Best cheap cars to run 2025
After a house, a car is likely to be the second-most expensive thing you'll buy in your life. But the purchase price is only half the story, because you've got to consider the running costs
Fuel, insurance, tax (VED) and servicing are just some of the considerations, and that's before you factor in the hidden cost of depreciation. Put simply, a car will lose a significant chunk of its value as soon as you drive it out of the showroom, which is why many people prefer to drive a used car.
With this in mind, we've created a list of five new and five used cars that are cheap to run. Each one is cheap to buy, economical and, just as importantly, reliable. After all, you don't want to be forking hundreds of pounds every year on parts and repairs.
Whatever happens, these cars will almost certainly be easy on your wallet. We start with the five new cars before moving on to the used ones.
Best cheap cars to run
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Honda Jazz
The Honda Jazz is a favourite among those who want a car that's cheap to run. Its reliability sees to that: this is a car that will just run and run, demanding just the most minor servicing each year. Its dependability is famous, but so too is its fuel economy. Thanks to the combination of a 1.5-litre petrol engine and a pair of electric motors, the Jazz can return up to 62.8mpg, a figure many diesel cars struggle to achieve. The Jazz also retains its value better than many of its rivals, and you also get a £10 yearly discount in VED because of its hybrid status.
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Toyota Yaris Hybrid
With prices starting from £22,000, the Toyota Yaris Hybrid isn't the cheapest small car you can buy, but it's likely to be one of the cheapest to run. It's all thanks to a 1.5-litre three-cylinder petrol engine and two electric motors, which combine to deliver an official 68.8mpg. Because it's a 'self-charging' hybrid, you don't have to worry about charging the battery, so just sit back and enjoy the prospect of spending less time at petrol stations. Indeed, the Yaris will spend a surprising amount of time with the engine switched off when driving in towns and cities.
Mazda 2 Hybrid
No, your eyes aren't deceiving you, the Mazda 2 Hybrid does look a lot like the Toyota Yaris Hybrid. That's because it's essentially a rebadged Toyota with the same 'self-charging' hybrid technology and reputation for reliability. It's actually more economical than the Yaris, with the prospect of up to 74.3mpg if you've got a light right foot. To achieve the best fuel economy you'll need to opt for the Pure or Agile trim levels, which ride on 15-inch wheels. The top-spec Select model's 16-inch alloys put a small dent in the economy.
Hyundai i10
The Hyundai i10 is one of the cheapest new cars in the UK. It also promises to be one of the most affordable cars to run, thanks to a pair of economical petrol engines, low insurance groups and a solid reputation for reliability. In the unlikely event that something does go wrong, you'll be covered by Hyundai's excellent five-year/unlimited mileage warranty. A facelift in 2023 introduced tweaked styling, improved safety kit and better connectivity.
Suzuki Ignis
The Suzuki Ignis is a cheeky micro-sized SUV that's as loveable to look at as it is characterful to sit inside. The distinctive interior is well equipped, with both the SZ-T and SZ5 models coming with a touchscreen that communicates with Android and Apple smartphones. We'd recommend the SZ5 trim for its automatic air conditioning, keyless entry and integrated navigation. Best of all, you can look forward to 56.9mpg – a figure that's likely to be easy to achieve.
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SEAT Mii
Sharing most of its components with the Volkswagen Up, the SEAT Mii is an ingenious city car whose small exterior dimensions conceal a surprising amount of interior space. The rear seats are genuinely big enough for adults, and the lightweight engineering means power from the fuel-efficient 1.0-litre petrol engine goes a long way. The Mii is capable of averaging 56.2mpg in the real world, while clever engineering means it should be extremely reliable and very cheap to service and maintain. Early cars from 2012 and 2013 are now becoming very affordable indeed.
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Suzuki Baleno
The Suzuki Baleno is an understated car, but an appealing one for the level-headed motorist. For starters, according to Honest John Real MPG data, it is able to deliver 100% of its official fuel economy figure, averaging a seriously impressive 56.8mpg in the real world. Indeed, some owners report figures even better than the official MPG. The Baleno is also a surprisingly roomy five-door, and prices for the 2016-2019 hatchback are becoming ever more affordable. Factor in Suzuki’s well-proven reliability and it’s clear to see why this is one of the best cheap to run cars.
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Skoda Citigo
The Skoda Citigo is the Czech-branded alternative to the SEAT Mii featured above. Pleasingly, Real MPG figures suggest it too delivers 87% of its official fuel economy, which means owners should see a healthy 55.5mpg in everyday driving. That’s a very strong figure for such a solid, quality-feeling car, and the Citigo has a safe and secure feeling on the road, too. It’s comfortable, practical and increasingly affordable: all tempting stuff for those seeking one of the best cheap to run cars.
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Suzuki Celerio
The Suzuki Celerio is a Tardis-like city car that didn’t set out to turn heads. However, it does offer maximum passenger room and interior practicality within its compact footprint. The squared-off design helps provide a particularly surprising amount of room in the rear. Standard equipment is good, too. To drive, the Celerio feels like you’re in a bigger car, aided by decent engine response and a smooth ride. It won’t short-change you in terms of efficiency, returning 95% of its official fuel economy figure in real-world use. That’s a heady average of 63.9mpg, according to Real MPG submissions.
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Dacia Sandero
Formerly the cheapest UK new car to buy, the Dacia Sandero remains an absolute bargain as a used vehicle. The previous-generation model, sold new until 2021, is more practical than a lot of the cars on this list, but still promises up to 80.mpg (using the old NEDC measurements) if you go for the 1.5 dCi 90 engine. Submissions to the Real MPG index suggest a real-world economy of 60.8mpg – 78% of that official figure – which considering the Sandero’s size is really good going.
What is the most economical car to run?
The most economical car to run is one that combines excellent official fuel economy figures with healthy Real MPG returns. It should also be cost-effective to buy, ultra-reliable in use and economical to service and maintain. Of all the cars here, the standout candidate is the Suzuki Celerio, which returns an exceptional 63.9mpg according to Honest John readers, as well as proving dependable and fault-free. Saying that, our research suggests that any compact-sized Suzuki should prove very economical to run.
What is the cheapest car to buy and run in the UK?
We’ve focused on cars that are less than a decade old in this guide. These will be cheaper cars to buy that still have plenty of life left in them, but maintenance costs may be higher. If you’re looking for a combination of affordable purchase price and competitive running costs, we’d look at city cars such as the SEAT Mii, Skoda Citigo and Suzuki Celerio. The popular Suzuki Swift should also be easy to find at a good price.
Are small cars cheaper to run than larger ones?
Small cars weigh less than larger ones, so are inherently more economical. Add in the fact they can get away with using smaller, more fuel-efficient engines, and this advantage is reinforced. They are also less heavy on tyres and brakes, so maintenance bills should be less troubling, while lower insurance group ratings will save on annual premiums. What’s more, small cars are cheaper to buy when new, so they will generally cost less than larger vehicles on the used market.
I want a cheap to run car for short distance driving - what do you recommend?
