As a second car for local trips, however, a Leaf could work well. Running costs could be very low if you have a home charger and the Leaf has a good record for reliability. It’s well-equipped, nippy and reasonably spacious too. 

red-Nissan-Leaf-parked-front

9. Mini Hatch

The Mini Hatch has to be one of the most loveable cars on the road. And it’s not just its chic retro design and cheeky charm. It’s also the fact that it has an interior that feels a bit more special than most small cars’, and that it’s available in a squillion different colour and trim combinations. 

Then there’s the way it drives – nippy and playful, yet reassuring at speed. And finally, of course, it’s very hard not to like how affordable the Mini is. Our budget will get you one of the 2006-2013 models, in a variety of different trims. Opt for a lower-spec Mini One if you want the lowest running costs, a Mini Cooper if you want something a bit sportier or a Mini Cooper S if you want a cracking little hot hatch.

white-Mini-Hatch-parked-side

10.Toyota Aygo

If you want a cheap car that’s likely to be dependable, a used Toyota is always a great bet. And if you want something small enough to fit into the tightest parking space, with the lowest running costs possible, the Toyota Aygo should definitely be on your radar.

Our £3,000 budget means you’re looking at the first-generation model, sold new between 2005 and 2014. It’s small and rather basic inside, but it’s surprisingly enjoyable to drive and the amount you’ll pay for petrol and insurance is sure to put a smile on your face.

red-Toyota-Aygo-parked-side

FAQs about cheap cars

The best cheap first cars have low insurance group ratings that make them affordable for young drivers (or their parents) to insure, yet also come with modern tech and safety features. Good options include the Ford Fiesta, Kia Picanto, Toyota Aygo and Vauxhall Corsa.

The cheapest cars to run tend to be city cars like the Fiat 500 and Hyundai i10 or compact hatchbacks such as the Toyota Yaris or Vauxhall Corsa. These types of cars have small, fuel-efficient engines and low insurance group ratings. Finding a car that’s reliable keeps running costs low, too – look for cars with a good reliability record and find one that’s been well maintained over the years.

The best cheap SUVs prove that you don’t need to spend a lot to get a car with rugged looks, a raised driving position and a practical interior. If you want something that’s tough and family-friendly a used Dacia Duster, Honda CR-V or Toyota RAV4 is a sound choice. If lower running costs are important, check out the Nissan Qashqai or, if your budget will stretch to it, a Renault Captur.

As of April 2025 the cheapest new car on sale in the UK is the Dacia Sandero, which has a starting price of £14,715. Next cheapest is the Dacia Spring, at £14,995, followed by the Leapmotor T03 at £15,995. The Kia Picanto and Dacia Sandero Stepway (a Sandero with an SUV-style makeover) round out the top five. 

If you’re looking for the best cheap new electric car we’d point you in the direction of the excellent Renault 5 E-Tech, which has a starting price of £22,995. The Citroen E-C3 is also well worth a look. If you want a cheap used electric car there are lots to choose from – a Nissan Leaf could be a good fit if your budget is really tight but if you want something with decent battery range consider the MG ZS EV or Tesla Model 3. 

If you’re looking for the most reliable cheap car you’re better off getting a newer, low-mileage small car than an older, larger car. It’s worth looking at the results of independent reliability and customer satisfaction surveys such as the Driver Power Survey and What Car? Reliability Survey but for older cars the service history and maintenance of any car you’re considering is likely to play a major part in how dependable it turns out to be.

 

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