Buying a used car under £5,000 in the UK can feel challenging in 2026, especially with rising living costs and a competitive second-hand market. However, there are still plenty of reliable, economical and practical used cars under £5,000 if you know what to look for.
This in-depth guide covers the best used cars under £5,000 in the UK, key buying advice, ownership costs, and answers to the most common questions buyers search for online. It is optimised for search intent, user experience, and SEO, making it ideal for anyone looking to buy a cheap but dependable used car.
Why Buy a Used Car Under £5,000?
Choosing a budget used car under £5,000 is still one of the most cost-effective ways to get on the road. While newer cars and electric vehicles are increasing in price, older petrol and diesel cars remain widely available, affordable to insure, and cheap to maintain.
Key benefits include:
- Lower purchase price and depreciation
- Cheaper insurance and road tax
- A wide selection of proven, reliable models
- Ideal for first-time drivers and commuters
For most UK drivers, the best value still lies in small hatchbacks with good service history and sensible mileage.
What to Look for When Buying a Used Car Under £5,000
Reliability and Running Costs
When searching for the best used cars under £5000 in the UK, reliability should be your top priority. Brands such as Toyota, Honda, Hyundai and Skoda are known for long-lasting engines and low maintenance costs.
Service History and MOT Records
Always check:
- Full or partial service history
- MOT history for repeat advisories
- Evidence of timing belt or chain maintenance
A well-maintained higher-mileage car is often a better buy than a low-mileage car with poor records.
Insurance Group
Cars in lower insurance groups are cheaper to run, especially for younger or first-time drivers. Small petrol hatchbacks usually offer the lowest premiums.
Fuel Type
For this budget, petrol cars are usually the safest choice. Older diesel cars can still be good value but may face future emissions restrictions in some areas.
Best Used Cars Under £5,000 in the UK (2026)
Below are some of the most reliable used cars under £5,000 you can realistically buy in the UK in 2026.
Toyota Yaris (2009–2016)
The Toyota Yaris is widely regarded as one of the most reliable used cars under £5,000 in the UK. It offers excellent fuel economy, low repair costs and proven long-term durability.
Best for: City driving, first-time buyers, low running costs
Things to check: Rust on older models, service history
Honda Jazz (2010–2015)
The Honda Jazz is known for its reliability, practicality and clever interior layout. It is a great choice if you want a small car with surprisingly good space.
Best for: Practical daily driving, older drivers, small families
Things to check: Suspension wear, regular servicing
Ford Fiesta (2012–2017)
The Ford Fiesta is one of the best-selling used cars in the UK and remains a strong option under £5,000. It is enjoyable to drive, cheap to repair and widely available.
Best for: First cars, commuting, affordable maintenance
Things to check: EcoBoost engine servicing, clutch wear
Hyundai i20 (2012–2015)
The Hyundai i20 offers solid reliability and low ownership costs. It may not be exciting, but it is dependable and cheap to run.
Best for: Budget-focused buyers, everyday use
Things to check: MOT history, general wear and tear
Volkswagen Polo (2012–2014)
The VW Polo feels more refined than many rivals and offers good motorway comfort for a small car.
Best for: Long journeys, build quality
Things to check: Timing belt replacement, higher parts costs
Kia Picanto (2015–2017)
The Kia Picanto is one of the newest cars you are likely to find under £5,000. It is cheap to insure and ideal for urban driving.
Best for: Learners, city driving
Things to check: Limited boot space, interior condition
Nissan Note (2013–2016)
The Nissan Note offers excellent practicality in a compact footprint, making it ideal if you want space without moving to a larger car.
Best for: Practical drivers, light family use
Things to check: Electrical issues, CVT gearbox servicing
Skoda Fabia (2013–2016)
The Skoda Fabia is known for reliability, practicality and good value for money. It shares many components with Volkswagen models but is often cheaper to buy.
Best for: Families, commuters
Things to check: Interior wear on high-mileage examples
Toyota Aygo / Citroën C1 / Peugeot 108
These near-identical city cars are among the cheapest used cars to run in the UK. They are simple, efficient and ideal for short journeys.
Best for: City driving, low running costs
Things to check: Clutch wear, limited space
Volkswagen Up / Skoda Citigo / SEAT Mii
These small city cars offer good build quality and excellent fuel economy. Clean examples under £5,000 can be harder to find but are worth considering.
Best for: Urban commuting
Things to check: Availability, tyre condition
Tips for Buying a Used Car Under £5,000
- Inspect the car in daylight
- Check tyres, brakes and suspension
- Test drive on different road types
- Use MOT advisories to negotiate
- Consider an independent vehicle inspection
Taking your time can save you hundreds in future repair costs.
Frequently Asked Questions
What is the best used car under £5,000 in the UK?
Some of the best options include the Toyota Yaris, Honda Jazz, Ford Fiesta and Hyundai i20 due to their reliability, low running costs and wide availability.
Are used cars under £5,000 reliable?
Yes, many are, provided they have been properly maintained. Focus on service history, MOT records and brand reliability rather than age alone.
Is it better to buy privately or from a dealer?
Private sales are often cheaper, while dealers may offer warranties and consumer protection. Always check paperwork regardless of seller.
What are the cheapest used cars to run?
Small petrol hatchbacks such as the Toyota Aygo, Kia Picanto and Hyundai i10 typically offer the lowest insurance, tax and fuel costs.
Can I buy an electric car under £5,000?
It is rare, but older electric vehicles such as early Nissan Leaf models may appear at this price. Battery health should be checked carefully.
Final Thoughts
Finding the best used car under £5,000 in the UK is still very achievable in 2026. By choosing a model with a strong reliability record, sensible mileage and good service history, you can secure a dependable car that will serve you well for years.
