The best cars for £150 per month

  • Compact SUVs, superminis, and city cars within budget
  • Cars starting from less than £140 per month
  • Choose between leasing and PCP finance

If you're after the best car for £150 a month, you've come to the right place. After all, even if you're an ardent petrolhead, your financial situation ultimately determines what car you'll be driving.

The good news is that the depth and breadth of what's available at this price range might just surprise some people. We have city cars, superminis, and even an SUV on this list. Better still, both leasing and PCP deals are available at this price point.

Leasing (often called PCH) works like a form of long term rental. There's an initial payment, followed by a series of monthly payments. Then that's it. You hand the car back. Whereas PCP (Personal Contract Purchase) deals involve a deposit and a series of monthly payments. Then you can choose if you want to buy it at the end.

Leasing is usually better if you know you don't want to buy the car outright, while PCP deals offer more for those who want to own.

Best new cars for £150 a month 2021


LEASE: Citroen C3

Best new car for £150 a month for: comfort

2021 Citroen C3

Freshly updated in 2020, the C3 is often overlooked by buyers in the UK. Which is a shame, because this supermini has a lot going for it.

Yes, it's practical and frugal, but more importantly, it's superbly comfortable. The 83hp petrol engine on offer here is the right one to go for if you cover a lot of town miles.*

Leasing price: from £145 per month

LEASE: Smart EQ Fortwo

Best new car for £150 a month for: zero emissions motoring

2020 Smart EQ Fortwo

Definitely one of the cheapest ways to drive an electric car.

And while it makes do with a 70-mile range, it's easily enough for a bumble around a city, perfect for Smart's clientele. Size-wise, it's smaller than the likes of the Skoda Citigo-e, but that can be a good point or bad one depending on how much you value practicality.

It does earn a certain amount of kudos points for being unique, as it's the only two-seat electric car currently for sale in the UK.*

Leasing price: from £256 per month

LEASE: Kia Picanto

Best new car for £150 a month for: worry-free motoring

2017 Kia Picanto

Kia's smallest model, the Picanto, is a good value choice in the sector, and puts up a stiff challenge against the mainstream. It's good looking, well made, plus it offers plenty of kit and space. Combine this with Kia's famous seven-year warranty, and it's hard not to recommend this car on rational grounds.

Yes, gloating about a seven-year warranty on a leasing deal might seem silly. But it goes some way in showing how confident Kia is in its engineering ability.

It's not as stylish as a Fiat 500, and it's not as practical as larger cars found in this list. Motorway journey drivers beware - it is pretty loud in the Picanto at 70mph.*

Leasing price: from £157 per month

LEASE: Renault Clio

Best new car for £150 a month for: all-round ability

2021 Renault Clio

Can you believe the Clio is 30 in 2021? In that time, this French fancy has cemented itself as an ultra stylish, super-chic small car that is hugely appealing to a wide number of car buyers.

Practical as well. The Clio's boot space has 391 litres - bigger than a Volkswagen Polo or Ford Fiesta. It's a bit cramped in the rear seats compared with these two, though.

Up front, the Clio’s interior is one of the best in the class. The infotainment screen is crisp, while the materials used feel much more upmarket than Clios of old.

Leasing price: from £148 per month

*These deals are indicative examples of some packages available as of 5 January 2021 but are subject to change without prior notice. Everyone’s financial circumstances are different, and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically. Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited. Terms, conditions and exclusions apply.


PCP: Dacia Duster

Best new car for £150 a month for: off-road aptitude

Dacia Duster for £150 per month

Budget brand Dacia features heavily in our other £ per month articles, so it's only fitting that it slides right into our £150 per month one too.

The Duster is the biggest car Dacia makes, and the cheapest new SUV in the UK. Its boxy body appeals to those who want tough-looking styling, and its interior is practical and well laid out. Admittedly, the driving position is slightly off-set.

Your £149 per month will get you into an Essential model - so one above bottom spec. This means you do at least get alloy wheels and air-con.

Dacia's cars are cheap in terms of cash and monthly, but the APR rates aren't good. If you're serious about buying, look into a personal loan.**

Dacia Duster Essential

  • Monthly cost: £149 (48 payments)
  • Deposit: £2,139
  • Total amount payable by customer to buy car: £15,248
  • Cash price: £12,995
  • Mileage allowance: 6,000 miles per year
  • APR: 6.9%

Dacia Duster PCP deal

PCP: Citroen C3 Aircross

Best new car for £150 a month for: cutesy mini-SUV vibes

Citroen C3 Aircross

How highly do you prioritise a car's acceleration and handling? We bet if you're after something sensible, your answer to this question is 'not very'.

Luckily Citroen has built this C3 Aircross for people who care more about nap times than lap times. Put simply, it has an excellent, pillowy ride that really is supremely comfy over Britain's poor roads.

To get one for less than £150 a month you'll need to go for the cheapest model. But even these cars get a slick infotainment system and roof bars.**

Citroen C3 Aircross C-Series

  • Monthly cost: £135.13 (47 payments)
  • Deposit: £3,999.89
  • Total amount payable by customer to buy car: £17,120
  • Cash price: £17,120
  • Mileage allowance: 6,000 miles per year
  • APR: 0%

Citroen C3 Aircross PCP deal

PCP: Skoda Fabia

Best new car for £150 a month for: solid build quality

2018 Skoda Fabia

The Skoda Fabia is often overlooked by people seeking flashier cars. But there's no denying, although a bit plain, it's spacious, cheap to run, and easy to drive.

The turbocharged 1.0-litre petrol engine is up for motorway overtaking, and the automatic gearbox option can be ticked for not a lot more money.

0% APR sweetens the deal.**

Skoda Fabia S 1.0 TSI

  • Monthly cost: £150 (47 payments)
  • Deposit: £2,652 (including £750 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: £14,605
  • Cash price: £14,605
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Skoda Fabia PCP deal

PCP: Volkswagen Up

Best new car for £150 a month for: a grown-up feeling city car

2020 Volkswagen Up side

The VW Up is the de facto city car. A feeling of solidity is what sets it apart from other cars of this size - you have to try really hard to find a piece of cheap feeling plastic or a tinny-sounding panel. It's a Volkswagen first, and a small car second.

Other cars on this list are more practical with bigger boots, but if you want something tiny and easy to park, not much beats an Up.**

Volkswagen Up 1.0 65ps 3 door

  • Monthly cost: £145 (35 payments)
  • Deposit: £2,412.87
  • Total amount payable by customer to buy car: £14,083.07
  • Cash price: £12,705
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9%

Volkswagen Up PCP deal

PCP: Suzuki Swift

Best new car for £150 a month for: style

Suzuki Swift side

Suzuki is well known for its no-nonsense, reliable and practical cars. The Japanese company regularly wins fuel economy awards and does well in reliability surveys. And the Swift is the pick of the Suzuki range.

All Swifts now come with a mild-hybrid engine, while SZ-T spec cars come with alloy wheels, Apple CarPlay/Android Auto, and a blindspot monitoring system.

0% APR and a low cash price combine to make a great deal.**

Suzuki Swift SZ-T PCP deal

  • Monthly cost: £158.20 (47 payments)
  • Deposit: £3,750
  • Total amount payable by customer to buy car: £12,749
  • Cash price: £14,749
  • Mileage allowance: 6,000 miles per year
  • APR: 0%

What to read next - learn more about car finance

And you can check out the best deals for all budgets below:

>> Best cars for £90 per month
>> Best cars for £100 per month
>> Best cars for £200 per month
>> Best cars for £300 per month
>> Best cars for £400 per month
>> Best cars for £500 per month
>> Top cash, finance and leasing offers: Deal Watch

Looking to learn more about car finance? Watch our video guides to PCP financePCH leasing and Hire Purchase, or visit our car finance calculator to find out how much you can afford to borrow.

>> 0% APR car finance deals
>> What is PCP?

>> What happens at the end of a PCP deal?
>> How does car leasing work?
>> Lease or buy: rent or keep?
>> How to find cheap car finance

** These deals are indicative examples of some packages available as of 5 January 2020, but are subject to change without prior notice. Everyone's financial circumstances are different and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically.

Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated consumer hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited.