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 it's time for a new car, 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, and a PCP deal is better if you want to keep your options open.

Best new cars for £150 a month 2020


LEASE: Fiat 500

Best new car for £150 a month for: style

2018 white Fiat 500

The Fiat 500 is a vastly popular car. So popular in fact, that it's spawned its own clique on Twitter. Why do so many people love them?

Well, for this kind of cash there's not much than can touch it style-wise. Fueling costs are low, as is insurance. Plus the 500 has proven to be reliable.

Lounge spec cars get Apple CarPlay/Android Auto so you can use your phone to control the infotainment setup, as well as rear parking sensors and 15-inch alloy wheels.*

Leasing price: from £139 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 into electric car ownership.

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 £150 per month

LEASE: Kia Picanto

Best new car for £150 a month for: warranty length

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.

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

Leasing price: from £149 per month

LEASE: Toyota Aygo

Best new car under £150 a month for: reliability

2019 Toyota Aygo

The little Toyota Aygo is super reliable and comes with Toyota's cast-iron five-year warranty. This sounds superfluous on a shortish leasing deal, but it does mean that Toyota is confident in the quality of car - and you should be too.

The X model on offer here is pretty basic. We'd recommend upping it to x-trend to get a reversing camera, auto headlights, and an infotainment screen with Apple CarPlay/Android Auto.*

Leasing price: from £144 per month

LEASE: Fiat Panda

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

Fiat Panda front

This little Fiat is one of the most utilitarian cars on the market. Just look at that boxy shape - there's nothing superfluous on it. Everything is geared towards offering its passengers the maximum amount of space.

It does well on that front, seating five with comfort - although the middle seat occupant needs to be pretty small. Its super-light steering makes it a friendly first car too.

Although the elephant in the room is its age. It essentially hasn't changed in the last seven years, so it feels much much older than most of its rivals.*

Leasing price: from £151 per month

*These deals are indicative examples of some packages available as of 16 October 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 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 under £150 a month for: off-road ability

Dacia Duster for £150 per month

Budget brand Dacia features heavily in our £90 and £100 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.

Your £149 per month will get you in the driving seat of the base spec model. This has no luxuries. Not even a radio. Another £20 or so per month affords you a mid-spec Essential trim car with a modicum of frivolity to it.**

Dacia Duster Access TCe

  • Monthly cost: £149 (48 payments)
  • Deposit: £1,990
  • Total amount payable by customer to buy car: £13,731
  • Cash price: £11,745
  • Mileage allowance: 6,000 miles per year
  • APR: 6.9%

Dacia Duster PCP deal

PCP: Skoda Fabia

Best new car under £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.

While the 1.0-litre engine is fine around town, it's not the one to go for if you cover a lot of motorway miles.

At least Skoda is offering 0% APR.**

Skoda Fabia SE 1.0 MPI S

  • Monthly cost: £154.77 (47 payments)
  • Deposit: £1,299 (including £750 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: £12,990
  • Cash price: £12,990
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Skoda Fabia PCP deal

PCP: Volkswagen Up

Best new car under £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 city cars - 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. 0% APR adds to the allure - but that deposit is hefty.**

Volkswagen Up 1.0 65ps 3 door

  • Monthly cost: £145 (35 payments)
  • Deposit: £3,760.90
  • Total amount payable by customer to buy car: £12,705
  • Cash price: £12,705
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Volkswagen Up PCP deal

PCP: Hyundai i10

Best new car under £150 a month for: newness

2020 Hyundai i10

New for 2020, this third generation car is the latest in the i10 lineup. Among the city car class, it certainly feels and looks the most modern.

The exterior is a world away from the old car  - this i10 really stands out thanks to creased sides and a big grille up front. Inside, the infotainment is new and makes the car feel much more contemporary than rivals.

Finance-wise, it's not as impressive as some of the cars on this list. But your choice at £150 per month is slimmer than at more expensive prices.**

Hyundai i10 SE

  • Monthly cost: £145 (48 payments)
  • Deposit: £2,550
  • Total amount payable by customer to buy car: £11,076.87
  • Cash price: £12,820
  • Mileage allowance: 8,000 miles per year
  • APR: 4.6%

Hyundai i10 PCP deal

PCP: Citroen C1

Best new car under £150 a month for: low deposits

2019 Citroen C1

The C1 is the smallest car Citroen makes, and shares its underpinnings with the Toyota Aygo found further up this list.

It majors on being tightly packaged and cheap to run, plus, it rides pretty well, and its turning circle is among the best on the road.

It's a good alternative if you find the Volkswagen Up too boring or expensive.**

Citroen C1 Feel VTi

  • Monthly cost: £139 (47 payments)
  • Deposit: £1,116.87
  • Total amount payable by customer to buy car: £11,076.87
  • Cash price: £9,995
  • Mileage allowance: 6,000 miles per year
  • APR: 3.9%

Citroen C1 PCP deal

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.

>> 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 at 16 October 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.