Best new cars for under £150 per month

These great value PCP deals enable you to drive a brand new car for less than £5 per day: these are the best new cars for £150 per month

BuyaCar team
Jan 20, 2022

Trying to find the best way to get your hands on a car that's going to meet your needs but also satisfy your tastes? Finding a cheap car can be difficult if you need it for family use, or if you're keen to make the most of modern technology. So the best way to make buying a more recent model more affordable is to opt for a car finance deal.

Car finance can help to bring even the very latest and most up to date cars on the market down into an affordable price range, in the case of the cars on this list you'll be paying less than £150 per month. If you don't have the cash to spend, car finance is a very useful alternative whereby you spread the overall cost of the car over a period of up to five years with smaller monthly payments. PCP finance is the most popular and often the most affordable form of car finance on offer.

There are plenty of routes you could go down when it comes to car finance. If you wanted to make sure you were paying as little as possible over the course of your contract, you might be interested in a 0% APR finance deal, or if you're really low on funds you could even opt for a no-deposit finance contract.

If you like the idea of PCP but want to make your money go further, you may want to go for a used car instead. Rather than having to limit yourself to a small car, you'll find that £150 per month opens up a broad range of used models that could suit your needs better.

Meanwhile, if it really is a brand new car that you're after, read on for our list of the best brand new cars available for less than £150 per month on PCP finance. All cars below come with similar contract terms, including an 8,000-mile-per-year limit and a contract term of three or four years.

The best new cars for under £150 per month

1. Fiat 500

Our pick Fiat 500 1.0 MHEV Pop
List price £14,005
Mileage limit 8,000 per annum

Monthly paymentsNumber of paymentsDepositDeposit ContributionRepresentative APROptional final paymentTotal cost of finance
£147.5844£3,200£4004.21%£5,001£14,842.10

 

The desirable Fiat 500 has sold in high volume since its launch in 2008. Since then, it has been available with small and efficient petrol engines. Recently, though, in order to comply with more stringent emissions regulations, Fiat dropped the petrol and turbocharged petrol engines in favour of one mild hybrid offering. Luckily, it's no less fun to drive because Fiat decided to keep the manual gearbox, so you're still very much involved in the driving process.

All models come with a digital radio and air-conditioning, but if you can afford to put down a higher deposit or pay a higher monthly sum, you might find that you're able to afford mid-spec models with a larger touchscreen media system, alloy wheels and rear parking sensors.

FIAT 500 BUYERS' GUIDE

2. MG 3

Our pick MG 3 1.5 VTI-tech Excite
List price £12,845
Annual mileage limit 8,000 per annum

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£148.8648£3,5001.9%£7,194.90£17,840.18

 

The MG 3 is a surprisingly speedy car for this monthly payment, thanks to its punchy 106hp 1.5-litre petrol engine. It should also be relatively efficient when driven gently; MG claims a reasonable 43.3mpg and you shouldn't be too far off that in the real world.

Your options for this budget are simple - Excite or Exclusive Nav. Both come with 16-inch alloy wheels, an eight-inch touchscreen media system with Apple CarPlay, digital radio, air-conditioning, and rear parking sensors. Top spec Exclusive Nav, which we recommend if you can afford it, adds a reversing camera, cruise control and sat-nav.

MG 3 BUYERS' GUIDE

3. Hyundai i10

Our pick Hyundai i10 1.0 MPI SE
List price £13,420
Annual mileage limit 8,000 per annum

Monthly paymentsNumber of paymentsDepositDeposit ContributionRepresentative APROptional final paymentTotal cost of finance
£149.4448£2,700£5005.5%£4,700.15£15,073.27

 

The Hyundai i10 is a practical city car with five doors and enough space in the back to fit a pair of adults; boot space is similar to that of the Volkswagen Up - it's pretty big for a car of this size.

The latest, third-generation i10 was launched in 2020, so you can expect plenty of standard equipment. Entry-level SE versions get air-conditioning, digital radio and all-round electric windows, as well as plenty of safety kit like a lane departure warning system and even high-beam assist to help prevent blinding oncoming traffic.

If you can afford a slightly larger deposit, or higher monthly payments, SE Connect adds an eight-inch touchscreen media system with Apple CarPlay and Android Auto, a reversing camera, and alloy wheels. Regardless of trim level, the i10 is backed by Hyundai's five-year, unlimited mileage warranty.

HYUNDAI I10 BUYERS' GUIDE

4. Kia Picanto

Our pick Kia Picanto 1.0 DPI 2
List price £12,950
Annual mileage limit 8,000 per annum

Monthly paymentsNumber of paymentsDepositDeposit ContributionRepresentative APROptional final paymentTotal cost of finance
£148.6536£2,800£7505.9%£5,364.45£14,265.85

 

If you're planning on keeping your car for a long time, Kia's seven-year, 100,000-mile warranty might make the Picanto more appealing for you than the Hyundai i10. The Picanto shares much of its mechanical parts with the i10, but this is an older model which was introduced in 2017, so there may be scope to get a better deal here.

With the Picanto you're able to reach beyond the entry-level version if you have a budget of £150 per month. That gets you a Picanto with Bluetooth and automatic lights plus alloy wheels, air-conditioning and all-round electric windows. If you want more, it's worth paying a little extra for '3' trim that gains an eight-inch touchscreen media system with Apple CarPlay and Android Auto.

Kia doesn't offer the option of a four-year PCP plan, which means this finance offer runs over three years. As a result, you're likely to pay higher monthly payments than if it were a four-year contract, but you'll also pay less interest in total.

KIA PICANTO BUYERS' GUIDE

5. Dacia Sandero

Our pick Dacia Sandero TCe 100 Bi-Fuel Comfort
List price £12,345
Annual mileage limit 8,000 per annum

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£14748£1,6005.9%£5,606£14,283

 

Ever since it arrived in the UK, the Dacia Sandero has been Britain's cheapest car. While starting prices may have crept up since then, the title remains. On this top-of-the-range Comfort model, you get an eight-inch touchscreen media system with digital radio, rear parking sensors, a reversing camera, air-conditioning, automatic lights and wipers, and even keyless entry.

The 1.0-litre petrol engine is strong enough for most people, and still promises strong fuel economy of almost 50mpg. You can also run the engine on LPG (liquefied petroleum gas - an alternative, low-carbon fuel), hence the name 'Bi-Fuel'. 

If you prefer the rugged high-riding appeal of a crossover, meanwhile, then the Sandero Stepway in Comfort trim, with the same TCe 90 engine paired with a manual gearbox, is just within reach for £150 per month with a slightly larger deposit. 

MORE DETAILS ON THE DACIA SANDERO

6. Dacia Duster

Our pick Dacia Duster TCe 100 Bi-Fuel 4x2 Essential
List price £11,995
Annual mileage limit 8,000 per annum

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£14648£2,3005.9%£7,283£16,573

 

If the Sandero Stepway isn't quite as rugged-looking as you'd like, the Duster SUV should appeal, as it's both longer and taller. If you have a £150 per month budget, an entry-level Access model is the only option available.

You may be pleasantly surprised that you can get the keys to a brand-new SUV at this price point, but be warned there's not much standard kit in this trim - it really is very Spartan. You get plenty of basic safety equipment, though, including Isofix mounts for safely installing child seats, emergency brake assist and a number of airbags.

DACIA DUSTER BUYERS' GUIDE

7. Suzuki Swift

Our pick Suzuki Swift 1.2 Dualjet Hybrid SZ-L
List price £14,499
Annual mileage limit 8,000 per annum

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£145.4748£4,5006.9%£5,105£16,587.56

 

The Suzuki Swift is fun to drive, something that sets it apart from its rivals. It's not particularly quick in this form - 0-62mph takes a leisurely 13.1 seconds, but the 83hp mild hybrid petrol setup can achieve relatively high fuel economy of 57mpg, which means you shouldn't have to spend much on fuel.

This version of the Swift is also reasonably well equipped. The entry-level SZ-L model gets 16-inch alloy wheels, LED headlights, adaptive cruise control, a digital radio with Apple CarPlay and Android Auto, a reversing camera and air-conditioning.

If you want an automatic gearbox, you'll have to step up to mid-range SZ-T or the range-topping SZ5 - this trim is also available with four-wheel drive that Suzuki calls Allgrip.

SUZUKI SWIFT BUYERS' GUIDE

8. Peugeot 108

Our pick Peugeot 108 1.0 72 Active
List price £13,355
Annual mileage limit 8,000 per annum

Monthly paymentsNumber of paymentsDepositRepresentative APROptional final paymentTotal cost of finance
£147.2947£3,8006.5%£4,253£14,975.63

 

The Peugeot 108 has been around since 2014, which means getting a good deal is more likely than on a newer model, as car manufacturers are more likely to discount their older cars. It's nippy around town, and has good all-round visibility, but the small 1.0-litre petrol engine can feel underpowered out of town, making it best suited to urban trips.

Active trim represents good value for money - even this entry-level model has air-conditioning, and a seven-inch touchscreen media system with digital radio, Apple CarPlay and Android Auto. Higher specification Allure and Collection models add alloy wheels, automatic headlights and a reversing camera.

The 108 shares most of its mechanical components with the Toyota Aygo and Citroen C1 - you can find C1 deals from around £146 per month with similar contract terms, but this will get you top spec Shine with alloy wheels, a reversing camera, and seven-inch touchscreen.

PEUGEOT 108 BUYERS' GUIDE

*Representative PCP finance - Ford Fiesta:

48 monthly payments of £192
Deposit: £0
Mileage limit: 8,000 per year
Optional final payment to buy car: £2,923
Total amount payable to buy car: £11,926
Total cost of credit: £2,426
Amount borrowed: £9,500
APR: 9.9%

BuyaCar is a credit broker, not a lender. Our rates start from 6.9% APR. The rate you are offered will depend on your individual circumstances.

 

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