With the increase in the rate of UK Value Added Tax from 17.5% to 20% on 4th January, the media has been trying to paint a picture of doom and gloom for the car industry.
But for anyone still looking to buy a brand new car without paying lots of extra tax, these are the ten cheapest model ranges currently available in the UK. Of course, for the same money, there will probably be plenty of better used cars available...
1. Chevrolet Spark £7,215 - £10,485Modern with distinctive looks, the Spark benefits from the Chevrolet 5 Year Promise which includes warranty, servicing, roadside assistance, annual vehicle checks and MOT warranty for - no prizes for guessing - five years.
On the downside, the basic £7,215 Spark does without niceties such as central locking and air conditioning. There’s no radio either, and the windows have to be wound up and down manually.
2. Nissan Pixo £7,350 - £9,450The Pixo is essentially a re-badged Suzuki Alto, and is built alongside it in India by Maruti Suzuki.
Those buyers looking for remote central locking, side airbags, electric front windows and split folding rear seats will have to go for the mid-range Acenta trim level, which costs £8,100. None of those items are included with the entry-level Visia specification.
3. Kia Picanto £7,370 - £9,100In basic Picanto ‘1’ guise, there’s vinyl and cloth trim and no air conditioning, but at least electric front windows are standard.
As an incentive to buy, Kia has cut prices across the Picanto range until the end of January 2011. Consequently, the Picanto ‘1’ is currently reduced to £6,670, while the more generously equipped Picanto ‘2’ has dropped from £8,595 to £8,095. However, it’s worth bearing in mind that a
second generation Picanto has just been announced, so expect the current model to be replaced later this year.
4. Volkswagen Fox £7,615 - £8,525A new Volkswagen for under £8,000? Then it’ll have to be the Brazilian-built Fox, although in Europe it’s only available in three-door form.
The 54 bhp (40 kW / 55 PS) 1.2 litre petrol engine found in the £7,615 Fox has been phased out, because it’s not compliant with Euro 5 emissions standards. Cars in that spec might still be available from dealer stock, but any new factory orders will come with a reworked 1.2 motor that produces 59 bhp (44 kW / 60 PS). Unfortunately, the change pushes up the entry price slightly to £7,790 but, as a sweetener, until the end of March 2011 Volkswagen is offering three years’ fixed priced servicing for £299.
5. Hyundai i10 £7,890 - £9,040Even the basic i10, the Classic, comes with a generous list of equipment: air conditioning, electric front windows, radio / CD player with four speakers, 60/40 split rear seats, central locking and front side airbags are all standard. What’s more, there’s a five year warranty to complete the package.
Power comes from a 76 bhp (57 kW / 77 PS) 1.2 litre petrol engine with a five-speed gearbox. Performance is respectably brisk, with 0-62 mph (100 km/h) acceleration taking 12.8 seconds and a top speed of 102 mph (164 km/h).
6. Fiat Panda £7,960 - £13,975The top end of the Panda range is now rather decimated, because the more expensive variants - including the 100 HP, 4x4 and 4x4 Cross - aren’t Euro 5 compliant. Lesser models have been affected too, with the lead-in £7,960 Panda 1.1 Active Eco also only conforming to Euro 4. That means that Fiat has to get rid of any unsold stock fast, so it has reduced the price down to £6,295 until the end of March 2011.
Effectively replacing the 1.1 Active Eco is the 1.2 Active, which meets Euro 5 standards but costs £8,155. The slightly bigger engine does have its benefits, though. Power is up 25% from 53 bhp (40 kW / 54 PS) to 68 bhp (50 kW / 69 PS), allowing the Panda to top 100 mph (160 km/h), yet combined cycle fuel economy actually improves from 56.5 mpg (5.0 l/100km) to 57.6 mpg (4.9 l/100km).
7. Proton Savvy £7,995 - £8,695There’s really just one Savvy model on offer, the only choice being between manual or automated manual transmissions, but it’s well equipped. Electric front windows, air conditioning and a four-speaker stereo are all included, as are 15” alloy wheels, remote central locking and reverse parking sensors.
One drawback though is relatively high CO2 emissions from the 73 bhp (55 kW / 75 PS) 1.2 litre engine. 134 g/km means that UK owners will have to hand over £110 each year for road tax, whereas Pixo and Alto drivers, for example, would pay £20.
8. Perodua Myvi £7,999 - £9,399With the disappearance of the Kenari from the Perodua price list, the Myvi becomes the only model in the manufacturer’s UK line-up. Based on the Daihatsu Sirion / Boon and Toyota Passo, the Myvi comes with a three year warranty, but service intervals are only 10,000 miles.
Perodua is currently knocking off £1,000 from the prices of all its cars until the end of March 2011, which brings the entry-level SXI down to £6,999.
9. Suzuki Alto £8,345 - £9,760Prices for the Alto have increased dramatically in recent months but, to compensate, Suzuki is offering the Alto SZ3 and SZ4 derivatives ‘VAT free’ until the end of March 2011. That useful discount brings the cost of the cheaper SZ3 down to £6,953.
Like the Pixo, all versions are powered by a 67 bhp (50 kW / 68 PS) three-cylinder petrol engine that produces 103 g/km of CO2 - so near yet so far from the 100 g/km target that would have made both models exempt from the
London Congestion Charge.
10. Toyota Aygo £8,485 - £11,115One reason for choosing the Aygo over the basically identical Peugeot 107 and Citroën C1 is the Toyota’s lower entry price. £8,485 is enough for the basic three-door version, with another £355 needed for the five-door.
However, with that entry-level spec, there’s no air conditioning, central locking or electric windows although, like every Aygo, it does benefit from a five year warranty.
As a footnote, the Daihatsu Sirion might have made it onto the list. However, the company hasn’t updated its prices since last April and this notice on the Daihatsu website probably explains why:
“Due to the current weakness of the Pound against the Japanese Yen it has not been possible to order cars from our factory. As a result, some models are now in very short supply. We are sorry if you are unable to find the exact colour and specification of the car you want, however your dealer will be able to advise you on the availability of stock across the UK.”
The light cosmetic surgery on the outside brings a revamped front grille with a little bit less chrome on top and around the sides, plus new LED taillights at the back, reshaped mirror casings and a fresh choice of alloy wheel designs including a set of 18-inch multispoke rims. 
Of course, the fact that Toyota’s production capabilities were seriously affected by the aftermath of the March 11 earthquake, tsunami and nuclear disaster in Japan, played a significant role in Hyundai’s accomplishment. 
Simon Cowell has one, as does Kanye West, Denzel Washington and Lindsay Lohan. Interestingly, and of more concern to readers of this blog, you might also be the proud owner of a Hyundai.
