Whether you're a daily commuter or a new driver, the expense of running and maintaining a car can be quite high. The monthly and total cost of car ownership can be expensive if you take into consideration the fuel you'll be using, tax, maintenance and insurance premiums.
As a result, more motorists are looking for cars that are cheap to run, tax and insure. To make life easier, we've highlighted the most affordable cars to run:
- Toyota AYGO
- Fiat 500
- Peugeot 208
- Ford Fiesta
- Kia Picanto
- Vauxhall Corsa
- Citroën C3
- Volkswagen Up!
- Skoda Octavia
- Hyundai i10
Toyota AYGO
With the ability to return close to 74mpg with mixed driving, the Toyota AYGO is a great choice if you do a lot of urban driving. Equipped with excellent technology, the latest models feature an 9-inch infotainment system that have a seamless integration with MyToyota app, which allows you to check fuel levels, and vehicle location.
Toyota consistently score high marks in reliability surveys, which should pay dividends in the long term if you keep on top of maintenance.
The AYGO doesn't exceed insurance group 9 out of 50, so your annual premium should reflect this. If you don't mind going for an older model, pre-2017 models won't cost you a penny in car tax.
Toyota built the AYGO in conjunction with Citroën and Peugeot, who subsequently made the near-identical C1 and 108. They're worth checking out if the AYGO doesn't appeal.
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Fiat 500
Popular among young drivers, the Fiat 500 is a great choice if you want a retro-looking car that's cheap to run.
If you opt for the model with an electric powertrain, you can expect as much as 121mpg when driving in the city and 100mpg on the motorway. If this option doesn't fall within budget, then the more readily available 1.2-litre petrol engine and 0.9-litre TwinAir Turbo models will return circa 58.9 and 76.3mpg respectively.
Later versions of the 500 are available with a 1.0-litre engine that features mild hybrid (MHEV) technology, making it more efficient in urban areas. You should see around 55.4mpg from this unit without much effort.
The 500 occupies insurance groups between 6 and 15, depending on the specification you go for.
If you’re looking for a well-known city car that has been recently reimagined to improve efficiency, the latest version of the 500e is a great option.
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Peugeot 208
If you need something slightly bigger than the options above, then versions of the Peugeot 208 fitted with a 1.2-litre PureTech engine will return north of 58mpg relatively easily. If you’re looking for a more efficient engine, you can opt for a 1.5-litre BlueHDi that has a return of up to 73mpg.
The 208 resides within insurance groups 12 to 25 (out of 50). The diesels and most powerful petrol versions occupy the top of that range, so if you go for a lower-powered variant you should benefit from more affordable premiums.
Regardless of the engine you select, the 208 will cost the minimum flat rate for car tax. Plus, it has a range of up to 268 miles and is ULEZ exempt.
Maintenance on the 208 is affordable, specially if you opt for a service plan or fixed price servicing.
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Ford Fiesta
A consistent best-seller in the UK for over a decade, the Ford Fiesta is cheap to run and affordable to buy. Equipped with great onboard tech, most modern models come with an 8-inch infotainment system and SYNC pre-installed, adding that to the spacious interior, the Fiesta is good value for money.
The most attainable versions of the Fiesta come with a 1.0-litre EcoBoost petrol engine, typically producing either 100 or 125bhp. These will return between 48 and 65mpg with mixed driving.
If you do a lot of driving around the city, then we'd recommend the EcoBoost engine with mild hybrid technology. It allows the Fiesta to return up to 56.5mpg, and helps lower emissions and fuel consumption in traffic.
The Fiesta occupies insurance groups between 2 and 20. You'll pay more for the hybrid engine, so that's worth taking into account if you want the lowest possible premium. All versions of the regular Fiesta pay the flat rate for tax, unless you go for a 2013 to 2017 model.
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Kia Picanto
The Kia Picanto stands out as one of the most affordable cars to run and to purchase in the UK now a days. Offering a great standard package that includes an infotainment system that comes with Apple CarPlay and Android Auto pre-installed, and a wide range of safety features, this is an excellent choice of entry-level vehicle.
With a range of 1.0 and 1.2-litre petrol powered engines that produce up to 100bhp, the Picanto offers decent fuel efficiency, returning between 51.4 to 55.4mpg respectively.
Occupying insurance groups between 1 to 12 out of 50, the Picanto is considered an affordable car to insure. If you opt for an entry-level trim with a standard package, your vehicle will be in the lower group while the higher trims will be positioned in a higher insurance group.
When it comes to road tax, the Picanto registered before 2017 are classed as band F or G, while the newer models have a flat VED rate which is updated every year.
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Vauxhall Corsa
Another car that is often featured in the top 10 best selling vehicles in the UK, the Vauxhall Corsa is affordable to purchase and run, and has a variety of powertrains to choose from.
Catering to most lifestyles, the diesel and petrol powered models are ideal for conservative drivers, while the mild hybrid and Corsa electric versions are ideal for tech enthusiasts and newly adopters.
Even though Vauxhall discontinued the diesel models in 2022, they can still be purchased used, and the latest generation offers a fuel return of up to 70mpg on a combined cycle. If you prefer to buy a brand new vehicle, there are petrol engines available that offer a range of 50 to 53mpg depending on the model you choose.0
The Corsa occupies insurance groups 10 to 23, with high-spec diesels sitting at that top end of that range. If you want lower premiums, then we'd recommend one of the 1.2-litre petrol engines, which typically occupy the lower end of that range.
You won't benefit from free tax on the generation of Corsa you see here, but some versions from the previous generation qualify. You can also benefit from discounted servicing through our Evans Halshaw Vauxhall dealers.
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Citroën C3
One of Citroën’s most popular models, the C3 is the ideal compact car for daily commute to urban areas. Available with petrol and hybrid powertrains, this is an economical vehicle to run due to its decent fuel return and low maintenance costs.
There are a couple of options of petrol engines to choose from. The 1.5-litre PureTech produces 83bhp while the 1.2-litre PureTech Turbocharged produces 108bhp, the fuel economy varies from 46 to 56mpg. The hybrid model is equipped with a 1.2-litre engine that produces 108bhp, has a return of up to 65mpg and has a range of up to 199 electric miles.
Even though the C3 is placed in insurance groups between 8 and 20, which is a bit higher than the previous models mentioned within this article, it’s still considered an affordable vehicle to run. If you opt for the new ë-C3 model, it'll be slightly cheaper to insure, as it's currently placed between the groups 5 and 19.
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Volkswagen up!
A staple when it comes to urban driving, Volkswagen designed a great vehicle for city driving and short daily commutes. Often chosen as a driver’s first vehicle, the up! is affordable to run and purchase considering its standard kit which is good value for money.
Offered with a range of petrol engines and an all-electric powertrain, the traditional engine has a fuel return of 51 and 55mpg depending on the model you choose, and its newer generation of the electric version offers up to 159 of electric range.
Insuring your UP! should be inexpensive compared to other vehicles within its category, with most models occupying groups 1 to 10. The UP! is offered in a performance variant which can be placed in group 17.
Another factor to keep in mind, is that the all-electric powertrain will benefit from ULEZ exemptions, and will be able to drive in London city centre free of charge.
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Skoda Octavia
Next up is Skoda’s mid-size family hatchback, the Octavia is versatile and performs well in diverse environments. Available with petrol and diesel powertrains, you can choose between a range of 1.0 and 2.5-litre engines. The diesel models are usually more fuel efficient of the two combustion options offering a return of up to 80mpg, whereas petrol engines offer up to 60mpg.
Also offered with a hybrid-electric powertrain, this is the most economical option with a fuel return of up to 288mpg, although the purchase cost is a bit higher than the petrol and diesel powered models.
When it comes to car insurance, the Octavia occupies groups 8 to 31 depending on the model. However, if you opt for a high-performance trim, it’s likely your vehicle will be placed on higher insurance groups.
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Hyundai i10
Lastly, featuring another best-selling city car, the Hyundai i10 is an entry-level vehicle ideal for first-time drivers who’re looking for a vehicle that will keep their fuel bill low and their insurance premium even lower.
Currently available with a range of petrol powertrains, you can choose between a 1.0 and 1.2-litre engine that have a return of 56 and 55mpg respectively. You can also choose a performance model that's equipped with 1.0-litre T-GDi Turbo engine, although it has a slightly lower fuel economy returning up to 52mpg.
This is one of the cheapest vehicles to insure featured on this list, belonging to insurance groups 1 to 10, where the performance model is likely to be placed at higher insurance groups than the standard trim.
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Discover cheap cars through Evans Halshaw
Regardless of the type of car you need or prefer, there are plenty of options if you need something that's cheap to run and maintain.
If none of the cars above are quite what you're looking for, then we do offer a range of great deals on other new and used cars for you to browse from. Alternatively, if you want some more car buying advice, or general motoring tips, then you can head over to our blog section.
