Cheapest cars to run

By Tia Harrison-North

Last updated: 1 April 2025

Running a car on a budget means you need fuel efficiency, low-cost tax, and insurance that doesn’t break the bank.

Looking at all the running costs is the best way to make sure you’re getting a car that suits your monthly budget – and that doesn’t mean you’re restricted to tiny hatchbacks.

There’s a wide range of cars that are budget-friendly to run and that won’t cost the earth to buy.

Take a look at our top picks for the cheapest cars to run in our guide below.

What are the cheapest cars to run?

• SEAT Mii

• Dacia Duster

• Hyundai i10

• Toyota Yaris Hybrid

• Honda Jazz

• Citroen e-C3

• Skoda Octavia

The cheapest cars to run in the UK

SEAT Mii

I’ve been driving a SEAT Mii for the last two years – and have no plans to change it anytime soon.

I’ve seen plenty of flashy cars in this time, but nothing that could come between me and the 60mpg fuel efficiency stat from my SEAT Mii’s 1.0-litre 73hp engine.

The low emissions (and the fact it was registered before the 2017 cut-off) mean that it’s £20 per year to tax, and the insurance is reasonable as well.

Plus, the Mii gets two siblings in the Škoda Citigo and VW Up, so there are plenty of parts available for cheap maintenance.

Even the newer versions on the market, like the SEAT Mii Electric, are cheap to run – so you’ll be in a good place with any model.

Dacia Duster

There will always be a Dacia on a low-cost car list, and we’re starting with the Dacia Duster.

As one of the cheapest cars to run, the Hybrid 140 model offers up to 56.5mpg and emissions of 115g/km. Those low emissions mean that the road tax is cheap too .

The Duster sits in insurance groups 17 to 25 (for cars registered before 1 August 2024), so it’s not going to be too pricey to get covered either.

Parts are cheap and easy to get hold off, and the high reliability ratings are very persuasive.

Hyundai i10

The Hyundai i10 is a cheap car to run that’s still spicy. Our motoring editor, Sam Sheehan, describes it as: ‘Straddling that fine line between a nippy and nimble city car and a rather more sophisticated supermini’.

For models registered before August 2024, the i10 sits in insurance groups one to 10. So, there are some very cheap cover options available.

Road tax is also low, costing £195 annually for models registered after 2017. Models from before that time can cost as little as £20 per year.

Toyota Yaris Hybrid

For a reliable hatchback that’s cheap to run, the Toyota Yaris Hybrid is a solid choice.

Yaris models from before August 2024 sit in insurance groups 13 to 15, so they’re never too pricey to insure.

Obviously, fuel efficiency is going to be good here. The 1.5-litre hybrid can achieve up to 68.9mpg, while emissions are also low at 98g/km. That sets you up for low road tax – so all the boxes are ticked here.

There’s plenty of praise for the reliability of the Yaris as well, plus a five-star Euro NCAP safety rating for some extra reassurance.

Honda Jazz

If space, practicality, and low running costs are your priority, the Honda Jazz could be a perfect fit.

Models from 2020 to August 2024 sit insurance groups 18 to 22, making them cheap to cover.

There’s one engine option here and it’s an efficient one, offering over 60mpg on every single model.

Of course it’s cheap on tax as well, but the exact figure will depend on the age of the model you choose.

Citroën e-C3

The Citroën C3 is a reliable favourite for a fun, comfortable and economical car. But for the revved-up version, look no further than the Citroën e-C3 electric.

It’s slightly more expensive than some small, fuel-powered cars, thanks to its electric tech, but it makes up for it with low running costs.

Choose from a 44kWh battery model with a 203-mile range, or a 33kWh option with 124 miles on a single charge.

Electric cars used to get free road tax, but from April 2025, you’ll need to pay £10 for the first year the car is registered and then £195-a-year standard road tax thereafter.

The e-C3 is also cheap to insure, sitting in insurance group 33.

Škoda Octavia

There are a few things that Škodas are really good at, and being cheap to run is a big one. We’re picking the Škoda Octavia this time.

Sam describes the Octavia as being: “Spacious, understated and sensible - the perfect practical family car”.

Fuel efficiency is where it really excels, pulling off up to 68.9mpg from the 1.6 TDi engine.

You can’t go wrong with insurance or road tax either. Most models stick around the standard rate tax (that’s £195 per year from April 2025) and Octavias from 2020 to 2024 sit in insurance groups 13 to 23.

What does ‘cheap to run’ mean

‘Cheap to run’ means cars that don’t have high, ongoing costs to keep them on the road.

The cheapest cars to run will have low road tax, insurance and fuel costs – but they might not be the cheapest to buy.

It’s not a given that an inexpensive car will also be cheap to run, so it’s a good plan to do some comparisons before you commit to a model.

The main things to look out for in a cheap to run car

To predict whether a car is going to be cheap to run, you can look at:

• Insurance group or Vehicle Risk Rating – this provides a guideline to insurance costs, though they may be impacted by factors like your driving history

• Miles-per gallon – this is the unit of measurement for how much fuel a petrol or diesel car will use

• Mile range – this is the unit of measurement for how far an electric car can drive

• Road tax – this is how much you’ll need to pay per year to drive on UK roads

You might also want to look for reliability reviews to get an idea of how dependable the car is.

And you can also look at the price of common parts such as brakes, tyres and suspension equipment to get an idea of upkeep cost.

Find reliable used cars for sale

There are plenty of other cheap cars to run that might also suit your needs, but we’re happy to recommend these as some of our favourites.

Take a look at our full range of used cars to find other potential options.

Read more about running costs:

• Car depreciation and running costs

• Cost of car ownership UK