Primary Navigation Mobile

The best cars for £200 per month

  • Deals on everything from SUVs to hatchbacks
  • Great value personal leasing finance options
  • Manageable deposits and monthly payments

Written by Keith Adams Published: 30 November 2023 Updated: 1 December 2023

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.

That’s good news because £200 is roughly 10% of the average salary in the UK, and that’s what many finance experts consider a sensible amount to spend on a car. You don’t want to stretch your spending too thinly. The other good news is that there are some really great cars available for £200 and we’ve found the ones we think represent the best value.

This list just highlights personal contract hire (PCH) – or lease – deals, as this is a very competitive price point, with lots of special offers available. So do keep checking in for the latest prices.

Best new cars for £200 a month 2023

The Parkers Car of The Year – the EV for everyone

The MG4 EV has really shaken up the electric car market since it was launched in 2022. That’s because it’s so affordable. Its price undercuts every other midsize electric family car, and not just by a bit – it’s £10,000 less than an equivalent Volkswagen ID.3.

But there’s more to it than just the low price, the MG 4 is a genuinely good car. It has a spacious interior, comes well equipped, it’s comfortable and great to drive. Every model has a usefully long WLTP range of well over 200 miles and you get the reassurance of a seven-year warranty.

Read our full MG4 EV review


  • Long range
  • Good to drive
  • Undercuts all rivals on price


  • Touchscreen is fiddly
  • Some cheap-feeling interior materials

An excellent all-rounder available with some tempting deals

Put simply, if you need something that can carry five and their luggage with the minimum amount of fuss, the Skoda Octavia Estate is all the car you could ever need. Still need convincing? In essence, the Octavia is a VW Golf, but one that’s substantially more practical and better value for money.

At this price point, you're looking at a 1.0- or 1.5-litre version, and of the two, it;s the latter that is our pick of the petrols, and is more than up to the task of hauling a family and their luggage.*

Read our full Skoda Octavia review


  • Hugely practical
  • Lots of engine and trim options
  • Cheap to run


  • Lack of badge kudos
  • Motorway refinement isn't the best

A full-on hot hatch for peanuts?

Not quite, because the Cupra Leon you'll get at this price point is the 1.5-litre 150hp entry-level model. But it's still blessed with the same excellent steering and handling as its fire-breathing cousins, but with the additional benefit of lower insurance and fuel consumption.

It's a kissing cousin to the excellent Volkswagen Golf (and Skoda Octavia, above) and as such it shares many of those cars' qualities, such as excellent practicality and low running costs. Cheap on the monthlies, maybe, but far from bargain basement in terms of feel.

Read our full Cupra Leon review


  • Sharp handling
  • Well appointed interior
  • Great value for money


  • Some interior quality issues
  • Glitchy infotainment

Stylish estate with cast-iron warranty support

As a relatively cheap load-lugger, the Kia Ceed Sportswagon makes a great deal of sense. It’s huge inside, very practical and excels at carrying both people and their luggage, while also moonlighting as a van when needed.

It’s not the most exciting choice to look at or drive, so there are more appealing options including the SEAT Leon and Skoda Octavia Estates. However, if you’re after a reliable long-term ownership proposition, it makes a great deal of sense, and neither of those come close in dealer support or reliability.

Read our full Kia Ceed Sportswagon review


  • Well-equipped
  • Seven-year warranty
  • Enormous boot


  • Not exciting to drive
  • Limited engine range

Yes, a family-sized EV really is this affordable

The Citroen e-C4 shares its batteries and motors with the Vauxhall Corsa, Peugeot e-2008 and DS 3 E-Tense, but feels very different to all of them. For a start, it's really very comfortable, with some of the best seats you'll ever find in a family car, and a cossetting ride that makes mincemeat of most British roads.

It's not blessed with the longest range in its class, but combine the-C4 with a homecharger and some effective route planning and you'll have a very satisfying EV experience.

Read our full Citroen e-C4 review


  • Eye-catching design
  • Extremely comfortable
  • Excellent value for money


  • Range could be better
  • Lacklustre performance

Competent SUV that's great for families

Vauxhalls might not be as cheap as they were in the pile 'em high repmobile era, but they're still great value if you're prepared to shop around. The sharp-looking Grandland is a great example of offering just what families need for just the right amount of money.

Being based on the Peugeot 3008, it’s fine to drive, has an acceptable interior and reasonable space, and the alternatives are pretty much all more expensive on monthly finance. Add to this, a large boot and roomy interior and the Grandland is definitely worth a closer look.

Read our full Vauxhall Grandland review


  • Good build quality
  • Punchy petrol engines
  • Roomy interior


  • Lack of badge kudos
  • Not a sporty drive

A little bit of premium for a modest monthly payment

The Audi A1 delivers a decent amount of technology and style for your money. The interior looks good, is easy to use, and feels just about special enough to be in. It should tick all those premium car boxes for someone trading down from a larger model.

It’s not that much of a compromise next to an A3 or A4. The Audi A1 Sportback has a mature feel and some highly impressive tech. In many ways it's an appealing small car that's a bit of a guilty secret.

Read our full Audi A1 review


  • Nicely equipped cabin
  • Good fuel economy
  • Lots of personalisation


  • Lots of kit on options list
  • Firm ride on larger wheels

Excellent value, tough and long lasting family SUV

If want to spend the least amount of money possible but still want a modern and spacious compact SUV, the Dacia Duster should be at the top of your list. It quite frankly makes every other car here look expensive, whether you’re looking at the outright purchase price or monthly payments.

You don’t have to sacrifice much, either. The Duster may not get the very latest driver assistance tech, but most models have everything you need like air-conditioning, remote locking and an infotainment touchscreen with Apple CarPlay and Android Auto.

Read our full Dacia Duster review


  • Amazingly good value
  • Available with 4WD
  • Practical interior


  • More road noise than rivals
  • Ride could be more settled

Reliable supermini with impressive reliability

The Toyota Yaris is only available as a self-charging hybrid and the efficiency it achieves is a huge selling point at this price point. The hybrid battery is sufficient to cover a large portion of urban journeys, it can even stay in EV mode up to motorway speeds. The electric motor can assist the engine when needed, providing usefully nippy acceleration. It’s a doddle to drive, too.

The Yaris still has stand-out looks, despite its growing familiarity. The interior isn’t up to the same mark but it’s user-friendly, built solidly and comes with plenty of tech. Back seat and boot space aren’t especially generous, but when you're getting 65mpg, do you care?

Read our full Toyota Yaris review


  • Hugely economical
  • Loads of driver assistance tech
  • Cheap finance


  • Small boot
  • Less than up-to-date interior

A huge seller and for good reason

If you’re in the market for a medium-sized SUV, the Qashqai should be at, or very near the top, of your shopping list. It’s one of the most technically advanced SUVs available, is excellent to drive, and comes in a wide range of petrol engines to suit.

It’s practical, with some very clever interior touches, as you’d expect for a product that’s now entered its third generation. While the quality and interior are also up there with the very best-in-class. 

Read our full Nissan Qashqai review


  • Striking styling, quality interior
  • Lots of tech that works well
  • Seriously refined


  • Weak 1.3-litre mild-hybrid
  • No high-performance version

* These deals are indicative examples of some packages available as of 28 November 2023, 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.