The cheapest new cars with free VED road tax

Cars that produce less than 100 grams per kilometre (g/km) of CO2 are exempt from UK road tax. That means handy savings for hard-up motorists who will also benefit from the excellent fuel economy these models achieve. Here we've assembled the 15 cheapest new cars that avoid Vehicle Excise Duty road tax. In effect, they're among the most affordable new cars to buy and run on the road.

The Vehicle Excise Duty (VED) car tax band structure drops every model with emissions of 99g/km or less in to band A. That lets the car's owner spend the cash they would have sent winging its way to the DVLA every year on something more rewarding.

Further savings come from the facts that the least economical car in the list below still returns an impressive 67.3mpg and all the models listed fall into insurance group 11 or lower. With prices starting around £14,000 and descending to below £8,000, these are some of the most cost-effective ways to own a new car today. They're listed in reverse order from the most expensive to the cheapest.

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15. Ford Fiesta 1.6 TDCi Edge Econetic 3dr
£14,095
74.3mpg
99g/km

The Ford Fiesta might be the most expensive car here but that's no disgrace, especially as it also happens to be the most desirable. The ECOnetic version employs enhanced aerodynamics, low rolling resistance tyres and other tweaks to squeeze the best possible economy and emissions out of its 1.6 TDCi diesel engine. A roomy cabin, sharp design and sharper handling also go in the plus column.

First drive: Ford Fiesta (2008 onwards)
On Bing: more Ford Fiesta Econetic pics
Buy a Ford Fiesta on Auto Trader


14. Skoda Fabia 1.2 TDI Greenline II 5dr
£13,805
83.1mpg
89g/km

Greenline is to Skoda what ECOnetic is to Ford and just like the Fiesta above, this Fabia uses various efficiency tweaks to boost its environmental performance, keeping costs low. Despite being a full-size supermini and one of the largest cars making this list, Skoda's eco-champ returns an amazing 83mpg on the combined cycle. A big chunk of the credit for that goes to its advanced 1.2-litre TDI diesel engine.

Road test: Skoda Fabia Greenline (2009 onwards)
On Bing: more Skoda Fabia Greenline II pics
Buy a Skoda Fabia on Auto Trader


13. SEAT Ibiza SC 1.2 TDI S Copa Ecomotive
£13,700
80.7mpg
92g/km

It seems SEAT can do green as well as sporty. The 1.2 TDI diesel version of the Ibiza SC with energy-saving Ecomotive modifications is a sharply styled supermini with combined cycle economy of over 80mpg.

First drive: SEAT Ibiza Ecomotive (2009 onwards)
On Bing: more SEAT Ibiza Ecomotive pics
Buy a SEAT Ibiza on Auto Trader

12. Citroen C3 1.4 HDi VT 5dr
£13,490
74.3mpg
99g/km

Citroen's smooth-riding C3 is another generously proportioned supermini that sidesteps VED road tax. The 1.4-litre HDi diesel engine returns over 74mpg and narrowly dips under the all-important 100g/km barrier.

First drive: Citroen C3 (2009 onwards)
On Bing: more Citroen C3 pics
Buy a Citroen C3 on Auto Trader


11. Hyundai i20 1.4 CRDi Blue 5dr
£13,345
76.4mpg
98g/km

Hyundai has a couple of entrants in this list and the first is the impressive i20 supermini. If you still have Korean cars marked down as characterless budget buys, it's time you got with the times. The i20 has a lot going for it other than its reasonable price tag - the 76.4mpg economy of this 1.4 CRDi Blue model for example.

First drive: Hyundai i20 (2009 onwards)
On Bing: more Hyundai i20 Blue pics
Buy a Hyundai i20 on Auto Trader


10. Chrysler Ypsilon 0.9 TwinAir SE 5dr
£13,195
67.3mpg
99g/km

Ok, a bit of a confusing one this. In other markets the Ypsilon is sold as a Lancia but Fiat's new association with Chrysler means that it gets the famous American badge in the UK. It's based on the same platform as the Fiat 500 but with a few inches extra in the wheelbase. Equipped with Fiat's super-economical 0.9-litre TwinAir petrol engine, it returns 67.3mpg and free road tax.

First drive: Chrysler Ypsilon (2011 onwards)
On Bing: more Chrysler Ypsilon pics


9. Peugeot 207 1.6 HDi Oxygo 3dr
£12,645
74.3mpg
98g/km

With a 1.6 HDi diesel engine accompanied by the Oxygo package of eco-tyres and aero modifications, Peugeot's 207 can qualify for free road tax. It's another practical supermini with the distinctive front end that the French manufacturer grafts onto all its cars these days. The five-door version is also in road tax band A but costs £600 more.

First drive: Peugeot 207 (2006 onwards)
On Bing: more Peugeot 207 Oxygo pics
Buy a Peugeot 207 on Auto Trader


8. Renault Clio Expression 1.5 dCi 88 ECO 3dr
£12,450
78.5mpg
94g/km

The most economical Renault Clio uses a 1.5-litre dCi diesel engine to get its owners free road tax. Renault slaps its eco2 logo on all its most efficient cars but this is the Clio ECO, the greenest version in the Clio special thanks to fuel-saving modifications. The 5-door model comes at a £600 premium and is also road tax free.

First drive: Renault Clio (2009 onwards)
On Bing: more Renault Clio pics
Buy a Renault Clio on Auto Trader


7. Fiat 500 0.9 TwinAir Pop 3dr
£11,600
68.9mpg
95g/km

The two-cylinder TwinAir petrol engine helps Fiat's lovable little 500 city car to emissions of just 95g/km. If you want trendy and green, there are few cars that do the combination better. Customers wanting even better economy can go for the Dualogic automatic gearbox, which actually improves combined cycle consumption from 68.9mpg to 70.6mpg for a £745 premium.

First drive: Fiat 500 TwinAir (2010 onwards)
On Bing: more Fiat 500 TwinAir pics
Buy a Fiat 500 on Auto Trader


6. Nissan Micra 1.2 DIG-S Visia 5dr
£11,150
68.9mpg
95g/km

If there was an award for the cheapest tax-free supermini on our list, the Nissan Micra would get it. It's not as roomy or as capable an all-rounder as the likes of Ford's Fiesta but the Micra is the last car in the supermini class before we get into the diminutive city cars. It's another petrol model too, employing Nissan's clever 1.2-litre DIG-S engine to return 68.9mpg.

First drive: Nissan Micra (2010 onwards)
On Bing: more Nissan Micra pics
Buy a Nissan Micra on Auto Trader


5. Toyota iQ 1.0 VVT-i 3dr
£10,655
64.2mpg
99g/km

The iQ is a city car packed with bright ideas from the unusual 3+1 seating layout to the tiny variable-valve-timing petrol engine. It looks the part and delivers the goods at the pumps with 64.2mpg and no road tax charge. An upgrade to the plusher '2' trim level costs just over £1,000.

First drive: Toyota iQ (2009 onwards)
On Bing: more Toyota iQ pics
Buy a Toyota iQ on Auto Trader


4. Hyundai i10 1.0 Blue 5dr
£9,345
67.3mpg
99g/km

Hyundai's i20 supermini makes this list and so does its i10 city car. The i10 might not have the style content of some of the alternatives but it's well-built, practical, cheap and economical, which is quite an achievement. A 1.0-litre petrol engine does the legwork in the Blue model, which qualifies for free tax.

First drive: Hyundai i10 (2008 onwards)
On Bing: more Hyundai i10 Blue pics
Buy a Hyundai i10 on Auto Trader


3. Volkswagen Up! Move Up! 1.0 BlueMotion Technology
£9,330
67.2mpg
97g/km

There's nothing compact or economical about its name but the cleanest, cheapest version of Volkswagen's Up! ticks the important city car boxes. The BlueMotion Technology branding refers to a series of small changes Volkswagen has made to edge the car under the 100g/km barrier. The Up! will soon be joined by its SEAT Mii and Skoda Citigo sister vehicles, expanding the tax-free choice further.

First drive: Volkswagen Up! (2012 onwards)
On Bing: more Volkswagen Up! pics


2. Smart fortwo Pulse 1.0 Mhd 2dr
£9,200
67.3mpg
97g/km

The two-door, two-seater Smart fortwo design looks almost as bold today as it did when the original model was unveiled in 1998. As an urban car it does all many people need it to and there are numerous models in the range that qualify for free road tax. The 0.8-litre diesel model returns 85.6mpg but the cheapest tax-free Smart uses the 1.0 petrol engine with Micro Hybrid Drive (mhd). It's not a hybrid, mhd is just Smart-speak for stop/start.

First drive: Smart fortwo (2007 onwards)
On Bing: more Smart fortwo pics
Buy a Skoda Fabia on Auto Trader


1. Kia Picanto 1.0 1 3dr
£7,795
67.3mpg
99g/km

At under £8,000, the Kia Picanto looks conspicuously cheap even in this company. The 1.0-litre petrol engine returns 67.3mpg and emissions of 99g/km mean there's no road tax to pay. It's our cheapest tax-free car. Buyers can pay £200 more and get the more practical five-door bodystyle or step up to the better equipped Air and 2 trim levels, they still won't pay any VED.

First drive: Kia Picanto (2011 onwards)
On Bing: more Kia Picanto pics
Buy a Kia Picanto on Auto Trader

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