The cheapest car deals on PCP finance

PCP finance is by far the most popular way of buying a new car. But what are the most tempting deals of all?...

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by
George Hill
Published12 August 2024

Worried about paying a large sum of money for a new car? Fear not, because a Personal Contract Purchase (PCP) deal can be one of the most affordable ways of getting a new car on your driveway.

But what is a PCP deal exactly? Well, it allows you to pay for a new car with monthly payments. In most cases, it requires a deposit of around 10% of the car's value and usually lasts for between three to five years. At the end of the deal, you have the option to buy the car outright.

Renault Clio with Target Price logo

If that sounds like it could be for you, we've made a list of the cheapest PCP deals in the UK – with the lowest price starting from just £141 per month. Don't think you have to sacrifice some creature comforts for a cheap price, though, because our list includes a wide range of models, including small cars, small SUVs and even a convertible.

If any of them take your fancy, simply click on the relevant links to read more or see how much we can save you on a new example that's in stock now.

Our pick: 87kW 42kWh 3dr Auto

0-62mph: 9 sec
CO2 emissions: 0g/km
Seats: 4
Boot: 185 litres
Insurance group: 17D
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Distinctive looks
  • Easy to drive around town
  • Plenty of customisation options

Weaknesses

  • Poor driving position
  • Unsettled ride
  • Coarse-sounding engine

Version 1.0 Mild Hybrid 500 | Target PCP £141 | Target Price £15,854 | The deal Four years' PCP finance with 5.7% APR and £2000 finance contribution. Limit of 8000 miles per year

The Fiat 500 Hybrid is one of the cheapest small cars around, helping to present itself as a credible option if you're not tempted by the fully electric (and more expensive) Fiat 500 Electric. It offers similarly stylish looks, and its tiny dimensions make it ideal for driving around town. Don't be fooled by the hybrid name, though, because it's only a mild hybrid, meaning a tiny electric motor helps boosts the engine to improve performance and fuel economy. It can't run solely on electric power for short distances like a regular hybrid can. 

Read our in-depth Fiat 500 Hybrid review

Our pick: 1.0 VVT-i Edge 5dr

0-62mph: 14.9 sec
MPG/range: 58.9mpg
CO2 emissions: 110g/km
Seats: 4
Boot: 226 litres
Insurance group: 6A
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Cheap to run
  • Good level of safety kit
  • Warranty of up to 10 years

Weaknesses

  • Cramped in the back
  • Smaller boot than rivals
  • Lacklustre performance

Version 1.0 VVT-i Edge | Target PCP £153 | Target Price £15,965 | The deal Three and a half years' PCP finance with 2.9% APR and £300 finance contribution. Limit of 8000 miles per year

The Aygo X blends small car affordability with chunky SUV styling. And while it's an SUV in name only, it's a decent offering that's good to drive, cheap to run and well equipped. The Edge trim quoted here is our favourite version, and comes with 18in alloy wheels, automatic headlights and air conditioning as standard. All models come with a good amount of safety kit, too, including automatic emergency braking (AEB), lane-keep assist and six airbags.

Read our in-depth Toyota Aygo X review

Our pick: 1.0 Tce Bi-Fuel Expression 5dr

0-62mph: 11.6 sec
MPG/range: 52.3mpg
CO2 emissions: 109g/km
Seats: 5
Boot: 328 litres
Insurance group: 14E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Amazingly good value
  • Lots of space for passengers and luggage
  • Comfortable ride

Weaknesses

  • Poor safety rating compared with rivals
  • There are more entertaining small cars to drive
  • Some other small cars are quieter

Version 1.0 TCe Essential | Target PCP £165 | Target Price £13,537 | The deal Four years' PCP finance with 6.9% APR. Limit of 8000 miles per year

Cheap small cars can feel compromised in areas such as quality and driving dynamics, but the Dacia Sandero bucks that trend, being comfortable to drive, spacious and practical. The version quoted here is powered by a 89bhp 1.0-litre petrol engine, and it will officially sprint from 0-62mph in 12.2sec. While that's slower than the 94bhp VW Polo, it doesn’t feel as sluggish as that figure suggests, giving you plenty of low and mid-range shove. Essential trim is reasonably well equipped for the money, and includes cruise control, front electric windows and air conditioning as standard.

Read our in-depth Dacia Sandero review

Our pick: 27kWh Extreme 65 48kW 5dr Auto

0-62mph: 13.7 sec
CO2 emissions: 0g/km
Seats: 4
Boot: 308 litres
Insurance group: 25A
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Decent low-speed ride
  • It’s the cheapest EV currently on sale
  • Nippier than you’d expect

Weaknesses

  • Terrible safety rating
  • Limited real-world range
  • Slow charging rate

Version 45 Expression | Target PCP £179 | Target Price £14,708 | The deal Four years' PCP finance with 3.9% APR. Limit of 8000 miles per year

Until recently, the idea of an electric car being one of the cheapest new cars in the UK would have seemed crazy. However, the arrival of the Dacia Spring has changed that, but it does come at a cost. For example, the version quoted here is powered by a 44bhp electric motor, which means it can go from 0-62mph in a glacial 19.1 seconds. Powering the electric motor is small 26.8kWh battery, too, which means it can only manage 140 miles between charges officially. That said, the Spring is nippier than you'd expect, plus the ride is surprisingly comfortable. It's a great option if you live in a city, but otherwise the Citroën ë-C3 is a better all-rounder if you need more than just an urban runabout.

Read our in-depth Dacia Spring review

Our pick: 1.2 Advance 5dr

0-62mph: 12.6 sec
MPG/range: 53.3mpg
CO2 emissions: 124g/km
Seats: 5
Boot: 252 litres
Insurance group: 6E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Comfy and quiet for a small car
  • Remarkably roomy in the rear
  • Well equipped as standard

Weaknesses

  • Disappointing safety rating
  • Entry-level engine is a bit lacklustre
  • Slow-witted automatic gearbox

Version 1.0 MPi Advance [Auto] | Target PCP £182 | Target Price £15,307 | The deal Four years' PCP finance with 8.9% APR. Limit of 8000 miles per year

The Hyundai i10 makes a great choice if you're looking for a small car on a budget. It's relatively spacious and smart inside, plus it rides and drives better than plenty of larger, more expensive alternatives. All models come well equipped, too, with this entry-level Advance trim giving you an 8.0in infotainment screen and a reversing camera as standard. As with some other cars on this list, the entry-level 1.0-litre engine quoted here is a little underpowered and is better suited for driving around town.

Read our in-depth Hyundai i10 review

Our pick: 1.0 TCe Bi-Fuel Expression 5dr

0-62mph: 11.9 sec
MPG/range: 48.7mpg
CO2 emissions: 113g/km
Seats: 5
Boot: 328 litres
Insurance group: 13E
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Comfortable ride
  • Spacious interior
  • Astonishing price

Weaknesses

  • Poor safety rating
  • Mainly cosmetic changes for the money over a regular Sandero
  • Noisy TCe 90 engine

Version 1.0 TCe Bi-Fuel Expression | Target PCP £182 | Target Price £15,986 | The deal Four years' PCP finance with 6.9% APR and £500 finance contribution. Limit of 8000 miles per year

The Sandero Stepway offers many of the benefits of the regular Sandero, including its practical interior and punchy engines, but adds a slightly raised ride height, roof rails and chunky plastic cladding to give it a more rugged look. Indeed, you also get a slightly higher driving position – a factor that many small SUV buyers look for. Expression trim gives you plenty of kit as standard, including an 8.0in touchscreen, cruise control and automatic wipers.

Read our in-depth Dacia Sandero Stepway review

Our pick: 1.0 TCe 90 Techno 5dr

0-62mph: 12.2 sec
MPG/range: 54.3mpg
CO2 emissions: 119g/km
Seats: 5
Boot: 284 litres
Insurance group: 11E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Smart interior is packed with equipment
  • Good ride and handling balance
  • Practical boot

Weaknesses

  • Tight for taller adults in the rear seats
  • Slightly firm low-speed ride
  • High boot loading lip

Version 1.0 TCe 90 Evolution | Target PCP £183 | Target Price £16,212 | The deal Four years' PCP finance with 6.9% APR and £800 finance contribution. Limit of 8000 miles per year

If you're looking for a small car, the Renault Clio is the best you can buy. We named it our 2024 Small Car of the Year on account of its competitive pricing, smart interior, comfortable ride and practical boot. While this Evolution version isn't our favourite (that's Techno), it does still come well equipped, with full LED headlights, automatic windscreen wipers and keyless start offered as standard. The 90bhp 1.0-litre petrol engine is a good match for it, particularly when it comes to buying and running costs. Indeed, it's more affordable to buy than the hybrid version, and yet it's still very efficient; we managed an average of 46.3mpg during our real-world driving route.

Read our in-depth Renault Clio review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Good straightline performance
  • Comfortable ride around town
  • Plenty of interior space

Weaknesses

  • Slower charging than rivals
  • Wobblier than rivals on undulating roads
  • Brake feel takes getting used to at low speeds

Version Comfort | Target PCP £184 | Target Price £28,868 | The deal Four years' PCP finance with 0.5% APR. Limit of 8000 miles per year 

You might be surprised to see another electric car on this list, but the BYD Dolphin is one of the more affordable new electric cars in the UK (although the Citroën ë-C3, Dacia Spring and MG4 all undercut it). While the Dolphin doesn't handle particularly well because of its overly soft suspension, it does have a comfortable ride and plenty of interior space. This Comfort version has a good official range of 265 miles, thanks to its 60.5kWh (usable) battery. But that's still more than the ë-C3, Spring and MG 4 SE can manage.

Read our in-depth BYD Dolphin review

Our pick: 1.3 TCe 130 Expression 5dr

0-62mph: 10.6 sec
MPG/range: 45.6mpg
CO2 emissions: 141g/km
Seats: 5
Boot: 445 litres
Insurance group: 19D
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Cheap to buy and run
  • Spacious boot
  • 4x4 version is very capable off road

Weaknesses

  • Some rivals are better to drive
  • Lots of hard plastics inside
  • Sparsely equipped entry-level model

Version 1.0 TCe 100 Bi-Fuel Expression | Target PCP £186 | Target Price £17,991 | The deal Four years' PCP finance with 7.9% APR and £750 finance contribution. Limit of 8000 miles per year

With its low price, good equipment levels and decent resale values, the Dacia Duster represents good value for money, particularly with the version quoted here, which is the outgoing model. As a result of its keen pricing, you do have to live with certain compromises, including a cheap interior, wallowy handling and a poor Euro NCAP safety rating. The Duster's trump card compared with the likes of the Nissan Juke and MG ZS is that it's quite utilitarian, which means it can do some light off-roading if the need ever arises. Mind you, the four-wheel drive versions will be better at this if you ever need to leave the Tarmac. 

Read our in-depth Dacia Duster review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Individual looks
  • Decent head room
  • Good rear visibility

Weaknesses

  • Abysmal Euro NCAP crash test result
  • Poor rear leg room
  • Slow and poor to drive

Version 1.0 Mild Hybrid Top [Touchscreen] | Target PCP £190 | Target Price £15,552 | The deal Four years' PCP finance with 9.9% APR and £750 finance contribution. Limit of 8000 miles per year

It may be stylish and cheap, but we'd recommend avoiding the Fiat Panda. It's poor to drive and not very practical, plus Euro NCAP awarded it zero stars for safety when it was crash tested in 2018. Yes, it really did score zero stars, largely on account of its abysmal adult and child protection scores for the front and rear seats. Automatic emergency braking braking (AEB) isn't even available as an option, either. However, if you do have your heart set on a Panda, we'd recommend waiting for the new Fiat Grande Panda instead.

Read our in-depth Fiat Panda review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Funky styling
  • Cheaper than Mini Convertible
  • Easy to drive around town

Weaknesses

  • Very limited rear seat and boot space
  • Disappointing safety rating
  • Leisurely driving pace

Version 1.0 Mild Hybrid 500 | Target PCP £190 | Target Price £18,345 | The deal Four years' PCP finance with 5.7% APR and £2000 finance contribution. Limit of 8000 miles per year

Yes, one of the cheapest cars you can get on PCP deal in the UK is a convertible. Granted, it may not be the finest offering in the class, but the Fiat 500C Hybrid offers funky looks and puny dimensions, making it ideal if you live in a city. As a package, though, it's generally outclassed by the Mini Convertible in almost every area, including comfort, quality and performance. Standard equipment is quite sparse, too, particularly with this 500 version; it comes with a 7.0in touchscreen infotainment system and air conditioning as standard.

Read our in-depth Fiat 500C Hybrid review

Our pick: 1.5i Hybrid Centre Line 5dr CVT

0-62mph: 9.7 sec
MPG/range: 74.3mpg
CO2 emissions: 87g/km
Seats: 5
Boot: 286 litres
Insurance group: 14E
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Efficient engine
  • Slow depreciation
  • Comfortable ride

Weaknesses

  • Expensive to buy outright
  • Not as practical as some rivals
  • Yaris has longer warranty

Version 1.5i Hybrid Centre-Line | Target PCP £192 | Target Price £22,698 | The deal Four years' PCP finance with 0% APR. Limit of 8000 miles per year

If you think the Mazda 2 Hybrid looks suspiciously like a Toyota Yaris, you'd be right, because it's essentially a rebadged version of that car. This means it's powered by the same 114bhp hybrid system, which provides nippy acceleration and electric-only driving at low speeds. Fuel economy is very good, too, because the 2 Hybrid promises an official average of 74.3mpg. While it's unlikely you'll achieve that figure in the real world, it's worth noting we averaged 59.9mpg in an equivalent Yaris during our Real MPG tests.

Read our in-depth Mazda 2 Hybrid review

Our pick: 1.0 2 5dr

0-62mph: 15.4 sec
MPG/range: 54.3mpg
CO2 emissions: 116g/km
Seats: 5
Boot: 255 litres
Insurance group: 3E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Really tidy handling
  • Decent real-world fuel economy
  • Great infotainment and well-equipment as standard

Weaknesses

  • Engine line-up is among the slowest of any new car
  • Quite firm low-speed ride
  • A Dacia Sandero is much roomier

Version 1.0 2 [Auto] | Target PCP £195 | Target Price £15,683 | The deal Three years' PCP finance with 7.9% APR and £500 finance contribution. Limit of 8000 miles per year

The new Picanto is a commendable small car with a smart interior, tidy handling and frugal engines. The version quoted here is features a 62bhp 1.0-litre petrol engine and an automated manual transmission (AMT). When paired with the five-speed manual version, 0-62mph takes 15.4 seconds, which is pretty slow by anyone's standards. However, the automatic gearbox is even slower, taking 18.2 seconds. The benefit of this leisurely performance is that it should return a real-world fuel economy figure of around 50mpg, which means it should be cheap to run. 

Read our in-depth Kia Picanto review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Excellent fuel economy
  • Tidy handling
  • Lots of standard kit

Weaknesses

  • Firm ride
  • Road noise
  • Rivals offer better practicality

Version 1.2 Mild Hybrid Motion | Target PCP £197 | Target Price £18,248 | The deal Four years' PCP finance with 7.9% APR and £500 finance contribution. Limit of 8000 miles per year | Star rating 4

There are bigger and more comfortable small cars, but the new Suzuki Swift is efficient, fun to drive and great value on PCP finance. While this latest version is based on the same underpinnings as its predecessor, it’s powered by a new mild hybrid 1.2-litre petrol engine. The engine isn’t turbocharged and it has a modest 81bhp, but because of the car's light weight, acceleration isn’t as slow as you'd expect. Entry-level Motion trim is very well equipped for the money, and includes LED headlights, adaptive cruise control, heated front seats and blind-spot monitoring as standard.

Read our in-depth Suzuki Swift review

Our pick: 125kW R-EV Prime Line 5dr Auto

0-62mph: 9.1 sec
MPG/range: 282.5mpg
CO2 emissions: 21g/km
Seats: 5
Boot: 350 litres
Insurance group: 22E
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Good ride and handling balance
  • Smart interior with great infotainment system
  • Well equipped

Weaknesses

  • Pathetic range
  • Loses its value quickly
  • Poor rear-seat space

Version Prime-Line | Target PCP £198 | Target Price £26,738 | The deal Four years' PCP finance with 0.0% APR and £6000 finance contribution. Limit of 8000 miles per year

The Mazda MX-30 is an electric SUV, but a rather compact one with unconventional rear doors that open backwards. The result is that it's quite cramped inside, plus it has a small 35.5kWh (total) battery that can only take it 124 miles between charges officially – that's less than a Dacia Spring. However, the MX-30 does have some appealing factors, including a smart, high-quality interior and a generous equipment list; this entry-level Prime-Line version comes with an 8.8in infotainment screen, adaptive cruise control and automatic windscreen wipers as standard.

Read our in-depth Mazda MX-30 EV review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Huge boot
  • Roomy interior with clever features
  • Fairly supple ride

Weaknesses

  • Renault Clio has a smarter interior
  • Not as practical as the Honda Jazz
  • Entry-level engine only suited to town driving

Version 1.0 MPi 80 SE Comfort | Target PCP £199 | Target Price £18,599 | The deal Four years' PCP finance with 6.9% APR and £1250 finance contribution. Limit of 8000 miles per year

Sharing underpinnings with the VW Polo brings some benefits, because the Skoda Fabia has a similarly comfortable ride and a spacious interior. It also shares the same engines as its German cousin, including this 79bhp 1.0-litre unit. While it's not our favourite engine (that's the 94bhp turbocharged unit), it should be cheap to run and good for driving around town. Of course, the main benefit of choosing the Fabia over the Polo is that it's cheaper to buy – especially on PCP finance.

Read our in-depth Skoda Fabia review

Our pick: 1.5 VTi-TECH Excite 5dr

0-62mph: 10.9 sec
MPG/range: 42.7mpg
CO2 emissions: 149g/km
Seats: 5
Boot: 448 litres
Insurance group: 15E
Driving
Interior
Practicality
Buying & Owning

Strengths

  • Low price
  • Roomy rear seats
  • Standard seven-year warranty

Weaknesses

  • Unsettled ride
  • Road noise
  • MG's reliability record

Version 1.5 VTi-Tech Excite | Target PCP £201 | Target Price £16,628 | The deal Four years' PCP finance with 8.9% APR and £500 finance contribution. Limit of 8000 miles per year

Despite being one of the cheapest SUVs you can get on PCP finance, the MG ZS offers a surprisingly classy interior, decent handling and roomy rear seats. Excite trim is also well equipped for the money, and includes LED headlights, rear parking sensors and Apple CarPlay and Android Auto smartphone mirroring as standard. The 1.5-litre engine is underpowered and not very efficient, though.

Read our in-depth MG ZS review

Our pick: 1.0 TSI Life 5dr

0-62mph: 10.8 sec
MPG/range: 54.3mpg
CO2 emissions: 118g/km
Seats: 5
Boot: 351 litres
Insurance group: 9E
Reliability
Safety
Costs
Quality
Performance

Strengths

  • Good to drive
  • Generous interior space
  • Attractive PCP finance deals

Weaknesses

  • Fiddly touch-sensitive controls
  • Gutless entry-level petrol
  • Reliability could be better

Version 1.0 Life | Target PCP £203 | Target Price £19,882 | The deal Four years' PCP finance with 6.9% APR and £1500 finance contribution. Limit of 10,000 miles per year 

The Polo has grown in size over the years, which means it's now one of the most spacious small cars around. It's also smart inside and good to drive, with a comfortable ride and impressive refinement. The engine quoted here is the entry-level 79bhp 1.0-litre petrol unit; it doesn't have a turbocharger, so you need to work it quite hard to get any kind of decent acceleration out of it. Life trim, on the other hand, is very well equipped, because it gives you useful features such as automatic windscreen wipers, heated and power-folding door mirrors, and an 8.0in touchscreen infotainment system as standard.

Read our in-depth Volkswagen Polo review

Reliability
Safety
Costs
Quality
Performance

Strengths

  • Decently equipped
  • Stylish interior
  • Efficient engines

Weaknesses

  • Poor to drive
  • AEB is not standard on lower trims
  • Cramped rear seats

Version 1.2 PureTech Plus | Target PCP £205 | Target Price £15,511 | The deal Four years' PCP finance with 8.9% APR. Limit of 8000 miles per year 

Even though a new Citroën C3 has just been launched, you can still get a good deal on the outgoing car on PCP finance. Despite being rather long in the tooth, it still does a good job of turning heads with its stylish exterior and interior design, plus it's reasonably practical. This Plus version is the mid-level trim, which means it's fairly well equipped with a 7.0in touchscreen, automatic windscreen wipers and rear parking sensor included as standard. It's not as good to drive or as practical as the Dacia Sandero, though. 

Read our in-depth Citroën C3 review

Driving
Interior
Practicality
Buying & Owning

Strengths

  • Frugal economy from mild-hybrid engines
  • Infotainment system is easy to use
  • Even entry-level trim is well equipped

Weaknesses

  • Poor refinement
  • Small boot
  • Gutless performance from all but the range–topping engine

Version 1.5 Skyactiv G 75 Centre-Line | Target PCP £205 | Target Price £17,752 | The deal Four years' PCP finance with 5.9% APR with £500 finance contribution. Limit of 8000 miles per year 

No, you're not seeing double – the Mazda 2 features twice on this list. However, the version quoted here is the mild hybrid Mazda 2, as opposed to the regular hybrid version. Both cars are completely different, with this version being designed and built entirely by Mazda as opposed to Toyota. Key strengths of this version include a smart interior, a user-friendly infotainment system and frugal engines. Standard equipment is generous, too, because entry-level Centre-Line trim comes with automatic LED headlights, automatic wipers and an 8.0in touchscreen infotainment system as standard.

Read our in-depth Mazda 2 review

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