DESPITE the used car market hotting up, there are still bargains to be had. It’s possible to get a reliable family run around, city car or even SUV for less than £5k – but only if you know what you’re buying.
At this end of the market, cash is still king. A Gocompare survey found that 59.8% of Brits prefer to buy a car with cash.
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One of the benefits of buying a car outright is that there’s no interest and no monthly payments.
Paying with cash can give you a stronger position to attempt to negotiate a better deal. Sometimes, you can even drive away with the car on the day.
But what’s the best used car to buy for under £5,000? In this article, the auto experts at Sun Motors share their views on the best used cars for under £5,000 from 2024 and for the coming year.
You’ll also find some hints and tips to help you buy the perfect second-hand car and avoid being left with a pup.
Best used cars 2025: from low-cost convertibles to durable family saloons
Here, our experts have selected three of the best-value used cars in 2025.
Dacia Sandero
The Dacia Sandero is Europe’s best-selling car, with over 8 million on the road. More cars produced means more for sale – and that means bargains can be had.
The Sandero is a small car designed and built by parent company Renault using tried and tested components.
Despite being one of the cheapest new cars on the market, the Sandero is more reliable than a comparatively priced Ford or Mazda, says Whatcar?.
You can pick up a low-mileage Dacia Sandero for less than £5,000 on Sun Motors. That represents incredible value for anybody’s money.
SEAT Leon
The SEAT Leon is basically a VW Golf, only cheaper, with some models sharing the same chassis.
If you’re looking for a sporty hatchback, the FR (Formula Racing) specification SEAT Leon is the equivalent of a Golf GTI – but at a much lower price.
Despite being built by the same company, SEAT is more reliable than a VW (although neither performs that well in this Fixmycar poll).
Despite its sporty looks, automotive bloggers The Car Guys found it was pretty economical, too.
You can pick up a 2014 Seat Leon for less than £5,000. We recommend you ignore the diesel engine and go for a petrol motor.
Mazda MX-5
The Mazda MX-5 remains today what it’s always been: a stylish, sporty and affordable convertible car.
The MX-5 is still winning prizes, with the 2023 model named best value sportscar at the 2023 What Car? Awards.
Older models are just as reliable and fun, but as with any convertible, ensure you test the roof mechanism before buying, as it can be expensive to repair or replace.
It’s not exactly cheap, but £10,000 will get you a 4-year old Mazda MX-5 with the powerful 1.5l petrol engine pushing out 130 bhp. Older models can still come in at under £5K if you shop around.
Buying a used car? Find cars for under £200 on Sun Motors here.
Best used cars of 2024
Here are the top five best used cars under five grand in 2024:
- Toyota Auris Hybrid
- Honda CR-V
- Mini Convertible
- Skoda Octavia
- Audi TT
The best-used car deals of 2024 are a mixed bag, with small city cars like the Toyota Auris rubbing shoulders with family classics like the Skoda Octavia and sport favourite the Audi TT.
You’ll notice that all these cars are established models, with cars like the Mini on sale since 2000 and the Audi TT since 1998. This matters because manufacturers will have ironed out any problems with the early models.
Old doesn’t mean ugly. We reckon the Mini, Audi TT and Honda CR-V are all as stylish today as they were when they were launched.
OK, while the family favourite Skoda Octavia won’t win any fashion awards, it won’t look out of place at the supermarket or school gates.
Running costs, too, are an issue as prices at the pump continue to rise.
As well as impressive fuel economy, essentials like road tax, servicing and spares for popular cars like the Mini and Honda CR-V won’t break the bank, either.
Mini Convertible
One excellent option for sunny days can be had from as little as £1,500 for versions from 2009-15.
Mini took one of the most iconic cars of all time, chopped its block off and somehow made it even better to drive.
Skoda Octavia
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The Octavia is a real Swiss Army Knife of a motor, an ideal all-rounder, it combines a spacious interior with a “gutsy” engine and miserly fuel economy – making it an ideal family car.
It’s also based on the same platform as the beloved VW Golf, while adding a little bit more room in the back seats and boot.
The model also matches the price of the Mini, with 2004-13 models starting at £1,500 even though it’s a fair bit larger.
Audi TT
Ideal for the kind of person who’s after a champagne lifestyle on limited funds, with models from between 2006 and 2014 starting at £2,500 the TT offers a top-notch sports car package at a bargain rate.
The car, named for the Isle of Man TT race, was discontinued last year so grab one while you can before the prices go up.
Toyota Auris Hybrid
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The main plus of the Auris is its phenomenally low running costs despite being a very decent size compared to most hatchbacks.
The hybrid powertrain combines an electric motor with a titchy petrol engine to eke out over 60mpg.
All the while, you pay zero road tax thanks to the model’s green credentials.
Models from between 2010 and 2012 are usually well within the budget, starting from £4,500.
Honda CR-V
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Honda is famed for the reliability of its SUVs in particular.
Building on the legacy of the legendary Land Cruiser, the CR-V provides a lot of space for very little cost as well as four-wheel drive.
The rear seats can even slide down to add extra boot space, making it a perfect choice for pet owners.
And with 2006-12 examples starting from as little as £3,500 it’s a great bang for buck offering.
Benefits of buying a used car
Here are the five reasons why you could be better off buying a used car:
- Lower price = better value: When you buy a used car, you can push your pounds as far as you can, getting better value than buying a new car. You can find models with bigger engines, sporty trims and better specifications.
- Cheaper insurance: You’ll typically pay less to insure a used car compared to a new one. cheaper to insure. The exact premium you pay will depend on you, your location and details of any points on your license or previous accidents, but it should be lower.
- Reliability: Older cars that have been cared for can be as reliable as new ones. When buying, check out service history and previous MOTs to understand how the car has been cared for.
- Lower depreciation: A new car will lose up to 40% of its value in the first year, warns the AA. A used car won’t. In fact, take care of your used car and you can achieve a high return when you come to sell it.
- Dealmaking potential: New car dealers don’t like to haggle anymore, but in the used car market there are still deals to be done. You’re often in the strongest position if you’re a cash buyer.
Benefits of buying a car outright vs financing
Here are some of the reasons why it can be better to buy a cheaper used vehicle outright than using finance to buy a new model:
- Cash means control: It’s easy to get carried away with financing deals and end up spending more than you planned. When you buy a car with cash or cleared funds, you’re less likely to blow the budget.
- No monthly payments: We can’t predict the future, but if you’ve got a finance agreement, you make your monthly payments, whatever happens in your life. Buying a car outright can give you control and confidence in your personal finances.
- Freedom to change: When you own your car outright, you can sell it whenever you want. If you and your family need something bigger, smaller, faster or slower, you can sell your current car and buy a new one without any penalties or problems.
Some people worry they’ll be left on their own if a vehicle develops a fault. Before you start your search, learn some of the essential tips when buying a used car.
The good news is that when you buy a used car you’re covered by the Consumer Rights Act 2015, which gives you some protection if the car develops a fault.
