IT’S no secret that car prices have spiralled out of control over the past decade or so.
Even the most basic motors have seen their costs spike well above inflation, making outright purchasing almost impossible.
Take, for example, the Ford Fiesta, which was the UK’s best-selling car every year from 2009 to 2020.
According to data firm NimbleFins, the average starting price of the Fiesta was just £9,995.
Even adjusted for inflation, that works out to £13,710 today.
But the model surpassed that mark back in 2018 and now starts at £19,350 – meaning it has become almost £6,000 more expensive in real terms.
The problem has only been worsened by the push to EVs, which rarely drop below £20,000 (and even then carmakers still make vast losses on them).
With that in mind, buyers are increasingly on the hunt for budget-friendly options when it comes to choosing their next ride.
Fortunately, there are still some affordable options on the market, with a bevvy of sub-£20k models coming to showrooms brand new in 2025.
Dacia Sandero
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Starting price: £14,200
Romanian firm Dacia has made affordability the centre of its brand and, with the Sandero, can boast of offering the cheapest new car in the UK.
Currently on sale for £13,795, the model is set for a slight price rise in 2025, but still sits well below all its rivals.
And, unlike other ultra-cheap offerings, the Sandero isn’t a tiny hatchback.
Closer to an SUV in appearance, the car closes in on the smaller end of the mid-size segment despite its great value.
Renault Twingo
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Starting price: £17,000
The release date for the Twingo remains a mystery and it could take until early 2026 to appear, but there is a chance of a late 2025 release.
The French firm has been making the Twingo since 1992, but is all set to present a revolutionised EV version of the classic model in the coming months.
At £17,000, it is designed to undercut rivals like the Fiat 500e and slots in as the cheapest full-size electric model available to Brits.
Its release will mark the Twingo’s return to the UK market after a five-year hiatus, with the new version developed in partnership with an unnamed Chinese EV company.
Skoda Epiq
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Starting price: £22,000
While no major carmaker is matching the likes of Dacia in terms of price, the race for most in Europe has been to develop an EV that can go on sale for less than £22,000 (€25,000).
Skoda has done just that, with the new Epiq electric SUV set to come in under that mark.
It is expected to have upwards of 240 miles of range and start between £21,000 and £22,000.
Fiat Grande Panda
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Starting price: £22,000
Renault bosses aren’t the only ones reimaging their iconic models.
Fiat has brought back the Panda in a new form as a larger electric SUV, dubbed the Grande Panda.
Sitting in the same segment as the Epiq, it is set to be priced similarly, while the tech will be drawn from the existing Citroen C3 and e-C3 platforms.
VW ID.2
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Starting price: £22,000
Joining sister brand Skoda in the sub-£22k bracket is VW with the ID.2.
Based on the same platform as the Epiq, this model offers more traditional hatchback styling rather than its sibling’s chunky SUV design.
Speaking of chunky, the ID.2 makes use of a 226 horsepower electric motor to drive the front wheels, providing up to 280 miles of range.
VW also has plans to release a beefed-up GTI variant, which will boast a sportier design and tuning for extra power.
