Best compact cars for everyday city driving 2026

It wasn't so long ago that you bought a small car JUST because it was the cheapest way of getting around. You accepted the compromises: cramped interior, naff dashboard, questionable build quality. You can see where this is going...
Today, even the smallest and cheapest city cars can have the sort of tech, refinement, quality and choice that big cars do. That said, there’s always a bit of push-and-pull with the various characteristics of city cars. A city car will rarely be all things to all people, so it’s especially important to think about how you’ll use it when choosing one. Do you need a decent amount of boot space? Will you regularly have people in the rear seats? Do you just want the lowest costs possible? Are you bothered about having the latest tech? Do you need long-distance comfort? So here are five of our favourite city cars, each picked for their unique characteristics.

A thing we called "the prefect first car", the Picanto is making a mockery of its age now. First out in 2011, it's lasted two normal car lifetimes thanks to a couple of major updates (the last one in 2023) and the fact that it's basically brilliant. It's stylish, feels much bigger than it is thanks to its quality and refinement, it's peanuts to run, and it's quite practical. Seven-year warranty as standard, too. Nice.
Read our full Kia Picanto review here.

The Aygo X has always been an excellent little car and it really won us over when we lived with one on long-term test. However, it had never been blessed with much power… until now. Enter the Aygo X Hybrid which squeezes Toyota’s signature hybrid tech into the smallest package yet. This gives a substantial boost to both performance and refinement while maintaining the Aygo X’s loveable charm. It’s an impressive glow-up and the Aygo X remains a solid city car.
Read our full Toyota Aygo X review here.

The Renault 5 is already looking like a modern classic. Stunning to look at, practical, reasonably priced and surprisingly affordable thanks to the Electric Car Grant. And it has a baguette holder, so there's that. It offers a decent range, good performance, and it even has bi-directional charging. That means you can use it to power your house, basically – a feature generally reserved for the most expensive EVs up until now. We enjoyed living with one on long-term test, although the winter range left a lot to be desired.
Click here to find out more about the Renault 5.

The great thing about the Dacia Sandero is that for less than the price of most small city cars, you can get a car that’s bigger and more practical, but still small enough to feel totally at home in the city. That extra space, both in the passenger compartment and the boot, will come in very handy for families living in cities. The Stepway version has more style than the regular Sandero hatchback thanks to its SUV-esque design, and the jacked-up suspension means the ride is a little smoother, too. It's not brilliant to drive in other ways, but there’s no arguing with the amount of car you get for your money.
Read our full Dacia Sandero review here.

It was only a matter of time before Abarth (Fiat’s high-performance sub-brand, basically) got its hands on the electric 500. Among other things, Abarth bumped up the electric motor from 118 to 155 horsepower, fettled the steering and suspension, and added an external speaker to make it sound like a fast petrol car. The result is a genuinely entertaining, pin-sharp driving experience that’s fun even at low speed – which is exactly what a hot hatch should be.
Find out more about the Abarth 500e here.