What are the best cars under £5,000?

The UK’s cheapest new car costs just under £15,000 but what can you get for a third of that? The answer, as you’ll see here, is quite a lot. Because the best used cars for less than £5,000 prove that you can find something that looks good, drives well and should be dependable. All for a fraction of what you’d pay for a new car. 

Here, we’ve used our expertise to put together a list of what we think are the best cars you can buy for less than £5,000. We researched our prices in April 2025 using the UK’s major car listings platforms and omitted cars that have covered more than 90,000 miles. There’s something for everyone here, whether you’re after a cost-effective city car, a practical hatchback or a family-friendly SUV. Heck, there’s even a two-seater sports car and a zero-emissions electric car!

1.BMW 1 Series

You expect to pay a premium price for a premium product like the BMW 1 Series. But it’s actually  surprisingly affordable and for £5,000 or less you can get one of the second-generation models that was produced between 2011 and 2019.

As well as looking the part, the 1 Series has an interior that looks and feels a step above most other hatchbacks for quality. It’s smooth and enjoyable to drive – as you’d expect of a BMW – and you get the choice of petrol and diesel engines that offer great fuel economy, strong performance or a balance between the two. Back-seat space is tight so this isn’t the best choice for families, but there’s a decent boot and the 1 Series has a good record for reliability.

2. Hyundai i10

For a car this small and inexpensive, the Hyundai i10 does a remarkable impression of a full-size hatchback. Tiny cars like the i10 are often referred to as ‘city cars’ and some do feel most at home on urban streets. The i10 feels tailor-made for the city, but it’s also impressively quiet and comfortable on a country road or the motorway. It also gives you more passenger space than you might expect of a small car (although the boot is miniscule), as well as an interior that has a surprisingly high-quality look and feel. 

Higher-spec cars have upscale features such as cruise control and heated door mirrors and all but the most basic versions have air-con. While it feels larger than it is, you still get traditional city car benefits such as excellent fuel economy and low insurance costs, so choosing the i10 is a win-win.

3. Mazda MX-5

You could spend £100,000 or more on a brand-new open-top sports car but would it be any more fun than a sub-£5k Mazda MX-5? Possibly not, because when it comes to pure driving appeal few cars get close to an MX-5. Small and light, with rear-wheel drive, it creates a real connection between you, the car and the road. 

With a budget of up to £5,000 you can get the version that was sold new between 2005 and 2015. It’s a great-looking car that has a solid reputation for reliability and shouldn’t cost much to run. While the standard model has a folding fabric roof there’s also a version with a retractable hard-top roof that gives a bit of extra security and protection from the elements when it’s in place. Practicality is not the MX-5’s forte, with only two seats and a small boot. But drive it and you’ll be having too much fun to worry about that…

4. Volvo V40

There are lots of mid-size hatchbacks available for this sort of money so why choose the Volvo V40 over cars such as the Ford Focus and Volkswagen Golf? For one thing, Volvo’s focus on safety means that the V40 is stuffed full of safety features that you won’t find on some similar cars at this price – it even has a pedestrian airbag on the outside of the car!

It’s comfortable to drive, too, with especially supportive seats and smooth engines. Boot space isn’t a match for some hatchbacks but the V40 is usefully practical and the interior has an especially classy look and feel. Overall it’s a stylish, upmarket car that has aged very well. And – the icing on the cake – it has a good record for reliability.

5. Renault Zoe

Chic and cheap, the Renualt Zoe is one of the best low-cost electric cars you can buy. Introduced in 2013, it was – alongside the Nissan Leaf – one of the first big-selling EVs. It's easy to see why it was so popular because it’s stylish, good to drive and usefully practical. It’s also well-equipped – all versions have climate control and a touchscreen infotainment system and higher-spec cars have a rear-view camera and heated front seats.

The cheapest versions have a 22kWh battery that gives a maximum range of 130 miles. If that’s not enough you can pay a bit more for a version with a 41kWh battery that gives a maximum of 250 miles. That was hugely impressive for the time and remains very competitive today. One thing to be aware of: if you see a listing for a used Zoe that says ‘battery lease’ in the description you’ll have to pay a monthly lease fee on top of the purchase price – ‘battery owned’ means there’s no extra cost to pay.

6. Honda CR-V

Solid, spacious and dependable, the Honda CR-V is just about everything you can ask of a family car for less than £5,000. The 2006-2012 model is the one that fits our budget and despite the oldest versions being nearly twenty years old it’s a car that looks and feels surprisingly modern.

All versions have four-wheel drive but the CR-V drives more like a hatchback, as most SUVs these days do. You also get plenty of mod-cons, with some versions coming with an automatic braking system and a rear-view camera. It was, in many ways, ahead of its time. And at this price you’re unlikely to find an SUV that’s as good an all-rounder, or is likely to be as reliable, as the CR-V.

7. Skoda Fabia Estate

Small estate cars such as the Skoda Fabia Estate are a rarity nowadays due to the popularity of compact SUVs and crossovers yet they make a lot of sense if you want a car with lots of boot space and low ownership costs. 

Sold new between 2015 and 2021, the Fabia Estate is outstanding value compared with just about any other car of a similar age, offering a bigger boot than most large family hatchbacks of the time and many current mid-size SUVs. Passenger space is good, too, and the interior feels solid and has a clean, modern look. Lower-spec S models have fairly basic equipment, so it’s worth paying a bit more for SE or SE L trim. All versions give low running costs, and the Fabia is generally a reliable choice.

8. Renault Captur

Renault is famous for making small cars that are big on character and it brought all that to the party when it introduced its first compact SUV – the Renault Captur – in 2013. Available in some bold colours, with the option of a contrasting paintwork for the roof and door mirrors, it still looks sharp today.

As well as a slightly raised driving position, the Captur gives you useful extra versatility over a small hatchback because all versions come with a sliding rear seat that allows you to prioritise back-seat legroom or boot space. Running costs are much the same as you’d pay for a small hatchback and the Captur is super-easy to park thanks to its compact dimensions and great visibility.

9. Toyota Auris

If you’re looking for a reliable used hatchback and have up to £5,000 to spend we’d suggest taking a look at the Toyota Auris. That’s because, year after year, Toyota – and its premium brand Lexus – finish at or near the top of numerous reliability and customer satisfaction surveys. There might be more stylish or desirable alternatives, but a used Toyota might be the most dependable choice. 

Go for the Toyota Auris that was on sale new between 2012 and 2019 and you’ll get a car that looks modern and is available with features such as LED headlights, voice control and a panoramic roof. We’re not going to claim that it’s especially fun to drive, but it does everything pretty well and its engines are smooth and fuel-efficient. There’s a hybrid version, too, although you’ll have to bust our £5,000 to get one of those.

10. Hyundai Santa Fe

If you’re trying to find a good seven-seater car for less than £5,000 you’ll find many of the cars that fit your criteria are fairly old, large MPVs. So we’ll let you into a secret. For the same money you can have a stylish, well-equipped SUV in the shape of the Hyundai Santa Fe. While it was outstanding value when new (between 2006 and 2012) it looks like an absolute steal now. 

Although it doesn’t give you MPV levels of headroom, the Santa Fe has space for seven adults if you go for the seven-seater – rather than five-seater – model. When you don’t need the third-row seats they fold  into the floor to create a huge boot. All versions have four-wheel drive and are smooth and comfortable to drive. Opt for the diesel engine for the lowest running costs and an impressive 2,200kg towing limit.