Best New Car Releases of 2021: Top Picks for Every Budget

Shopping for a new car in 2021? You’re entering one of the most exciting and diverse automotive markets in recent memory. From affordable city runarounds to ultra-exclusive luxury roadsters, the 2021 model year has something for every driver — and every budget.

The push toward zero-emission vehicles, combined with the UK government’s announced ban on new petrol and diesel car sales, means that a significant number of this year’s most anticipated releases feature hybrid or fully electric powertrains. Whether you’re going green or sticking with a traditional engine, read on for our full breakdown.

The Best Cars of 2021

We’ve hand-picked 16 of the hottest new releases of the year — spanning city cars, family crossovers, performance machines, and jaw-dropping luxury vehicles. There’s genuinely something here for everyone.

A Quick Note on Car Insurance Groups

Before diving in, it’s worth keeping insurance costs in mind. Every car sold in the UK is assigned an insurance group number from 1 to 50. The lower the number, the cheaper your insurance is likely to be — though your personal driving history, location, and other factors also play a role. We’ve included the insurance group for each model below to help you plan your true running costs.

Affordable and Mid-Range Cars

Ford Puma ST

The Ford Puma ST is a compelling small sports crossover that blends the practicality of the Puma with the spirited character of the Fiesta ST. Reviewers widely regard it as one of the standout car releases of 2021.

• Engine: 197 hp 1.5-litre three-cylinder turbocharged petrol (from the Fiesta ST)
• Notable features: Lowered suspension, power-assisted brakes
• Insurance group: 19
• Starting price: £28,495

Toyota Yaris Cross

Don’t let the shared name fool you — the Toyota Yaris Cross looks and feels entirely distinct from the standard Yaris hatchback. It’s a compact crossover with a clean, modern design and a single straightforward engine choice, making it an accessible and reliable option.

• Engine: 1.5-litre petrol, 114 hp
• Notable features: Compact crossover styling, practical interior
• Insurance group: 8
• Starting price: £19,910

Citroën C4

The Citroën C4 steps in as the successor to the C4 Cactus, bringing a bolder design and a wider range of powertrain choices — including a fully electric version. It’s an excellent option for family buyers who want versatility without sacrificing style.

• Engine options: Turbocharged petrol, turbocharged diesel, or fully electric
• Electric range: Up to 200 miles (322 km)
• Insurance group: 25
• Starting price: £29,180

Škoda Fabia

The Škoda Fabia has always punched above its weight, and the updated 2021 version raises the bar further. It’s a strong competitor to the Seat Ibiza and VW Polo, offering a more spacious cabin, a redesigned interior, and a budget-friendly entry price that makes it one of the most accessible new cars of the year.

• Engine: 3-cylinder petrol (no hybrid option)
• Notable features: Roomier interior, refreshed dashboard design
• Insurance group: 12
• Starting price: £13,000

Dacia Spring

The Dacia Spring is one of the most affordable electric cars to hit the UK market. Positioned as a no-frills city crossover, it keeps both the purchase price and the running costs firmly in check — making it an excellent entry point into electric motoring.

• Type: Fully electric city crossover
• Insurance group: 12
• Starting price: £19,800

Nissan Micra

The updated Nissan Micra drops the diesel option in favour of a more fuel-efficient petrol unit. It remains a likeable, easy-to-drive city car that’s well-suited to urban commuting and new drivers.

• Engine: 1.0-litre petrol
• 0–100 km/h: 9.9 seconds
• Starting price: £13,995

Performance and Electric Cars of 2021

BMW Series 4 Convertible

The BMW 4 Series Convertible takes the sleek 4 Series Coupé and opens it up to the sky. With a refined turbocharged engine and the signature BMW driving experience, it’s one of the most desirable open-top cars of the year.

• Engine: 2.0-litre 4-cylinder turbocharged petrol, 250 hp
• Body style: Convertible
• Insurance group: 24
• Starting price: £45,785

Tesla Model Y

The Tesla Model Y builds on the hugely popular Model 3 platform, adding more space and an available seven-seat configuration. It comes with a genuinely impressive electric range, though you’ll pay for the privilege — and insure it accordingly.

• Type: Fully electric SUV
• Range: Up to 314 miles (505 km)
• Seats: Up to 7
• Insurance group: 45–50
• Starting price: £45,000

Audi Q4 e-tron

The Audi Q4 e-tron is a landmark model for the brand — it’s the first Audi built on the Volkswagen Group’s MEB electric platform, and it arrives as a serious rival to Tesla in the premium electric crossover segment. Expect upmarket Audi refinement with zero-emission credentials.

• Type: Fully electric crossover
• Platform: VW Group MEB
• Insurance group: 45–50
• Starting price: £45,000

BMW i4

The BMW i4 is the brand’s bold electric answer to the 4 Series Gran Coupé. With a blistering 525 hp motor and a top speed of 124 mph, it’s one of the fastest and most exciting electric saloons on the market in 2021.

• Type: Fully electric gran coupé
• Power: 525 hp
• Top speed: 124 mph
• Insurance group: 30–42
• Starting price: From £60,000

Mazda CX-5

Mazda has refreshed the CX-5 to keep it competitive in an increasingly crowded compact crossover segment. Following the industry trend, Mazda has retired the diesel variant — the updated range now focuses entirely on petrol engines, with insurance costs varying based on which engine you choose.

• Type: Compact crossover (petrol only)
• Insurance group: 15–21 (depending on engine)
• Starting price: £30,000

Volkswagen ID.4

The Volkswagen ID.4 is VW’s flagship electric SUV, and it makes a strong case for itself. Available in both rear-wheel and all-wheel drive configurations, it offers an impressive range and a familiar, well-designed interior borrowed from the smaller ID.3.

• Type: Fully electric SUV
• Drivetrain: Rear-wheel drive or all-wheel drive
• Max range: 323 miles
• Insurance group: 25
• Starting price: £45,000

The Best Luxury Cars of 2021

If you’re ready to splash out on something truly extraordinary, these four cars represent the pinnacle of the 2021 automotive world. Rarity, performance, and craftsmanship are the name of the game here.

Alfa Romeo Giulia GTA

The Giulia GTA is a thoroughbred track weapon dressed up as a luxury saloon. It’s a heavily evolved version of the Giulia Quadrifoglio, with extensive use of carbon fibre to shave weight and a ferocious twin-turbo V6 under the bonnet.

• Engine: 2.0-litre twin-turbo V6, 533 hp
• Carbon fibre components: Driveshaft, bonnet, roof, front bumper, wheel arches
• Insurance group: 40+
• Starting price: £155,000

Morgan 3 Wheeler P101

The Morgan 3 Wheeler P101 is a collector’s dream — and a farewell to a legend. With a limited run of just 33 units, this is the final chapter for the iconic three-wheeled Morgan sports car, and it bows out in spectacular style.

Buyers can choose from four heritage-inspired design themes:

• Belly Tank — inspired by post-war land speed record cars from the salt flats
• Dazzleship — a nod to First World War military dazzle camouflage
• Aviator — drawing on RAF aircraft design from the Second World War
• Race Car — channelling the look of the earliest Morgan racing cars

As a rare limited-edition model, the P101 is likely to appreciate in value over time — making it as much an investment as a driving experience.

• Limited edition: 33 units worldwide
• Starting price: £54,000

Aston Martin V12 Speedster

Equal parts sculpture and supercar, the Aston Martin V12 Speedster is one of the most breathtaking machines of 2021. Designed with fighter jet aesthetics and built with components from both the DBS Superleggera and Vantage, it’s a two-seat roadster with a soundtrack to match its looks — and only 88 examples were made.

• Engine: 5.2-litre twin-turbo V12, 700 hp
• Body style: Open-top two-seat speedster
• Limited edition: 88 units worldwide
• Starting price: £765,000

Bentley Bacalar

The Bentley Bacalar is the most exclusive — and most expensive — car on our list. All 12 examples were sold before the car even launched publicly, at a price roughly nine times that of the standard Continental GT. It’s a masterpiece of bespoke craftsmanship, featuring a W12 engine, an exterior inspired by the EXP 100 GT concept, and a dashboard trimmed with 5,000-year-old Riverwood poplar.

• Engine: W12
• Body style: Open-top luxury roadster
• Limited edition: 12 units — all sold
• Starting price: £1.5 million