Introduction
The purchase price of a used car is only part of the real cost. Fuel, insurance, road tax, servicing and repairs add up over time. The cars that genuinely cost least to run combine strong fuel economy, low insurance groups, cheap parts and proven reliability all at once. Here are 10 real examples with verified figures for each, not just general praise.
Read our top 10 most fuel efficient cars UK guide, or if you're working to a specific budget, see our guide on the best used cars under £10,000.
Quick picks:
- Cheapest overall to run: Toyota Yaris, often under £700 a year in fuel, tax, MOT and repairs combined.
- Cheapest to insure: Toyota Aygo, Hyundai i10 and Volkswagen Up all commonly sit in insurance group 1.
- Best for higher mileage: Toyota Yaris Hybrid, returning up to 65mpg in real world driving.
- Best budget pick: Dacia Sandero, the cheapest to buy of any car on this list.
10 Cheapest Cars to Run at a Glance
| Car | Insurance group | Real world MPG | Typical annual running cost |
|---|---|---|---|
| Toyota Yaris | 1 to 2 (petrol), 9 to 15 (hybrid) | 55 to 65 | Often under £700 |
| Hyundai i10 | 1 to 2 | 50 to 55 | Around £1,650 |
| Kia Picanto | 1 to 4 | 50+ | Around £1,700 |
| Skoda Fabia | 4 to 10 depending on engine | 50+ | Around £1,800 |
| Honda Jazz | 12 to 17 (hybrid) | 55 to 60 | Around £1,800 |
| Toyota Aygo | 1 | 55+ | Around £1,650 |
| Dacia Sandero | 4 to 8 | 50+ | Around £1,600 |
| Suzuki Swift | 3 to 8 | 50 to 55 | Around £1,700 |
| Ford Fiesta | Varies widely by trim | 45 to 55 | Around £1,800 |
| Volkswagen Up | 1 | 55 to 60 | Around £1,650 |
1. Toyota Yaris
The standard petrol Yaris sits in insurance group 1 to 2, about as cheap as insurance gets, while the hybrid version moves up to group 9 to 15 in exchange for real world economy up to 65mpg. Based on aggregate MOT test data, the Yaris consistently posts pass rates above 90 percent at its first test, among the strongest of any car on this list. Total annual running costs including fuel, tax, MOT and repairs often come in under £700 for the standard petrol version.
Best For
- First-time buyers
- City commuters wanting the lowest possible insurance
- Higher mileage drivers considering the hybrid specifically
2. Hyundai i10
The i10's 1.0 litre petrol engine keeps it in insurance group 1 to 2 across most trims, with real world economy around 50 to 55mpg. Parts and servicing are inexpensive thanks to Hyundai's simple mechanical layout. The five year unlimited mileage warranty, still active on many used examples, adds genuine reassurance against unexpected repair bills too.
Best For
- Urban drivers
- New motorists
- A second car for a household
3. Kia Picanto
The Picanto sits in insurance group 1 to 4 depending on trim and engine, with real world economy typically above 50mpg. Kia's seven year warranty, often still running on a used example, meaningfully reduces the risk of an expensive repair catching you out early in ownership.
Best For
- Budget conscious buyers
- Young drivers
- Daily commuting
4. Skoda Fabia
The Fabia's 1.0 MPI engine sits around insurance group 4, rising to group 7 to 10 for the punchier 1.0 TSI version, with economy above 50mpg either way, offering more boot space and rear legroom than most rivals this size while built on the same underpinnings as the Volkswagen Polo but consistently selling for less on the used market.
Best For
- Small families
- Commuters wanting extra practicality
- Buyers who've overlooked it in favour of better known rivals
5. Honda Jazz
The hybrid Jazz sits in insurance group 12 to 17, higher than the smallest city cars here. Its exceptional reliability record and 55 to 60mpg real world economy help offset that over time though. Owners consistently report years of trouble free motoring, keeping unplanned repair costs genuinely rare.
Best For
- Buyers prioritising reliability above all else
- Families needing clever interior space
- Retired drivers wanting a dependable daily car
6. Toyota Aygo
The Aygo sits in insurance group 1, tying it with the cheapest cars on this list to insure, with real world economy above 55mpg thanks to its lightweight, simple design. Its small footprint and light controls make it particularly well suited to dense urban driving specifically.
Best For
- City driving
- First-time buyers
- Budget-focused motorists prioritising the lowest possible insurance
7. Dacia Sandero
The Sandero remains the cheapest car on this list to actually buy. Its straightforward mechanical layout keeps servicing genuinely affordable too. Insurance typically sits in group 4 to 8, still low overall, with real world economy above 50mpg on the petrol versions.
Best For
- Families on a tight budget
- Value focused buyers wanting maximum space for the price
- Daily commuters
8. Suzuki Swift
The Swift sits in insurance group 3 to 8 depending on trim and engine, with real world economy around 50 to 55mpg. Suzuki's reliability record here is genuinely strong. The Swift also offers a noticeably more engaging drive than several rivals on this list without sacrificing low running costs to get it.
Best For
- Young professionals
- Commuters wanting a bit more driving enjoyment
- Buyers cross-shopping against the Fiesta
9. Ford Fiesta
Insurance on the Fiesta varies enormously by trim, from genuinely affordable base models up to considerably higher groups on performance versions like the ST. Checking the specific trim's group before buying matters more here than on any other car on this list. Because so many have been sold, parts are cheap and widely available. Independent garages know the model inside out too, keeping servicing costs competitive. Real world economy sits around 45 to 55mpg depending on engine.
Best For
- First-time buyers choosing a modest trim specifically
- Everyday commuting
- Buyers wanting the widest possible choice of used examples
10. Volkswagen Up
The Up sits in insurance group 1 across its basic trims, with real world economy around 55 to 60mpg and MOT pass rates consistently above 85 percent. Interior quality punches above its price point. Strong resale values help reduce the overall cost of ownership too if you sell it on later.
Best For
- City driving
- Young drivers wanting group 1 insurance
- Buyers wanting a slightly more premium feel in a small car
What Actually Makes a Car Cheap to Run?
A low purchase price alone doesn't make a car affordable to own. The genuinely cheap cars to run combine several factors together: a low insurance group, strong real world fuel economy, inexpensive routine servicing, widely available parts, low road tax and a track record of high MOT pass rates rather than frequent advisories.
Age matters more than most buyers expect too. A ten-year-old Fiesta or Corsa can cost £200 to £400 a year more in repair bills than a five-year-old i10 or Picanto since older cars in this class tend to develop suspension, brake and corrosion advisories more often by the seven to ten year mark. Always check a car's full MOT history before buying rather than assuming age alone tells the whole story.
Insurance also varies more than people assume within the same model, not just between different cars. For the full detail on how your specific quote is calculated and how to bring it down further, see our guide on getting cheap car insurance.
Frequently Asked Questions
Are hybrids cheaper to run than petrol equivalents? Usually on fuel, though insurance and purchase prices run slightly higher. The break-even point where fuel savings offset that extra cost is typically 18 to 30 months of ownership.
Are older cheap cars always cheaper overall? Not necessarily. A ten-year-old budget hatchback can cost considerably more in repairs than a slightly newer example of a genuinely reliable model. Checking condition and history matters more than chasing the lowest asking price alone.
Which of these is cheapest to insure specifically? The Toyota Aygo, Hyundai i10 and Volkswagen Up commonly sit in insurance group 1, the lowest band available.
Does engine size affect running costs beyond fuel economy? Yes. Smaller engines around 1.0 to 1.2 litres typically mean lower insurance groups too since they're cheaper to repair and less attractive to thieves than larger, faster alternatives.
Should I check a used car's history before assuming it'll be cheap to run? Yes, always. A cheap model with a poor individual history can still turn out expensive, covered in full in our guide on how to check a used car's history.
Browse our full range of used cars at Car Planet, with insurance group, mileage and full service history clearly listed on every vehicle we sell.
