THE cheapest car to run in Britain is the Malaysian-built Perodua Nippa Hatchback 850cc EX five-door, according to the latest value for money top 40 produced by CAP Motor Research. With a pence per mile running cost of 13.1p it beats the SEAT Arosa hatchback 1.0 MPi three-door (13.6ppm) with the recently launched SEAT Arosa hatchback 1.7 SDi entering the chart in fourth spot (14ppm).

The figures are based on day-to-day expenses combined with a forecast second-hand value at three years/60,000 miles. The Nippa has overtaken the Arosa 1.0-litre as the cost champion due to a recent £740 price reduction making it the cheapest new car in the UK. An £800 reduction has also contributed to a 13-place leap up the chart by the Ford Fiesta 1.3 Encore three-door (14.8ppm), while solid residual values have contributed to the Volkswagen Polo 1.6 CL three-door, which costs twice as much as the Nippa new, but worked out at 16.8ppm.