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Finding a car that's both affordable to run and fuel-efficient is a top priority for many drivers when it comes to keeping monthly motoring costs down. In this article, we explore the top 10 cheapest cars to run, with a special focus on models that excel in fuel economy, low insurance costs, minimal road tax, and overall affordability.
Whether you’re looking for a nimble city car, a practical SUV or an efficient hybrid model, we've compiled a list that caters to various needs while keeping running costs at a minimum. Accelerate your journey to an affordable new motor from Wilsons Epsom today!
The cost-effectiveness of running a car largely depends on these six factors :
Before making a purchase, it’s a good idea to find out what insurance group the car falls into, as well as what road tax rate you can expect to pay; for example, smaller, less powerful models often have cheaper insurance premiums and lower road tax.
Aside from the initial cost of a car, fuel efficiency plays a crucial role when it comes to the ongoing monthly motoring expenses. Vehicles that consume less fuel or electricity will significantly reduce your day-to-day costs of running a car.
Maintenance costs are another key consideration, with reliable brands and models more likely to have readily available parts that typically prove more economical in the long run. Additionally, cars with lower emissions not only benefit the environment but also often fall into more favourable tax brackets.
Finally, consider the vehicle's depreciation rate (which is often overlooked) as it substantially impacts the total cost of ownership over time. No doubt if you plan to sell the vehicle you’ll want to achieve the best price possible, so choose a model that holds its value.
In alphabetical order, here are our top 10 cheapest cars that are not only affordable to buy from new, but also have fantastic fuel-efficiency as well as cheaper insurance and road tax rates for a more low-cost daily driving experience:
Purchase Price: £18,295 new
Fuel Efficiency: 55 mpg
Road Tax: £190
Insurance Group: 9 to 15
Offering exceptional value for money, the Dacia Duster is a compact SUV that has a reputation as one of the most affordable cars in its class to run. Its low purchase price from new and impressive fuel efficiency make it an attractive option for budget-conscious drivers.
The Duster's range of economical engines deliver excellent miles per gallon, helping to keep fuel costs down while allowing you to travel more distance. Its simple, robust design means there are lower maintenance and repair costs, and many versions fall into lower road tax bands, further reducing annual running expenses.
Despite its budget-friendly price tag, the Duster doesn't compromise on practicality, meaning there is ample space and comfort for families of up to five.
Purchase Price: £18,295 new
Fuel Efficiency: 56.5 mpg
Road Tax: £180 - £190
Insurance Group: 9 to 15
The seven-seater Dacia Jogger is not only considered one of the most cost-effective vehicles to run but has a remarkably low purchase price for an MPV, making it an ideal choice for families on a budget.
Both the pure petrol engine and hybrid variants provide excellent fuel economy, and insurance costs are typically low due to the Jogger's modest performance and affordable replacement value. Many versions also fall into lower road tax bands, further reducing annual running expenses.
Given its budget-friendly nature, the Jogger doesn't skimp on practicality, offering generous space for seven passengers and their luggage.
Purchase Price: £13,795 new
Fuel Efficiency: 53 mpg
Road Tax: £180 - £190
Insurance Group: 2 to 12
For a reliable supermini, the Dacia Sandero isn’t only a steal at under £14,000 brand new, but it falls into low insurance groups too, making it a particularly ideal purchase for young or new drivers.
The Sandero's efficient engines deliver excellent fuel economy, significantly reducing day-to-day expenses if you’re looking to keep costs down when it comes to refuelling at the pumps. For an affordable car, the Sandero doesn't compromise on practicality, offering ample space for even for small families and a comfortable ride during every journey.
It’s little wonder then that the Dacia Sandero is an all-round top choice with many awards to show for it.
Purchase Price: £16,800 new
Fuel Efficiency: 61 mpg
Road Tax: £190
Insurance Group: 3 to 19
Having carved out a reputation as one of the most economical cars out there, the much-loved Fiat 500 combines winning style with practical affordability. This Italian icon is a city car that has won hearts and minds all over the UK, and it’s not hard to see why.
Not only does it deliver excellent fuel economy where you can achieve up to 61 miles to the gallon, but its size makes the 500 a top choice for city dwellers and first-time car buyers. Its compact dimensions not only makes it perfect for navigating tight streets but also contributes to lower insurance premiums - ideal if you’re aiming to keep costs down.
If you’re hoping to make a pretty penny from your Fiat 500 in the future, then its enduring popularity and retro-inspired design help it maintain strong resale values on the used car market - yet another tick in the box!
Purchase Price: £16,230 new
Fuel Efficiency: 58 mpg
Road Tax: £35 - £190
Insurance Group: 1 to 8
When you look at the stats, it’s not hard to see why the Fiat Panda has earned its reputation as one of the most budget-friendly cars for motorists in the UK. This wonderful little city car is not only robust, but it has an affordable price tag from new and falls into the lowest possible insurance groups too.
Thanks to its small-sized engine, some Panda models are in the £35 road tax band which make it a particularly popular choice for learners and student drivers living away at university. While the Panda might be on the petite side where size is concerned, it still has 4-doors so can comfortably seat four adult occupants.
If you’re an urban or suburban driver looking for an affordable, no-frills, reliable runabout, then you can’t do much better than the lovable Fiat Panda.
Purchase Price: From £14,999
Fuel Efficiency: 55 mpg
Road Tax: £35 - £190
Insurance Group: 1 to 5
Often topping the charts where small city cars are concerned, the Hyundai i10 is extremely economical for many reasons. Firstly, its low purchase price make it an attractive option, as does the road tax rate, and insurance groups which typically fall between 1 to 5 - dreamy if you’re a new driver.
The i10's range of efficiently designed engines - particularly the 1.0-litre variants - deliver excellent fuel economy, significantly reducing day-to-day expenses. If reliability is top of your agenda, then Hyundai's reputation for durability ensures peace of mind for owners.
If that’s not enough to convince you, then Hyundai's generous five-year unlimited mileage warranty further enhances the i10's value, as does the manufacturer’s roadside assistance package and annual health checks when purchased from new.
Purchase Price: £13,680 new
Fuel Efficiency: 64 mpg
Road Tax: £190
Insurance Group: 4 to 8
Dubbed ‘the affordable hatchback’, the MG3 is the epitome of exceptional value in the supermini segment. This British-branded icon boasts a wealth of features while being a real joy to drive in both urban and rural settings.
The MG3's 1.5-litre petrol engine delivers outstanding fuel economy for its class where it can achieve up to 64 miles to the gallon, helping to keep fuel costs down. In addition, the model is typically low to insure and road tax is also reasonable for its category.
Drivers looking for a steal will be pleasantly surprised by the MG3’s well-equipped interior complete with modern technology and a spacious cabin for its size. The manufacturer even provides a generous 7-year/80,000-mile warranty for additional peace of mind that could potentially save owners significant amounts on long-term repair costs.
We think the MG3 makes a winning combination!
Purchase Price: From £16,385
Fuel Efficiency: 52 mpg
Road Tax: £190
Insurance Group: 10 to 15
If it’s a budget-friendly SUV you’re looking for, then you’ve hit the jackpot with the MG ZS which is a fantastic family-friendly and well-priced model. For families looking to keep their motoring costs down, the ZS model is a popular choice and doesn’t scrimp on quality in the process.
You can expect to get more for your money at the pumps thanks to a very reasonable 52 miles to the gallon, while road tax rates and insurance groups remain relatively low cost too. As with all MG models, the ZS benefits from a generous 7-year/80,000-mile warranty that provides owners with additional peace of mind if repairs are required.
The MG ZS is a standout choice for those seeking one of the cheapest SUVs to run without sacrificing on space or comfort.
Purchase Price: From £18,499
Fuel Efficiency: 67 mpg
Road Tax: £190
Insurance Group: 5 to 26
As the best-selling car in Europe, you’d rightly make the assumption that the Peugeot 208 is an affordable hatchback that ticks a lot of boxes for the budget-conscious. With a perfect combination of style and efficiency, the 208 is an attractive option - especially for those who prefer a bit more power behind the wheel.
Insurance premiums for the 208 are generally competitive, with many versions falling into favourable insurance groups between 5 and 20. The 208's low CO2 emissions (particularly in its electric variant) contribute to reduced road tax, with the e-208 qualifying for zero road tax.
Peugeot 208 models are a particularly sought-after car meaning it can get a good price on the used car market should you wish to resell at a later date.
Purchase Price: From £17,345
Fuel Efficiency: 66 mpg
Road Tax: £155
Insurance Group: 3 to 27
Long celebrated in the supermini segment, the Renault Clio is now available as a full hybrid E-TECH variant in addition to its much-loved petrol models. Boasting an appealing combination of style, efficiency, and affordability, the French-designed hatchback celebrates a long history as the car of choice for many Brits.
The Clio's low CO2 emissions, particularly in its hybrid variant, result in reduced road tax for many models as well as sought-after insurance groups. Despite its economical nature, the Clio doesn't compromise on style or comfort, showcasing a well-designed interior and a host of modern technologies.
The car's enduring popularity also helps maintain strong resale values making the Renault Clio a standout choice for those seeking one of the cheapest cars to run, without sacrificing the joy of driving a stylish and well-equipped vehicle.
Modern engines, particularly smaller turbocharged units and hybrid systems, play a crucial role in enhancing fuel efficiency and making a car more economical. The vehicle's weight is equally important, with lighter cars requiring less energy to move, therefore consuming less fuel during the journey.
Manufacturers now prioritise aerodynamic design to reduce air resistance (especially at higher speeds) contributing to even better fuel economy per tank. Innovative features like low rolling resistance tyres, start-stop technology, and regenerative braking systems further improve efficiency and the overall driving experience.
The use of lightweight materials in construction, sophisticated engine management systems, and the adoption of alternative fuel technologies all contribute to making a car much more economical. Together, these elements work in harmony to reduce fuel consumption, lower emissions, and ultimately decrease the overall cost of running the vehicle.
We hope you’ve enjoyed reading our guide to the top 10 cheapest cars to run when it comes to affordability and fuel efficiency. Below, we’ve shared the most common questions we get asked by our customers on the topic, which we hope will answer any other questions you may have:
Generally, smaller cars tend to be cheaper to run. They typically have better fuel economy due to their lighter weight and smaller engines, meaning they have lower insurance and road tax costs.
The Hyundai i10 is often considered one of the cheapest cars to maintain for several reasons; the Hyundai brand has built a strong reputation for producing reliable vehicles and as such, the i10 model typically experiences fewer mechanical issues, reducing the frequency of repairs. Because the i10 uses relatively simple technology, there are fewer complex components that could potentially fail. When it does require repair, replacement parts are generally inexpensive and readily available.
The Fiat 500 (particularly the 2008 model onwards) is widely regarded as the most economical used car in the UK. The low initial purchase price makes it a sought-after choice among motorists which choose the Fiat 500 for its small size, good fuel economy and lower road tax rates, and insurance costs.
Generally, cheaper cars do tend to cost less to insure because less expensive cars usually cost less to replace or repair, which often results in lower insurance premiums. All cars in the UK are assigned insurance groups from 1-50 and cheaper, less powerful cars tend to be in the lower-end groups of 1-20.
Cars with smaller, less powerful engines are generally cheaper to insure as they're seen as lower risk from being involved in an accident due to speeding. Cheaper cars also tend to be less desirable to thieves, so are also considered less likely to be stolen, bringing insurance premiums down further.
Cars with cheap road tax in the UK are typically those with low CO2 emissions. Zero emission vehicles such as pure electric cars pay £0 in road tax (also known as Vehicle Excise Duty or VED), and low emission vehicles such as full hybrids or plug-in hybrids also benefit from a reduced road tax rate. Most petrol cars with small engines will likely be charged £190 per year for road tax, compared to those with larger, more powerful engines who could end up paying thousands of pounds for the privilege.
When it comes to purchasing a new or used car on a budget, then at Wilsons Epsom, we are happy to help. Our multi-franchise car dealership in Surrey is home to a huge selection of the most economical cars on the market. Whether you're looking to minimise fuel costs, reduce insurance premiums, or enjoy low road tax, our diverse range has something for every budget-conscious driver.
From nippy city cars perfect for urban commutes to efficient family hatchbacks and even cutting-edge hybrid and electric vehicles, we proudly showcase a collection that prioritises affordability without compromising on quality or performance.
With competitive pricing, flexible finance options, and a commitment to customer satisfaction, we are your number one choice for a new or used car in the South of England. Visit us today and drive away in a car that's as easy on your pocket as it is on the road!