‘Ultimate’ hatchback is named Britain’s BEST new car on a budget by RAC after beating Toyota and Kia
EXPERTS at the RAC have picked out the cheapest new cars of 2025 which could be great options for penny-pinching drivers heading into 2026.
Over the past year, diesel prices have risen at the pumps, used‑car values are expected to keep climbing and escalating EV prices are unsettling Brits thinking about making the transition.
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The Dacia Sandero, the best-selling car in all of Europe, is also cheapest new car aroundCredit: Dacia
The Sandero’s electric brother is the Spring, which is £1,000s cheaper thanks to Dacia’s new EV grantCredit: Dacia
In short, the cost of living crisis remains a roadblock for many, with lots of motorists simply seeking an affordable, reliable set of wheels.
But the RAC have chosen five new motors that are surprisingly cheap to buy – with the evergreen Dacia Sandero, named Britain’s cheapest new car, topping the list.
The current, third‑generation 1.0‑litre supermini offers unexpectedly generous space for its class – including a 328‑litre boot and rear seats roomy enough for larger adults along with kit that mimics pricier models, such as cruise control and rear parking sensors.
It’s little wonder the Sandero has become Europe’s best‑selling motor.
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Dacia has also revealed updated versions of the Sandero and the more rugged Sandero Stepway, bringing new styling, more equipment, more efficient engines and additional safety tech.
Prices start at £14,795 for the Sandero and £16,065 for the Stepway, both £950 less than before.
Meanwhile, a revised Dacia Spring – an entry‑level EV that remains among the cheapest – is listed from £12,240 if you add in the brand’s £3,750 ‘Electric Car Grant’.
The entry‑level Essential trim keeps costs down with simple kit – including a phone‑mount in place of a built-in infotainment screen.
Naturally, higher trims add larger screens and extra convenience features.
Beyond Dacia, the new Leapmotor T03 and Kia Picanto are compact, city‑friendly choices praised for tidy handling and easy manoeuvrability on tight British streets.
Though they’re less comfortable for longer family trips, they both present some of the cheapest car insurance options on the market.
And a strong all‑rounder is the Toyota Aygo X, available from £16,845 and pitched as a small SUV‑style option with affordable insurance, good fuel economy and strong safety credentials.
END OF THE ROAD
2025 has been a great year for motors thanks to some standout new releases – from the brilliant little Renault 5 to the simply breath-taking Ferrari 849 Testarossa.
What’s more, the ever-popular Ford Puma continues to reign supreme at the top of the sales charts, while the Chinese-made Jaecoo 7 has impressed plenty of drivers seeking a bargain alternative to the Range Rover.
But it hasn’t been a great year for every model, as some have inevitably fallen by the wayside – such is the relentlessness of time.
From the Mazda MX‑30 through to the Porsche 718 Cayma, we’ve looked back at some of the cars discontinued this year, now merely consigned to the history books (and second-hand car outlets).
Leapmotor T03Credit: simon thompson
Kia PicantoCredit: supplied
Toyota Aygo XCredit: PA
