The 8 cheapest new cars in Britain

dacia sandero car advertOur neighbour has a new car.

When we mentioned it, he said he’d been about to buy a second hand one, but new turned out to be much cheaper.

It’s a Ford, and apparently they’re offering ridiculously good lease deals at the moment.

It set me thinking. New cars are more fuel-efficient and greener. So what are the cheapest cars in Britain right now?

Oddly enough, The Telegraph has just published a post about cheap cars for 2013. Here’s their top eight:

  1. Suzuki Alto – £5,995 via a special VAT-free offer
  2. Renault Twizy electric car – £6,690 for the funkiest little vehicle I’ve seen for ages!
  3. Hyundai i10 – £6,995 under the manufacturer’s current special offer
  4. Citroën C1 – £6,995
  5. Perodua Myvi – £6,999
  6. Nissan Pixo – £7,250
  7. Kia Picanto – £7,545
  8. Skoda Citigo – £7,630

The Guardian reviews the Dacia Sandero, test driving Britain’s cheapest car

At the same time, The Guardian has reviewed what they’re calling the UK’s cheapest car, the Dacia Sandero, coming in at just £5,995, the same as The Telegraph’s number one the Suzuki Alto. Here’s a link to the review.

Finance or car lease?  

Fixed cost travel is one of the biggest plus points for leasing your next car. You get a brand new car every few years, too, and the whole leasing thing is nice and simple. It makes posh, smart cars more affordable, great of you fancy something really cool you’d never otherwise be able to afford. Because you repay part of the car’s value during the term of your lease, the deposit and monthly payments are lower. You don’t have to bother selling it, saving all sorts of stress and hassle. And when you opt for a maintenance payment as part of the deal, you avoid nasty bills so it really is as close to fixed cost driving as it gets, perfect if you’re on a strict budget.

Because lease payments only cover cover depreciation, it’s a good idea to lease a vehicle that holds it value well. Then the difference between their new value and the value at three years old will be smaller and you repay less.

On the downside, you pay to use the car but you don’t own it. And you need to return it in good condition, with the specified mileage.  If you have the cash to own a car, it is usually cheaper to buy the car outright. If your mileage is high or difficult to predict, excess mileage charges can be expensive if you lease.

(Thanks to the Dacia website for the image)