Top fuel-efficient cars to consider in 2025 and how to finance them

With the cost of living ever increasing, saving on fuel can make a huge difference when you’re a car owner. Thankfully, if you’re looking for a new vehicle this year, there are some great options out there that might help you cut down on fuel expenses. 

Here's a look at five of the best fuel-efficient cars to consider this year, plus some tips on how to finance them.

What is MPG?

First thing’s first; understanding the rating. MPG stands for ‘miles per gallon’ and refers to how far a car can travel on one gallon of fuel. A higher MPG means the car is more fuel-efficient, and uses less fuel to cover the same distance.

A car’s ‘official average fuel economy rating’ is set by the Worldwide Harmonised Light-Duty Vehicles Test Procedure (WLTP). This is a global standard used to measure how many miles per gallon a car uses. Car brands then provide official MPG figures based on testing, so you can tell how fuel efficient they are.

With that in mind, here are the top five you might want to consider this year!

Top 5 fuel-efficient cars for 2025

BMW 330e - 217.3mpg

With a seriously impressive economy rating of 217.3mpg, the BMW 330e is a plug-in hybrid that blends high performance with fuel efficiency. Featuring a 20L petrol engine and an electric motor, you can drive short distances using just electricity and save fuel on longer trips. In fact, the 330 has an electric-only range of around 30 miles, so you can save significant amounts on fuel over time.

Mercedes-Benz E300de - 217.3mpg

With the same incredible economy rating, the Mercedes-Benz E300de is next on our list. It’s another plug-in hybrid, this time combining a diesel engine with an electric motor. With a smooth drive and amazing fuel economy, it’s one of the most fuel-efficient luxury cars from Mercedes. You can get a fantastic 33 miles of electric-only range from the E300de. Which again, would save significant amounts on fuel.

Peugeot 208 1.5 BlueHDi - 71.4mpg

The Peugeot 208 1.5 BlueHDi is a small diesel-powered hatchback that's cheap to run and easy to drive. While it has a lower economy rating than the other two, it still has an impressive 71.4mpg. Despite having a small 41-litre fuel tank, its efficiency still means you could travel up far miles before needing to refuel.

Toyota Yaris Hybrid - 68.8mpg

With 68.8mpg, the Toyota Yaris Hybrid is also super fuel efficient. Its 1.5-litre hybrid engine is designed to be economical whether you’re driving in town or on the motorway. While the back seats and boot are a bit small, its main appeal is saving fuel rather than offering loads of passenger space, so that’s something to bear in mind if you have a family.

Skoda Octavia 2.0TDI SE - 68.9mpg

With 68.9mpg, the Skoda Octavia 2.0TDI SE could be a fantastic option if you need a bigger car with great fuel efficiency. Comfortable and practical with plenty of boot space and rear leg room, it’s a great choice for families or people who go on long journeys – particularly because you’ll save on fuel!

How to finance a fuel-efficient car

Once you’ve chosen which fuel-efficient car takes your fancy, you can decide how you want to finance it. There’s no one-size-fits-all when it comes to car finance; like choosing a car, it comes down to your circumstances and priorities. Here’s how each works, so you can make an informed decision:

• Personal Contract Purchase (PCP) – PCP is a popular choice for those who like to switch cars every few years. You may pay a deposit followed by monthly payments. At the end, you have three options; return it, trade it in or keep it by paying a big lump sum called the ‘balloon’ payment.
• Hire Purchase (HP) – With HP, you make fixed monthly payments until you’ve paid off the car. Once the term ends, the car is yours. This could be a good option for those who plan to keep their car long-term but don’t want to pay for it all upfront.
• Personal Contract Hire (PCH) – If you don’t want to own the car and like the idea of leasing, PCH might be best for you. You pay a fixed monthly fee to use the car for a set period. At the end of the lease, you simply return the car.

All these options have pros and cons to weigh up, so it’s important to think carefully about your short and long-term needs.

Important note: All finance agreements are subject to status, credit checks, and approval from lenders. The cost of car finance depends on the type of finance, your credit score, and the car you’re purchasing. 

Be sure to carefully consider the total cost of the agreement, including any deposits, monthly payments, and final balloon payments. If you’re unsure about any finance options, it’s a good idea to seek independent advice.

The takeaway

Choosing a fuel-efficient car could help you save over time by reducing your need to fill up at a petrol station. Whether you opt for a hybrid or an efficient petrol car, there could be plenty of options! 

When it comes to financing, consider what works best for your budget long term as well as short term, and whether or not you want to keep your car at the end of your agreement. 

Disclaimer: Car finance is a regulated activity. We are not a lender but can assist you in finding suitable finance options. The terms and conditions of your car finance will depend on the lender and your individual circumstances. You should only enter into a finance agreement that you can afford and understand the implications of.