What are the best used cars under £20,000?

With a budget of up to £20,000 to spend on a used car, you’re spoilt for choice because it’s enough to buy you all manner of desirable motors. At this price, nearly-new city cars, family SUVs, luxury saloons and the latest electric models are all within reach – so where do you start?

Well, here we’ve selected what we think are the best-used cars you can buy for less than £20,000. We researched our prices in June 2025 using the UK’s largest used car marketplace, with a mileage limit of 70,000 miles for the cars we chose. We’ve aimed to include the latest models possible, and include options to suit various needs. 

1. Citroen C3 

The latest Citroen C3 is exceptional value as a smart city car under £20,000. It blurs the line between a compact SUV and a city car. Launched in 2024, the C3 is one of the cheapest new cars on sale yet it feels anything but cut-price. It looks great on the outside, with sharp styling and a contrasting roof colour. Inside there’s a modern, clean-cut look and standard features including a 10-inch touchscreen display and wireless Apple CarPlay and Android Auto integration. 

There’s a surprising amount of space inside, as well as cushy seats that combine with the C3’s smooth ride to make this one of the most comfortable small cars to travel in.  When new, prices start from just over £18,000 and the top-spec model nudges over £20,000. Buy used and you can knock a useful chunk off either of those prices, so our budget will easily get you a version with all the whistles and bells. Petrol and hybrid versions are available and if you haggle hard you may even be able to get the all-electric version, called E-C3, for less than £20k. 

2. Toyota Yaris

Small hatchbacks like the Toyota Yaris is a great choice if you want a car that has low running costs and fits easily into most parking spaces. There are some great options for up to £20,000, including the brilliant Kia Picanto and Renault Clio but the Toyota Yaris gets our vote here for its outstanding fuel economy, exceptional reliability record and remarkably long warranty. How long, exactly? Well, if you have it serviced every year at a Toyota dealer the car is covered for 10 years or 100,000 miles, whichever comes sooner. If you’re looking for a compact car that’s likely to be fuss-free to own things don’t get much better than this. 

Introduced in 2020 and available only as a hybrid, the latest Yaris has an official fuel economy of about 70mpg, and in many independent tests, it gets close to that in real-world driving. While the petrol engine and electric motor work together most of the time, the Yaris can travel at low speed for short distances using electric power alone. So if you live in the city you might not use much petrol at all. The Yaris feels nimble and fun to drive, too, and its interior is solid and user-friendly, if not especially spacious 

3. Audi A3 Sportback

If the concept of champagne for prosecco money appeals to you, then the Audi A3 will be right up your street. With its chic styling, high-quality interior and those four rings up front the Audi A3 looks every inch a premium option, yet you can get a used example that’s just two or three years old for the price of the average new city car. 

It’s inside that the A3 really feels special, with a design and features that elevate it above most mid-size hatchbacks. It’s usefully practical, too – passenger space and boot capacity are a match for cars such as the Ford Focus and Volkswagen Golf. The driving experience is a match for the A3’s premium image and at this price, you’ll have a choice of petrol engines, all of which give good fuel economy and decent acceleration. 

4. BMW 3 Series 

Saloon and estate cars aren’t as popular as SUVs nowadays but that means they tend to be better value. The BMW 3 Series is a great example because it costs a lot less than the X3 – the equivalent SUV in BMW’s model range. 

What’s so impressive about the 3 Series is that it manages to feel both luxurious and sporty to drive. It’s practical, too, especially if you go for the estate model (called 3 Series Touring) and the interior is stylish and beautifully built. A budget of £10,000 will stretch to the latest 3 Series model, which has been on sale since 2019. It’s well-equipped, has a good reliability record and is available with a range of powerful yet fuel-efficient engines, as well as a plug-in hybrid version that can cover about 30 miles using electric power alone. 

5. Ford Puma

If you want to stand out from the crowd then the Ford Puma might not be the car for you because, as the UK’s best-selling new car in 2023, 2024 and 2025 (as of June 2025) there are a lot of them on the road. That means there are a lot to choose from, however, and if you want one of the best small SUVs around then the Puma should definitely be on your shortlist. 

Sleeker and lower than many similar cars, the Puma looks like it ought to be a lot of fun to drive. The good news is that it is, with a very responsive, agile feel through corners. For a small car, the Puma is remarkably practical, too. There’s good space for back-seat passengers but the real showstopper is the boot. Its 456-litre capacity is way ahead of most similar cars and includes the ‘Megabox’ – a storage compartment under the floor that has a removable plug at the bottom of it. So you can stash dirty boots or gear in there and then simply hose it clean afterwards. 

6. Kia Sportage

The Kia Sportage is another big seller, frequently among the top 10 or even top 5 best-selling new cars in the UK. And it’s easy to see why, because this mid-size family SUV is distinctive, practical and great value for money.  

The current-generation Sportage, introduced in 2022, is well within budget. Thanks to its futuristic design it still looks bang up to date and even the cheapest versions are well-equipped, with LED headlights, Apple CarPlay and Android Auto connectivity and a rear-view camera as standard. The Sportage has more interior space and a larger boot than many similar cars, and its seven-year/100,000-mile manufacturer warranty means that you should be able to find one that still has lots of cover remaining. Drawbacks? At this price, you’ll only find a model with a petrol or diesel engine; the hybrid and plug-in hybrid models cost quite a bit more. 

7. Skoda Kodiaq

Fancy a big, classy seven-seat SUV for the same price as the average five-seater? Then let us introduce the Skoda Kodiaq. It’s one of the best family cars you can buy because as well as vast interior space the Kodiaq is a very comfortable, quiet car to travel in. Although the pair of third-row seats was an option when new, most used Kodiaqs have them. They’re just the job if friends or family want to join the fun for a day trip and they fold easily away to leave an immense boot space when not needed. Opt for a five-seat version and you get an even bigger boot.

There’s a wide choice of models, with fuel-efficient petrol and diesel engines, a manual or automatic gearbox and a variety of (well-equipped) trim levels.  You can get Kodiaqs with four-wheel drive, too, and these make especially good tow cars. 

8. Polestar 2

Polestar has come from nowhere to become one of the most desirable car brands in just a few years and that’s all thanks to the Polestar 2. In case you didn’t know, Polestar is an off-shoot of Volvo that introduced its first car – the Polestar 1 – in 2019. That car was an expensive plug-in hybrid coupe sold in limited numbers but the Polestar 2 arrived in 2020 as a much more affordable electric crossover that’s a rival for cars such as the Tesla Model 3. 

Most Polestar 2 models have a range of 300 miles or more, which is very competitive, even when compared with a Tesla. Where the Polestar 2 really shines, though, is its interior. It’s a combination of sleek Scandinavian design and cutting-edge tech, with minimalist vibes and a huge centre touchscreen. The coupe-style roofline means that back-seat headroom is a bit tight, but there’s loads of legroom and a decent boot. All versions are quick, good to drive and packed with standard features. 

9. Skoda Enyaq

Yep, it’s the second Skoda SUV on this list but it’s a bit different to the first one. Although the Skoda Enyaq is about the same size as the Kodiaq, we’ve already mentioned it’s a pure-electric model and has five seats only. It’s still very family-friendly, however – in fact, we think it’s one of the best electric family cars you can buy. 

It’s particularly spacious inside, and as well as having more headroom and legroom than you’re ever likely to need, it’s packed with useful storage spaces for your clutter. The boot is huge, and it’s a very quiet and relaxing car to travel in. If any car can make family trips a bit less stressful and a bit more peaceful, it’s the Enyaq. Maximum range is more than 200 miles with the standard battery option and more than 300 miles with the larger battery, so on family outings, you may have to stop to refuel your passengers before you need to top up the battery.

See our comparison review between the Skoda Enyaq vs Tesla Model Y.

10. Mercedes-Benz E-Class

For a touch of modern luxury at sub-£20k prices the Mercedes-Benz E-Class is hard to beat. It gives you all the sophistication the brand is famous for and the interior has serious wow factor, with plush materials, huge display screens and tasteful ambient lighting. It’s also supremely comfortable, with supportive seats and space for those in the back to stretch out. While saloon models have a massive boot, estate versions give you even more, with a larger capacity than almost any other estate car. 

An automatic gearbox is standard, naturally, and contributes towards a smooth and serene drive. A range of petrol and diesel engines are available, as well as plug-in hybrid models that give the potential for mega-mpg and electric-only driving for short distances. All versions are extremely well-equipped, with standard features including front and rear parking sensors, a rear-view camera, heated front seats and leather (or artificial leather) trim. 

Are there any new cars that cost less than £20k?

As with most things, the price of new cars has increased significantly over recent years but you can still get new cars that cost less than £20,000. As of June 2025, the cheapest new car is the Dacia Sandero, which has a starting price of £14,715, closely followed by the Dacia Spring at £14,995. The Leapmotor T03, Kia Picanto and Dacia Sandero Stepway all start from about £16,000, while the Hyundai i10, MG 3 and Toyota Aygo X kick off at about £17,000. 

All of the above are small hatchbacks but you can get family-friendly new cars for less than £20,000, too – the Dacia Duster mid-size SUV and Dacia Jogger seven-seat crossover both start at about £19,000.

What is the most reliable car under £20k?

Brands like BMW, Honda, Lexus, Mini and Toyota have regularly ranked highly over recent years as reliable cars under £20K. 

The good news is that at this price, you have lots of new and nearly new cars to choose from, so as well as finding a car with less wear and tear, there are plenty that still have some manufacturer warranty remaining. 

To get a good overview of the reliability of different car brands we’d suggest checking out the results of annual reliability and customer satisfaction surveys such as the Driver Power Survey and What Car? Reliability Survey. 

What is the best SUV under £20k?

If you prefer a smaller SUV, the Audi Q2, Ford Puma and Renault Captur are great SUVs under £20,000. Excellent mid-size models include the Kia Sportage, Skoda Karoq and Skoda Enyaq, while good examples of seven-seater options such as the Peugeot 5008 and Skoda Kodiaq are also well within budget.

What’s the best electric car for less than £20k?

The best electric cars for less than £20k include the Hyundai Kona Electric, MG 4, Polestar 3, Skoda Enyaq and Tesla Model 3. There are lots of great electric cars available for less than £20,000. Haggle hard and you should be able to get a brand-new Citroen E-C3 for a shade under this figure.