Best Cheap Small Cars in the UK

The term ‘cheap and cheerful’ has never felt more appropriate in the UK automotive marketplace than it does right now.

Better still, not only is there a wealth of quality and quantity at the lower end of the price spectrum, there is even a tempting choice of conventional petrol, hybrid and even electric models to choose from.

So, whether you’re after a nippy urban runaround, a practical compact hatchback or a penny-pinching zero emissions model, there really is something for you at Vertu, even on a tight budget…

Dacia Spring

Dacia’s reputation for focusing on the core essentials of car ownership needs little introduction, with the Romanian manufacturer renowned for offering no-frills motoring at temptingly low costs.

Even so, the fact the Dacia Spring is both electric and the UK’s cheapest new car makes this a particularly penny-pinching car to buy and run.

The Spring is an adept city slicker with its modest dimensions making it especially easy to drive and park, while it has range of up to 140-miles – perfect for those who carry out short trips and would benefit from convenient manoeuvrability.

The 24.3kWh battery is available with the choice of either 70 or 100hp, while it can be charged from 20-80% using a fast charger in less than 30-minutes.

That means it’s also zero emissions, ensuring it remains eligible for avoiding any clean air zone (CAZ) tariffs in selected urban areas.

Dacia Sandero

There is no doubting the sheer popularity of the Dacia Sandero.

In fact, it has firmly established itself as Europe’s best-selling car for seven consecutive years now… and it is not hard to see why.

At the heart of the Sandero’s appeal is its no-nonsense approach to motoring, not least a refreshing strategy that puts value-for-money front and centre of everything it does.

Even so, the Sandero is comfortably bigger than other cars in its price bracket, while a recent upgrade to sit on the current generation Renault Clio platform makes it an agile and frugal urban runabout too.

Putting function over form means the Sandero gets a logical and easy-to-use interior, but the inclusion of air-conditioning, DAB and Bluetooth connectivity means you rarely feel you’re going without. Choose the higher-spec Expression and a touchscreen with Apple CarPlay/Android Auto is a welcome addition.

There is even an SUV-inspired Stepway trim which gives the exterior some extra street-cred – and all for well under £20k.

Kia Picanto

While Kia might have spent the last few years seamlessly transforming its image from budget brand to premium player in the automotive industry, the Kia Picanto proves it hasn’t ignored its value-oriented roots.

In fact, the Picanto has been steadfast as one of Kia’s most popular models ever since the first-generation version was launched back in 2003. Since then, the Picanto has received continuous updates without betraying the origins of what made it popular in the first place.

As such, the Picanto is still a funky looker, more so since a recent update saw it adopt Kia’s striking ‘Opposites United’ design language, the interior feels grown-up and the driving experience is brisk and full of pep.

Better yet, it comes as a more versatile five-door body style, while the standard 1.0-litre engine returns more than 50mpg. It’s also one of the UK’s cheapest new cars to insure, while it comes with a seven-year warranty as standard.

Hyundai i10

While the Hyundai i10 has held status as the manufacturer’s perennial pint-size offering for two decades now, over time it has matured to belie its affordable positioning.

A model that has always prioritised interior space on account of its tall dimensions, while the i10 is surprisingly roomy inside, it remains a handsome looker on the road thanks to some well-judged detailing.

With its grown-up interior, complete with easy-to-use dashboard-mounted gearstick, the i10 is a doddle to drive, while it is easy on the wallet too with 52mpg and less than 125g/km of CO2 emitted.

Better yet, for those who want something a sharper looking, the N Line trim tops the range with exclusive design features and a turbocharged 90PS engine.

MG3

Proof a strict budget needn’t exclude full-sized compact hatchbacks, the award-winning MG3 represents a lot of car for the money.

Better yet, there is little in the way of evidence that the MG3 ranks as one of the UK’s most affordable cars with a cabin that comfortably accommodates five adults and an interior design that looks modern and cutting-edge.

Moreover, opt for the Hybrid+ - with prices that start under £20,000* - and you’ll get remarkable performance from the combination of a 1.5-litre petrol engine and a battery, yet still return more than 60mpg.

It’s well-equipped too with a 10.25-inch touchscreen, Apple CarPlay/Android Auto, a built-in satellite-navigation, adaptive cruise control and reversing camera available on every trim.

BYD Dolphin Surf

For something funky, yet frugal on a budget, the electric BYD Dolphin Surf takes a lot of beating.

Few cars on the road can match the Dolphin Surf for visual impact, particularly if you opt for it in one of the more eye-popping paint schemes.

It’s also one of the cheapest electric cars on the market, so not only is it one of the most affordable models to buy in the UK, it’s also one of the most cost-effective to run on a daily basis.

The entry-level 30kWh battery makes light work of short urban trips with its 137-mile range, but upgrade to the larger 43.2kWh battery and this rises to around 200-miles.

As well as looking trendy on the outside, the Dolphin Surf carries that impression through to the inside, where there are some smart touches, such as the stylised air-vents on the dashboard, the wireless mobile phone charge cradle and the large infotainment touchscreen.

*prices correct as of January 2026