The six best cheap and cheerful small cars for £2,000 – and the one to avoid

used cars
Deals on wheels: (Clockwise from top left) 2012 Hyundai i20; 2010 Mini Hatch; 2008 Suzuki Swift; Chevrolet Aveo

For struggling households across the country, the news that used car prices have been rising inexorably will have been met with dismay. Yet it’s still possible to find a reliable, usable car at the bargain end of the market and to stay mobile for pennies.

Buy small and the running costs will be suitably low, too.

But what to buy – and what to avoid? I’ve scoured forecourts, classified advertisements and owner forums to reveal the six best small cars for the princely sum of £2,000 – along with one model of which you should steer clear.

6. Hyundai i20 (2009-2014)

Hyundai i20 (2011)
A ‘generally pretty reliable’ vehicle

Hyundai has long been a brand that represents brilliant value – and that’s even the case on the used market. Just look at what you’re getting for £2,000; where most small cars available for this sum are mid-2000s models, you can get an i20 that’s three or four years younger.

Granted, the i20 is a little on the dull side to drive, but beggars can’t be choosers at this price. The i20 is roomy, well-equipped, cheap to run, cheap to fix and generally pretty reliable, as long as it’s been well looked-after.

The 1.2-litre engines are a bit gutless although they’re fine in predominantly urban driving. For regular motorway work, I recommend upgrading to the 1.4 model.

We found: 2012 i20 1.2 Classic, 91,000 miles, 12 months’ MOT, £1,995

Watch out for: Worn clutches, disintegrating keys, beaten-up interior trim, difficulty in selecting first and reverse gears.

5. Mini Hatch (2007-2013)

Mini Hatch - Graphite limied edition (2009)
This compact car is still just as characterful as when it was new

Proving that bargain-basement hatchbacks don’t necessarily have to be po-faced, the Mini Hatch is a welcome dose of fun and frivolity in a normally very sensibly-trousered part of the market.

The downside is that it’s less dependable than some other cars here – although in the cheapest 1.4-litre form, you avoid some of the reliability snags that afflict the more potent variants. You’ll also have to live with a smaller boot and tighter rear seats than most of our alternatives.

But if you can, the reward is a small car that’s still just as characterful as when it was new, laden with cheeky references to the original and genuinely brilliant fun to drive. For two grand, that seems very reasonable.

We found: 2008 Mini 1.4 One, 82,000 miles, full service history, £2,000

Watch out for: Timing chain issues on 1.6s, electric power steering faults, juddering/noisy clutches, gearboxes jumping out of gear, noisy power steering and water pumps.

4. Toyota Yaris (1999-2006)

Toyota Yaris T3 (2004)
‘Pretty much bulletproof mechanically’

For this sort of money I suggest the first-generation Toyota Yaris in preference to the second-generation car.

Even though the latter is more modern, it suffers from a few very un-Toyota-like quality and reliability issues; the older car, by contrast, is pretty much bulletproof mechanically and, if you secure a well-maintained and rust-free example, should give years of faithful service.

What’s more, for £2,000 you can get a clean, low-mileage, late-spec example with a solid service history and in a more luxurious trim level; you can’t say that of the later car.

It’s not exhilarating to drive and the ride can get a little flustered by rougher sections of Tarmac. But you can’t have everything, especially at this price, so the first-generation Yaris certainly delivers where peace of mind is concerned.

We found: 2005 Yaris 1.3 VVT-i TR, 56,000 miles, full service history, £1,950

Watch out for: Rust around the rear subframe, whining gearboxes, slipping clutches.

3. Suzuki Swift (2005-2012)

Suzuki Swift (2010)
An easy – if cramped – drive

Value – that’s what the Suzuki Swift has to offer buyers on a budget. Not only can you buy a relatively new, relatively low-mileage example for this sum, but the Swift is a cracking little car with lots going for it besides.

For starters, it’s lots of fun to drive, with an agility that makes it great fun to zip around town in. Light steering and easy-going controls make it easy to drive, and while you won’t find quite as much space inside as you will in some rivals, the Swift should still offer enough room for most buyers.

It’s reliable, too, with Toyota-sourced engines that don’t need a cambelt change, and that in turn means maintenance costs are relatively low. And given plenty of Swifts have been well looked-after it shouldn’t be too hard to find a good one. The downsides? Well, the interior plastics feel a little cheap – but they are at least well screwed-together.

We found: 2010 Swift 1.3 SZ3, 76,000 miles, full service history, £1,999

Watch out for: Worn rear tyre outer edges, gearbox noise.

2. Honda Jazz (2001-2008)

Honda Jazz (2007)
Magic trick: The rear seats can be lifted up cinema style

The Jazz has long been a favourite of Telegraph readers simply because it combines two of the characteristics they most value: reliability and practicality.

This first-generation Jazz hails from an era when Honda was at the peak of its creative powers and features its trademark “Magic Seats”; the rear seat bases can be lifted up, cinema style, allowing the carriage of taller items in place of rear passengers.

That it will also go on forever, provided it’s maintained correctly, simply adds to its appeal.

The ride is a touch on the firm side and, given its tall, boxy profile, it isn’t that much fun to drive. But if you’re buying with your sensible head on, there’s little better.

We found: 2007 Jazz 1.4 i-DSi SE, 73,000 miles, full service history, £1,995

Watch out for: Juddering CVT gearboxes, hesitation caused by misfires, noisy rear wheel bearings.

1. Vauxhall Corsa (2006-2014)

Vauxhall Corsa (2012)
This model is easy to fix if things go wrong

Vauxhall pulled a blinder in 2006 by releasing one of the most well-rounded superminis out there. After years of middling mediocrity, the fourth-generation Corsa wasn’t just attractive to look at; inside, it boasted a smart interior with materials that put the Volkswagen Polo of the time to shame, and it was spacious, too, with a big boot and lots of room in the back. With well sorted suspension, it rode smoothly and handled sweetly, and it came with a range of perky engines that sipped fuel.

Today, the Corsa is even more of a bargain than when it was new. For one thing, there are so many around that there are plenty to choose from – and that ubiquity has led to relatively weak used prices, which means it looks like great value now that it can’t get much less expensive.

The Corsa is cheap to maintain and easy to fix if it goes wrong, too – every small independent garage should be familiar with the oily bits by now. All of which adds up to one of the most sensible – and rewarding – small cars you can buy for this sort of money.

We found: 2011 Corsa 1.4 SXi, 88,000 miles, full service history, £2,000

Watch out for: Clogged diesel particulate filters (DPFs), loose heater control knobs, blocked bulkhead drain holes, rattling timing chains, broken coil springs.

And the one to avoid…

Chevrolet Aveo (2011-2014)

Chevrolet Aveo 1.2 LT
Not the hidden gem you might think

Unusual styling and low prices might lead you to think the Aveo is a bit of a hidden gem. Unfortunately, it’s anything but. It was based on the previous-generation Vauxhall Corsa, so it was old even when it was new; the engines are thrashy when worked hard, which you have to do given they’re pretty gutless.

The vague, notchy gearchange, cheap-feeling interior plastics and a jostling, unsettled ride mean that your £2,000 is definitely better spent elsewhere.


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