Car finance: best new car deals for less than ?200 per month

  • Deals on everything from SUVs to hatchbacks
  • Great value personal lease deals and PCP finance options
  • Payments start from as little as ?159 per month

Looking at cars in the ?200 per month range? Well, you're not the only one. This article is the most read in our ? per month suite of features.

Why? Well, ?200 is a sweet spot in the pay monthly prices. It's roughly 10% of the average wage, a good yardstick on what to spend on a car. And there's plenty of choice too. Superminis, hatchbacks, crossovers, and SUVs can all be found. There are two types of financial agreement on offer here: leasing, and PCP.

Leasing (sometimes called PCH) is essentially a form of long term rental. You start with an initial payment, then follow it up with a series of monthly payments. Then that's it. You hand the car back.

PCP (Personal Contract Purchase) deals involve a deposit and a series of monthly payments. Then you can choose if you want to buy at the end, with what is often called a balloon payment.

Leasing is usually better if you don't want to buy a car, and a PCP is better if you want to keep your options open.

Best new cars for under ?200 a month 2020

LEASE: Nissan Qashqai

Best new car for ?200 a month for: high driving position

White 2018 Nissan Qashqai

The Qashqai really kicked off the crossover craze when it debuted in 2007. Since then, it's grown into a mature and popular choice for young families. How popular? Well, it was the sixth bestselling car of 2019 in the UK.

People love the high driving position that gives them a commanding view of the road ahead, despite not being all that much larger than a traditional hatchback like a Volkswagen Golf.

This leasing deal is for well equipped N-Connecta models, featuring a bird's eye view camera, a panoramic roof, and 18-inch alloy wheels.*

Leasing price: from £199 per month

LEASE: Mini Hatch

Best new car for ?200 a month for: an iconic name

2018 white Mini Hatchback

Despite being much larger than the cars of yesteryear, the Mini is still instantly recognisable as a Mini from the outside. Inside, you're greeted by a huge circular infotainment screen, reminiscent of the original Mini's analogue dials.

The five-door model has enough space for a small family and their stuff, and it's still great to punt around a set of bends you know well. The steering is sharp and direct, and you really sense there's a level of fun to be had that's missing with other cars of this price bracket.

Your ?165 gets you behind the wheel of a 136hp Classic specced version with LED lights and a DAB radio.*

Leasing price: from £197 per month

LEASE: Renault Kadjar

Best new car for ?200 a month for: size

2018 blue Renault Kadjar

Like the look of the Nissan Qashqai, but just wish it was a bit bigger? You're in luck. Strip away the bodywork of this Renault, and underneath you'll find the same oily bits as the Qashqai.

The Kadjar does have an ace up its sleeve though. It's longer, meaning it has a bigger boot than the Qashqai. Although subjective, the Kadjar is also a bit more special to look at.

S Edition models like this one are one rung below top spec. This means you get a panoramic sunroof, lane departure warning systems, and a rear parking camera for your ?200 per month.*

Leasing price: from £179 per month

LEASE: Skoda Kamiq

Best new car for ?200 a month for: Skoda simpleness

Skoda Kamiq driving

In the market for a small SUV? Well, you're well catered for in this list. What sets the Kamiq apart from the rest of the cars here? Skoda has managed to make an alternative that¡¯s stylish, sophisticated, well-equipped and good to drive.It might look high up in pictures, but it's not really. It's just a bit higher than a regular hatchback, making it look much less blobby than some other SUVs.

There's a good variety of specs for the ?200 range. For just a smidge over budget, you can get an SE L model with a virtual cockpit system, that replaces traditional dials behind the steering wheel with a posh-looking screen.

Leasing price: from £184 per month

*These deals are indicative examples of some packages available as of 21 February 2020 but are subject to change without prior notice. Everyone¡¯s financial circumstances are different, and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically. Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited. Terms, conditions and exclusions apply.

PCP: Honda Jazz

Best new car under ?200 a month for: sensible serenity

yellow Honda Jazz front

There's a new Honda Jazz on the way, which explains why this outgoing model is on offer.

The new one promises to be a bit flashier on the outside, and a bit plusher inside. But there's no denying that for ?165 per month, the Jazz is still an appealing thing. If you're after a reliable, steady, and efficient car that's easy to get in and out of, the Jazz is easy to recommend. It's nicely put together too, and you'd be unlucky if it ever let you down.

0% APR makes it great value if you're thinking of buying at the end of the contract.**

Honda Jazz EX 1.3 i-VTEC manual

  • Monthly cost: ?165 (36 payments)
  • Deposit: ?4,227.64
  • Total amount payable by customer to buy car: ?17,760
  • Cash price: ?17,760
  • Mileage allowance: 10,000 miles per year
  • APR: 0%

Honda Jazz PCP deal

PCP: Renault Clio

Best new car under ?200 a month for: newness

2019 orange Renault Clio

New for last year, the Renault Clio may not look all that different to the old one, but it's a significant step up in terms of quality. The interior especially feels like it's from a much larger and more expensive car and there's a swish portrait style touchscreen infotainment system, which comes in different sizes depending on which trim level you choose.

It even took home our First Car of the Year award.

This 0% APR deal, combined with Renault's new five-year warranty, makes it a great choice if you're thinking of buying and keeping a car for a while.**

Renault Clio Play SCe 75

  • Monthly cost: ?179 (24 payments)
  • Deposit: ?2,685
  • Total amount payable by customer to buy car: ?14,695
  • Cash price: ?14,695
  • Mileage allowance: 6,000 miles per year
  • APR: 0%

Renault Clio PCP deal

PCP: Ford Fiesta

Best new car under ?200 a month for: all-round ability

2019 Ford Fiesta Trend rear

The Ford Fiesta is the bestselling car in the UK by a country mile. It's well thought out, there are loads of spec and engine options, and dare we say it, it's more fun to drive than it has any need to be. Good looking and dependable too.

Trend is the cheapest Focus on offer. But it doesn't mean you do without modern needs ¨C there's Ford's heated front windscreen, alloy wheels, and a lane-keeping aid.

This 0% APR deal is great if you want to own the car at the end. It's worth noting that this is a very similar deal to the Renault above ¨C we'd recommend going into the showrooms and picking the one you like the most.**

Ford Fiesta Trend 1.1

  • Monthly cost: ?170 (24 payments)
  • Deposit: ?4,152
  • Total amount payable by customer to buy car: ?15,995
  • Cash price: ?15,995
  • Mileage allowance: 9,000 miles per year
  • APR: 0%

Ford Fiesta PCP deal

PCP: Seat Arona

Best new car under ?200 a month for: small crossover vibes

2018 red Seat Arona

Seat's littlest crossover has been on sale since 2018, but it still looks fresh. It's the car to choose if you want something different from a regular hatchback, or if you prefer a slightly taller seating position. Dead easy to get in and out of too.

The APR on this deal isn't brilliant, but a ?1,500 discount in the form of a deposit contribution brings pricing down to less than ?200 per month.**

Seat Arona 1.0 TSI 95 SE

  • Monthly cost: ?199 (47 payments)
  • Deposit: ?2,279 (including ?1,500 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: ?18,707.28
  • Cash price: ?17,700
  • Mileage allowance: 9,000 miles per year
  • APR: 6.1% 

Seat Arona PCP deal

PCP: Volkswagen Polo

Best new car under ?200 a month for: poshish superminis

2018 black Volkswagen Polo

Volkswagen's Polo is proof that small cars needn't be bereft of soft-touch plastics and fancy infotainment systems. Beyond the superficial, the Polo is spacious, and a lot more comfortable for passengers than some other superminis.

This offer is for the special edition Match model. This gets loadsa bits added, like Apple CarPlay/Android Auto, a rear view camera, and adaptive cruise control.

Like the Arona above, the deposit contribution helps bring the monthly price down.**

Volkswagen Polo Match 1.0

  • Monthly cost: ?159 (47 payments)
  • Deposit: ?3,550.50 (including ?1,250 manufacturer deposit contribution)
  • Total amount payable by customer to buy car: ?18,148.80
  • Cash price: ?16,465
  • Mileage allowance: 10,000 miles per year
  • APR: 4.9% 

Volkswagen Polo PCP deal

What to read next - car finance

And you can check out the best deals for all budgets below:

Looking to learn more about car finance? Watch our video guides to PCP financePCH leasing and Hire Purchase, or visit our car finance calculator to find out how much you can afford to borrow.

** These deals are indicative examples of some packages available as at 21 February 2020, but are subject to change without prior notice. Everyone's financial circumstances are different and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically.

Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated consumer hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited's registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited's company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited.