Best Used Cars Under ₹5 Lakhs in India 2025

Looking for a car that’s reliable, budget-friendly, and easy to maintain? The good news is that there are plenty of used cars under 5 lakhs in India that tick all the right boxes. These cars go beyond being just vehicles: they give you value, features, and peace of mind without forcing you to stretch your budget.

From compact hatchbacks that slip easily through traffic to small sedans that offer a little extra boot space, the list of used cars under 5 lakhs in 2025 has something for everyone. Whether you’re a first-time buyer, a student, or someone looking for a reliable second car for the family, there are strong options in this price bracket. Let’s go through the top models you can confidently consider.

Top 10 Used Cars Under ₹5 Lakhs in India 2025

Here are our top picks, along with the estimated pricing and other specifications that can help you make a wise decision: 

Note: The price ranges shown here reflect fairly recent, well-maintained models. Much older versions of the same cars may be available at lower prices, depending on their condition and usage.

1. Renault Kwid

The Renault Kwid has been a favourite for budget buyers thanks to its SUV-inspired styling and features that stand out in the entry-level segment. Its raised stance, bold grille, and 14-inch wheels give it a tougher look than most hatchbacks in its category. Inside, the Kwid surprises with a digital instrument cluster and a touchscreen infotainment system, features you wouldn’t normally expect at this price point.

Under the hood, you get 0.8L (discontinued) and 1.0L petrol engines that are fuel-efficient and cheap to run. Many owners highlight that the Kwid delivers around 16-20 km/l in real-world driving, and maintenance costs stay low since parts are affordable and widely available.

In the used cars under 5 lakhs bracket, you’ll find 2019 and newer models equipped with reverse parking sensors, dual airbags, and even AMT transmissions on higher trims. For someone who wants style, practicality, and affordability in one package, the Kwid remains one of the best bets.

2. Tata Tiago

If safety and solid build quality are priorities, the Tata Tiago is one of the strongest contenders among second hand cars under 5 lakhs. It comes with a 1.2L petrol engine that delivers decent power and good fuel economy (17–22 km/l), while its suspension setup makes it stable on highways and comfortable on bad roads.

What really sets the Tiago apart is its safety. The car has a 4-star Global NCAP safety rating, which is rare in this segment. This means buyers don’t have to compromise on peace of mind while sticking to a tight budget. On the inside, features like the Harman audio system, touchscreen infotainment, and dual airbags make it feel more premium than its price suggests.

As a used car under 5 lakhs, the Tiago offers durability because of its strong body structure and reliable engine. For buyers who want a car that feels safe, long-lasting, and modern without stretching beyond budget, the Tiago is a top pick.

3. Honda Jazz

The Honda Jazz has a loyal fanbase as a premium hatchback with its stable structural design and surprisingly roomy interiors. Unlike many compact cars, it offered a proper big-car feel with wide seats, a versatile cabin, and the much-loved “Magic Seats” in initial trims that made it super practical.

Its strengths lie in the smooth i-VTEC petrol engine, Honda’s proven reliability, and a focus on safety with dual airbags and ABS offered as standard in later years. The Jazz also delivers respectable mileage for its segment, making it a sensible pick for both city and highway runs.

In the used car space, the Jazz is a sweet spot for buyers who want something spacious yet compact in size. It fits perfectly for those looking at second hand cars under 5 lakhs without compromising on comfort or reliability.

4. Honda Amaze

The Honda Amaze is Honda’s most popular compact sedan in India, designed to give buyers sedan practicality without the bulk. It stood out with its airy cabin, high seating comfort, and a large 420-litre boot (second-generation), which is far bigger than most rivals in its class.

What makes the Amaze shine is the i-DTEC diesel engine (in older models), famous for its strong performance and fuel efficiency, paired with the refined petrol i-VTEC option. With dual airbags (6 on 2024 and above models), ABS, and Honda’s solid suspension tuning, it has always been a dependable daily ride. 

On the used market, the Amaze offers incredible value. Petrol variants from earlier generations can be found around ₹3–4 lakh, while well-kept diesels may stretch a little higher. If you’re hunting for used cars under 5 lakhs, the Amaze easily makes the cut.

5. Maruti Suzuki Alto 800 / K10

The Maruti Suzuki Alto in both 800 and K10 avatars has been India’s favourite entry-level car for decades. It’s known for its no-nonsense design, easy driving dynamics, and the confidence of Maruti’s massive service network, making it an obvious first-car choice for many.

The 800cc version has always been about frugal efficiency and low running costs, while the K10 added more punch with its 1.0-litre engine. Both versions are reliable and thanks to Maruti’s reach, maintenance and spare parts remain some of the cheapest in the segment.

When it comes to used car pricing, the Alto is unbeatable. For anyone looking at second hand cars under 5 lakhs, the Alto stands out as the most accessible and worry-free option.

6. Maruti Suzuki Swift

The Maruti Suzuki Swift is one of the most recognisable hatchbacks in India, popular for its sporty looks and fun-to-drive nature. It’s a car that appeals to young buyers thanks to its sharp design, wide stance, and lively character on the road.

Under the hood, the Swift has seen a range of petrol and diesel engines over the years, all known for strong performance and efficiency. Safety got better in later generations with features like six airbags and ABS as standard from 2024. The cabin offers decent but not the best space and you also get a touchscreen infotainment system (7 to 9 inches)  in newer trims and supportive seats.

In the used market, the Swift is a top pick thanks to its desirability and easy upkeep. You can find older petrol or diesel models starting around ₹3 lakh, while newer-gen Swifts hover near ₹5 lakh. For buyers eyeing used cars under 5 lakhs, the Swift ticks the boxes of style, affordability, and long-term dependability.

7. Maruti Suzuki Wagon R

The Wagon R is one of the most dependable hatchbacks in India that has been in existence for over 20 years. It has a tall-boy structure, which is highly suitable for families, with good headroom and a comfortable back seat. The most recent models have two petrol engine options, a 1.0L and a 1.2L, which are optimised to be fuel efficient, and CNG variants further reduce running costs with mileage figures of up to 34.05 km/kg.

In terms of features, the new Wagon R gets a 7-inch touchscreen infotainment, steering-mounted controls, six airbags (dual previously), ABS, and rear parking sensors. It is designed for the city but does not feel weak on highways either. In recent years, safety has been improved, and it has become a reliable choice for daily driving.

In the used market, a well-kept Wagon R is always in demand. You’ll easily find 3–6-year-old models in the second hand cars under 5 lakhs bracket, depending on the trim and condition. It’s one of the most practical budget family hatchbacks you can get.

8. Hyundai Grand i10 Nios

The Grand i10 Nios is a step up from basic entry-level hatchbacks, giving buyers a more premium feel at an affordable price. It comes with petrol, turbo-petrol, and CNG engine options, paired with manual or AMT gearboxes. The suspension is tuned for comfort, and the cabin feels more upmarket compared to rivals in the same segment.

Inside, you get an 8-inch touchscreen with smartphone connectivity, wireless charging, automatic climate control, and a surprisingly spacious back seat. Safety is covered with ABS, 6 airbags (post 2023), and rear parking sensors, while higher trims add more equipment. 

In the pre-owned space, 2–5-year-old Grand i10 Nios models are priced between ₹4–6 lakh, depending on condition and variant. Some early trims may even slip into the used cars under 5 lakhs range, making it a smart pick for someone who wants modern features without stretching their budget.

9. Hyundai i20

The Hyundai i20 is one of the most successful premium hatchbacks in India and it has earned a reputation for style, premium interiors, and a long feature list. It offers several engine options: 1.2L petrol, 1.5L diesel (discontinued), and a sporty 1.0L turbo-petrol, so buyers have a choice to make according to their budget and performance requirements.

The equipment list is a 10.25-inch (9-inch in some models) touchscreen, wireless phone charging, Bose sound system, and cruise control, as well as connected car technology in newer models. Safety is also a highlight, with six airbags offered as standard on all Hyundai cars after 2023 (even older models get dual airbags as standard), making it one of the safest cars in its class. 

If you’re eyeing the used market, earlier generations of the standard NA petrol i20 can be found between ₹3.5–5 lakh, making them a great entry point into premium hatchbacks. The latest models cost more, but if you’re looking for second hand cars under 5 lakhs, the older i20 variants fit perfectly.

10. Volkswagen Polo

The Volkswagen Polo is for those who love driving. Known for its solid build quality and sharp handling, the Polo stands out even today despite being discontinued in India. Engine options like the 1.0L TSI turbo-petrol gave it punchy performance, while earlier models with the 1.2L petrol and diesel engines were equally popular.

On the inside, the Polo is simple but functional, with good quality materials and supportive seats. Features like a touchscreen infotainment system, dual airbags, ABS, and steering-mounted controls are available in most variants. But where the Polo really shines is on highways: it feels planted and stable, unlike many hatchbacks in this segment.

A used Polo makes a lot of sense if you’re a driving enthusiast. Depending on the year and variant, you’ll find models between ₹3.5–6.5 lakh in the market. Early petrol and diesel trims can slip into the used cars under 5 lakhs category, giving you German build quality and driving fun at a budget price.

Summary

When it comes to buying a reliable budget car in 2025, the options are far better than they were even a few years ago. From small hatchbacks like the Alto and Kwid to feature-rich models like the Grand i10 Nios and Honda Jazz, the market is loaded with choices that fit under ₹5 lakhs. These used cars under 5 lakhs are not just affordable, they’re practical, safe, and easy to maintain, making them perfect for both new and experienced buyers.

If you want peace of mind with resale value, the Maruti Suzuki Swift and Wagon R are evergreen picks. For those who want features and comfort, the Hyundai i20 or Honda Amaze make strong cases. And if you’re a driving enthusiast, few cars under this budget can match the thrill of a Volkswagen Polo.

At the end of the day, the right car depends on what matters most to you: mileage, features, safety, or driving feel. But one thing is certain, the range of second hand cars under 5 lakhs in India 2025 ensures that you won’t have to compromise on value.