Money & Budgeting

Cheapest Cars to Run UK — Most Economical Cars 2024

Guide to the cheapest cars to run in the UK. Best cars for low running costs including insurance, fuel, tax, and maintenance. Budget-friendly motoring.

By PocketWise · · 4 min read

Running costs can vary hugely between cars. Here are the most economical options.

What Makes a Car Cheap to Run?

Key Factors

Factor Impact
Fuel economy Biggest ongoing cost
Insurance group 1-50 scale
Road tax band £0-£600/year
Service costs Parts and labour
Depreciation Especially on new cars
Reliability Repair frequency

Cheapest Category

For Lowest Running Costs Choose
Size Small
Engine Small petrol or electric
Insurance group 1-10
Power Modest
Brand Mainstream

Running Cost Breakdown

Average Car (Petrol, 10,000 Miles/Year)

Cost Typical Annual
Fuel £1,200-£1,800
Insurance £400-£800
Tax £0-£180
MOT £50
Service £200-£400
Tyres/repairs £200-£400
Total £2,050-£3,630

Cheapest Cars (10,000 Miles/Year)

Cost Budget Option
Fuel £800-£1,000
Insurance £300-£500
Tax £0-£30
MOT £50
Service £150-£250
Tyres/repairs £150-£250
Total £1,450-£2,080

Cheapest Cars to Buy and Run

New Cars Under £20,000

Car Price From Insurance Group MPG Tax
Dacia Sandero £13,000 4-10 50-55 £0-£30
MG3 £14,000 10-15 50 £30
Skoda Fabia £17,000 7-12 52-58 £0-£30
Toyota Aygo X £15,000 2-5 55-60 £0
Hyundai i10 £15,000 2-6 52-56 £0-£30
Suzuki Swift £16,000 8-12 55-65 £0-£30

Used Cars Under £10,000

Car Used Price Insurance Group MPG
Toyota Yaris £6,000-£10,000 6-12 55-65
Skoda Citigo £5,000-£8,000 1-3 55-60
Hyundai i10 £5,000-£9,000 2-6 52-58
Ford Fiesta £6,000-£10,000 6-16 50-58
VW Polo £7,000-£10,000 6-15 50-55
Suzuki Swift £6,000-£9,000 7-12 55-62

Insurance Groups

Cheapest to Insure

Group Cars
1-3 Skoda Citigo, VW Up, Seat Mii
2-5 Toyota Aygo, Hyundai i10
4-8 Dacia Sandero, Kia Picanto
6-12 Toyota Yaris, Suzuki Swift
8-15 Ford Fiesta, Skoda Fabia

Why Groups Matter

Insurance Group Typical Premium Impact
Group 1-5 £300-£500/year
Group 6-15 £400-£700/year
Group 16-25 £500-£900/year
Group 26-40 £700-£1,200/year
Group 40+ £1,000+/year

Fuel Economy

Best Petrol Cars for MPG

Car Real-World MPG
Toyota Yaris Hybrid 60-70
Suzuki Swift mild hybrid 58-65
Toyota Aygo X 55-62
Hyundai i20 mild hybrid 55-60
Skoda Fabia 52-58

Fuel Cost Comparison

MPG 10,000 Miles Cost (£1.45/litre)
35 £1,880
45 £1,460
55 £1,200
65 £1,010

Difference between 35 and 65mpg: £870/year

Electric vs Petrol

Type 10,000 Miles Cost
Electric (home charging) £400-£600
Hybrid (60mpg) £1,000-£1,200
Efficient petrol (55mpg) £1,200-£1,400
Average petrol (40mpg) £1,650-£1,850

Road Tax (VED)

Cheapest to Tax

Emissions Annual Tax
0g/km (electric) £0 (until 2025)
1-50g/km £0-£10
51-75g/km £30
76-90g/km £135
91-100g/km £165
Standard rate (101+) £180

First-Year Tax (New Cars)

CO2 First-Year Tax
0g £0
1-50g £10
51-75g £30
76-90g £135
91-100g £175
Over 255g £2,745

Servicing and Repair Costs

Cheapest Brands to Service

Brand Service Cost Typical
Dacia £100-£180
Skoda £120-£200
Hyundai/Kia £130-£200
Toyota £150-£220
Ford £130-£220
Suzuki £120-£200

Most Reliable Brands

Brand Known For
Toyota Excellent reliability
Suzuki Low repair rates
Mazda Good build quality
Hyundai/Kia Improved reliability, long warranty
Skoda Generally reliable

Best Value by Type

For New Drivers (Cheap Insurance)

Car Insurance Group Why
Skoda Citigo 1-3 Cheapest to insure
Toyota Aygo X 2-5 Very low insurance
Hyundai i10 2-6 Affordable and safe
VW Up 1-4 Low running costs

For Families (Balance Value)

Car Strengths
Dacia Jogger Cheapest 7-seater, £17,000
Skoda Fabia Practical, efficient
Toyota Corolla Reliable, hybrid available
Dacia Duster Cheap SUV

For High Mileage (Focus on Fuel)

Car Why
Toyota Yaris Hybrid 60-70mpg, bulletproof
Toyota Corolla Hybrid Efficient, spacious
Any efficient diesel Still makes sense for 20k+ miles
Electric (if can charge) Cheapest per mile

Total Running Cost Examples

Example 1: Dacia Sandero (New, 10k miles/year)

Cost Annual
Fuel (52mpg) £1,260
Insurance (group 8) £450
Tax £20
MOT £50
Service £150
Total £1,930

Example 2: Toyota Yaris Hybrid (New, 10k miles/year)

Cost Annual
Fuel (65mpg) £1,010
Insurance (group 12) £500
Tax £0
MOT £50
Service £200
Total £1,760

Example 3: Electric MG4 (10k miles/year, home charging)

Cost Annual
Electricity £500
Insurance (group 25) £600
Tax £0
MOT £50
Service £120
Total £1,270

Summary: Cheapest Cars to Run

Top Picks Overall

Category Best Value
Lowest purchase price Dacia Sandero
Lowest insurance Skoda Citigo, Toyota Aygo
Best fuel economy (petrol) Toyota Yaris Hybrid
Best total cost Electric (if home charging)
Best reliability Toyota, anything
Best all-rounder Suzuki Swift, Toyota Yaris

Annual Running Cost Targets

Budget Level Target Annual Cost
Very cheap £1,500-£2,000
Cheap £2,000-£2,500
Average £2,500-£3,500
Higher £3,500-£5,000+

Quick Tips

Tip Why
Choose low insurance group Big impact on young drivers
Prioritise fuel economy Biggest ongoing cost
Consider used Much cheaper depreciation
Check reliability Repairs are expensive
Think total cost Not just purchase price

The cheapest cars to run combine low insurance groups, good fuel economy, cheap servicing, and reasonable reliability. Small Japanese and mainstream European cars typically offer the best value.

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Sources

  1. MoneyHelper — Everyday money