Best Cars under $5000

With car prices skyrocketing through the roof, it's sifting through hay to find a decent second-hand car for under $5,000. Supply shortages and rising demand have pushed prices higher, but if you know where to look and what to check, there are still some real bargains to be had. Whether you want a reliable runout or your first pair of wheels, our guide is here to help up the second-hand market and get the best grapes for your buck!

Ask These Questions Before You Buy a $5,000 Car

Five grand isn't much of a budget in the grand scheme of buying a car, but if you're clever you'll still land something that won't leave you stranded and has at least a few good years still in the tank. The following tips can help you avoid buying a lemon:

• Look up the make and model of the car to see if it has common problems and how reliable it is.
• Listen for weird sounds when you start the cold car.
• Make sure all lights, indicators, electronics are working.
• Check for rust or damage on the undercarriage.
• Read the vehicle history report to confirm that critical servicing — timing belt replacements, for example — has occurred.
• Buy a car only with a valid roadworthy certificate or recent safety inspection.

How Long Can a $5,000 Car Be Expected to Last?

It all depends on the condition, mileage and care that the vehicle has received. Some cars at this price can run trouble-free for years with basic maintenance; other cars may need repairs sooner. The trick is to buy a well-serviced, reputably branded car that is designed to last.

The Best Used Cars in Australia for Under $5,000

Toyota Corolla

The Toyota Corolla is a tried-and-true workhorse, a fuel-sipping, no-frills hatch or sedan that just won’t stop. For anyone looking for a car to run and maintain, this is one of the best.

Toyota Camry

The Toyota Camry is a safe bet for anyone who needs a reliable sedan with a little more room. Famous for its smooth ride and efficient engine, it’s also great for families or those who spend loads of time on the road.

Hyundai i30

If you can find a Hyundai i30 within budget, you’re onto a winner. This hatchback is practical, comfortable, and fuel-efficient, so it's a great choice for buyers on a budget.

Subaru Outback

If you’re a little more adventurous, the Subaru Outback is a rugged wagon with all-wheel drive that makes for a good road tripper or a good vehicle for country roads. For best value, go for 2007-2008 models.

Kia Rio

The Kia Rio: Small hatch, big reputation for reliability. It’s inexpensive to service, returns good miles per gallon and is great to drive in the city; all of which makes it a no-brainer for first-time car buyers.

Mazda 3

The Mazda 3 is one of Australia's best-selling second-hand cars, and it's known for its combination of reliability, performance and practicality. If you can find a well-maintained unit, it’s an excellent choice at this price.

Ford Focus

The Ford Focus is a well-built hatchback that’s comfortable and fuel-efficient, but offers a surprisingly lively drive. With a well-maintained example, it’s worth a look.

Volkswagen Polo

The Volkswagen Polo is a little car, but there is a hint of European sophistication. Sure, servicing can be a tad on the pricier side, but you'll have a reliable and refined Polo for many years to come.

Subaru Forester

For additional space and some mild off-pavement capability, the Subaru Forester is a great choice. It’s best known for its durability, as well as all-wheel-drive capability, fluffy for city and country road driving.

Final Thoughts

The used car market is tough right now, but if you wait and do your research, you can still find a bargain. Your odds of getting a reliable car increase if you stick to trusted brands such as Toyota, Honda, Subaru and Mazda. Just be sure to check on service history and condition before purchase, and you’ll be on the road without breaking the bank.