Cheapest new cars 2026: Budget buys from under £15k

Looking for a cheap new car? You’ll have a harder time than ever, because cars have been getting more expensive for some time. That’s where our guide to the cheapest new cars on sale in 2026 comes in.

The cost of motoring in general is the top concern for drivers in the latest RAC Report on Motoring. Everything from fuel prices and insurance, to pothole-related breakdowns, is making driving less affordable.

So it pays to shop around and find an affordable car when the time comes to find something newer. The cheapest new cars you can buy now are more expensive than they would have been a few years ago, but also offer more safety and comfort features than before.

You’ll need just under £15,000 to purchase the UK’s cheapest new car. All the cars in this list are compact, cheap to insure and should be affordable to run – and some of them are electric for even more potential savings.

You might also want to check out the cheapest hybrid cars and cheapest electric cars on sale today. And if the cost of insurance is a big concern, our guide to the cheapest cars to insure for new drivers will help.

Our top 10 refers to the list price (or recommended retail price) and doesn't include short-term discounts, so you may find cheaper examples out there.

Cheapest new cars 2026: the shortlist

• Dacia Sandero
• Dacia Spring
• Leapmotor T03
• Dacia Sandero Stepway
• Kia Picanto
• MG 3 
• Renault Clio
• Hyundai i10
• BYD Dolphin Surf
• Fiat Grande Panda

1. Dacia Sandero

Price: £14,765      Power: 90hp

The award for selling Britain’s cheapest new car once again lands at Dacia’s door, thanks to some price increases for other models in this list. You might expect a tiny city car for this price, the Dacia Sandero is a spacious supermini with enough room for even large adults in the rear seats - and a good-sized boot.

What’s more, the cheapest Sandero is nowhere near as basic inside as older models. You get greatly improved quality, along with a decent level of standard equipment including air-con, cruise control and even rear parking sensors. The turbocharged 1.0-litre petrol engine delivers more performance than most cars in this list, while it’s a comfortable drive too. The only black mark is the disappointing Euro NCAP safety test score.

2. Dacia Spring

Price: £15,990    Power: 45hp      

The introduction of the Dacia Spring gives the Renault-owned brand the top two places in our list. It’s only a touch more expensive than the Sandero in terms of list price, although Dacia is offering a further £3,750 off the Spring until March 2026.

The Spring is a fully electric city car, offering potentially large running cost savings combined with a smooth an easy driving experience. Like the Sandero, the base Spring comes reasonably well equipped, although not in terms of performance: with just 45hp its official 0-62mph time is a yawning 19.1 seconds. It’ll do a decent 140 miles on a charge, but with cramped rear seats, a lack of refinement, poor handling and a one-star Euro NCAP rating we reckon it’ll be too compromised for most.

3. Leapmotor T03

Price: £15,995     Power: 95hp

Like the idea of a Dacia Spring but want something less basic? Step forward Stellantis-owned Chinese brand Leapmotor with the T03. It's only a few quid more to buy over the Dacia, but for that you get more than double the power, a longer range, rapid charging capability and a more comfortable ride.

What’s more, the Leapmotor T03 also has a bit more space in the back (albeit still only two seats) a better-quality interior and vastly more standard equipment than the Dacia, including alloy wheels, a panoramic sunroof, a rear-view camera and even adaptive cruise control – plus a load of extra safety assist tech. It’s a pity that the standard 10-inch touchscreen is frustratingly fiddly, though, while the T03’s boot is small and those driver aids can intrude.

Leapmotor is currently offering a discount of £1,500 off the T03, but as it's a short-term deal it's not included here.

4. Dacia Sandero Stepway

Price: £16,065 Power: 90hp

No, you aren't seeing double: the Sandero Stepway might look like a Sandero trim level, but it's a separate model in its own right according to Dacia.

Effectively, it's a Sandero sprinkled with some off-road influence, including slightly raised suspension, plastic cladding around the bumpers and wheelarches and lifestyle features such as roof bars. Don't go planning muddy excursions, though, as the Stepway doesn't have any four-wheel drive or other mechanical changes underneath.

Still, it'll be ideal for avoiding kerb damage at the supermarket car park, while that rugged body cladding might mean less paint damage if you have a prang.

5. Kia Picanto

Price: £16,745     Power: 62hp

The long-serving Kia Picanto has become more desirable (if a bit more expensive) in this latest generation. It looks sharper and comes better equipped, but it’s still even smaller than a Dacia Spring and is considerably better to drive in or out of town.

We love the Picanto’s keen handling, slick manual gearbox and willing (if underpowered out of town) petrol engine. We also like the surprising amount of interior space compared to its external size, the quality of the interior and the decent standard kit on the base model including all-round electric windows, a reversing camera and an eight-inch touchscreen with sat-nav and smartphone connectivity. The Sandero does give you more car for less money, but you do get a seven-year warranty with the Kia.

6. MG 3

Price: £17,245    Power 115hp

MG is a brand now synonymous with affordability, and the latest MG 3 is its smallest and cheapest model. While it can’t quite match the Dacia Sandero in the pricing stakes, the MG counters with a more powerful petrol engine and heaps of standard equipment including adaptive cruise control, lane keep assistance, rear parking sensors and a touchscreen with sat-nav.

The MG’s keen handling also makes it more fun to drive than the Dacia, as does the revvy petrol engine. The only downsides are that other small cars like the Renault Clio are better to drive still, and more comfortable with it, while the MG3’s touchscreen is fiddly to operate, and the engine gets noisy and lacks efficiency.

7. Renault Clio

Price: £17,995    Power: 90hp

An all-new Renault Clio is just around the corner, but if you're quick you can get hold of the outgoing version for a very affordable price.

The outgoing Clio is far from old hat, too. Its stylish design combines with a high-quality, well-equipped interior that makes it feel more sophisticated than its price tag suggests. What’s more, it’s the only car here to be awarded the maximum five-star Euro NCAP safety rating, giving peace-of-mind.

The base Clio also combined peppy performance with a great ride and handling balance, making this an enjoyable small car to drive in every situation. It’s not quite as roomy in the rear as the related Dacia Sandero, but it has a spacious boot. Factor in low running costs and, although the Clio isn’t the cheapest car in this list, it’s one of the best.

8. Hyundai i10

Price: £18,350     Power: 67hp

You can think of the Hyundai i10 as the slightly bigger, more grown-up sibling to the Kia Picanto. The two have similar DNA, but the Hyundai’s more sober exterior design hides a more spacious interior and a more comfortable and quieter – if less sporty – driving experience. It really does feel like a bigger, more expensive car, which is ideal if you plan on venturing further afield.

The i10’s entry-level 1.0-litre engine gives similarly limited performance to the Picanto, but its easy to drive and will still sit on the motorway without too much fuss. A comprehensive five-year warranty, a high quality cabin, a decent three-star Euro NCAP rating and a spacious boot mean this could well be all the car you ever need.

9. BYD Dolphin Surf

Price: £18,650 Power: 87hp

BYD's smallest model, the Dolphin Surf, isn't the cheapest electric car in this list. But it is easily the most sophisticated, with a much more grown up look and feel inside and out and a more advanced driving experience than the Dacia or Leapmotor

Yes, you only get 87hp, but it's perfectly perky for urban driving, while the Dolphin Surf also has a surprising amount of space for four adults. You also get a stylish interior with loads of tech as standard, with even the cheapest Active variant getting sat-nav, adaptive cruise control, keyless entry, rear parking sensors and a reversing camera. The only fly in the ointment is a mediocre 137-mile range on a charge with the cheapest version.

10. Fiat Grande Panda

Price: £18,995       Power: 99hp

The Fiat Panda is dead: long live the Fiat Grande Panda. The boxy small car has taken on some SUV design inspiration, but it remains compact and its new shape should be very desirable. Bright colours, neat design details and an airy interior give it plenty of character, while even the base Pop trim comes well-equipped.

While the Grande Panda isn’t the cheapest car in this list, it offers ample performance thanks to a 99hp 1.2-litre turbo petrol engine with hybrid assistance. It’s also the only car in this list that comes as standard with an automatic gearbox – great for town use. There’s even a fully electric version, although it’s more expensive.  It’s just a shame that the Grande Panda is yet to be tested by Euro NCAP for safety.

One to consider: Citroen Ami

At just £7,695, the Citroen Ami is less than half the price than the cheapest car at the top of this list. So why haven’t we featured it?

Well, the key reason is that it technically isn’t a car. The Ami is classed as a large quadricycle – the upside of that being that 16 year olds can drive one in the UK on a moped licence. The downside is that classification means it’s limited to just 28mph and doesn’t have to meet any of the safety regulations ‘proper’ cars are required to meet.

That, combined with a range of just 46 miles and a serious lack of comfort features, makes the Ami difficult to recommend unless you never leave town.