As we approach 2026, the RAC has identified the most budget-friendly new cars for 2025, ideal for cost-conscious drivers. Rising diesel prices and escalating electric vehicle costs are prompting many drivers to seek affordable and reliable transportation options.
Dacia Sandero: Britain’s Top Budget Car
The Dacia Sandero has been crowned Britain’s cheapest new car. This third-generation supermini features a 1.0-litre engine, offering ample space for passengers and luggage. Its boot capacity stands at 328 litres, making it one of the most practical cars in its category.
- Generous rear seat space suitable for larger adults.
- Equipped with features typically found in pricier models, including cruise control and rear parking sensors.
- The Sandero is the best-selling car in Europe.
Updated Models and Pricing
Dacia has recently unveiled updates for both the Sandero and its rugged variant, the Sandero Stepway. These refreshed models showcase new styling, additional equipment, and enhanced safety features. Prices now start at:
- Dacia Sandero: £14,795
- Dacia Sandero Stepway: £16,065
- Dacia Spring (entry-level EV): £12,240 (after £3,750 Electric Car Grant)
The entry-level Trims keep the costs low by offering essential features, such as a phone mount instead of a built-in infotainment screen. Upgrading to higher trims introduces larger screens and extra conveniences.
Other Cost-Effective Options
In addition to the Dacia lineup, the new Leapmotor T03 and Kia Picanto offer compact, city-friendly alternatives praised for their handling and maneuverability. While these models may not be the most comfortable for longer trips, they provide some of the best car insurance rates available.
The Toyota Aygo X stands out as a versatile choice, priced at £16,845. It provides SUV-like styling, excellent fuel efficiency, and strong safety ratings.
Market Trends and Insights
2025 has been notable for several standout releases. The ever-popular Ford Puma holds its position at the top of sales charts, while the Jaecoo 7, manufactured in China, has attracted drivers looking for budget options similar to luxury brands.
Despite some promising models, several others have ceased production this year. Models like the Mazda MX-30 and Porsche 718 Cayman are now available only through second-hand outlets.
