The Cheapest Cars That Are Affordable To Run

Insurance group: From Group 1

Volkswagen’s Up! has become one of the most popular first cars, and that certainly bodes well if you’re looking for a vehicle that’s affordable to run and insure.

The up! uses small 1.0-litre petrol engines that are universally efficient, with some versions with sub-100g/km CO2 emissions even qualifying for free car tax. In normal driving, you should comfortably see around 55mpg, and more if driven steadily. Despite its small size, the Up! is surprisingly spacious, especially the five-door versions, which offer enough room for adults to sit relatively comfortably in the rear seats.

With used examples starting from just a few thousand pounds, the Up! is a very capable car that can certainly help reduce your motoring bills.

Insurance group: From Group 13

If you need a larger car, these typically tend to be far more expensive to run and insure, but an exception to the rule is the Dacia Jogger. It’s this budget brand’s newest seven-seat MPV, and brings impressive flexibility and practicality considering its relatively low price.

Though the Jogger has recently been available with a hybrid powertrain, most models you’ll see for sale will be the turbocharged 1.0-litre petrol engine, which sits in insurance group 13. Standard equipment is fairly generous too, considering the Dacia’s value-based origins. The Jogger hasn’t been on sale for all that long, so used prices are still fairly close to what you’d pay for a new example. That said, the depreciation is expected to be minimal.

Insurance group: From Group 9

SUVs are known for being bigger and more expensive to buy and run, but if you want a vehicle of this type, there are frugal and affordable options that can be bought. One of the best is the Skoda Kamiq, and while it might be this firm’s smallest SUV, it can do the job of a far larger car.

It’s a great alternative to larger vehicles, owing to its well-packaged interior, which brings plenty of boot space and room for adults to sit in the rear seats. The other great thing about the Kamiq is its low running costs, as with the small 1.0-litre petrol engine in particular, this Skoda is very frugal and sits in insurance groups as low as 9, which is impressive for a vehicle of this type.

Insurance group: From Group 1

If you’re looking for a car that’s cheap to buy, run and insure, the Citroen C1 is well worth considering. Twinned with the Peugeot 107 and Toyota Aygo, it’s the first-generation C1 we’re looking at here, and with used prices starting from as little as £1,000, used cars don’t get much more affordable.

The C1 is a compact car and that’s reflected in its tiny boot and limited rear-seat space, but if that’s not important, this baby Citroen is well worth considering. Though a diesel was offered, it’s the 1.0-litre petrol engine that’s the best to go for when it comes to insurance purposes, with these starting from just insurance group 1.

Insurance group: From Group 8

If you need something a bit bigger but don’t want to go down the MPV or SUV route, it’s worth looking at more traditional family hatchbacks. For low running costs, consider the Hyundai i30, and the third-generation model (introduced in 2017) in particular. That’s because this model was a big step forward in terms of quality, styling and technology.

It might not be the most exciting car around, but it’s comfortable, quiet and generously-equipped. With Hyundai’s 1.0-litre turbocharged T-GDI petrol engine under the bonnet, it’s impressively efficient as well, returning more than 50mpg in normal driving. With insurance groups starting from just 8, it’s very credible for a car of this type.

Insurance group: From Group 8

When it comes to family cars, there have been few more appealing models over the years than the Volkswagen Golf. It’s a car renowned for its ease of use, practicality and high-quality feel and that’s true even of the latest models. But we reckon the model that has the best balance when it comes to being cheap to run is the seventh-generation model, sold between 2013 and 2020.

There are a range of frugal engines available, including a 1.2-litre turbocharged petrol that sits in the lowest insurance group (8), but there are also various diesels that can comfortably return 60 mpg, but are best suited for those doing high mileage each year.

Insurance group: From Group 15

The Ignis is a car which is larger than life. While its dimensions may be compact, its chunky styling lends it a ‘tiny monster truck’ aesthetic. It’s also got a reasonably raised-up seating position, giving you a more confidence-inspiring view of the road ahead than you’d get in a traditional hatchback. 

It’s actually quite roomy inside considering its overall dimensions while all of the engine choices available on the Ignis are great on fuel. This little Suzuki is better to drive than you might expect, too, with well-managed body control blending with pleasant steering to make a car that is quite good fun in the bends. 

The latest Hyundai i10 generation continues to improve on a strong formula, with longer and wider dimensions bridging the gap between a compact city car and a supermini. It has a stylish design on the outside and in, and improved cabin space. Plus, it comes with a lot of new equipment and impressive technology, justifying its new starting price (which is from approximately £13k). Standard kit includes autonomous emergency braking (AEB), lane-keep assist, and a driver attention alert. On the road, the i10 is much like previous iterations: it is easy to drive and manoeuvre, it is agile and nippy, and it offers cheap running costs, with a choice of two low capacity petrol engines. For those with a smaller budget, you can find a wealth of used deals for under £10k as well, including recent models from 2017 to 2019.

Insurance group: From Insurance group 2

The SEAT Ibiza has always had a youthful charm to it, with a sportier drive and design than its sibling cars, the Volkswagen Polo and Skoda Fabia. You might expect this to result in higher running costs, but thankfully that’s not the case with this hatchback.

Our vote goes to the latest generation of Ibiza, which arrived in 2017 and continues in production today. Available with a range of small petrol engines, from a running costs perspective, you want to choose the naturally-aspirated 1.0-litre ‘MPI’ petrol engine, which delivers great fuel economy and sits in insurance groups as low as 2. Combine that with the Ibiza’s roomy interior and generous equipment levels and it makes this SEAT a very attractive used buy.

Insurance group: From Group 2

Mazda has a solid reputation when it comes to making cost-saving cars and the 2 is a fine example of this. With its curvaceous styling, the 2 still looks modern today yet it’s relatively inexpensive to buy – you can find high-mileage examples for under £5,000, though we’d be tempted to push the budget a little higher to get a tidier version. 

This generation of 2 is good to drive as well, with nimble handling that makes it a great fit for around-town drivers. You shouldn’t have too many issues when it comes to the 2’s mechanicals, either, as it’s got a car which is well-known for its reliability.