Best cars for £5,000 or less

What are the best used cars under £5,000? It’s a common question as this kind of budget is a reasonable amount to spend on a car where you can expect to find something of good quality that will genuinely suit your needs. There are plenty of really good cars under £5k but if your budget is a lot less than that, it starts to become more of a minefield full of bangers and unloved models with chequered histories.

In this article we’ll look at the best cars under £5k chosen by our experts. Here you'll find temptingly low-priced SUVs, a sporty executive saloon and even an electric car.

A thorough inspection is essential when buying any used car, but cars significantly under £5k will need a particularlly close look as they can be rather tired compared to cars costing more. Bring your budget up to £5,000 or slightly over and you’ll find that there’s a much wider selection available and the quality of examples is higher, too.

As long as you’re not in urgent need of a car, it’s better to wait for an example to appear that has a solid service history and a fresh MoT than to buy the first car you can find. Cosmetic issues like scratches and dents are the easiest to spot during an inspection, but we’d choose a tatty car with good history over an immaculate-looking one with none as you could face a huge bill if the engine hasn’t been cared for.

BMW 3 Series

• Price new: £26,675
• Price now: £4,495
• Powertrain: 2.0-litre 4-cylinder petrol, RWD
• Power: 181bhp  
• 0-62mph: 7.1 seconds

While cars such as the BMW 3 Series are now seen as less fashionable than SUVs, they were top sellers a decade ago. That means there are plenty on the used market and the prices are kept low, especially for smaller-engined saloons.

While they might not get your pulse racing in the same way as an M3 or 330i, a 320i or one of the four-cylinder diesels is still good to drive and offers a great blend of performance and economy.

The sixth-generation car – codenamed the F30 – was introduced in 2012, and examples are comfortably within our budget, even with below-average miles. The four-cylinder diesels are cheapest of all, but we would future- 
proof ourselves with the 2.0-litre turbo petrol, which is smooth, strong and offers reasonable economy for the performance.

See our used BMW 3 Series deals

Honda Jazz

• Price new: £14,846
• Price now: £4,250
• Powertrain: 1.4-litre 4-cylinder petrol, FWD
• Power: 99bhp 
• 0-62mph: 9.4 seconds

Honda’s smallest model has a unique claim to fame in the car market. Honda Jazz buyers tend to be older than average, with the vast majority of new buyers being past retirement age.

These mature motorists are attracted by the Jazz’s reputation for reliability, ease of driving and practicality. The car's upright stance improves access and there is a huge amount of room inside, boosted further by flip-up rear ‘Magic Seats’.

While the image might put off some younger drivers, it does mean used Jazzes tend to have been treated gently and well maintained rather than ragged around by teenage tearaways.

The 1.2-litre engine is a little breathless on faster roads but is fine for drivers who mainly make local trips. The 1.4-litre models are more sought-after and consequently more expensive.

See our used Honda Jazz deals

Renault Zoe

• Price new: £29,215  
• Price now: £4,850
• Powertrain: 41kWh battery, 1x e-motor, FWD
• Power: 93bhp  
• 0-62mph: 11.4 seconds

Along with the Nissan Leaf and the BMW i3, the Renault Zoe was a real pioneer for electric cars. The supermini-sized hatchback is good fun to drive and has enough space for a small family. While the early models had small battery packs and AC-only charging, our £5,000 budget will get you a much later car with the 41kWh pack and an official range of 186 miles – though you can expect nearer 150 miles in the real world.

Buying a used Zoe does require a word of warning though. When comparing cars, beware of the words ‘battery lease’. This means Renault will still require you to pay a monthly fee of between £69 and £124 for a battery-pack warranty. The battery-owned cars are more expensive to buy but less hassle and easier to sell on.

See our used Renault Zoe deals

SEAT Alhambra

• Price new: £23,555 
• Price now: £4,995
• Powertrain: 2.0-litre 4-cylinder diesel, FWD
• Power: 168bhp 
• 0-62mph: 9.8 seconds

Big people carriers have had to give way to SUVs in the past 15 years, but for anyone who values function over form, a good seven-seat MPV is still unbeatable.

The SEAT Alhambra was one of the best of its breed, and found an almost cult following with taxi drivers. This means most are diesels which have covered more than 100,000 miles, but that's not a problem if the car has been well maintained. The TDI engine is available with 140bhp or 170bhp, with a six-speed manual gearbox or a DSG automatic.

Any Alhambra which hasn’t been taxied to death is highly prized, but our budget should buy you a well equipped 2011 model with around 100,000 miles.

See our used SEAT Alhambra deals

Subaru Outback

• Price new: £30,965
• Price now: £3,995
• Powertrain: 2.5-litre 4-cylinder petrol, AWD
• Power: 165bhp  
• 0-62mph: 10.4 seconds

You might need to search hard for an Subaru Outback, but we think it’s worth the effort if you need a solid, reliable load lugger that can handle the odd muddy track, towing task or snowy slope. It won’t be quite as capable as something like a Land Rover in the rough stuff, despite powering all four wheels, but it will have enough ability for all but the most extreme situations.

It’s also much nicer to drive than a typical SUV of the same era, with a lower centre of gravity meaning it feels more stable in corners. It’s just as practical, though, with plenty of space in the back for passengers and a 526-litre boot.

The diesel engines can be troublesome, so we’d stick with the 2.5-litre petrol, even if it’s rather thirsty. VED road tax is still cheaper than on many SUVs of the era though, at £385 a year.

See our used Subaru Outback deals

Volkswagen Golf 

• Price new: £20,015  
• Price now: £4,995
• Powertrain: 1.6-litre 4-cylinder diesel, FWD  
• Power: 103bhp  
• 0-62mph: 10.9 seconds

The Volkswagen Golf is the default family car for millions of drivers, simply because it promises a decent package of price, efficiency and quality. While the performance models will get enthusiasts excited, those with the more mundane engines still make brilliant everyday cars.

The seventh-generation Golf arrived in 2013 and is arguably the best overall package in the model’s history, and an example with average mileage will just slip into our budget constraints. The petrol-powered choices include the excellent 1.4-litre TSI, with either a manual or VW’s DSG dual-clutch auto. But 2013 was the era of peak-diesel and there is far more choice of TDIs on the used market. If you can steer clear of restrictions in low-emission zones, the 1.6-litre Bluemotion offers good performance along with £20-per-year VED and economy that promises 800 miles on a tank full of diesel.

See our used Volkswagen Golf deals

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