Citroën Ami - £7,695
The death of affordable European hatchbacks has created a vacuum that Dacia and Chinese manufacturers are filling aggressively. Here are the cheapest new cars you can buy in Britain right now, starting from the bottom.
This isn't a car. It's a heavy quadricycle, which means it's legally classified alongside mopeds and subject to different regulations. According to Petrolblog, the Ami tops out at 28mph with a 46-mile range, making it suitable only for urban errands where you never need to leave second gear or venture onto dual carriageways. Sixteen-year-olds can drive it on a moped license. It doesn't meet car safety standards because it doesn't have to. The styling is genuinely brilliant in an absurd French way, looking like a Renault 4 shrunk in the wash and converted to electric power. Practicality is questionable. Safety is minimal. But at £7,695, it's the cheapest thing with four wheels you can buy new in the UK. Just don't expect to arrive anywhere quickly or with your dignity intact.
Dacia Spring (Main Picture) - From £12,240 (under £10,000 with dealer discounts)
The Spring is Britain's cheapest actual car. Dacia officially prices it at £12,240 after a £3,750 manufacturer grant, but dealers are selling new examples for under £10,000 according to DefinitelyNotAGuru. That makes it thousands cheaper than anything else that can legally use motorways. The catch is performance. The 44hp electric motor delivers a 0-62mph time of 19.1 seconds, which RAC describes as "yawning." The 26.8kWh battery provides 140 miles of range, enough for urban commuting but requiring planning for longer trips. Top speed is 78mph, adequate for motorways if you don't mind lorries overtaking you. It's a city car designed for short trips, school runs, and shopping. Used correctly within those limitations, it represents exceptional value. Used for anything else, it's frustrating.
Dacia Sandero - From £14,995
The Sandero has been Britain's cheapest proper hatchback since 2013 and nothing has come close to dethroning it. At £14,995, it offers five doors, five seats, decent boot space, and a turbocharged 1.0-litre petrol engine delivering adequate performance. RAC notes the base model includes air conditioning, cruise control, and rear parking sensors, equipment that would have been unthinkable on budget cars a decade ago. The downsides are a disappointing Euro NCAP safety score and an interior that feels cheaper than more expensive rivals. But the Sandero doesn't compete with more expensive rivals. It competes with used cars, and as a brand-new vehicle with a three-year warranty for under £15,000, it offers value nothing else can match. Dacia's strategy is transparent: use proven Renault components, minimize complexity, skip unnecessary technology, and deliver reliable transport without frills. The Sandero executes that strategy perfectly.
Leapmotor T03 - £15,995
Chinese manufacturer Leapmotor entered Europe through a partnership with Stellantis and arrived in the UK with the T03 priced to undercut the Dacia Spring while offering better equipment. The fully electric city car produces 165 miles of range, marginally better than the Spring, with slightly more power. According to Auto Express, the T03 was commended at the 2025 Auto Express New Car Awards despite its tiny dimensions. The cabin accommodates four adults in reasonable comfort, though the 210-litre boot struggles with anything beyond a modest weekly shop. The interior feels more modern than the Spring's with better materials and a more contemporary infotainment system. Long-term reliability remains unknown since Leapmotor only arrived in the UK within the last two years, but early reviews are positive. At £15,995, it's £3,000 more than discounted Springs but offers a notably better overall package if you can stretch the budget.
Kia Picanto - From £16,000
The Picanto represents traditional budget motoring: small, petrol-powered, practical. CarGurus describes the latest facelift as making it better and better-looking than ever, with styling that resembles a 1980s GoBot toy in the best possible way. The cabin is more spacious than dimensions suggest, equipment levels are decent for the price, and Kia's seven-year warranty provides peace of mind that no other manufacturer at this price point can match. The Picanto isn't exciting. It's not particularly quick or sophisticated. But it does everything a city car needs to do competently, reliably, and with enough big-car features that recommending it to friends won't make you feel guilty. In an era where most budget cars make obvious compromises, the Picanto is genuinely well-rounded.
Dacia Sandero Stepway - From £16,495
The Stepway is a Sandero with chunky body cladding, slightly higher ride height, and crossover styling cues that make it look more rugged than the standard hatchback. It costs roughly £1,500 more than the base Sandero and offers minimal practical differences beyond appearance. The raised suspension doesn't provide genuine off-road capability or meaningfully improve ground clearance. The plastic cladding protects against car park scrapes but adds weight. For buyers who want a Sandero but prefer crossover aesthetics, the Stepway delivers. For everyone else, the standard Sandero represents better value. Dacia sells both because the Stepway's styling appeals to a specific demographic willing to pay extra for the look, even if the substance remains largely identical.
Renault Clio - From £17,000
The Clio sits at the top of the budget segment and represents what happens when manufacturers apply proper engineering and design to an affordable car. What Car? rates it as one of the best superminis available at any price, not just the cheapest. It's comfortable, refined, good to drive, and equipped with an interior that feels both upmarket and hard-wearing. The entry-level Generation trim includes small 16-inch wheels with tall tires that absorb bumps well. The 100bhp engine isn't as quiet or smooth as what you'll find in a Skoda Fabia or Volkswagen Polo, but those alternatives cost significantly more. At £17,000, the Clio is the most you'll pay for a car that still qualifies as genuinely cheap, and you get a product that doesn't feel like punishment. The materials are decent, the practicality matches larger hatchbacks, and the driving experience rivals competitors from the class above. If your budget stretches this far, the Clio is worth every pound.
Hyundai i10 - From £17,000
Hyundai's reputation for reliability shines through the i10, which offers wonderful dependability, a practical interior, and plenty of space for its size. The five-year warranty provides reassurance, though it falls short of Kia's seven-year coverage. The i10 competes directly with the Picanto, sharing mechanical components but offering slightly different styling and equipment. Neither is objectively better; the choice comes down to personal preference and which dealer offers a better deal. Both represent solid, sensible choices for buyers prioritizing reliability and practicality over excitement.
Toyota Aygo X - From £17,000
The Aygo X replaces the outgoing Aygo with SUV-inspired looks and slightly more practicality. Toyota's reputation for bulletproof reliability adds appeal, and the raised ride height provides easier entry and exit for older drivers without sacrificing fuel economy or adding excessive running costs. It's not fast, spacious, or particularly exciting, but it will start every morning and run for years with minimal maintenance. The styling is polarizing, with some finding the chunky proportions charming while others see it as awkward. Toyota's hybrid expertise hasn't filtered down to the Aygo X, which remains petrol-only. For buyers who value Toyota's reliability above everything else, the Aygo X delivers. For everyone else, better options exist at similar prices.
Fiat Grande Panda - From £18,990
The Grande Panda arrives with distinctive boxy styling, pixel LED headlights, and the word PANDA embossed down the side in letters large enough to read from space. Parkers describes it as injecting fresh style and personality into the affordable car market with retro-inspired design cues harking back to the original. The electric version provides decent range and modern features, though pricing pushes it past £19,000. The combustion hybrid variant undercuts the electric model slightly while offering better versatility for drivers without home charging. Fiat's reliability record doesn't match Japanese rivals, and the interior materials won't impress anyone, but the styling stands out in a segment dominated by conservative designs. If you want something different that doesn't look like every other city car, the Grande Panda delivers.
MG3 Hybrid+ - From £19,000
The MG3 crosses the £19,000 threshold but comes standard with an automatic transmission thanks to its hybrid drivetrain. Chinese-owned MG has rebuilt its reputation through aggressive pricing and decent equipment levels, though long-term reliability data remains limited. The hybrid system improves fuel economy without sacrificing practicality, and the automatic transmission removes the manual gearbox barrier for drivers who prefer not to change gears. At this price point, alternatives include used cars from premium brands with better materials and refinement. The MG3's appeal is newness with warranty coverage rather than outright quality or driving experience.
BYD Dolphin Surf - List price £18,650 (deals under £15,000)
Chinese manufacturer BYD arrived in Europe with competitive electric vehicles priced aggressively to gain market share. The Dolphin Surf lists at £18,650 but deals exist for under £15,000 according to industry sources, representing exceptional value for an electric vehicle with usable range and modern features. The catch is limited dealer networks, uncertain resale values, and no long-term data on reliability or build quality. BYD dominates China's EV market and manufactures batteries for other brands, suggesting technical competence. Whether that translates to dependable ownership in the UK market over five to ten years remains unproven. For buyers comfortable with risk in exchange for value, the Dolphin Surf offers remarkable equipment and performance for the money. For conservative buyers prioritizing known quantities, established brands represent safer choices despite higher prices.
What This List Tells You
The affordable new car market in 2026 is dominated by brands most British buyers have never heard of or wouldn't have considered a decade ago. Dacia, a Romanian manufacturer owned by Renault, holds three positions. Chinese brands Leapmotor and BYD offer competitive electric vehicles at prices undercutting European rivals. Traditional budget champions like the Ford Fiesta are dead, discontinued despite being the UK's best-selling used car. The Vauxhall Corsa starts above £20,000. The Volkswagen Polo begins around £21,000.
Electric vehicles dominate the budget segment due to regulatory pressure and manufacturer discounts. According to Carwow, manufacturers face ZEV Mandate requirements to sell more electric cars, resulting in significant discounts. What Car? research found electric car discounts up 201.4% at the start of 2024 compared to average discounts across all fuels. That trend continues into 2026, with the Dacia Spring, Leapmotor T03, BYD Dolphin, and Fiat Grande Panda competing aggressively on price.
The trade-offs are obvious. Electric city cars sacrifice performance, range, and interior quality to hit low prices. The Spring's 19-second 0-62mph time makes motorway merging an exercise in faith. The T03's 210-litre boot struggles with a weekly shop. The Ami's 28mph top speed makes it unsuitable for anything beyond urban errands.
Combustion options fare better on practicality but worse on running costs. The Sandero provides five doors, adequate performance, and decent space for under £15,000. The Clio offers refinement matching more expensive competitors for £17,000. Both represent solid value if you accept that budget cars make compromises in safety ratings, interior materials, and technology.
The used market complicates every decision. £15,000 buys a nearly-new Volkswagen Polo with low miles and better equipment than budget new cars provide. £10,000 gets a three-year-old Skoda Fabia with mature depreciation and years of reliable service ahead. The case for buying new at the budget end relies on warranty coverage, knowing the car's full history, and avoiding potential problems from unknown previous owners.
Budget car buyers in 2026 face a choice. Buy electric and accept limited range with modest performance but benefit from low running costs if you can charge at home. Buy combustion and get better all-around capability with familiar refueling infrastructure but pay more for fuel. Buy a quadricycle and save money while wondering what went wrong. Or spend slightly more for a Renault Clio that doesn't feel like a compromise.
The Dacia Spring represents the floor of new car pricing in the UK. Below that sits only the Citroën Ami, which isn't really a car. Above it climbs a ladder of incrementally better vehicles, each adding performance, space, equipment, or refinement until you reach the Clio where budget motoring ends and normal car ownership begins. These are the cheapest cars on the UK market in 2026. Most are electric. None are British. Several are Chinese. Welcome to affordable new car ownership.
