PCP is huge: it’s the way the majority of us in the UK buy our cars. So what are the best models for those on a £200 per month budget? Find out here
Jimi Beckwith
12 December 2016

We’ve trawled the latest offers for the best monthly PCP deals on the best cars on sale.

Take a look through our list of the best deals for less than £200 per month. Only cars we rate at four stars or above make the grade, so you can guarantee you’ll be getting a decent model for your money. Alternatively, look here for our best new car deals when buying outright. 

The deals listed are over three years, with a 10,000-mile annual limit and an initial payment of 15% of the car’s value.

Take a look at the best PCP car deals under £100 per month here

The best new cars for £200 per month or less:

Audi A3 1.0 TFSI SE 3dr

Even with the diminutive 1.0 TFSI engine, the Audi A3 offers flexible and punchy performance.

In SE spec you get 16in alloys, xenon headlights, electrically adjustable and heated door mirrors, cruise control and automatic lights and wipers. All that is in addition to a 7in infotainment system with DAB, Bluetooth and two USB ports, so it’s no surprise the A3 tops out the £200 per month budget.

Dacia Duster

The Dacia Duster, our online review of which was our most-read of last year, is available at less than £200 per month in two trims: both entry-level Access trim and next-up Ambiance spec.

We rate the Duster for its budget appeal, spacious interior and decent running costs. In entry-level Access spec it costs £137 per month, or £181 with four-wheel drive, while in Ambiance trim it costs from £158 with two-wheel drive and a 1.6-litre petrol engine, up to £193 for the diesel-powered car.

 

Fiat 500

Much of the Fiat 500 range is available for less than £200 per month, with a few examples only a fiver or so above our £200 limit. Top-spec cars can be as much as £296 per month, though.

We like the 500’s mix of cheeky retro looks, good value and classy interior, although it’s slightly let down by a noisy engine range and a deficit of space, but it is a city car, after all. You can have the 500 for as little as £137 per month in basic 1.2 Pop spec.

Ford Fiesta ST

Taking the prize for the most fun you can have for under £200 per month is the Ford Fiesta ST-3. In fact, the whole Ford Fiesta ST range (with the exception of the extra hot ST200) and the vast majority of the rest of the Fiesta line-up is available for less than £200 per month.

It’s the Fiesta ST we’re looking at here, which is available from £150 per month in ST spec, from £159 per month in ST-2 spec and £169 per month in ST-3 spec. It’s one of the highest-rated sub-£200 per month cars in our list for its handling, gearbox and engine, and is a bona fide hot hatch bargain.

Ford Focus

If you’re after more space but less pace, the Ford Focus is also available for less than £200 per month. The whole range hovers around the £200 mark, but the entry-level 1.6 85 Style-spec Focus costs just £146 per month.

Strong points include value for money, handsome styling and a range of frugal engines, but those after a plush interior will have to sacrifice some interior style in exchange for the sub-£200 monthly price.

Mini hatchback

Sneaking in under the £200 limit are the Mini One and Mini Cooper hatches. They’re base-spec cars, but we love the Mini’s personality, interior quality and decent range of engines.

Even the entry-level 1.2-litre Mini One - £178 per month or £198 with the Pepper Pack – gets our approval, in addition to the slightly sportier 1.5-litre Cooper at £185. It’s a solid four-and-a-half star car in both variants.

Nissan Note

The Nissan Note isn’t long for this world, with the Micra indirectly replacing the model, in addition to its predecessor, when the all-new supermini goes on sale early next year. The Note is still available for now though, from £174 per month in entry-level Acenta trim.

Acenta Premium and Black Edition specs are also available for less than £200, with all variants receiving praise for their practicality, frugality and smooth ride.

Renault Clio

Much of the Renault Clio range is priced at under £200 per month on a PCP deal, although many of the diesel options are more than £200 in anything other than bottom-rung spec.

The petrol range doesn’t break the £200 barrier until high-end 1.2 TCe Dynamique S Nav spec, so those looking for a low monthly cost are best advised to go for these. Whatever you go for, you’ll get a nicely styled, decent-riding and good-handling supermini.

Seat Ateca 1.0 Ecomotive S

Few cars have made a bigger impact in the past year than the Seat Ateca, which has already become one of our favourite small SUVs. There’s only one available at under £200 per month though: the 1.0 TSI Ecomotive S.

Despite being the entry-level car, we rate it highly and think it’s one of the best small SUVs out there, especially for those who do lots of urban driving. It’s £192 per month.

Skoda Octavia 1.0 TSI S

The Skoda Octavia we've found is another 1.0-litre Volkswagen Group car and another sub-£200 per month deal. You can have it in either hatchback form, at £181 per month as a manual or £199 with a DSG dual-clutch automatic gearbox, or as an estate, at £200 for the manual or £216 with the DSG gearbox.

It’s the only Octavia available for under £200 per month but it’s also one of the biggest cars on the list, so in terms of practicality per pound, few other cars here, if any, can match it.

Suzuki Swift Sport Nav 3dr

The Swift Sport is another of our favourites for those on a budget of around £200. It pushes the limit at £205 per month, but in terms of smiles-per-mile, it's hard to beat. It's not the hottest of hot hatches - it's more of a warm hatch - but we find that it blends practicality with fun almost perfectly. 

Vauxhall Corsa

Many variants of the Vauxhall Corsa can be had for less than £200 per month, although only three of these include anything other than the 1.4-litre petrol engine.

One diesel – the 1.3 CDTi Ecoflex Energy car – is available, and two specs with the 1.0-litre turbocharged three-cylinder engine, and all three are within £10 of the £200 limit. The cheapest – a 1.4 75 Sting car in three-door format – costs £160 per month.

VW Up

VW’s smallest car, the Up, is available exclusively below £200. The only engine available in the Up is the 1.0-litre petrol engine, but any spec you choose will come in beneath £200 per month, from basic Move Up (£141) to range-topping 89bhp Up Beats spec in five-door format (£191).

We applauded the Up for its decent interior space, premium-feeling interior and real-world fuel economy, but it’s let down by an imperfect gearbox. 

The best new car PCP deals for under £200 per month are: 

- Audi A3 1.0 TFSI SE 3dr

- Dacia Duster

- Fiat 500

- Ford Fiesta ST 

- Ford Focus 

- Mini hatchback

- Nissan Note

- Renault Clio

- Seat Ateca 1.0 Ecomotive S

- Skoda Octavia 1.0 TSI S

- Vauxhall Corsa

- VW Up

This list will be updated with new deals each month, so make sure you check back for the latest new car PCP deals.

Our Verdict

Ford Fiesta ST
Can the Fiesta ST be one of the great fast Fords?

The popular hatchback gets the hot ‘ST’ treatment

Join the debate

Comments
34

12 December 2016
Must admit that PCP's do look enticing. My local BMW stealer is offering a BMW140i for £299 per month. But then I do the sums and add up the deposit, monthly payments etc and it soon puts me off. I'd rather drive around in my old nail and put the money towards an even early retirement.

12 December 2016
The concept sounds great, but then there's a deposit to find and an agreement not to do too many miles.

I wonder what happens to folks who suddenly lose their job?

The only plus I can think of is the fact that many punters get a mysterious phone call with an amazing offer if they sign up for a new deal when the dealership is desperate to make the next bonus level.

I tried out a pre -reg BMW 135i last week - 26K - but can't muster up the courage to take out an £8K loan when the 125 M Sport still runs well.

BMW/Mercedes are now hooked into the numbers game - desperately bring to keep the factories busy - hopefully their corporate clout will keep anti Brit sentiment from cobbling us after we leave the EU!

Can't see them risking a huge dive in exports no matter what the other EU bureaucrats suggest.

13 December 2016
For a Polo GTI. Works out about £4500 (with deposit) over 2 years and 20k miles, which doesn't seem bad for a nearly £20k car. I don't have £20k, in cash, to spend on a car and a £20k loan would cost me much more than what I'm paying now. That said, there is some terrible examples in that list. A mate is paying £200 per month for a Seat Leon Cupra. Hmmmm, Cupra or a proverty spec Focus or Duster???

13 December 2016
A PCP can be configured to provide a monthly payment of anything you like. It's the ultimate sales tool so the dealer can say to the customer "how much can you afford to pay each month sir?" - and then he can provide a PCP to match. None of the above cars really cost £200 per month because the calculation ignores the initial deposit which is completely lost when the car is handed back. So before buying with a PCP, check out the interest payable, the total amount payable and any mileage limitation. These are the figures that matter NOT the monthly payment.

13 December 2016
PCP really doesn't need to be complicated. 1. The initial payment should never be called a 'deposit' - you don't get it back. So just adjust your calculations and include that in the cost.
2. You can alter the mileage to suit, it will just affect the overall cost, that's all.
If you know your numbers and keep an eye on the market, you can always benefit from PCP versus buying cash. Plus, it really doesn't make sense to have capital tied up in depreciating assets. There is no business case for it.

13 December 2016
When you hand the car back. You're get a bill for repairs for every minor scratch on each wheel, every stone chip (and I mean every stone chip), every tiny mark on the seats and plastics, a service, a FULL valet and all will be charged at dealer main prices. Be prepared to add £600 to your bill. Trust me you’ll be to paranoid to enjoy the car.
Also how can Autocar be so flippant about the 15% deposit, PCP never work out cheaper than saving and/or small bank loan.

 

Hydrogen cars just went POP

13 December 2016
You only get the charges you mentioned if you choose the hand back option at the end of the contract and the vehicle is worth less than the optional final payment. The majority of PCP's wee see tend to have equity in the car at the end of the process so customers get money back towards their next one rather than charges for repairs. anywhere from 5-20% is pretty standard for what customers ask to put in, deposits amounts are customer choice with manufacturers just setting max an min amounts, Autocar isn't being unrealistic choosing 15% as an example figure. A Lot of PCP's do work out cheaper than bank loans with manufacturers having very low interest rates on new cars - eg Ford above at 0.9% for 2yr PCP (2.9% for 3yr) both cheaper than a bank loan, then they have finance deposit contributions where they effectively give you extra money off for taking the PCP, and when you set these against the interest they become even cheaper when considered against a loan, for example the Fiesta mentioned had £1000 currently and the Focus £1250. Against used cars it's a different story, but that's not what this article covers.

13 December 2016
Orangewheels wrote:

You only get the charges you mentioned if you choose the hand back option at the end of the contract and the vehicle is worth less than the optional final payment. The majority of PCP's wee see tend to have equity in the car at the end of the process so customers get money back towards their next one rather than charges for repairs. ....

Nope you'll either get charged if you hand the car back, at outrageous rates, or you'll get less money for 'part-ex' so to speak (and you're tried to the same firm in that case). The cheapest way save and get a small loan if you have to

 

Hydrogen cars just went POP

13 December 2016
One thing to correct here. You can part ex the car to anyone. You're not tied to that dealer. e.g. A ford dealer will take your PCP Honda, they just settle the final payment, or sell/send the car back to a Honda dealer for you.

My bottom line with PCP is the interest rate and or contribution. These can massively sway the value of a deal. A 0% deal means you pay the depreciation not interest on the principle. A big contribution is equivalent to a list price discount. If you have both then the deal might be very good.

Has PCP killed haggling? Has anyone got a good discount off the top of a PCP?

13 December 2016
finecitytom wrote:

Has PCP killed haggling? Has anyone got a good discount off the top of a PCP?

If it's on a new car you can't really haggle on the interest rate, or ask the dealer to increase the final payment to make the monthly payment cheaper as they are fixed by the manufacturer.

The dealer should still have their full margin to negotiate with so haggling on list price is still commonplace. Occasionally with brands like Audi, some of the finance deposit contribution that is part of the national offer has to be paid by the dealer out of their profit margin on the car, so there is less to play with.

You can use any discount you negotiate to change the finance in 3 ways - either to reduce the deposit you need, reduce the monthly payment, or in most cases its also possible to keep those the same and reduce the final payment so there is more equity for you in the car when you reach the end of the term.

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