2026 continues to see pressure on household budgets, making affordable new cars more attractive than ever, especially with rising insurance, fuel and the ongoing cost of living squeeze. While used cars remain the cheapest route, there are still plenty of brand-new models on sale for under £20,000, including petrol, electric and hybrid options.
Here’s our updated list of the cheapest new cars in the UK this year, complete with key pros and cons to help you decide.
Here we look at the top 10 cheapest new cars to buy in the UK this year.
10. BYD Dolphin Surf from ~£18,650
Overview: An affordable and well-equipped EV with modern tech that punches above its weight.
Advantages
- Great tech for the price
- Competitive electric range
- Strong safety and features
Disadvantages
- EV charging still varies by region
- Slightly higher upfront cost
9. Dacia Sandero Stepway from ~£16,015
Overview: A rugged take on the Sandero with SUV-like styling and extra versatility.
Advantages
- SUV-inspired look and ride height
- Practical family hatch alternative
- Value for money
Disadvantages
- Not true off-road capability
- Gets pricier with extra options
8. Citroën C3 from ~£18,305
Overview: A slightly larger car on this list, bringing more comfort and usability as you step up from city cars.
Advantages
- Comfortable ride
- Bigger boot and cabin
- Well equipped
Disadvantages
- Higher price than other budget cars
- Not the smallest for urban parking
7. MG 3 from £16,995
Overview: The affordable hatch with a surprisingly entertaining drive and generous warranty.
Advantages
- Fun to drive
- Seven-year warranty
- Good feature list
Disadvantages
- Interior plastics feel budget-grade
- Not the most fuel-efficient in class
6. Toyota Aygo X from £16,845
Overview: A slightly up-market evolution of the Aygo with SUV-inspired looks and a bit more practicality.
Advantages
- Stylish design
- Efficient for city road use
- Good safety rating
Disadvantages
- Limited rear space
- Pricier than some petrol rivals
5. Hyundai i10 from £16,600
Overview: A favourite among affordable superminis, the i10 combines practicality with decent equipment and a comfortable ride.
Advantages
- Comfortable ride
- Practical cabin and boot for the size
- Good safety features
Disadvantages
- Less fun to drive than some rivals
- Can feel underpowered on fast roads
4. Kia Picanto from £16,065
Overview: A refined city car with a strong warranty and good standard equipment, the Picanto offers quality that belies its price tag.
Advantages
- Seven-year warranty
- Easy to park and manoeuvre
- Good build quality for the price
Disadvantages
- Small engine can feel underpowered on motorways
- Interior space is tight in the rear
3. Leapmotor T03 from ~£15,995
Overview: A budget EV option that gives more power and features than the Spring, with a respectable range and modern tech for the price.
Advantages
- Better performance and range than many city EVs
- Modern infotainment and driver aids
Disadvantages
- Charging infrastructure still developing
- Slightly higher purchase price than petrol alternatives
2. Dacia Spring from £14,995
Overview: The UK’s cheapest electric car, especially with discounts or matched incentives, the Spring is ideal for city running and short commutes.
Advantages
- Among the lowest EV prices in the UK
- Good efficiency and low running costs
- Easy to drive in urban areas
Disadvantages
- Limited range compared with larger EVs
- Less suitable for long motorway trips
1. Dacia Sandero from £14,715
Overview: The perennial budget winner, the Sandero remains Britain’s cheapest regular car on sale today. It’s a straightforward hatchback with plenty of room for passengers and luggage compared with many rivals.
Advantages
- Spacious inside with large boot capacity
- Simple, practical and reliable
- Standard equipment includes air conditioning and cruise control at this price
Disadvantages
- Basic interior compared with pricier rivals
- Not the most refined ride quality
Save Money Beyond the Purchase
Buying cheap is only the start, car maintenance plays a huge role in total running costs. Regular servicing, checking tyre pressures and replacing worn brakes promptly can prevent costly repairs later. Explore our guides on how to service your car, when to replace tyres and budget-friendly servicing tips to keep ownership costs low.
Read our blog on 10 of the cheapest cars to insure for young drivers.
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