Buying a used car on a budget isn’t just about the purchase price. You also need to think about the added costs such as insurance, road tax and fuel. Which is why, when putting this list of the best used cars under £3,000, we’ve paid close attention to the running costs.
With the fluctuating price of petrol and diesel, picking an economical car is more important than ever. That’s why we’ve scoured Parkers Cars for Sale section to try and find a pick of affordable £3,000 cars that also offer good fuel economy.
Used car prices have risen almost as dramatically as fuel costs, and demand for ULEZ-compliant and reliable models also pushes prices up. Many used cars for less than £2,000 now are likely to need expensive maintenance or consumables within the first few months of ownership so we recommend spending more up front for a clean car from a reputable dealer, with a warranty, where prices generally start around £2,500.
Here’s our choice of economical sub-£3,000 used cars to buy in 2023. Where just a couple of years ago diesel was the ideal route, it now makes more sense to choose petrol models. They are often cheaper to maintain, and many diesel cars in this price range will not qualify for ULEZ exemption.
Best cheap used cars under £3,000
We’d stick to the 1.25 and 1.4 Zetec petrol though, as the diesel has a few common issues that can make high mileage and older examples hard to trust. You’ll find three- or five-door Fiestas available, and if you want to spend more, the delightful Fiesta ST hot hatch; it really is a small car that offers something for everyone.
Read our full Ford Fiesta review
Pros
- Sold in huge numbers so plenty of choice
- Remarkable blend of fun and refinement
- Wide choice of models
Cons
- Diesel injector problems
- Starting to rust
Fiat has always made excellent small cars and this is one of the best
We don’t rate it too highly as new car, because time has moved on – something that’s particularly reflected in its latest safety ratings from Euro NCAP. But as a used car it’s still worth considering for its value, efficiency and practical yet quirky design.
Read our full Fiat Panda review
Pros
- Practical and spacious for size
- Quirky, attractive design
- Efficient and fun to drive
Cons
- Rust on rear suspension beam
- Power steering and clutch failure
An excellent choice if you want a small, mile-munching diesel
This is one to choose if you are outside cities with ULEZ, as the early diesel – particularly the Airdream+ – is remarkably economical yet quick and refined for motorways. Facelift models from late 2013 introduced ULEZ-friendly Euro 6 diesel versions. Many have had a hard life so look for a good service history and, unusually, above-average miles as these engines suffer if not allowed to run their DPF cleaning cycle.
Read our full Citroen C3 review
Pros
- Very fuel efficient
- Panoramic windscreen option
- Still looks modern now
Cons
- Fuel injector and turbo issues
- Clogged diesel particulate filters
Ideal for anyone looking for a small, cheap to run estate car
Go for the 1.2-litre petrol for low running costs and ULEZ-friendly emissions; if you want a diesel the 1.6-litre is a proven unit that’s found in many cars across the Volkswagen Group.
Read our full Skoda Fabia Estate review
Pros
- Same underneath as a VW Polo
- Low running costs from 1.2 petrol
- Option of compact, practical estate
Cons
- Rattling timing chains, worn engine mounts
- Damp interior points to heater failure
A very reliable small car but not much personality
There’s one interesting diversion, the DIG-S, which has a supercharged 1.2-litre engine. This isn’t common and is more complex, so one to leave for the enthusiasts, but if you do find one with good service history, then it’s quite quick for a Micra and very economical in the right environment.
Read our full Nissan Micra review
Pros
- Should be very reliable
- Available as an automatic
- Supercharged version quite quick
Cons
- Corrosion and damage to rear suspension
- Worn clutches and suspension bushes
Easy to drive and there are plenty to choose from
This generation has only just been replaced, yet the oldest examples are close to our budget. Diesels will be ULEZ compliant at this age and they’re economical too, however, make sure there is a full and comprehensive service history as they don’t like neglect. Supply is ample, so shop around and haggle hard.
Read our full Vauxhall Corsa review
Pros
- Great value for money
- ULEZ compliant diesels
- Lots to choose from
Cons
- Failing wheel bearings, baggy gear linkages
- Some recall issues with the steering
Pricey but worth seeking out for reliability
You might need to spend a while looking to find the exact car you’re after, but it’s worth waiting around for. The diesels are very efficienct, but Toyota’s petrol engines will run forever if cared for sensibly.
Read our full Toyota Yaris review
Pros
- Very reliable
- Well built (though check for rust)
- Toyota service is exceptional
Cons
- Minor accident damage is common
- Not as easy to find in budget
Excellent choice if you’re seeking a small, cheap, affordable automatic
While there is a choice of engines, eco-minded city owners will want the 1.0 ‘Blue’ with an efficient, if slow, three-cylinder petrol whereas countryside and rural drivers would be be better off with the 1.25-litre four-cylinder. Fans of automatics will appreciate the ease of finding one, and the traditional autobox used.
Read our full Hyundai i10 review
Pros
- Available with conventional auto
- Ultra-efficient versions available
- Hyundai builds very reliable cars
Cons
- Check bumpers and wheels for damage
- Tired interiors – and clutches
Stylish small car with a sporty image
Regardless of model, you get a dynamic interior design and engaging handling that encourages spirited driving; you’ve probably spotted how popular the Ibiza is with drivers in a bit of a hurry. Yet the insurance is reasonable, and parts are shared with Skoda, Volkswagen and Audi so they’re easy and cheap to maintain, too.
Read our full SEAT Ibiza review
Pros
- Shares parts with VW, Audi and Skoda
- Sporty image very appealing
- Not that expensive to insure
Cons
- Timing chain rattles, electric issues
- Plenty of abused examples around
Safe and chic
Not only is it a genuinely safe small car that achieved very high scores for child and adult protection compared to rivals, it’s refined and smooth to drive. The diesel engine is shared with many marques, including a modified version in smaller Mercedes cars, and the interior feels classy and modern.
Read our full Renault Clio review
Pros
- Impressive Euro NCAP safety rating
- Efficient diesel engines
- Stylish design
Cons
- Loose passenger windows
- Worn interiors and exhaust gas recirculation valves
More tips when buying a used car that’s cheap to run
There’s plenty of inspiration and variety for your next car above, but you may have seen something that you absolutely love, and isn’t in the list. Even unusual or premium cars can be cheap to run if bought well, though it’s often a matter of luck as much as it is skill.
When buying from a private seller, via Facebook, Gumtree or eBay, don’t forget to check the MOT history online. If the car’s a particularly rare find such as a Toyota iQ, do a few Google searches for owners forums to see if there are any questions about problems, or undisclosed history (good or bad). Many older cars may have discussions attached that show the care and detail a previous owner has put into them, which is always a good sign when buying.
Don’t forget the obvious bits, too. If the car you’re buying has 6mm or more of tread on the tyres and they’re all matched brands, that can represent hundreds of pounds saved during the time you own it. Likewise, avoid clouded headlights, chipped windscreens and neglected brakes. It’s worth spending £250 more on the asking price to avoid £1,000 of consumables and repairs in 3,000 miles’ time.
Now freelance, Richard Kilpatrick worked across several roles with us at Parkers and in Bauer’s Automotive team. We are a close-knit group here so has been able to get stuck into helping with buying guides, reviewing and road-testing cars, editing our newsletters, and more. They offer advice from their years of experience and a chance for you to learn from the mistakes they have made!
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