You’re not the only person looking at cars in the best cars for £200 per month range – this article is among the most popular in our suite of new car deal pages. Despite rising prices and increasing interest rates, there are still lots of great cars available for around £200 per month.
The good news is that there are some really great cars available for around £200 (and up to £220 for those who can stretch a little), including a fresh batch of electric cars as well as the more conventional SUVs and hatchbacks that line the streets of the UK, and we’ve found the ones we think represent the best value at this price point.
This list highlights both personal contract hire (PCH) – or lease – deals and a couple of our favourite personal contract purchase (PCP) deals. As this is a very competitive price point with lots of special offers available, we’ll be continuously updating this page with the latest offers.
To give you a clearer sense of what your money gets you, we’re comparing each car’s leasing (PCH or personal contract hire) and finance (PCP or personal contact purchase) prices. Leasing is often the most cost-effective way to drive a brand-new car, so by putting both options side by side, you’ll get a fuller picture of the value on offer.
For leasing, I’ve capped monthly payments at £220 to highlight the very best budget-friendly options currently available. Remember that prices can fluctuate day-to-day for leasing rates, so there may be times a car jumps out of our set price parameters. But fear not, the leasing rate may return back down in a couple of days. If you’re actively looking, it’s worth checking back regularly for any exceptional offers that pop up – they rarely stick around for long.
PCP finance deals tend to be more stable over time, so I’ve used official manufacturer finance calculators to provide like-for-like comparisons. Each quote is based on the same criteria; namely a 10% deposit, 10,000-mile annual limit, and a 48-month contract. So, read on to discover our top car leasing and finance deals for £200 per month or less.
Winner: the new car for lease for £200 a month 2025
Incredibly well-packaged electric car
We think the Hyundai Inster is a sensation. It’s part of a new wave of small electric cars and it might just be the smartest of the lot. It’s smaller and narrower than its obvious rivals but offers class-leading interior space and Hyundai’s excellent EV technology to bank on. It’s also refined to drive, well-made and a doddle to park. Its status as a strict four-seater is the biggest drawback here, but all four occupants will be able to stretch out in comfort.
Our advice would be to search for an Inster in 02 specification for the useful additions of sliding rear seats for either more boot space or rear legroom, heated front seats and a larger battery for a driving range of 200 miles in the real world. There are plenty of 02 models available for £200 per month and it's well worth the extra cash per month.
Compare these leasing rates to finance and matters get interesting. The Hyundai Inster has strong finance (PCP) offers currently, aided by a whopping saving of £3,750 courtesy of the Hyundai Electric Grant on top of the £500 Electrifying Summer Event saving. All this means it’s possible to get a base 01 for £234 per month – or an 02 for £314, both over 48 months, with a 10% deposit (£2,300 and £2,600 respectively) and an annual mileage limit of 10,000 miles.
To find out more, read our full Hyundai Inster review
Our advice would be to search for an Inster in 02 specification for the useful additions of sliding rear seats for either more boot space or rear legroom, heated front seats and a larger battery for a driving range of 200 miles in the real world. There are plenty of 02 models available for £200 per month and it's well worth the extra cash per month.
Compare these leasing rates to finance and matters get interesting. The Hyundai Inster has strong finance (PCP) offers currently, aided by a whopping saving of £3,750 courtesy of the Hyundai Electric Grant on top of the £500 Electrifying Summer Event saving. All this means it’s possible to get a base 01 for £234 per month – or an 02 for £314, both over 48 months, with a 10% deposit (£2,300 and £2,600 respectively) and an annual mileage limit of 10,000 miles.
To find out more, read our full Hyundai Inster review
Pros
- Incredibly spacious interior
- Nippy performance around a city
- Sliding rear seats offer extra versatility
Cons
- Strict four-seater
- Soft brake pedal
Highly recommended: other leasing deals to consider
It's a Golf, but even better
The Skoda Octavia uses the same underpinnings as the Volkswagen Golf but manages to offer an even better family car thanks to more passenger space, lower costs, and clever touches all designed to make living with the car easier – think an ice scraper in the fuel filler cap and a removable umbrella in the door. Partner that with a boot size of 600 litres – a whopping 219 litres more than a Golf offers – and it’s obvious why we rate the Octavia as the best hatchback on sale in 2025.
Leasing rates all begin at just over £200 per month for a base SE model, but it’s such an accomplished car that it deserves a spot on this list. Sadly, the even more commodious estate is more like £300 per month, as is the spicier Octavia vRS. The 1.5-litre mild-hybrid petrol that’s available in budget isn’t very engaging, but it should at least prove frugal.
On finance, a comparable Skoda Octavia SE will cost £323 per month for 48 months, with a 10,000 mile per year limit and a deposit of £2,800. Skoda is offering a deposit contribution of £3,000 which helps lower costs.
To find out more, read our full Skoda Octavia review
Leasing rates all begin at just over £200 per month for a base SE model, but it’s such an accomplished car that it deserves a spot on this list. Sadly, the even more commodious estate is more like £300 per month, as is the spicier Octavia vRS. The 1.5-litre mild-hybrid petrol that’s available in budget isn’t very engaging, but it should at least prove frugal.
On finance, a comparable Skoda Octavia SE will cost £323 per month for 48 months, with a 10,000 mile per year limit and a deposit of £2,800. Skoda is offering a deposit contribution of £3,000 which helps lower costs.
To find out more, read our full Skoda Octavia review
Pros
- Roomy for passengers and luggage
- Wide range of models and prices
- Excellent fuel consumption
Cons
- Engine range more limited than before
- A little too much bodyroll
Comfortable and charming electric supermini
In the maelstrom of new small electric cars, the Citroen e-C3 has been royally overshadowed by the attention-grabbing likes of the Renault 5 E-Tech and Fiat Grande Panda. That’s a pity, because we think the Citroen e-C3 is a lovely small electric car that’s easily recommendable.
Interior space is plentiful and can easily accommodate four adults in comfort, aided by wonderfully squidgy – if slightly unsupportive – seats. Despite being the cheapest Citroen on sale, the interior doesn’t feel noticeably cheap – there’s interesting patterns, light fabric and lots of physical buttons to offset the all the scratchy plastics. In Max specification it’s even reasonably plush with heated seats, a wireless phone charger and reversing camera. There’s no keyless go, mind. Also, expect 150-170 miles of range in the real world, not class-leading by any stretch.
The e-C3 is eligible for the smaller £1,500 government-backed EV grant, cutting the base price down to £20,595, while finance for the Citroen e-C3 is fixed. While I couldn’t apply the 48-month, 10% down, 10,000-mile annual limit to an e-C3, there is currently an offer for £339 per month, with a deposit of £339 for 48 months. The annual mileage limit is 8,000 as opposed to 10,000 though.
To find out more, read our full Citroen e-C3 review
Interior space is plentiful and can easily accommodate four adults in comfort, aided by wonderfully squidgy – if slightly unsupportive – seats. Despite being the cheapest Citroen on sale, the interior doesn’t feel noticeably cheap – there’s interesting patterns, light fabric and lots of physical buttons to offset the all the scratchy plastics. In Max specification it’s even reasonably plush with heated seats, a wireless phone charger and reversing camera. There’s no keyless go, mind. Also, expect 150-170 miles of range in the real world, not class-leading by any stretch.
The e-C3 is eligible for the smaller £1,500 government-backed EV grant, cutting the base price down to £20,595, while finance for the Citroen e-C3 is fixed. While I couldn’t apply the 48-month, 10% down, 10,000-mile annual limit to an e-C3, there is currently an offer for £339 per month, with a deposit of £339 for 48 months. The annual mileage limit is 8,000 as opposed to 10,000 though.
To find out more, read our full Citroen e-C3 review
Pros
- Low starting price
- Impressive space
- Excellent comfort
Cons
- High boot loading lip
- Range won't be enough for some
Bestselling family car staple
There are a handful of family SUVs that sit comfortably below the £200 per month leasing limit, and of those we rate the Nissan Qashqai as the one to go for, especially when leasing rates are so competitive. It’s a nice, well-made and spacious family car, and it’s even pretty good to drive. The downside? The mild hybrids at this price point aren't our pick of the range. They're frugal but a little weedy against an E-Power Hybrid model.
There’s a solid selection of Qashqais available for less than £200 per month, including the occasional premium Tekna model with such luxuries as a hands-free electric boot lid, a heated windscreen and electronic driver seat adjustment. Slightly lower-spec N-Connecta trim Qashqais dominate this price point though, but still boast such features as a wireless phone charger, front and rear parking sensors, and a slew of smart and refreshingly non-intrusive safety tech.
With a 10% deposit down (£2,750), I was offered a N-Connecta spec Qashqai for £388 per month over 48 months and with an annual mileage limit of 10,000. Nissan’s APR is a reasonable 5.49% and there’s a £2,750 deposit contribution currently running too.
To find out more, read out full Nissan Qashqai review
There’s a solid selection of Qashqais available for less than £200 per month, including the occasional premium Tekna model with such luxuries as a hands-free electric boot lid, a heated windscreen and electronic driver seat adjustment. Slightly lower-spec N-Connecta trim Qashqais dominate this price point though, but still boast such features as a wireless phone charger, front and rear parking sensors, and a slew of smart and refreshingly non-intrusive safety tech.
With a 10% deposit down (£2,750), I was offered a N-Connecta spec Qashqai for £388 per month over 48 months and with an annual mileage limit of 10,000. Nissan’s APR is a reasonable 5.49% and there’s a £2,750 deposit contribution currently running too.
To find out more, read out full Nissan Qashqai review
Pros
- Striking styling, quality interior
- Lots of tech that works well
- Exceptional leasing rates
Cons
- Ride is fidgety
- The best examples are pricier
The quiet hero of the family SUV world
The Renault Captur is a smart-looking and cleverly packed small SUV that undercuts rivals on cost and offers some lean leasing deals. I’ve seen prices as low as £160 for an entry-level model but recommend aiming for a 1.6-litre E-Hybrid model – the extra poke and economy over the 1.0-litre unit will be appreciated.
It’s got a smaller footprint than rivals, but the Captur uses its dimensions well. Cabin space is roomy for all but the tallest of occupants, while the 444-litre boot is genuinely impressive, especially as the rear seats can slide to provide more room. Interior quality is good too, with plenty of recycled materials and interesting fabrics lifting what could otherwise be a very dull interior.
Our pick would be for a mid-spec Techno spec. The extras like a modular boot floor and front, rear and side parking sensors are worth the step up over an Evolution model. Renault is a master of strong finance but unfortunately, its finance calculator was not working at the time of writing. I’ll update this entry with figures as soon as I get them.
To find out more, read our full Renault Captur review
It’s got a smaller footprint than rivals, but the Captur uses its dimensions well. Cabin space is roomy for all but the tallest of occupants, while the 444-litre boot is genuinely impressive, especially as the rear seats can slide to provide more room. Interior quality is good too, with plenty of recycled materials and interesting fabrics lifting what could otherwise be a very dull interior.
Our pick would be for a mid-spec Techno spec. The extras like a modular boot floor and front, rear and side parking sensors are worth the step up over an Evolution model. Renault is a master of strong finance but unfortunately, its finance calculator was not working at the time of writing. I’ll update this entry with figures as soon as I get them.
To find out more, read our full Renault Captur review
Pros
- Spacious, quality interior
- Easy-to-use tech
- Great value for money
Cons
- Hybrid model isn't particularly refined
- Limited powertrain choices
A plug-in hybrid for £200 per month
It’s quite the feat to find a plug-in hybrid like the MG HS for around £200 per month, and it’s something that should be celebrated. Plug-in hybrids (or PHEVS) combine a conventional combustion engine with a battery-powered electric motor (effectively an EV powertrain) to offer very frugal running costs and low emissions. This makes PHEVs more expensive, and the size of the battery means smaller, cheaper cars simply don’t have the space.
The MG HS PHEV does have ample room for a big battery, and we think the plug-in hybrid system is rather good. The official electric range of 75 miles is impressive and its nicely smooth and refined to drive. Elsewhere, the interior is spacious and there’s generous equipment levels, even if it lacks that final polish that puts it behind the likes of the Cupra Terramar and Hyundai Tucson as a family car. just remember though, neither can be found as plug-in hybrids for anywhere close to the MG's leasing rates.
MG’s finance shows just how good these leasing rates are. With a 10% deposit (£3,200) and an annual cap of 10,000 miles per year, I was quoted £396 per month for 48 months with 5.9% APR. The piddly £250 deposit contribution barely makes a dent while a £1,000 test drive voucher will help more.
To find out more, read our full MG HS review
The MG HS PHEV does have ample room for a big battery, and we think the plug-in hybrid system is rather good. The official electric range of 75 miles is impressive and its nicely smooth and refined to drive. Elsewhere, the interior is spacious and there’s generous equipment levels, even if it lacks that final polish that puts it behind the likes of the Cupra Terramar and Hyundai Tucson as a family car. just remember though, neither can be found as plug-in hybrids for anywhere close to the MG's leasing rates.
MG’s finance shows just how good these leasing rates are. With a 10% deposit (£3,200) and an annual cap of 10,000 miles per year, I was quoted £396 per month for 48 months with 5.9% APR. The piddly £250 deposit contribution barely makes a dent while a £1,000 test drive voucher will help more.
To find out more, read our full MG HS review
Pros
- Great value for money
- Impressive plug-in hybrid
- Roomy interior
Cons
- Annoying safety tech
- Interior lacks flexibility of rivals
Undeniable value with this electric SUV
For a couple of days in July, the Leapmotor C10 sat at prices as low as £128 per month to lease. That put it in the territory usually occupied by the Dacia Spring (shudder) and Citroen Ami (legally not a car). An electric family SUV with a generous list of features for such little money is a massive win for a consumer, especially as the C10 is more than acceptable.
The space offered inside is massive for a start, with ample passenger space for five. It’s also jam-packed with gear, including a standard-fit panoramic glass roof, heated and ventilated front seats, a 360-degree camera and 12-speaker surround-sound system. Counting against it is the smaller boot, choppy driving dynamics and fact that leasing prices have since levelled out. But, as it’s still exceptionally easy to find a C10 for less than £200 per month, it's worth a gander.
Leapmotor is also running aggressive finance options for the C10. While I was unable to find figures using my parameters, it’s possible to pick up a C10 for £319 per month over 48 months on a deposit of £319. That includes a £611 dealer deposit, the LEAP-GRANT that slices £3,750 off the price of a C10 and even includes 0% APR. Only a stingy 6,000 mile per year limit proves to be disappointing here.
To find out more, read our full Leapmotor C10 review
The space offered inside is massive for a start, with ample passenger space for five. It’s also jam-packed with gear, including a standard-fit panoramic glass roof, heated and ventilated front seats, a 360-degree camera and 12-speaker surround-sound system. Counting against it is the smaller boot, choppy driving dynamics and fact that leasing prices have since levelled out. But, as it’s still exceptionally easy to find a C10 for less than £200 per month, it's worth a gander.
Leapmotor is also running aggressive finance options for the C10. While I was unable to find figures using my parameters, it’s possible to pick up a C10 for £319 per month over 48 months on a deposit of £319. That includes a £611 dealer deposit, the LEAP-GRANT that slices £3,750 off the price of a C10 and even includes 0% APR. Only a stingy 6,000 mile per year limit proves to be disappointing here.
To find out more, read our full Leapmotor C10 review
Pros
- Cosmically vast interior
- Loads of standard equipment
- Decent build quality
Cons
- Choppy ride, uninspiring dynamics
- Smaller boot than rivals
The rational one
The Honda Jazz has a reputation for unshakable reliability, practicality and class-leading ease-of-use, which makes it a safe choice of car for £200 per month. This spacious supermini may be duller than a tax form to drive, but the versatility and practicality offered by the clever interior will prove appealing. The Magic Seats in particular are excellent for carrying tall things.
It’s frugal too. There’s only one powertrain choice – a 1.5-litre petrol engine mated to a hybrid system. The Jazz works like an EV around town and then relies on the more powerful engine on faster roads. It’s easy to live with most of the time, but will thrash and grow noisy when pushed on a steep hill. Still, expect 50mpg without trying to be economical.
Leasing deals under £200 are dominated by the mid-spec Advance trim and include heated front seats and steering wheel, adaptive cruise control and keyless start. Finance for the Honda Jazz is rigid but monthly payments are close to what you’d pay for an identical Jazz Advance on a lease at £219 per month. Admittedly, the deposit is a far heftier £5,396 (closer to 19%), is over 36 months and has an 8,000 mile per year limit, but is helped by a £3,000 deposit contribution.
To find out more, read our full Honda Jazz review
It’s frugal too. There’s only one powertrain choice – a 1.5-litre petrol engine mated to a hybrid system. The Jazz works like an EV around town and then relies on the more powerful engine on faster roads. It’s easy to live with most of the time, but will thrash and grow noisy when pushed on a steep hill. Still, expect 50mpg without trying to be economical.
Leasing deals under £200 are dominated by the mid-spec Advance trim and include heated front seats and steering wheel, adaptive cruise control and keyless start. Finance for the Honda Jazz is rigid but monthly payments are close to what you’d pay for an identical Jazz Advance on a lease at £219 per month. Admittedly, the deposit is a far heftier £5,396 (closer to 19%), is over 36 months and has an 8,000 mile per year limit, but is helped by a £3,000 deposit contribution.
To find out more, read our full Honda Jazz review
Pros
- Good balance of performance and economy
- Hugely versatile and spacious interior
- User-friendly multimedia system
Cons
- Too much cheap-feeling plastic inside
- Sounds thrashy when accelerating
It’s a car that is good value for money
Let’s preface this entry by noting that there are better small SUVs than the Peugeot 2008, and the car's biggest draw is the strong value it offers. It’s possible to get the range-topping GT Premium with a massaging driver seat and adaptive cruise control for just over £200 per month. If you really want, an entry-level electric E-2008 can also be found for about the same monthly cost.
The interior, while plush, is let down by some questionable ergonomics that aren’t for everyone. It uses Peugeot’s i-Cockpit layout which means the steering wheel is mounted below the dashboard and very small, while the dial cluster is mounted high. Some of our testers found it easy to find a comfortable driving position, others deemed it impossible – so definitely try it for yourself before you buy. It can spoil what is otherwise a rather spacious interior.
Peugeot has some stellar deals available for the 2008, including a whopping £6,850 deposit contribution. With 10% down (£3,500), 10,000 miles per year and a 48-month contract, I was offered £385 per month on a top-spec GT Premium 2008.
To find out more, read our full Peugeot 2008 review
The interior, while plush, is let down by some questionable ergonomics that aren’t for everyone. It uses Peugeot’s i-Cockpit layout which means the steering wheel is mounted below the dashboard and very small, while the dial cluster is mounted high. Some of our testers found it easy to find a comfortable driving position, others deemed it impossible – so definitely try it for yourself before you buy. It can spoil what is otherwise a rather spacious interior.
Peugeot has some stellar deals available for the 2008, including a whopping £6,850 deposit contribution. With 10% down (£3,500), 10,000 miles per year and a 48-month contract, I was offered £385 per month on a top-spec GT Premium 2008.
To find out more, read our full Peugeot 2008 review
Pros
- Upmarket interior
- Decent range of engine options
- Cabin and boot are spacious
Cons
- 3D dials take getting used to
- Driving position won’t suit all
One to avoid
Too old to cut it
Once upon a time, the Fiat 500 would have sat comfortable in our budget leasing picks with its chic styling, fuel-sipping engines and city-friendly dimensions. That was many moons ago now, and we can think of many better ways to spend your money than a car that can trace its fundamentals back to 2007.
This is the old Fiat 500, the one with a mild hybrid set up. It’s no longer in production but there’s still old stock knocking around leasing sites. Cars have moved on a lot since this 500, and the antiquated tech, tiny boot and weird driving position simply doesn’t cut it anymore. If you’re after retro charm, just look at the Fiat Grande Panda.
To find out more, read our full Fiat 500 review
This is the old Fiat 500, the one with a mild hybrid set up. It’s no longer in production but there’s still old stock knocking around leasing sites. Cars have moved on a lot since this 500, and the antiquated tech, tiny boot and weird driving position simply doesn’t cut it anymore. If you’re after retro charm, just look at the Fiat Grande Panda.
To find out more, read our full Fiat 500 review
Pros
- Cheeky retro styling
- Compact dimensions
- Efficient mild-hybrid engine
Cons
- Awkward driving position
- Noisy at motorway speeds
* These deals are indicative examples of some packages available as of 6 August 2025, 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.
Update log
6th August 2025: Added the Hyundai Inster, Skoda Octavia, MG HS, Honda Jazz, Leapmotor C10 and Peugeto 2008. Removed the Skoda Kamiq, Renault Clio, MINI Cooper, Volkswagen Polo and Vauxhall Astra.
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