The best cars for £200 per month

  • Deals on everything from SUVs to hatchbacks
  • Great value personal lease deals and PCP finance options
  • Payments start from as little as £159 per month

Looking at cars in the £200 per month range? Well, you're not the only one. This article is the most read in our £ per month suite of features.

Why? Well, £200 is a sweet spot in the monthly prices. It's roughly 10% of the average wage, a good yardstick on what to spend on a car. And there's plenty of choice too. Superminis, hatchbacks, crossovers, and SUVs can all be found. There are two types of financial agreement on offer here: leasing, and PCP.

Leasing (sometimes called PCH or Personal Contract Hire) is essentially a form of long-term rental. You start with an initial payment, then follow it up with a series of monthly payments. And that's it. You hand the car back.

PCP (Personal Contract Purchase) deals involve a deposit and a series of monthly payments. Then you can choose if you want to buy at the end, with what is often called a balloon payment.

Best new cars for £200 a month 2020


LEASE: Renault Zoe

Best new car for £200 a month for: emission free motoring

2020 Renault Zoe

How cheap is the Zoe? It's the least expensive electric car in our best car content, and by some considerable margin too. While it might be slightly more expensive than some superminis, buyers have to remember that they'll save a load of cash in not buying petrol - a full charge on a Zoe could be as low as £5.

If you're looking at leasing your first electric car, the Zoe makes a lot of sense. It all works much in the same way as a petrol or diesel engined hatchback, there are no gears to worry about, and it's nearly silent too - making it more relaxing. The electric vehicle specific instruments is one of the only giveaways that it gets its power from a plug rather than a pump.

It should do 250 miles of emission free motoring between fill ups of electricity. This means most people should only need to plug in once every two weeks.*

>> We ran a long-term Renault Zoe - check out our thoughts here

Leasing price: from £227 per month

LEASE: Citroen C5 Aircross

Best new car under £200 a month for: off-roader looks

Citroen C5 Aircross

How highly do you prioritise a car's acceleration and handling? We bet if you're after something sensible, your answer to the question is 'not very'. Luckily Citroen has built this C5 for people who care more about nap times than lap times. Put simply, the C5 has an excellent, pillowy ride that really is supremely comfy over Britain's poor roads.

Even the cheapest models in this lease deal have an automatic gearbox, peppy 130hp petrol engine, and a slick 12.3-inch infotainment screen that connects to your phone via Apple CarPlay or Android Auto.*

Leasing price: from £260 per month

LEASE: Nissan Qashqai

Best new car under £200 a month for: equipment

2020 Nissan Qashqai

Nestled between the Juke and X-Trail in Nissan's range of SUVs, the Qashqai is a hugely common sight on Britain's roads. It regularly appears in the bestselling cars lists, and constantly evolving trim levels and finance deals keep giving people reasons to drive one.

It can transport four adults in comfort, and while the boot isn't the biggest in class (at 430 litres it's 42 litres smaller than the similar Renault Kadjar further down this list) it is at least useful, because it has a false floor which you can store the parcel shelf in.

Visia models like the one here come with cruise control, a tyre monitoring system, and LED daytime running lights. We'd recommend going for the Acenta Premium model. It'll set you back another £5 or so a month, but you get helpful additional techy bits like a heated windscreen/heated seats, traffic sign recognition, and Apple CarPlay/Android Auto.*

Leasing price: from £187 per month

LEASE: MINI Hatchback

Best new car for £200 a month for: fun

Mini Hatchback

Every other car on this list is just a bit...serious. A bit 'mortgage, two kids, and a dog lifestyle'.

If you're more bottomless brunch than changing nappies and Monster Munch, this is probably the most desirable car in this price range. That's because this modern-era MINI manages to retain the original's cheeky character without becoming an imitation of its former self.

Luckily it retains another positive attribute from the original - its perky handling. It's great fun to punt down a sprightly B-road. For this price, you're looking at the least powerful 1.5-litre petrol engine, but it still manages to be punchy enough.

Leasing price: from £153 per month

LEASE: Skoda Kamiq

Best new car for £200 a month for: Skoda simplicity

2019 Skoda Kamiq

In the market for a small SUV? Well, you're well catered for in this list. What sets the Kamiq apart from the rest of the cars here? Skoda has managed to make an alternative that’s stylish, sophisticated, well-equipped and good to drive. It might look high up in pictures, but it's not really. It's just a bit higher than a regular hatchback, making it look much less blobby than some other SUVs.

There's a good variety of specs for the £200 range. Your money can even afford you an SE L model with a virtual cockpit system, that replaces traditional dials behind the steering wheel with a posh-looking screen.

Leasing price: from £161 per month

*These deals are indicative examples of some packages available as of 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 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: Renault Clio

Best new car under £200 a month for: newness

2019 orange Renault Clio

New for last year, the Renault Clio may not look all that different to the old one, but it's a significant step up in terms of quality. The interior especially feels like it's from a much larger and more expensive car and there's a swish portrait style touchscreen infotainment system, which comes in different sizes depending on which trim level you choose.

It even took home our First Car of the Year award.

This 0% APR deal, combined with Renault's new five-year warranty, makes it a great choice if you're thinking of buying and keeping a car for a while.**

Leasing price: from £157 per month

Renault Clio Play SCe 75

  • Monthly cost: £199 (24 payments)
  • Deposit: £500
  • Total amount payable by customer to buy car: £14,895
  • Cash price: £14,895
  • Mileage allowance: 6,000 miles per year
  • APR: 0%

Renault Clio PCP deal

PCP: Ford Fiesta

Best new car under £200 a month for: all-round ability

2019 Ford Fiesta Trend rear

The Ford Fiesta is the bestselling car in the UK by a country mile. It's well thought out, there are loads of spec and engine options, and dare we say it, it's more fun to drive than it has any need to be. Good looking and dependable too.

ST Line cars get subtle spoilers and wheels that makes it look sporty, but have an economical 1.0-litre engine. As well as these natty pieces that make it look a bit like a red-blooded Fiesta ST, ST Line cars also get Ford's heated front windscreen, alloy wheels, and a lane-keeping aid.

This 0% APR deal is great if you want to own the car at the end.**

Leasing price: from £169 per month

Ford Fiesta ST-Line 1.0 EcoBoost

  • Monthly cost: £199 (36 payments)
  • Deposit: £4,453 (including £1,000 deposit allowance)
  • Total amount payable by customer to buy car: £19,090
  • Cash price: £19,090
  • Mileage allowance: 9,000 miles per year
  • APR: 0%

Ford Fiesta PCP deal

PCP: Kia XCeed

Best new car under £200 a month for: small crossover vibes

2019 Kia Xceed

The Kia XCeed is based on the regular Kia Ceed and fits into the Ceed pun family, along with the ProCeed.

What makes it different? The XCeed brings a bit more style (compared with the hatch and traditional estate), a moderately more practical interior and some extra tech inside compared with the regular Ceed.

This 0% APR deal brings the 'First Edition' models down to £199 too. These are really well specced - expect to find a digital instrument cluster, Android Auto/Apple CarPlay and a black interior with contrasting yellow stitching. Eye-watering deposit mind you, but one to consider if you're thinking of buying outright, because it's a short deal on a car with a seven year warranty.

Kia XCeed leasing deals

Kia XCeed First Edition 1.4 T-GDi

  • Monthly cost: £199 (24 payments)
  • Deposit: £10,355
  • Total amount payable by customer to buy car: £28,425
  • Cash price: £28,425
  • Mileage allowance: 10,000 miles per year
  • APR: 0% 

Kia Xceed PCP deal

PCP: MG ZS

Best new car under £200 a month for: value for money

2020 MG ZS

The MG ZS is the smallest SUV in the Chinese-owned British brand's model range. Designed to offer value for money, it undercuts the cash price of almost all of its rivals by a sizable margin.

While it doesn't have the brand appeal of anything German, or the interior niceties, the ZS is available on a four-year 0% APR deal across the range. The models with the 1.5-litre non-turbocharged engine are cheaper, but considerably louder, slower, and less refined. For this price, treat yourself to the turbocharged 1.0-litre engine.**

Leasing price: from £233 per month

MG ZS Excite 1.0

  • Monthly cost: £189 (48 payments)
  • Deposit: £1,817
  • Total amount payable by customer to buy car: £16,495
  • Cash price: £16,495
  • Mileage allowance: 8,000 miles per year
  • APR: 0% 

MG ZS PCP deal

PCP: Toyota Hilux

Best new car under £200 a month for: pickups

2020 Toyota Hilux driving

It's not the most appealing vehicle on this list. However, if you're the rugged outdoorsy type, not many things can beat a Toyota Hilux as a partner for tackling the great outdoors with your outdoor lifestyle gubbins tied up in the rear.

No pickups drive as well as a car, but the Hilux is comfier than many others. Plus it comes with an ironclad five-year/100,000 mile warranty.

A huge deposit is required to bag this for £199 per month. But 0% APR deal makes it a brilliant way to buy if you want to do it outright.

>> Read Parkers pickup group test review - Toyota Hilux v Ford Ranger v Ford Ranger Raptor v Isuzu D-Max v Mitsubishi L200 v Nissan Navara v SsangYong Musso

Toyota Hilux Invincible

  • Monthly cost: £199 (42 payments)
  • Deposit: £10,157 (including £2,000 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: £33,090
  • Cash price: £33,090
  • Mileage allowance: 8,000 miles per year
  • APR: 0% 

Toyota Hilux PCP deal

What to read next - 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 7 April 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.