21 April 2009 by Parkers Team

  • Our pick of ten small cars that cost £20 to tax
  • Choose from the chic Fiat 500 to frugal Fabia
  • All cars exempt from tax for the first year

The latest car tax changes went live on April 1, 2010 and means that some cars will now cost just £20 a year in car tax.

These cars are also exempt from the new 'showroom tax' meaning buyers will pay no tax for the first year of ownership. Here's Parkers pick of the bunch.

1. Suzuki Alto 1.0-litre SZ3 (09 on)

WHAT IS IT?
The Alto is a small car that's designed to cut costs to the bone. It's cheap to buy and even cheaper to run. Those on a tight budget will appreciate its exceptional fuel economy, low insurance costs (it's in group one) and cheap road tax. The Alto also feels robustly built.

WHAT YOU NEED TO KNOW:

Price (new) - £8,345

Fuel - Petrol

g/km - 103

MPG - 64

2. Toyota Aygo 1.0-litre VVT-i (09 on)

WHAT IS IT?
The Aygo is Toyota's take on an urban runabout aimed primarily at active twenty-somethings. Jointly developed with Peugeot and Citroen (although the vehicle design is all Toyota's work), the Aygo has a frugal yet feisty three-cylinder engine, ultra-low running costs and superior quality to most cars in its sector.

WHAT YOU NEED TO KNOW:

Price (new) - £8,345

Fuel - Petrol

g/km - 106

MPG - 62

3. Citroen C1 1.0-litre VT 5dr (05 on)

WHAT IS IT?
The C1 is Citroen's version of the Peugeot 107 and Toyota Aygo. It has different looks front and rear and the specification levels are slightly different, but otherwise it's essentially the same as its counterparts - it's even built in the same factory. Available with three or five doors, it's an excellent small car.

WHAT YOU NEED TO KNOW:

Price (new) - £9,045

Fuel - Petrol

g/km - 106

MPG - 62

4. Peugeot 107 1.0-litre Sportium 5dr (05 on)

WHAT IS IT?
The 107 is the sister car to the Citroen C1 and Toyota Aygo - a simple to drive and cheap to run small car, that's ideal if you spend most of your time driving in busy built-up areas. Unlike the C1 (which was available with a diesel) the 107 has only ever been available with one engine...

WHAT YOU NEED TO KNOW:

Price (new) - £10,295

Fuel - Petrol

g/km - 103

MPG - 62

5. Skoda Fabia Hatchback 1.6-litre TDI CR SE (07 on)

WHAT IS IT?
This handsome Fabia sticks to what the original model has been doing since it was launched in 2000. It's well built, practical and good value - in short an appealing car to own, while excellent ride quality makes it comfortable too so it's great for town driving...

WHAT YOU NEED TO KNOW:

Price (new) - £12,78

Fuel - Diesel

g/km - 109

MPG - 67

6. Fiat 500 1.3-litre Multijet Pop (08 on)

WHAT IS IT?
Since 2004 Fiat has been doing what it does best - producing small cars whose appeal is in their character and value. Following the success of the Panda and Grande Punto, the 500 is another small car. However, this one unashamedly appeals to the emotions and is a modern interpretation of a classic.

WHAT YOU NEED TO KNOW:

Price (new) - £12,300

Fuel - Diesel

g/km - 110

MPG - 67

7. Honda Insight 1.3-litre IMA SE CVT (09 on)

WHAT IS IT?
The Insight is a five-door hatchback and looks similar to its main alternative, the Toyota Prius, with plenty of interior space and a large boot. There are some neat touches too, including the digital dash which tells you how green your driving style is.

WHAT YOU NEED TO KNOW:

Price (new) - £16,995

Fuel - Pterol/electric hybrid

g/km - 105

MPG - 61

8. MINI Hatchback 1.6-litre D Media Pack 3d (06 on)

WHAT IS IT?
The MINI, launched in 2001, introduced a whole new generation to the iconic model. Retro was all the rage and the funky hatchback took full advantage with its cheeky looks and classic interior both inspired by the original. The second generation model builds on this formula and although it may not look very different.

WHAT YOU NEED TO KNOW:

Price (new) - £15,960

Fuel - Diesel

g/km - 104

MPG - 72

 

9. Nissan Pixo 1.0-litre Visia (08 on)

WHAT IS IT?
Nissan has teamed up with fellow Japanese manufacturer Suzuki to produce the small Pixo. It's the sister car to the Suzuki Alto and the two are identical inside - although a different grille and headlights make it easy to tell them apart. Like the Alto, it is very cheap to buy - new or used - and affordable to own.

WHAT YOU NEED TO KNOW:

Price (new) - £6,995

Fuel - Petrol

g/km - 103

MPG - 64

10. Mazda 2 1.6D Sport 5d (07 on)

WHAT IS IT?
This Mazda 2 is a smart alternative to the Vauxhall Corsa, Ford Fiesta and Peugeot 207. It's a more exciting product than the car it replaces, good to drive and much more in keeping with Mazda's zoom-zoom ethos. Existing 2 owners shouldn't worry, as the new car sticks to its core values.

WHAT YOU NEED TO KNOW:

Price (new) - £14,765

Fuel - Diesel

g/km - 110

MPG - 67