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Top Budget Cars

These days it is entirely possible to buy a brand new car on a lower budget. With the arrival of the credit crunch came the government's car scrappage scheme, meaning if you'd owned a car over 10 years old for over a year you could scrap it, getting a £2000 discount on a new car. The UK car industry has certainly dwindled since its heyday in the 40s and early 50s. Even stalwarts of the British car business such as Land Rover and Rolls-Royce are now owned by foreign companies (although some are still produced here in factories in the UK). From the turn of the 20th century, Great Britain was one of the world's leading automobile producers but when countries in the far East started producing cheaper cars, the UK industry suffered and now only a handful of smaller marques such as Caterham and TVR remain entirely British. There has never been a better time to buy a new car in the UK. There are bargains to be had everywhere. Here are 5 of the best budget cars currently on sale in the UK.

1. Kia Picanto

The Picanto has been on sale in the UK since 2004. The lowest priced model (currently around £6,278) comes with a city-friendly 999cc engine, 5 doors... and very little else. For a cheap as chips brand new car you won't spend much less and you will benefit from the Picanto's low emissions and group 2 insurance but its handling isn't brilliant.

2. Chevrolet Matiz

The Matiz is a good option for city dwellers. The cheapest model is around £6905 and comes with a tiny 796cc engine, making it virtually impossible to take on the motorway. However, it is easy to park, cheap to run and is group 1 insurance. It is also more comfortable than a lot of other cars in this budget.

3. Renault Twingo

Better looking than other cars in this budget, the Twingo offers a little French chic. The lowest price model is some £6784 and has a 1149cc engine, fine for motorway driving. This does however mean it is group 4 insurance and is slightly more expensive to run. You only get 3 doors, so this is not ideal for families with young kids.

4. Fiat Panda

A hoot to drive, well-built, unpretentious and perfect for rural or urban locations, you will find it hard to beat the Panda for budget excellence. The 1.1 base model is group 1 insurance, has 5 doors, has great safety features and is yours for £7171 list price. A favourite with everyone from families to students to OAPs, the Panda is a great option if you are on a budget and want a brand new car.

5. Toyota Aygo

This seriously decent city car is available at prices rivalling the Kias and Hyundais of this industry and the quality and reliability is great too. The 998cc 3-door version is approximately £6362, group 1 insurance and is capable of over 50 miles to the gallon. Although it is now very possible to buy a brand new car on a budget, you may still wish to consider using your budget to buy a higher specification used car. You can find a range of used cars for sale online.