Best Cheap Cars | Cheapest New Cars 2025 – Carwow

High-quality cheap cars from rated and reviewed dealers
Cars are getting more and more expensive and the cost of living crisis is making it harder than ever to justify splashing out on an expensive new vehicle. But fear not, although prices seem to only be increasing, there are still some fantastic deals to be had – and this list of the best cheap cars available today has something for everyone.
Carwow’s expert car reviews team has tested all of the cheapest new cars on sale today to compile this list of the very best. And don’t think that just because you’re considering a cheap car it has to be a little city runaround – there are estates, SUVs and even an electric car in our recommendations. You want space? Get a Dacia Jogger. You want style? Get a Renault Clio. If you want electric power, the BYD Dolphin Surf is right there.
Although affordable electric cars are slowly making their way on sale, cheap cars tend to be petrol-powered, though in some cases you can spend a bit more and get an affordable hybrid that will keep your running costs even lower.
It’s also worth noting that the starting price for each of these cars will be the most basic version, so they will typically have the least powerful engine and fewest creature comforts – though you often don’t have to spend a huge amount more to get things like cruise control, heated seats and the like.
Below we’ll not only highlight the best cheap cars, but also what kit you’re getting for your cash.
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If saving cash is all you’re worried about, here are the cheapest cars available on Carwow (at the time of writing).
The Leapmotor T03 is cheap, but don’t let its cutesy looks fool you, it’s not quite as cheerful as it appears. It’s actually quite nice to drive for a car of this price, but a range of just 165 miles, miniscule boot, annoying touchscreen and lack of smartphone mirroring takes the shine off of what could have been a great little car.
This list proves that just because you’re looking at cheap cars, it doesn’t mean they’re exclusively small. However, that generally is the case, so if you’re shopping for a family car, or regularly carry passengers or lots of luggage in the boot, it’s worth taking a bit more time to make sure you’re buying a cheap car that suits your needs. If you do need more space, you could consider browsing larger used cars that fit your budget.
When budgeting, make sure to include running costs in your calculations, particularly if you’re considering a car on finance and you’re looking at your monthly payments. Electric or plug-in hybrid cars typically have a higher purchase price, but if you can charge at home, you might find they’re so cheap to run that it works out cheaper in the long run. And because of the tax benefits that come with these cars, they can be incredibly affordable for company car choosers.

The smaller the car, the less you’ll need to spend on both fuel and road tax. A smaller car is lighter and therefore more frugal on fuel. The Hyundai i10 or Renault Clio have efficient engines and return impressive fuel usage figures. Despite their size, they’re incredibly practical and would tick the boxes for most people’s day-to-day needs. They’re also a lot better for the environment. So not only can you feel better about the car you’re driving, but you won’t need to pay as much in road tax.
Cars that are cheap to insure are simply some of the safest available, and most economical to repair. Cheap and slow is the way to go. Every car down to each specific engine option is categorised into a group – taking performance and the cost of repair into account. These insurance groups range from 1 to 50. If you’re on a budget, try to get a car with a low insurance group number – the Toyota Yaris and Volkswagen Polo have a few models in group 1.
Through Carwow, obviously… but you can save even more. Every model of car has options, packages and different engines to choose from. To save money on a new car just think carefully about what you need and avoid the temptation to go for the top spec. Through our website you can find easy to understand descriptions of these options to help you pick what’s best for you.
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* Please contact the dealer for a personalised quote, including terms and conditions. Quote is subject to dealer requirements, including status and availability. Illustrations are based on personal contract hire, 9 month upfront fee, 48 month term, 8000 miles annually, inc VAT, excluding fees. Vehicle returned at term end.
** Our marketing claims explained.
Average savings are calculated daily based on the best dealer prices on Carwow vs manufacturer RRP. Where it is shown that the EV Grant is included, this refers to the Government grant awarded to manufacturers on certain EV models and derivatives, the amount awarded under the EV Grant is included in the Savings stated and applied at the point of sale. Carwow is the trading name of Carwow Ltd, which is authorised and regulated by the Financial Conduct Authority for credit broking and insurance distribution activities (firm reference number: 767155). Carwow Leasey Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority for credit broking (firm reference number: 313486) Carwow and Carwow Leasey Limited are each credit brokers and not a lenders. Carwow and Carwow Leasey Limited may receive a fee from retailers advertising finance and may receive a commission from partners (including dealers) for introducing customers. All finance offers and monthly payments shown are subject to application and status. Carwow is covered by the Financial Ombudsman Service (please see www.financial-ombudsman.org.uk for more information). Carwow Ltd is registered in England (company number 07103079), registered office 2nd Floor, Verde Building, 10 Bressenden Place, London, England, SW1E 5DH. Carwow Leasey Limited is registered in England (company number 13601174), registered office 2nd Floor, Verde Building, 10 Bressenden Place, London, England, SW1E 5DH and is a wholly owned subsidiary of Carwow Ltd.

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