Bargain cars for 2026: The 17 new models that cost less than £20,000

Can you get a new car for under £20,000? The answer, it turns out, is very much yes.

There are 17 new cars currently on the market – or just about to launch – that sit below that threshold, providing the nation's drivers with a choice of affordable motoring in today's cost-of-living squeeze.

Some even cost less than £15,000, as the emergence of compact, city-focused electric vehicles and a wave of arrivals from China are keeping new cars within reach of tighter budgets.

But how do they compare to a 'cheap' car of yesteryear?

Well, to work that out, we've looked at how much a Ford Fiesta – the now-discontinued but best-selling small affordable car for over a decade – would cost today if it were still on sale.

In 2020, an entry-level Fiesta cost £16,995, which is around £22,168 today, taking inflation into account. Five years before that, a 2015 Fiesta started from £10,145, which would be £14,390 in today's money.

It means drivers still have a range of models to choose from that are less expensive than a Fiesta would be.

Here's every option under £20,000 in descending order…

The Renault Twingo's price has yet to be confirmed, but the manufacturer says it will be less than £20,000. So this forthcoming EV will fall under the benchmark we've set.

The five-door compact city car harks back to the much-loved Twingo of old in both design and sense of fun.

Not only is it practical for everyday life, with its 360-litre boot, but it has a funky seven-inch driver display and a ten-inch central screen, Google built-in, 100 apps, and 24 driver-assistance features.

Chery is one of the latest Chinese newcomers, best known as the owner of its Omoda and Jaecoo sub-brands.

Now it has its own models in the UK, and the Tiggo 4 hybrid SUV – a fully fledged five-seater – is its cheapest option.

The compact family car costs only £19,995 but offers a combined range of 559 miles, a 430-litre boot, a 14-point ADAS system, dual 12.3-inch screens, and wireless Apple CarPlay and Android Auto.

Most people will have owned a Vauxhall Corsa at some point in their lives or know someone who has. It's the UK's best-selling small car, after all.

The popular supermini costs only £19,740 when you opt for the 1.2-litre petrol version, and you're well equipped, with a heated steering wheel, heated front seats, a ten-inch central touchscreen with Apple CarPlay and Android Auto, and a seven-inch driver display.

Other handy features include an automatic anti-dazzle rear-view mirror and rain-sensing wipers. The boot measures 309 litres.

This £19,670 crossover is designed to look good in urban areas – more street style than country.

Thanks to its self-charging hybrid technology, you get EV-only capability for short city trips or up to 528 miles of combined range for longer journeys.

Blue cloth comfort seats, a 10.25-inch central screen, head-up display, and wireless Apple CarPlay and Android Auto make it a cosy place to sit. The 300-litre boot is suitable for weekend getaways.

Chinese-owned MG excels at producing affordable cars of all sizes, and the MG3 is its small offering for buyers on a budget.

The 1.5-litre hybrid hatchback offers strong value. For £19,495, you get sporty styling, premium exterior touches like heated door mirrors, and, inside, a 10.25-inch screen, a seven-inch driver display, Apple CarPlay and Android Auto, and MG's Pilot safety suite.

Its 293-litre boot is adequate for short breaks.

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The Hyundai i10 is another A-segment car designed for urban life and low running costs.

With a funky design aimed at younger motorists, it remains one of the few low-cost petrol cars from an established brand.

For £19,015, it comes with an automated manual transmission, cruise control, parking sensors, a rear camera, and a leather-wrapped steering wheel.

Boot space is 252 litres.

This low-cost, practical supermini takes its design cues from the original Panda of 1980.

A touch of retro styling goes a long way, and this boxy model, with playful nods to its Italian roots, can be yours for £18,995.

The 1.2-litre hybrid features an upcycled interior, a 10.25-inch screen, Apple CarPlay and Android Auto, connected services, and a rear parking sensor.

The Honda Super-N is on its way to UK roads, launching next month.

At £18,995, this ultra-compact four-seater EV is the entry point into Honda ownership, but it still offers unique features: a 'Boost' button provides maximum performance, complemented by Active Sound Control.

Inside, retro blue-accented styling pairs with a nine-inch touchscreen, physical buttons, and an old-school radio.

Range is 128 miles, and boot space is likely to be smaller than that of a Fiat 500.

Dacia has four models under £20,000 on this list – impressive for the no-frills Romanian brand.

The Jogger is all about space and practicality for large families: it's the only seven-seater here.

With 17 safety systems, modular roof bars, and a third row that folds 50/50, it's highly versatile.

The 517-litre boot expands to 2,085 litres with two rows folded.

This small EV is a big seller for China's BYD. Its funky styling, urban agility, and 137-mile range make it an appealing budget option.

Vegan leather seats, two-tone trim, and Apple CarPlay and Android Auto are highlights, alongside a 10.1-inch rotating touchscreen.

Boot space is a respectable 308 litres.

The Peugeot 208 hybrid is a small car that's affordable to buy and cheap to insure.

The 1.2-litre manual has a fabric interior with orange trim and a very modern cockpit – more so than many other compact options.

It uses Peugeot's new i-Cockpit, featuring a 10-inch HD touchscreen, piano keys, ChatGPT, 360-degree cameras, voice recognition and vehicle-to-load (which allows you to power electronic devices from the car).

Plus, it's one of the sportier-looking small cars, with a feline stance, three red-claw-style lights and full LED headlights.

The Renault Clio has been a popular small car for years, especially with new drivers and learners.

A new sixth-generation model was unveiled last year, but it won't be sold in the UK until 2027. As such, Britons have to make do with the Mk5 car, which is still reasonably affordable.

The Clio currently in showrooms is a supermini that feels like a bigger car from £17,171. It's cheap and cheerful, with a cloth interior and plenty of practical storage features. It also comes with a seven-inch touchscreen, Apple CarPlay and Android Auto, and an Arkamys sound system.

Boot space is larger than many rival superminis at 301 litres.

Korean cars arrived in the UK in the 1980s offering value for money and reliability, and the Kia Picanto still delivers those qualities today.

The Picanto is a smart-looking A-segment car that comes with a manual gearbox – almost a nostalgic feature these days.

For £17,095, don't expect the earth. This is a city car designed for urban life on a budget, but you still get a heated rear window, an eight-inch touchscreen, a 4.2-inch driver display, rear parking sensors, a reversing camera and a full ADAS suite.

Boot space is 255 litres.

The Dacia Sandero Stepway has the intentions of a 'crossover' but in reality is a slightly jacked-up version of the standard Sandero supermini with a few additional protection bumper plastics.

It does provide an elevated driving position (though it's far from SUV like), increased ground clearance, modular roof bars and washable Microcloud upholstery.

Inside, aside from the washable materials, it follows the format of other Dacia models, with a 10-inch central screen and a seven-inch driver display.

Leapmotor is a Chinese car brand that is now majority-owned by Stellantis (maker of Peugeot, Citroen and Fiat). Its compact T03 offers buyers a city-friendly EV for only £15,995.

For urban errands, it provides 163 miles of electric range, and despite its 3.62m length, it can accommodate four passengers thanks to its upright design.

Plus, there's a 10-inch floating touchscreen, voice control, in-vehicle Wi‑Fi and a panoramic sunroof.

The Dacia Spring is the cheapest new EV on sale in the UK today.

With four seats and a 308-litre boot, the Spring is surprisingly practical for urban life. Its 195-mile city range (which drops to around 140 miles in mixed driving) should cover most of your weekly needs on a single charge, especially if you live in an urban area.

Recently restyled to look more sophisticated, it features Dacia's standard 10-inch central screen and a seven-inch driver display, plus tinted windows for added privacy.

The Dacia Sandero recently had a makeover, but it remains incredibly affordable, costing just £14,765 for five-seater practicality.

A 328-litre boot allows for weekend getaways, while 53mpg helps maximise efficiency at a time when fuel prices are sky-high.

Inside, you get a 10-inch screen, a seven-inch digital driver display, blue fabric comfort seats, and a 3D sound system.