What cars can you have for less than £200 per month? These are my top picks

More and more people are choosing to lease or finance their car over buying them outright these days, and I can see why. Spreading the cost over a few years means you’re not draining your life savings in one hit, and, in the case of leasing, it saves you having to worry about depreciation.

Whether you’re interested in leasing or PCP finance, there are some great deals out there on cars for £200 per month or less. Here are some of my favourites, sorted by the type of finance you’re taking out.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

Best lease deals for less than £200 per month*

Let’s start with leasing. When you lease a new car, you pay a series of monthly payments, as well as an initial fee (usually 9-12 months worth of monthly payments). You’ll also have a mileage limit, with additional charges if you exceed it, and you hand the car back at the end of the agreement. There is no option to own it.

In this case, I’ve chosen five cars you can lease within our budget over three years and 24,000 miles, with a 12-month initial payment.

1. Fiat 600
2. Citroen Berlingo
3. MG3 Hybrid
4. Skoda Fabia
5. Renault Symbioz

1. Fiat 600

One offer which caught my eye was a Fiat 600 for £168 per month with a £2,306 initial payment. It’s a funky-looking small SUV with a fuel-sipping 1.2-litre hybrid petrol engine, and it’s comfy as well. It’s just a shame that the rear seats are a bit cramped, and the interior feels low-rent in places. I can forgive cheap plastics though, because it’s a cheap car.

2. Citroen Berlingo

This is the most interior space you can get for this sort of money. The Citroen Berlingo is available for £199 per month right now, with an upfront payment of £2,677. It’s basically a van with rear seats, so while you don’t get a particularly luxurious interior, the 1,255-litre boot is double the size of your average family SUV.

3. MG3 Hybrid

The MG3 is the cheapest new hybrid car you can buy in the UK. You can lease one through Carwow for £173 per month with a £2,380 initial payment, and it’s packed with standard kit. This top-spec Trophy model has heated front seats, a heated steering wheel, adaptive cruise control and a 360-degree camera. It’s not as fuel-efficient as a Toyota Yaris hybrid, though.

4. Skoda Fabia

I’m currently living with a Skoda Fabia, and I reckon it’s one of the best small cars around. The boot is big enough to rival much larger cars, and the rear seat space is generous as well. It’s also really comfortable to drive, if not the most thrilling. You can get a mid-spec Colour Edition for £197 per month with an initial payment of £2,365 at the time of writing.

5. Renault Symbioz

A Renault Symbioz for £175 per month and a £2,400 initial payment is a cracking deal for a few reasons. It has a big boot, loads of interior space and an excellent Google-based infotainment system. It’s just a shame you can’t get the hybrid model for this price, because it’s smoother and more economical than the basic petrol.

Best PCP finance deals for less than £200 per month*

Unlike leasing, PCP finance gives you the option to buy the car at the end of the agreement. You pay an initial deposit, followed by a series of monthly payments which combine to cover the expected depreciation on the car over the course of the agreement.

You then have the option to hand the car back and walk away, or pay the “balloon payment” to keep it.

PCP is a more flexible option than leasing, but it often comes with higher monthly payments. This means your options are more limited within our £200 per month budget, but here are three great cars which fit the bill.

Once again, these are all over three years and 24,000 miles. The initial deposit also ranges between £3,000 and £6,000. It’s also worth keeping in mind that interest rates can vary depending on your credit score and personal circumstances, so your quote may vary from what is shown below.

1. Dacia Sandero
2. Vauxhall Frontera Electric
3. Seat Ibiza

1. Dacia Sandero

The Dacia Sandero is a cracking small car. I love its no-nonsense approach to value for money, offering just the right amount of equipment and a comfy driving experience for very little cash. You can get the Expression model, with smartphone mirroring, a reversing camera and cruise control, for £184 per month with a £3,000 deposit. You can pay the £8,146 balloon payment at the end if you decide to keep the car.

2. Vauxhall Frontera Electric

If you’re after a spacious electric car for £200 per month, the Vauxhall Frontera Electric is worth a look. It has a massive 460-litre boot and loads of rear seat space, but for this price you’ll be getting the entry-level battery with 190 miles of range. It won’t suit long-distance drivers, but at £195 per month with a £4,300 deposit it’s still great value. The balloon payment is £10,676 if you decide to keep the car.

3. Seat Ibiza

The Seat Ibiza is a sporty-looking small car which is lovely to drive and has a decent-sized boot, but the interior feels cheap in places and it’s not that well-equipped. You can pick up an entry-level SE model for £199 per month with a £4,650 deposit, and if you want to keep the car at the end it’ll cost £9,630.

*All prices correct at the time of writing

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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