For first-time buyers, the best used cars under ₹5 Lakh in India are those that blend affordability, reliability and low running costs. Models like the Maruti Suzuki Swift, Alto, and Hyundai Grand i10 consistently top the list. With the used car market projected to cross 6 million sales in the 2025 fiscal year, more buyers are turning to pre-owned options as a smart and budget-friendly first vehicle. This blog highlights the top 10 second-hand cars that deliver reliable ownership at budget-friendly rates.
Top 10 Used Cars in India Under ₹5 Lakh for 2025
Selecting the best cars in India tailored for first-time buyers requires striking a balance between price, durability, and ease of maintenance. Here’s a focused list that showcases well-respected models, ensuring a smooth ownership experience with all the necessary details.
1. Maruti Suzuki Alto
A low-maintenance car designed for cities, the Maruti Suzuki Alto remains a champion of affordability. Available in 800cc and K10 variants, its excellent fuel efficiency of around 22-24 km/l makes it incredibly cheap to run. Its compact size is ideal for navigating tight city traffic, and its spare parts are among the most affordable and widely available in the country, making it the least expensive car to maintain.
Note that production of the new Alto 800 was discontinued in 2025, as it failed to meet the latest safety and emission standards. Therefore, a limited number of these old car models will now be available on the second-hand car market.
2. Maruti Suzuki Wagon R
Known for its signature ‘tall-boy’ design, the Maruti Suzuki Wagon R offers impressive interior space and practicality. The car is powered by the reliable K-Series engine, which guarantees fuel economy and consistent performance. Fuel efficiency figures hover around 20-22 km/l, and its straightforward mechanics help ensure that maintenance is never a headache.
3. Hyundai i10
The first-generation Hyundai i10 brought a new level of refinement to the hatchback segment. It runs on the smooth and reliable 1.2-litre Kappa engine, offering a comfortable ride. These features make it a joy to drive in the city. A well-maintained used model is an ideal vehicle for first-time buyers, as it can remain reliable and run smoothly for over 1,00,000 km.
Also Read: Buy A Used Car Instead of Waiting 10 Months for A New One
4. Honda Amaze
For those wanting an affordable pre-owned sedan with low maintenance costs, the Honda Amaze is a great choice. It offers both the dependable i-VTEC petrol and the incredibly efficient i-DTEC diesel engines, giving you a bit more choice. The cabin feels premium, the ride quality is comfortable, and it offers class-leading boot space, making it a great family car on a budget.
5. Hyundai Grand i10
The Grand i10 is a step up from the original i10, boasting a more modern design and better features. The car is known for its refined engine, light controls, and easy manoeuvrability. The interiors are well-appointed for its class, and its reliability makes it a top pick for a low-maintenance used car.
6. Tata Tiago
The Tata Tiago revolutionised the budget hatchback segment with its impressive build quality and 4-star Global NCAP safety rating. The Tiago stands out for its impressive features, enhancing its reputation as a practical and appealing choice as a family car. It feels like a car from a segment above, featuring a comfortable cabin and a reliable Revotron petrol engine. With a claimed mileage of over 23 km/l, it’s both safe and economical, and standard dual airbags add to your safety. There's no need for frequent maintenance, as a well-maintained second-hand model will serve you well for a long time.
7. Maruti Suzuki Swift
A perennial favourite, the Maruti Suzuki Swift combines sporty looks with a fun-to-drive character. It offers an engaging drive, powered by the peppy 1.2-litre K-Series petrol engine. Pre-2020 models may feature the torquey 1.3-litre DDiS diesel engine; production was discontinued in 2020 since it could not meet B26 emission norms. Its vast service network and excellent resale value make it a smart and exciting choice.
8. Honda City (Older Models)
Owning a Honda City is a dream for many, and older 3rd- or 4th-generation models make this aspiration more accessible. The car offers a premium sedan experience while remaining pocket-friendly.
These stylish models are powered by the 1.5-litre i-VTEC engine, known for its reliability and smooth performance. Maintained well, even a 10-year-old engine can ride smoothly. Do keep in mind that although it remains an affordable option, it has higher maintenance costs than hatchbacks.
9. Maruti Suzuki Baleno
A premium hatchback, the Maruti Suzuki Baleno is one of the most popular second-hand cars on the market, offering excellent value for older models (2016–2018) priced under ₹5 lakh. It comes with a reliable 1.2-litre K-Series petrol engine known for smooth performance and fuel efficiency of around 20–22 km/l.
The spacious cabin, comfortable ride quality, and strong build make it a significant upgrade over entry-level hatchbacks. Additionally, Maruti’s extensive service network and affordable spare parts help keep costs low, making it a sensible choice for first-time buyers.
10. Renault Kwid
With its SUV-inspired styling and comfortable interior, the Renault Kwid stands out from the crowd. It offers high ground clearance, a lightweight body, and efficient 0.8-litre or 1.0-litre engine options, making it perfect for Indian road conditions. Higher variants even come with a segment-first touchscreen infotainment system, offering modern features at a low price.
Also Read: Why Pre-owned Car Loan is a Smart Choice for Financial Freedom?
To Conclude
Opting for a low-maintenance used car under ₹5 Lakh is a wise financial decision for any first-time buyer. It allows you to gain ownership experience without the burden of high depreciation or expensive upkeep. By selecting a reliable model and conducting thorough due diligence, you can enjoy the freedom of owning your own vehicle with complete peace of mind.
Consider Poonawalla Fincorp for flexible and transparent Used Car Loan options to drive home your chosen car sooner.
Frequently Asked Questions
Which are the best second-hand cars in India under ₹5 lakh?
Some of the most popular used cars in India for their reliability include the Maruti Suzuki Alto, WagonR, Hyundai i10, Tata Tiago, and Honda Amaze. These models strike a balance between affordability and dependable performance, with easy servicing.
What are the factors that make a used low-maintenance car?
A low-maintenance car typically has a proven track record of reliability, widespread parts availability, affordable servicing, and a low frequency of repairs. Cars from established brands generally meet these criteria.
Is it safe to buy a used car under ₹5 Lakh?
Yes, it's safe to buy a used car under ₹5 Lakh provided the second-hand car has a clean service history, is properly inspected by a trusted mechanic, and all legal documents are verified. Certified pre-owned cars can offer an added layer of security.
How do I check the condition of a used car?
Inspect the car for physical damage, uneven tyre wear, engine noises, fluid leaks, and signs of accident repair. Reviewing the service history and getting an independent mechanic’s opinion is highly recommended.
Is a petrol or diesel engine better for used cars under ₹5 Lakh?
For city driving and lower annual running, petrol engines are often simpler and cheaper to maintain. Diesel cars may be suitable for those with higher mileage needs, but they can have higher repair costs as they age.
Can I get a loan for purchasing a used car under ₹5 lakh?
Yes, many NBFCs and banks offer used car loans for vehicles in this price range. Your eligibility will depend on factors such as your age, income, credit score, and the age and condition of the car.
What is a good mileage for a used car under 5 lakh?
A good mileage for a used car under ₹5 lakh in India is 22 km/l and above, with models like the Maruti Suzuki Alto, Maruti Suzuki Wagon R, Tata Tiago, and Maruti Suzuki Celerio being top choices for fuel efficiency and overall value.
Do older used cars have higher ownership costs than newer ones?
No, not necessarily. Some of the well-maintained models from brands like Maruti Suzuki Dzire, Hyundai, and Honda often have low ownership costs even after a few years of ownership. The availability of affordable parts and service centres plays a significant role.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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