RealCost Guide
Cheapest Cars to Run UK
The cheapest cars to run are not always the cheapest cars to buy. Fuel, insurance, maintenance, road tax and depreciation all affect the real cost of ownership.
This guide compares practical low-running-cost car choices for UK drivers and explains which type of car is likely to suit your mileage, budget and driving pattern.
The simple answer
For many UK drivers, the cheapest cars to run are small petrol hatchbacks, efficient hybrids and low-cost EVs that are charged at home. The right answer depends on your mileage, insurance quotes, charging access and how long you plan to keep the car.
A small petrol car can be cheapest for low mileage. A hybrid can work well for town driving. An EV can be cheapest per mile if home charging is available. But depreciation, insurance and repairs can still change the result.
Quick shortlist: cheap cars to run
Use this as a starting point, then check the exact car, insurance quote and ownership cost before buying.
Dacia Sandero
From £15,000 new. Insurance group 12-14, up to 52.3mpg WLTP combined.
Best for: low-cost everyday motoring.
Kia Picanto
From around £16,000 new. Insurance group as low as 1-4 depending on trim, 52-58mpg combined.
Best for: city driving and short commutes.
Hyundai i10
From around £16,500 new. Insurance group 1-4 depending on engine and trim, 50-55mpg (low-to-mid 40s in real-world town driving).
Best for: local journeys and small-car practicality.
Toyota Yaris Hybrid
From £23,995 new. Insurance group 13-14, official combined economy 57.6-76.3mpg.
Best for: efficient mixed driving.
Honda Jazz
From around £28,000 new – genuinely one of the pricier cars on this list to buy. Insurance group 21-22, official economy from 61.4mpg (hybrid-only), flat-rate £195/year VED.
Best for: low-risk practical ownership, not the lowest purchase price.
Dacia Spring
From £15,990 new (before any EV grant). 140-mile WLTP range. Insurance group 24-25 – notably higher than the petrol cars on this list, worth checking before assuming an EV is automatically cheaper to insure.
Best for: local EV running costs.
RealCost note: Do not choose purely by purchase price. Use the Car Cost Calculator UK to check the full ownership cost, then compare fuel with the Fuel Cost Per Mile Calculator UK or EV charging with the EV Charging Cost Calculator UK.
Best cheap-to-run car by driver type
The cheapest car depends on how you actually use it.
Lowest purchase-cost focus
Look at simple petrol cars such as the Dacia Sandero, Kia Picanto or Hyundai i10.
Town and traffic driving
A hybrid such as the Toyota Yaris Hybrid or Honda Jazz can make more sense than a basic petrol car.
Home charging available
A small EV can be very cheap per mile if charging is cheap and your journeys fit the range.
No home charging
Petrol or hybrid may be safer than relying on public charging for everyday costs.
Cheap cars to run: practical examples
These are not one-size-fits-all recommendations. Each car has a different strength and a different cost trap.
Dacia Sandero
From £15,000 new – one of the cheapest brand-new cars sold in the UK by a clear margin. Insurance group 12-14, up to 52.3mpg WLTP combined (the automatic drops to 45.6mpg).
Best for: simple low-cost ownership.
Watch out: it may not beat a hybrid on fuel if you do heavy town mileage.
Kia Picanto
RRP roughly £16,000-£20,600 depending on trim. Insurance groups start from group 1 – among the lowest of any car sold in the UK – and combined economy runs 52-58mpg.
Best for: short journeys and city use.
Watch out: check insurance quotes carefully if buying for a new or young driver.
Hyundai i10
RRP roughly £16,500-£21,100 depending on trim. Insurance group 1 for the base 1.0-litre automated-manual, rising to 3-4 on higher-trim 1.2-litre versions – worth comparing trims carefully if insurance is the priority.
Best for: low-mileage drivers who want a compact everyday car.
Watch out: very small cars are not always the most relaxed choice for long motorway mileage.
Toyota Yaris Hybrid
From £23,995 new. Insurance group 13-14 (Icon trim sits in the lower group), official combined economy 57.6-76.3mpg depending on trim – among the most efficient petrol-hybrid figures on this list.
Best for: town driving and regular commuting.
Watch out: the purchase price can be higher than a basic petrol small car.
Honda Jazz
From around £28,000 new, rising to £30,555 for the top Advance Sport trim – genuinely not a cheap car to buy. Insurance group 21-22, official economy from 61.4mpg, flat £195/year VED as a hybrid-only model.
Best for: practicality, reliability and sensible ownership.
Watch out: it may cost more to buy than simpler city cars.
Dacia Spring
From £15,990 new before any EV grant, with a 24.3kWh battery giving a 140-mile WLTP range and 20-80% DC charging in around 29 minutes. Insurance group 24-25 – notably higher than any petrol car on this list, so check a real quote before assuming it’s automatically the cheapest to run.
Best for: local journeys with home charging.
Watch out: range and charging access matter more than the low energy cost.
What makes a car cheap to run?
A genuinely cheap-to-run car keeps several costs under control at the same time.
Good MPG or cheap home charging can reduce day-to-day costs.
A low-running-cost car is not cheap if your insurance quote is high.
Value loss can be bigger than fuel savings over several years.
Common parts, simple servicing and reliability help control costs.
Small wheels and common tyre sizes are usually cheaper to replace.
A cheap EV, hybrid or petrol car only works if it suits your journeys.
Calculate your car running costs
Use this calculator after comparing car types. It helps estimate the monthly and yearly cost of owning a car once fuel, insurance, road tax, servicing, repairs and depreciation are included.
Purchase & depreciation
Running costs
Other costs (optional)
The cheapest car to run is the one that works for your mileage, insurance quote, ownership length and real-world costs — not just the lowest advertised price.
Cheap petrol, hybrid or electric?
Different fuel types win for different drivers.
Petrol
Usually best for low-mileage drivers who want a cheaper purchase price and simple ownership.
Hybrid
Often strongest for town driving, traffic and mixed commuting where fuel savings are more noticeable.
Electric
Can be cheapest per mile if you can charge cheaply at home and the car suits your range needs.
Compare fuel types: Read Petrol vs Hybrid vs Electric: Which Is Cheapest to Run UK? before choosing a fuel type.
Hidden running-cost traps
These are the mistakes that make a “cheap” car expensive.
A larger car brings higher tyres, insurance, fuel and repair costs.
Always get a real quote before deciding a car is cheap to run.
A car with great MPG can still be costly if it depreciates heavily.
Public charging can weaken the EV running-cost advantage.
A cheap used car with poor history can become expensive quickly.
A city car may be cheap locally but wrong for constant long motorway use.
How to reduce car running costs further
Once you choose the right car, these habits help keep costs down.
More ideas: Use the How to Reduce Car Running Costs UK guide for practical ways to cut fuel, insurance, maintenance and ownership costs.
Running cost is not one number
Use these calculators to test the parts of ownership that matter most.
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Related cheap-to-run car guides
Use these guides to narrow the decision by fuel type, driver type and ownership risk.
Cheapest Used Cars to Run UK
Find used cars where running costs and reliability matter.
Cheapest First Cars to Run UK
Compare sensible first-car choices with insurance and running costs in mind.
Cheapest Petrol Cars to Run UK
Find petrol cars that keep purchase price and running costs sensible.
Cheapest Hybrid Cars to Run UK
Compare hybrid choices for town driving and mixed commuting.
Cheapest Electric Cars to Run UK
Find EVs where charging cost, efficiency and ownership costs work together.