Renault Captur review – a stylish, good-value small SUV
Top 10 best cars for under £150 per month
Although supply shortages have increased waiting times and limited model ranges, it’s still possible to get a shiny new car for £150 a month
The price of cars continues to rise, but don’t be dismayed if you want to keep your budget to £150 a month for a new car – there are still deals to be had.
Higher prices for new cars are also causing an increase in the value of used cars, boosting residual values which can offset some of those higher costs for a PCP deal. This is because the value of the car at the end of your agreement is so important to the amount you will pay per month.
What is PCP car finance? Personal contract purchase explained
You can even tweak the length and the mileage limit to suit your needs – the longer the agreement and the lower your annual mileage limit, the less you’ll pay each month. What’s more, so keen are dealers and car manufacturers for you to sign up, many are still offering competitive finance rates, and even occasional 0% APR deals. offer low-rate, and some still or even 0% APR, deals, as well as deposit contributions often running to thousands of pounds and other incentives besides.
PCP deals require an initial deposit and those monthly payments – over two to four years. At the end of the deal, you have a number of options: pay the final ‘balloon’ payment to keep the car, use the equity you’ve built up (if applicable) towards the deposit on your next car, or hand the car back and walk away. This flexibility appeals to many, but it’s essential you understand the way the deal works and what you’ll be paying and when.
For this list, we’ve tried to include cars with reasonable up-front deposits. However, if you’re willing to put more than this amount down as a deposit to lower your monthly payments, you can drive away in some more expensive machinery, including an Audi A1, a Toyota Corolla and a Volkswagen Polo.
If you’d like to know more about PCP deals and other types of finance, head on over to our advice article, which features a handy jargon buster. Be sure to check out our weekly round-up of the best offers too, as being in the know can save serious money when buying a new car.
All offers and prices are correct at the time of writing – here are the best new cars for £150 a month.
We’re pleased to see that our reigning Carbuyer Small SUV of the Year is currently available for £150 per month. Although, you’ll need a deposit of roughly £6,600, and Renault is offering a deposit contribution or 0% APR.
The Renault Captur is based on the Renault Clio, which you can also get within budget, and is more practical than many of its main rivals. Its interior is fantastic, feeling upmarket and featuring all the latest equipment. Even the cheapest version gets keyless start, smartphone mirroring and LED headlights.
The Skoda Kamiq is a decent all-rounder. Its interior is airy and well-thought-out, and its 1.0-litre petrol engines are economical enough to make up for the lack of a diesel engine. The boot is bigger than you’ll find in a family hatchback such as a Volkswagen Golf and, despite being one of Skoda’s smaller models, still features a host of useful features, from an ice scraper in the fuel filler cap to an umbrella stashed in the door.
To make a Kamiq fit this budget will require a sizable deposit, but the basic SE trim is quite well equipped with alloy wheels, air-conditioning, and DAB digital radio. You’ll get the 95bhp 1.0 TSI engine that is frugal but also powerful enough to take advantage of a gap at a roundabout.
The city car has long been a value proposition for British motorists, thanks to high fuel-efficiency and cheap maintenance costs. The Picanto is both easy to drive and practical, and stands out in traffic, with even its no-cost paint colour being bright yellow.
You’ll need to put down £3,650 against the entry-level Kia Picanto 1 to get the car within budget on a 37-month PCP agreement. If your budget stretches a little higher or you have a slightly higher deposit the ‘2’ trim is available, or the sporty GT-Line if you’d like your city car to have a sporty edge.
The Volkswagen up! has stood the test of time, it has now been on sale for over a decade. It still looks fresh, thanks to a simple and boxy design, making it a favourite among city car owners for its excellent visibility and ease of parking. Even better, clever use of space means it can carry four adults with surprising ease.
For £150 a month, we’ll be looking at a base model with a 1.0-litre engine producing 64bhp. While this doesn’t sound a lot, the up! is light, so it’s enough to zip around city streets, and brings low running costs.
The up! comes in around £10 over budget at £160 with a £3,750 deposit, so it isn’t as quite as cheap as the Picanto. Our price is for the three-door model, but choosing the five-door makes very little difference to monthly payments.
The Dacia Sandero has long been one of the cheapest cars you can buy in the UK, and for several years it was the cheapest car on sale. Currently the cheapest Sandero is the Essential model that features Bluetooth, cruise control, and a DAB radio.
If you like the sound of the Sandero but want a little bit more kit, then for £1,000 more you can get the Expression model with an eight-inch multimedia display, keyless entry, and rear parking sensors.
The Citroen C3 brings a dash of alternative style and comfort, and is now available from just £13,995. That low purchase price means that you can get a brand new C3 for £150 a month with a £4,160 deposit. One of the bargains of our crop of cars due to its supermini size, and funky aesthetics.
The C3 may be a hatchback, but it takes styling cues from the C4 Cactus for a mini-SUV look, along with a range of personalisation options for those who want to add a personal touch. The 1.2-litre petrol can achieve 50mpg, making it not only good value to buy, but cheap to run too.
Despite its compact dimensions, the Hyundai i20 is practical and easy to live with. The five-door-only i20 has a reasonably boxy shape, which means it makes the most of its interior space, with a decent boot and more than enough space for four adults – five at a pinch.
However, as prices have increased, so has the amount you’ll need to pick up an i20. The SE Connect is now the entry-level trim, with a good level of equipment versus rivals. You’ll need a hefty £5,000 deposit to secure an i20 supermini for £150 a month, although the cheaper i10 city car is available for around half the deposit amount, with the same monthly payments.
The Kia Rio isn’t the most exciting car, but it should prove absolutely great to live with. Owners love Kia’s answer to the Vauxhall Corsa, and it finished second out of all the cars on sale in our 2022 Driver Power owner satisfaction survey. In fact, it got top-10 finishes for interior and comfort, practicality, ride, running costs, reliability and even exterior styling, and its infotainment system was rated the best of any car.
An entry-level Rio can cost far less than £150 per month, but we’d recommend the ‘2’ if you can stretch to it. Not only does it unlock a more powerful turbocharged engine, but it features an impressive array of equipment including a reversing camera and cruise control.
We bet you didn’t expect to see a family SUV on this list but the Dacia Duster is excellent value-for-money and makes other SUVs look rather expensive. You don’t get a desirable badge but you do get low monthly payments – no-frills and mid-range variants are available for around £150 after a deposit of less than £2,750.
Essential does what it says on the tin; there are few luxuries but you do get split-folding rear seats, Bluetooth, digital radio, air-con and a height-adjustable driver’s seat.
Like the Dacia Duster, the MG ZS is a crossover for the price of a well-equipped city car, although its 1.5-litre engine isn’t particularly economical so you won’t see savings at the pumps. Still, the interior is a pleasant place to be, the boot is big and the car comes with a surprisingly long equipment list; the mid-range Excite gets cruise control, Apple CarPlay, sat nav and alloy wheels.
As with many of our selections, recent price rises and a reduction in the range mean that you will need a higher deposit to secure a £150 payment on a PCP deal.
Unsure as to whether PCP or HP finance is right for you? Check out our guide PCP vs HP to find out which finance is right for you.
10 best cars for under £150 per month
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