Car finance: best new car deals for less than £150 per month

  • Compact SUVs and superminis within budget
  • Pay as little as £139 per month with the best deals
  • 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're going to 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 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 under £150 a month 2020

LEASE: Fiat 500

Best new car for £150 a month for: easy-driving

Red Fiat 500 side

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 £126 per month

LEASE: Citroen C3

Best new car for £150 a month for: supermini thrills

2016 Citroen C3 front

The C3 is a quirky alternative to the likes of the Ford Fiesta and Vauxhall Corsa - but this chunky looking thing will be more appealing to some people because of its looks.

There's room for four to sit comfortably (five at a push) and the boot is a decent size - bigger than a Volkswagen Polo's. Inside, nearly everything you need to use is controlled by a touchscreen. Big windows create the illusion of space in what is actually a compact car.

Flair models get niceties that make life easier, such as Apple CarPlay/Android Auto and an inbuilt dash-cam.*

Leasing price: from £129 per month

*These deals are indicative examples of some packages available as of 21 February 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.**

Dacia Duster Access

  • Monthly cost: £139 (48 payments)
  • Deposit: £1,316 (including £250 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: £12,952
  • 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

Blue Skoda Fabia side on

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.

It also boasts a suite of kit, like rear parking sensors, LED daytime running lights, and a different coloured roof, all for under £150 per month.

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.**

Skoda Fabia Colour Edition 1.0 TSI

  • Monthly cost: £149 (48 payments)
  • Deposit: £2,948 (including £1,250 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: £16,390
  • Cash price: £16,390
  • Mileage allowance: 10,00000 miles per year
  • APR: 0%

Skoda Fabia PCP deal

PCP: Suzuki Swift

Best new car under £150 a month for: longevity

2019 white Suzuki Swift

Like the Fabia above, the Suzuki lies in the wake of Britain's most popular car, the Ford Fiesta. And while the Fiesta has a slightly nicer interior, there's no escaping that the Swift does exactly the same things, but for a lot less money.

It's much more fun to drive than it really needs to be, and it's good looking. Cheap to run and insure too. The interior plastics are hard and shiny, but you get the impression that none of it will fall off.

The SZT model on offer comes with air conditioning, a DAB radio, and 16-inch alloy wheels.**

Suzuki Swift SZT 1.2 Hybrid

  • Monthly cost: £149 (48 payments)
  • Deposit: £1,452 (including £1,000 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: £14,670.50
  • Cash price: £12,570
  • Mileage allowance: 8,000 miles per year
  • APR: 6.9%

Suzuki Swift PCP deal

PCP: Nissan Micra

Best new car under £150 a month for: peace of mind

2017 orange Nissan Micra side on

The Micra is a small and stylish car that's surprisingly versatile. Nissans are known for build quality and longevity, and the Micra holds up well in this department.

It's comfortable, even on long journeys, and is available with different levels of trim and personalisation. These can get expensive, though. The 1.0-litre engine with 100hp is sprightly enough in a car of this size, and even bottom trimline Acenta doesn't go without modern creature comforts.

A big deposit contribution really helps bring the car down to this price range.**

Nissan Micra Acenta IG-T 100

  • Monthly cost: £149 (48 payments)
  • Deposit: £2,250 (including £2,200 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: £16,962
  • Cash price: £15,330
  • Mileage allowance: 7,000 miles per year
  • APR: 4.9% 

Nissan Micra PCP deal

PCP: MG 3

Best new car under £150 a month for: long-warranty

Yellow 2018 MG 3

Quite different from what you may associate with the MG name, but still deserving of your money.

The MG3 is a good compromise between economy, value for money, and size. It uses a 1.5-litre engine that feels a little old hat in comparison with the other cars on this list, but it's decent enough for a car of this size.

0% APR is the thing to shout about with this deal. Like with the Fabia above, it means you pay no additional money for spreading the total of the car over four years. Although, it does work out at £4,995 cheaper than the Fabia (above) if you buy at the end. Comes with a seven-year, 80,000 mile warranty too.**

MG 3 Excite 1.5

  • Monthly cost: £149 (48 payments)
  • Deposit: £1,276.50
  • Total amount payable by customer to buy car: £11,395
  • Cash price: £11,395
  • Mileage allowance: 8,000 miles per year
  • APR: 0%

MG 3 PCP deal

PCP: Volkswagen Up

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

2017 Volkswagen Up rear

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 the kit anyone would want. Plus being a Volkswagen, inside it's a cut above other cheaper city cars.

Volkswagen Up 1.0 S

  • Monthly cost: £139 (35 payments)
  • Deposit: £3,705
  • Total amount payable by customer to buy car: £11,395
  • Cash price: £12,440
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Volkswagen Up PCP deal

PCP: Toyota Aygo

Best new car under £150 a month for: reliability

2019 Toyota Aygo moving

Another 0% APR deal here. Truth be told, the Aygo isn't quite as polished as the Volkswagen Up above. However - it is super reliable, and Toyota's cast-iron five-year warranty means that if you're buying for the long-run, this Aygo deal could turn out to be very, very good value for money.

The x-trend model on offer does bring a good number of goodies with it. There's a reversing camera, auto headlights, and an infotainment screen with Apple CarPlay/Android Auto.

Toyota Aygo x-trend

  • Monthly cost: £129 (35 payments)
  • Deposit: £2,500
  • Total amount payable by customer to buy car: £13,090
  • Cash price: £13,090
  • Mileage allowance: 8,000 miles per year
  • APR: 0%

Toyota Aygo X-Trend 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 21 February 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.