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Best new cars under £20,000

Got a budget around £20,000 for a brand new car? Here are some of your best options.

Auto Trader

Words by: Auto Trader

Andrew Woodhouse

Additional words by: Andrew Woodhouse

Last updated on 16 June 2022 | 0 min read

A budget of £20,000 can get you a pretty decent car. As a starter in your search, here are five of the best we found on Auto Trader.
You can start your own search for cars under £20,000 right here. With the option to buy a car online and get it delivered to your home now available, you’ve got more options than ever before from across the UK. Crucial though is the cost of running your car – especially with petrol and diesel prices rising as much as they are. Take a look at the fuel economy (mpg) and work out how much it’d cost you to keep it fuelled.
Fiat 500
Find Fiat 500s.
The ever-popular Fiat 500 still presents quite the bargain on the new-car market. The recent hybrid version of the Fiat 500 has recently come to market, its mild electrification little more than a fancy starter motor in reality but helping to chip away at fuel costs and paired with a sprightly new engine.
Fiat 500
Ford Fiesta
Find Ford Fiestas.
You may be looking closer to £25k on average, but there are a few brand-new Ford Fiestas on site at the £20,000 mark. Once you look at used Fiesta, however, you’re open to a world of bargains. Ford Fiestas are a staple of British roads and popular with drivers who appreciate sharp design and even sharper handling. With reasonably cheap running costs and insurance, Fiestas are especially appealing to young drivers.
Ford Fiesta
Kia Stonic
Shop Kia Stonics.
Kias have always been good value but the deals on the attractive Stonic crossover make it even more appealing. Shop around and you’ll find even the fancier trim levels at around £20,000, meaning you get all the toys you’d want with the added reassurance of Kia’s seven-year warranty.
Kia Stonic
Seat Ibiza
Shop Seat Ibiza.
With three petrol engines and six trim levels to choose from, the new Seat Ibiza presents a fine choice for those looking at brand-news on a budget of around £20,000. The latest Ibiza sports improvements over the previous version including a smarter interior, and upgrades to the on-board tech, yet prices have barely shifted.
Seat Ibiza
Renault Clio
Browse Renault Clio.
Another historically popular car, the Renault Clio offers a range of efficient engines (an essential factor to consider in the current economy) and pretty decent depreciation rates. We consider the Renault Clio to be one the better superminis available to buy. It’s great value for money yet feels refreshingly sophisticated – thanks in no small part to a spacious and quality interior. Read more on what the Renault Clio is like to live with in our long-term review.
Renault Clio