The best cars for £200 per month

  • Deals on everything from SUVs to hatchbacks
  • Great value personal lease deals and PCP finance options
  • Deposits from less than £2,000

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

Why? Well, £200 a month is broadly the sweet spot in car finance. 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. Once the contract is over 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 2021


LEASE: Renault Zoe

Best new car under £200 a month for: zero-emissions

Renault Zoe £200 per month

Not many electric cars fall into the sub £200 per month bracket. Let alone an electric car with an official range of 245 miles.

Look beyond the impressive price and range and you'll find a charming supermini with zero tailpipe emissions. The electric power means it's near-silent around town, and there's enough spark from the electric power to keep up with mopeds at the traffic lights.

Your £200 per month will afford you a GT Line model. Cars capable of rapid charging are only around a fiver more a month.**

Leasing price: from £213 per month

LEASE: SEAT Leon

Best new car for £200 a month for: that new car feeling

SEAT Leon £200 per month

The SEAT Leon pitches itself as a cheaper version of the Volkswagen Golf, with a bit of added elegancia. It works too - the Leon is SEAT's most successful model in the UK. 

You've probably seen a few dotted around the place - but in case you haven't, we can confirm that the Leon is sleek in the metal. Plus, it's borrowed a busload of tech from the Volkswagen Golf too, such as a digital cockpit system and wireless Apple CarPlay and Android Auto are standard on all models.

This price affords you an SE Dynamic model, with that lovely digital cockpit. These cars come with a 1.0-litre engine and a manual gearbox. It might not sound like a lot, but it has 110hp, so it never feels too leisurely, especially if you rarely travel at motorway speeds fully loaded with people.*

Leasing price: from £210 per month

LEASE: Nissan Juke

Best new car for £200 a month for: British-built small SUVs

Nissan Juke £200 per month

The Nissan Juke is a small SUV that trades on its looks. Its sharp cutting lines, raised height, and two-tone paint schemes help it attract plenty of fans in the UK. 

Quite a few trim levels to choose from, but there's only one engine choice. It's a 1.0-litre turbocharged petrol, available with a manual or automatic gearbox. It's great around town because you don't need to rev it that hard. This means you don't need to be constantly changing gears.

The 422-litre boot is a bit above average, and six-foot adults can fit easily in the rear seats.*

Leasing price: from £198 per month

LEASE: Skoda Kamiq

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

Skoda Kamiq £200 per month

In the market for a small SUV? Well, you're certainly well catered for. What sets the Kamiq apart? Skoda has managed to make an alternative that’s stylish, sophisticated, well-equipped and solid 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 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, which replaces traditional dials behind the steering wheel with a posh-looking screen.*

Leasing price: from £228 per month

LEASE: Ford Fiesta

Best new car for £200 a month for: fitting in

2020 Ford Fiesta ST Line

The Fiesta was the bestselling car in the UK in 2020, 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 make 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 models also get Ford's heated front windscreen, alloy wheels, and a lane-keeping aid.*

Leasing price: from £328 per month

*These deals are indicative examples of some packages available as of 16 August 2021 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: MG ZS

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

MG ZS £200 per month

The MG ZS is the smallest SUV in the Chinese-owned 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 badge appeal of anything German, or the interior niceties, the ZS is available on a four-year 0% APR deal across the range. Only the basic Excite model is available for around the £200 per month mark - we recommend the more expensive Exclusive models, as they come with blind spot monitoring, a 360 degree camera, and heated seats.

Worth noting the deposit - exactly the same as the monthly cost.**

MG ZS Excite 1.5

  • Monthly cost: £208 (48 payments)
  • Deposit: £208
  • Total amount payable by customer to buy car: £15,787
  • Cash price: £15,787
  • Mileage allowance: 8,000 miles per year
  • APR: 0% 

MG ZS PCP deal

PCP: Toyota Yaris

Best new car for £200 a month for: sensible hybrid hatchbacks

Toyota Yaris £200 per month

If you want a new Yaris you'll have to have one with a 1.5-litre hybrid engine and an automatic gearbox. No non-hybrids or manuals for the UK.

This is good news though. Even in real-world testing we struggled to make it do less than 65mpg. If you don't do a lot of motorway driving, we reckon you can squeeze nearly 70mpg out of it. Why? Toyota's research shows that it can be driven around 80% of stop-start urban journeys in full-on EV (Electric Vehicle) mode. Although, you'll have to be feather-like with your right foot.

For sub £200 you won't be getting a top spec car. But... whisper it... you don't want one. Design models come with smaller wheels (16-inch) and softer suspension, making them more comfortable than the bigger wheeled (17-inch) top-of-the-line cars.**

Toyota Yaris Design

  • Monthly cost: £189 (42 payments)
  • Deposit: £5,198.50
  • Total amount payable by customer to buy car: £22,150
  • Cash price: £22,150
  • Mileage allowance: 8,000 miles per year
  • APR: 0% 

Toyota Yaris PCP deal

PCP: SEAT Ibiza

Best new car for £200 a month for: reliability

SEAT Ibiza £200 per month

The Ibiza has grown up a lot since the last time you rented one on holiday. It's now a mature supermini with genuine room for four adults.

Well specced too. The model on offer here is an SE Technology, complete with Apple CarPlay/Android Auto, air con, and an 8.0-inch touchscreen display.

The 1.0-litre engine is peppy enough for most and will return close to 50mpg. Hefty deposit needed, but at least it's 0% APR.**

SEAT Ibiza SE Technology 1.0 TSI 95PS

  • Monthly cost: £201.50 (36 payments)
  • Deposit: £4,500
  • Total amount payable by customer to buy car: £17,875
  • Cash price: £17,875
  • Mileage allowance: 8,000 miles per year
  • APR: 0%

SEAT Ibiza PCP deal

PCP: Vauxhall Corsa-e

Best new car under £200 a month for: fuss-free electric driving

Vauxhall Corsa-e £200 per month

Vauxhall's bestselling car now comes with electric power. As with other Vauxhalls, the Corsa-e is easy to use and unfussy. It really is just like a regular Corsa - there isn't anything complicated to get your head around on the inside, while on the outside it's not showing off its green credentials.

Official battery range is 209 miles, but realistically it's more like 170. Less than some rivals, like the Renault Zoe, but still more than enough for most people if you can charge at home.

Your £200-or-so per month gets you month an SE Nav Premium car. As you'd imagine, it comes with sat-nav, but also Apple CarPlay/Android Auto, LED headlights, and lane keep assist.**

Vauxhall Corsa-e SE Nav Premium

  • Monthly cost: £217.22 (48 payments)
  • Deposit: £3,354
  • Total amount payable by customer to buy car: £24,679.34
  • Cash price: £22,360
  • Mileage allowance: 8,000 miles per year
  • APR: 3.9%

Vauxhall Corsa-e PCP deal

PCP: MINI Hatch

Best new car under £200 a month for: go-kart vibes

Mini Hatchback £200 per month

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.

Various different trim levels available at this price range, but you'll need to put down a heftier deposit for better equipped cars.**

MINI Hatch One Classic 3-Door

  • Monthly cost: £200 (47 payments)
  • Deposit: £2,000 (including £500.77 deposit contribution)
  • Total amount payable by customer to buy car: £18,620.43
  • Cash price: £16,605
  • Mileage allowance: 8,000 miles per year
  • APR: 4.9% 

MINI Hatch PCP deal

What to read next - 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 £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 of 16 August 2021, 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.