Best new cars for £20,000

There isn’t the choice there used to be in the car market for less than £20,000, but that doesn’t mean you need to compromise.

Some of the most fun-to-drive, good looking, practical and useful new cars on the market right now all fall within a sub-£20k price bracket.

These are our top 10 cars on the market today for under £20,000.

Top buys under £20k

 

Toyota Aygo X (from £16,995)

Introduced in 2023 as a replacement for the Aygo, Toyota’s urban mini-SUV is one of the funkiest and most interesting new cars on sale under £20,000 in the UK right now. Along with being one of the cheapest, it’s a car with immense character and if you don’t need anything bigger should be near the top of your list. The mini-SUV is smaller than a Yaris but with a greater sense of adventure and strong equipment levels across the range. At less than £17k for the entry-level Pure model, you get Bluetooth and Apple CarPlay/Android Auto along with Toyota’s advanced Safety Sense package. Power comes from a 1.0-litre three-cylinder, so it’s economical too. As with all cars listed here, the price quoted is correct as of September 2023.

Read our full review of the Toyota Aygo X

Volkswagen Polo (from £19,120)

The Volkswagen brand has a more premium image than most, but that doesn’t mean premium pricing – especially if you opt for the ever-popular Polo. At just over £19k for the base model, it won’t cost you a mint, but it remains one of the most handsome, image-conscious and superbly built small cars on the market, with a striking, ageless design and stacks of intelligent technology. A budget of under £20,000 will mean you’ll have to go for the lead-in Polo S, which isn’t stacked with standard equipment, but does include a touchscreen, air-conditioning, electric windows and all the important safety equipment, plus the feelgood factor that’s a hallmark of every Volkswagen.

Read our full review of the Volkswagen Polo

Mazda 2 (from £18,375)

With curvy styling echoing the appearance of the larger Mazda 3 and one of the sharpest chassis in the small cars class, the Mazda 2 has a lot in its favour. Its trump card is its chassis, which benefits from Mazda’s G-vectoring handling technology that uses the ABS system to sharpen the steering and overall balance, making it one of the most enjoyable cars under £20,000 from behind the wheel. It’s technologically advanced, too, with a host of on-board safety systems to make life reassuring and easier. The 1.5-litre engines aren’t powerful, but are normally aspirated rather than turbocharged, so are very smooth in their power delivery. That said, it has a tiny boot and many of its rivals are better packaged. Few, though, are as sharp to drive.

Read our full review of the Mazda 2

SEAT Ibiza (from £18,780)

SEAT is a brand with style and flair at its core, and the Ibiza is a great example of both. Throughout each generation of its existence, the small Spanish hatch has always been a characterful car that’s a lot of fun to drive. The current model is fantastic on the road, and is aimed at younger drivers, with vibrant colours and trims, plus Apple CarPlay and Android Auto in even the entry-level model. The 1.0-litre engine isn’t especially fast, but it feels lively enough and the ride and handling are excellent for a small car – it’s one of the sharpest and most sophisticated cars you can buy for under £20,000 today.

Read our full review of the SEAT Ibiza.

Vauxhall Corsa (from £19,235)

Ever-popular, the Vauxhall Corsa remains a firm favourite with people looking to buy a hassle-free new car for under £20,000 and is the best-selling small car in the UK as a result. In entry-level Design trim, the 1.2-litre 75bhp Corsa is surprisingly well equipped, with LED front and rear lights, air-conditioning, an advanced touchscreen multimedia system and a class-leading suite of driver and pedestrian safety features. It also has a bigger engine than most of its competitors at that price level, and is quite refined at cruising speeds, with an impressive ride quality. It’s a stylish and technologically well equipped car that offers rather a lot for its sub-£20k list price.

Read our full review of the Vauxhall Corsa.

Dacia Jogger (from £17,435)

Dacia is a brand renowned for offering incomparable value for money, and the Jogger is one of its most compelling cars ever – a seven-seat SUV with decent levels of standard kit. It’s the biggest and most practical new car under £20,000. Specification isn’t exactly luxurious, but the 1.2 litre Essential TCe model has all of the basics, while the higher-spec versions are better equipped. However, if it’s a car under £20,000 that you wish to buy, then the entry-level Jogger has all you’ll need. It’s the ideal choice for family motorists on a strict budget, and it looks great, too, thanks to Dacia’s dramatic new frontal styling.

Read our full review of the Dacia Jogger.

MG ZS (from £17,995)

MG has come from nowhere to be a regular fixture in the UK’s top-seller charts – and for a very good reason. The Chinese-built models offer terrific value for money and high levels of standard kit. An SUV that can be had for small car money, the ZS is one of the most desirable new cars under £20,000 that you can buy right now. You won’t be able to get one of the brand’s electric models for under £20k, but you will get a well-equipped compact SUV with a lively 1.5-litre petrol engine. The ZS is astonishing value, and it comes with a seven-year warranty to boot.

Read our full review of the MG ZS.

Peugeot 208 (from £19,585)

The 208 is one of the most handsome small cars on the market right now, but you can still just about get your hands on one for under £20,000. The entry-level 208 has an interior that’s as good looking as the exterior, with its distinctive triple LED headlight front end. That will be enough to make it appeal to many drivers. It has a good level of standard kit, too – a suite of safety aids, a seven-inch touchscreen, Apple CarPlay and Android Auto on even the base model, while the digital dials are a work of art. Other cars in the class are better packaged and the 208 does feel a bit cramped, but boy is it stylish. 

Read our full review of the Peugeot 208.

Renault Clio (from £18,130)

If you want a fine-looking car for under £20,000, then the Renault Clio is another one that needs to be on your list. The entry-level ‘Play’ trim tips the scales at just over £18k, and you get most of the things you’ll need, such as a touchscreen, DAB and all of the sought-after safety kit, packaged inside a really good-looking, but also surprisingly spacious, small hatchback. As you move up the range, the Clio is priced closer to its key rivals, but the lower models are extremely hard to ignore in terms of the value that they offer. 

Read our full Renault Clio review.

Citroen C3 (from £13,995)

With lively 1.2-litre petrol engines and a wide spread of trims, the youthful C3 is one of the UK’s most stylish cars for sale under £20,000. The entry model weighs in at a substantial £3,000 cheaper than the next version up in the range, but the C3 You! is still really well equipped for the money. As a replacement for the smaller C1, it’s one of the best value small cars under £20,000 that you can buy. The You! is a genuine bargain and it’s great to drive, too, with an 83bhp 1.2-litre turbo engine, DAB and Bluetooth, along with a touchscreen and coffee break alert. Move up the range and your sub-£20k budget will get you personalised and customisable C-Series models, offered in a range of vibrant colours and multiple trim levels.

Read our full review of the Citroen C3.

What is the best car I can get for £20,000?

There's plenty of choice if you have £20,000 to spend on a new car but deciding what is the best car really depends on your requirements. The Toyota Aygo X ticks a lot of boxes being cheap to run and well built, plus being a Toyota it will be extremely reliable. For £20,000 you can get a high spec Aygo X Exclusive model. If you need more space, the seven-seat Dacia Jogger is hard to better.

What new car will last the longest?

If you want a reliable new car then we'd suggest looking at brands like Toyota, Kia and Hyundai. These are the makes we get the least reports of problems and issues with. They also have the advantage of longer warranties than the standard three years the majority of manufacturers offer. 

Which car brand is the most reliable?

In the latest HonestJohn.co.uk Satisfaction Index, Lexus came out top as the most reliable car brand with a score of 9.89 out of 10. In second place was Suzuki, followed by Subaru and Toyota. At the other end of the scale, Land Rover, Peugeot and Fiat were ranked by owners as the least reliable brands.

Ask HJ

What's the best small hatchback?

I'm looking for a small hatchback style car, like a Hyundai i10 size. I would like a very comfortable drivers seat, rear parking camera and as a bonus it would be great to have a heated windscreen. If there is no rear camera as standard, how much would it cost on average to get one fitted please?
Would you consider something a little bigger? A Fiesta-sized hatchback would be more comfortable and more likely to have the features you desire. We'd recommend a Volkswagen Polo or Toyota Yaris. Alternatively, if you do want a small city car, a Kia Picanto or Hyundai i10 would probably be your best option. You can pick up a reversing camera kit from Halfords for around £120 - they won't be as good as built-in systems, but they'd do the job.
Answered by Andrew Brady
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