Best cars for £20,000 or less

£20,000 certainly isn’t small change, but the list of new cars that you can buy with this amount of cash is smaller than ever. Take a look at the used car market, though, and you’ll be spoilt for choice as there’s plenty of bargains to be found. To make your search as easy as possible, our experts have rounded up the best cars for £20,000 or less right here.

Our list contains a broad selection of cars from a variety of manufacturers, ranging from the sporty Cupra Formentor to the zero-emission Vauxhall Corsa Electric.

If you are tempted by one of the higher-end models that has suffered at the hands of depreciation, remember to account for running costs. Premium cars often demand equally-premium prices when it comes to maintenance and fuel bills, so your bargain could end up being costly if you aren’t careful.

Cupra Formentor

• Price new: £30,060  
• Price now: £19,350
• Powertrain: 1.5-litre 4-cylinder petrol, FWD
• Power: 148bhp  
• 0-62mph: 8.9 seconds

Do you like the idea of a family SUV but don’t want to give up the sportiness of a hot hatchback? Cupra has your back with the Formentor. It’s almost as practical as rivals such as the Nissan Qashqai, but has a lower roofline with more aggressive styling and sportier driving manners.

When the Formentor was launched, there were some very keen lease deals that bolstered sales. Those cars are now being fed into the used market and although prices are above those of an equivalent Volkswagen Golf, the Formentor should retain more of its value in future.

There is a good choice of powertrains and specs, including a hybrid, but we think the V1 with the 1.5-litre TSI engine has enough equipment and performance to keep most drivers happy.

See our used Cupra Formentor deals

Ford Puma

• Price new: £25,635 
• Price now: £16,495
• Powertrain: 1.0-litre 3-cylinder petrol, FWD
• Power: 123bhp 
• 0-62mph: 9.8 seconds

Following the demise of the Fiesta, Ford’s little SUV, the Puma, has taken over as the company’s biggest seller, and it also topped the overall sales charts in the UK last year. It’s easy to see why, because it offers the raised driving position drivers love, together with fun dynamics, low running costs and reasonable practicality.

We found a late-2022 example in the sporty-looking ST-Line trim with 6,000 miles for £16,495 at a Ford dealer. The better-equipped ST-Line X commands a premium of around £500 at this age, while the automatic gearbox is slightly more desirable than the manual, too.

Make sure the service records are up to date, because the EcoBoost engines can suffer from poor reliability if they are neglected.

See our used Ford Puma deals

Kia Ceed

• Price new: £25,300
• Price now: £17,000
• Powertrain: 1.0-litre 3-cylinder petrol, FWD
• Power: 118bhp  
• 0-62mph: 10.7 seconds

We are big fans of the Kia Ceed as a new car, but it arguably becomes even more convincing when it hits the second-hand market.

It’s good to drive, practical and has all the technology you expect, but it's usefully cheaper than a Ford Focus or Volkswagen Golf at the same age and mileage, despite having the back-up of Kia’s seven-year warranty. That 
means a 2023 Ceed will still be covered until 2030, while these rivals will only have a year left.

Although the posher trim levels such as the stylish GT-Line can seem tempting, the lowlier Ceeds have always made more sense, because they are still well equipped and the ride is more forgiving on smaller wheels. The ISG auto gearbox isn’t the best, so we would suggest keeping it simple with a 1.0T manual.

See our used Kia Ceed deals

Toyota RAV4

• Price new: £47,340
• Price now: £19,950
• Powertrain: 2.5-litre 4-cylinder PHEV, AWD
• Power: 302bhp  
• 0-62mph: 6.0 seconds

Toyota’s 4x4s have a reputation for toughness and reliability that is the envy of rivals, and it’s backed up by one of the best warranties in the business. Every Toyota in the UK is eligible for up to 10 years or 100,000 miles of cover, so long as you have the vehicle serviced on time at an official dealer.

That means the used prices are traditionally higher than rivals, but we think the Toyota RAV4 still makes a great buy. The first of the plug-in models are now starting to appear on the market at prices just below our £20,000 limit.

The PHEV is a genuinely efficient car, with a 30-mile-plus electric range and decent fuel economy, while it gets from 0-62mph 2.1 seconds faster than the hybrid RAV4.

See our used Toyota RAV4 deals

Vauxhall Corsa Electric

• Price new: £34,480
• Price now: £17,500
• Powertrain: 50kWh battery, 1x e-motor, FWD
• Power: 134bhp  
• 0-62mph: 7.6 seconds

The bafflingly complex rules around emissions mean that car makers have to sell a certain amount of electric cars or face fines. The result of that is that some manufacturers have made up for any shortfall in sales by registering EVs as demonstrators and then selling them on at a knock-down price after a few weeks.

As a result there are some real bargains out there, especially if you fancy a supermini. We spotted several Vauxhall Corsa Electrics advertised with delivery mileage for £17,500, knocking almost half off the original list price for the range-topping Ultimate trim. The dealer we spoke to was keen to do a deal, so there’s a chance to bag even more of a bargain. All the Corsas we saw had the older 136bhp motor and 50kWh battery, with a still-decent 222-mile range.

See our used Vauxhall Corsa Electric deals

Volvo S90 

• Price new: £47,800  
• Price now: £18,500
• Powertrain: 2.0-litre 4-cylinder diesel, AWD  
• Power: 233bhp 
• 0-62mph: 6.7 seconds

When choosing a new executive car, the default option is to head to a German brand’s showroom. But in the used market we’d suggest you might find a deal from a less obvious source: Volvo.

The Swedish company is best known for its estates and SUVs, but the S90 is a forgotten gem in the big-saloon sector and represents great second-hand value as a result. It’s comfortable, spacious and efficient, with dynamics that encourage you to make the most of the refinement rather than trying to set new lap records.

The diesel and PHEV powertrains are the most prevalent and are a popular choice as executive chauffeur cars, so many will have high mileages and should therefore be more affordable. But we found a 2019 D5 AWD with the desirable R Design pack for £18,500 with only 51,000 miles. That’s a lot of car for the money.

See our used Volvo S90 deals

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