There are many genuine budget cars on the market that are suprisingly cheap to run. Most can fit four occupants which is a plus for families on a tight budget.The Citroen C1 is a clear contender for cheap running costs. This car emits just 109g/km of Co2 emissions so the VED is Band B which is just £35 per year. The Citroen C1 averages 61.4mpg. It is priced around the £7000 mark and is clearly a car to be considered. The Kia Picanto is also extremely economical returning 55.4 mpg. New features include smart-key entry system with engine start/stop button, AUX, iPod and USB connections for the RDS radio CD player with MP3 compatibility, Bluetooth® hands- free with voice recognition, heated front seats and Intelligent Stop and Go that further enhances fuel economy. The Fiat 500 is available with a choice of three frugal ultra low emissions Euro % ready engines. Every TwinAir-equipped Fiat 500 features Start&Stop and a Gear Shift Indicator to help drivers achieve the best economy possible. In addition, owners can specify Fiat’s award-winning Blue&Me infotainment system which allows drivers to operate their music and phone via the car’s steering wheel controls or with voice activation. The new Toyota iQ has an ultra efficient 1 litre three cylinder engine. Running costs are so low the manual Toyota iQ is in the free road tax band, and economy is excellent with the 1.0 engine returning an impressive 65mpg. The Toyota iQ has the added award of Green Car of the Year. The Renault Clio 1.2 is probably the best all round car. The new improved low emission three-door Renault Clio is the cheapest sub-100g/km supermini in the UK, The Renault Clio’s strengths remain its spacious interior, strong engine range and high quality feel together with its low running costs.