The best cars for £150 per month

  • Compact SUV, 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 £229 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 £149 per month

LEASE: Dacia Sandero Stepway

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

2020 Dacia Sandero Stepway

The Dacia Sandero is the cheapest new car on sale in the UK - with prices starting from £6,995. But the Sandero Stepway, starts from £9,245.

What's the deal? Well, the Stepway has a lot more kit on it. Plus, it brings the glamour (slightly raised ride height, plastic cladding) of an SUV, in the same, cheap to buy, and easy to operate package as the regular Sandero. It works well too - it's a lot more interesting than a run-of-the-mill Sandero.

Although, there's no denying that much more appealing cars of this ilk, like the Skoda Kamiq, are only around £10-£25 per month more.*

Leasing price: from 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 further down this list either. Motorway journey makers beware - it is pretty loud in the Picanto at 70mph.*

Leasing price: from £150 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 £203 per month

*These deals are indicative examples of some packages available as of 1 June 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 befitting that it slides right into our £150 per month one too.

The Duster is the biggest car Dacia makes, and is 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 £139 per month will get you in the driving seat of the base spec model. This has no luxuries. Not even a radio. Another £20 per month affords you a mid spec Essential trim car with a modicum of frivolity to it.**

Leasing price: from £177 per month

Dacia Duster Access TCe

  • Monthly cost: £139 (48 payments)
  • Deposit: £1,612
  • Total amount payable by customer to buy car: £12,937
  • Cash price: £10,995
  • 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.

0% APR is very rare to find at this price range. This means that the cash price of the car is exactly what you pay in total, but instead of paying it in cash, you spread the cost over 48 months.

The 1.0-litre engine in this is pretty slow and not the one to go for if you cover a lot of motorway miles.**

Leasing price: from £185 per month

Skoda Fabia SE 1.0 MPI

  • Monthly cost: £149 (47 payments)
  • Deposit: £2,426.89 (including £1,250 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: £14,910
  • Cash price: £14,910
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Skoda Fabia PCP deal

PCP: Volkswagen Up

Best new car under £150 a month for: the best city car

2020 Volkswagen Up

Pound for pound, the VW Up might not look as good value as other cars on this list. You certainly get a lot less for your money in terms of sheer size when compared to the Dacia Duster. But not everyone wants a large car.

City dwellers looking for something easy to thread between haphazardly parked Ubers - this is your best choice.

Even the basic 1.0 S model on offer here has just about all the kit anyone would want. Plus being a Volkswagen, inside it's a cut above other cheaper city cars.**

Leasing price: from £198 per month

Volkswagen Up 1.0 S

  • Monthly cost: £145 (35 payments)
  • Deposit: £3,705
  • Total amount payable by customer to buy car: £12,485
  • Cash price: £12,485
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Volkswagen Up 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 choice if you find the Volkswagen Up (also on this list) too boring. But, if you can cope with the Up's blandness, we'd recommend going for one of those instead.**

Leasing price: from £180 per month

Citroen C1 Feel VTi

  • Monthly cost: £150 (35 payments)
  • Deposit: £734
  • Total amount payable by customer to buy car: £15,089
  • Cash price: £13,060
  • Mileage allowance: 6,000 miles per year
  • APR: 8.1%

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:

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.

** These deals are indicative examples of some packages available as at 18 June 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.