How Much Should I Spend on a Used Car in the UK?

If you're looking for your next car, deciding how much to spend can be surprisingly difficult. You might have an idea of what you can afford, but that doesn't necessarily mean you should spend all of it, particularly when there are so many used cars available at different price points.

So, how much should you spend on a used car?

There isn't a single figure that works for everyone. For one person, spending £8,000 might make sense because they only cover a few thousand miles each year and simply need something reliable for local journeys. Someone else might be comfortable spending more than £25,000 because they want a newer vehicle that they intend to keep for several years.

The important thing is to set a budget that works for you. You also need to think about the overall cost of ownership. Vehicle tax, insurance and servicing will continue to cost money once you've bought the car, while fuel or charging costs can make a noticeable difference to your monthly outgoings.

At Hilton Suzuki, we have a range of used cars available from our dealerships in Bedford and Bishop's Stortford, so we regularly speak to customers trying to work out what they can get for their budget.

In this article, we'll explain how different budgets can affect your options and what else you should consider before deciding how much to spend.

Is There a Recommended Amount to Spend on a Used Car?

Search online and you'll find plenty of rules suggesting that you should spend a particular percentage of your income on a car. These can provide a rough starting point, but they don't know anything about your circumstances or how important a car is to your everyday life.

Someone travelling a significant distance to work every day might be comfortable allocating more of their budget to a car because they rely on it heavily. If you work from home and mainly use your car for occasional local journeys, your priorities could be very different.

The type of vehicle you need will influence the decision too. A family looking for a larger SUV is unlikely to be considering exactly the same budget as someone looking for a small hatchback.

Rather than starting with somebody else's recommended figure, look at your own finances and decide what you would be comfortable spending without putting unnecessary pressure on the rest of your household budget. Once you have that figure, you can start looking at what is available and decide if your expectations are realistic.

What Can Different Used Car Budgets Get You?

There isn't a neat relationship between price and quality when you're buying a used car. Age and mileage will affect the price, but so will the model you're considering and its specification.

This means a £12,000 car isn't automatically "better" than a £9,000 car. It can still be useful to think in broad price ranges, though, especially when you're at the beginning of your search.

Used Cars Under £10,000

If your budget is below £10,000, you'll usually need to be more flexible about the age or mileage of the vehicle you're considering.

But that doesn't mean you can't find a good used car.

An older vehicle that has been properly maintained could be a much better purchase than a newer alternative with a poor maintenance history. Equally, a car with higher mileage shouldn't automatically be dismissed if those miles have been accumulated sensibly and the vehicle has been well looked after.

At this price point, we'd recommend paying close attention to the individual car rather than becoming too focused on finding the lowest mileage possible. Look at its condition and service history, then find out what preparation has been completed before it is offered for sale.

Used Cars from £10,000 to £15,000

Increasing your budget into the £10,000 to £15,000 range will generally give you more choice, although exactly what is available will depend on the type of vehicle you're looking for.

You may find newer vehicles or cars with lower mileage, while your choice of specification could increase too.

This is also where it becomes very easy to start increasing your budget because you've seen a slightly newer car or one with additional equipment.

Before doing that, ask yourself if the difference genuinely matters to you.

If the £12,000 car has everything you need, spending another £2,000 purely because another vehicle is newer may not give you any significant benefit. On the other hand, if that extra money gets you something you'll genuinely value throughout your ownership, increasing the budget could be a good idea.

Used Cars from £15,000 to £20,000

Once you're looking between £15,000 and £20,000, you're likely to find a broader selection of relatively recent used cars, depending on the make and model you're considering. You might also find yourself choosing between a newer vehicle with a fairly standard specification and an older car with more equipment.

Think about how long you expect to keep the car and which differences you'll notice during that time. If you're planning to keep it for several years, you may place greater importance on its age and mileage. However, if there are certain features you use regularly, specification might matter more.

Used Cars Over £20,000

It's easy to associate "used car" with lower-priced vehicles, but the used market covers a much wider range.

Nearly new cars can cost more than £20,000, as can larger SUVs and some used electric vehicles. Higher-specification versions of popular models can also sit comfortably above this figure.

If you're considering a used EV at this price point, our guide Is an Electric Vehicle Right for Me? can help you think about whether electric driving would suit the journeys you make.

If you're spending more than £20,000, it becomes increasingly beneficial to compare the car with other options available to you rather than looking at the price in isolation.

How old is it? How many miles has it covered? What warranty is included and how has the vehicle been prepared?

Instead of asking, "Is £25,000 too much to spend on a used car?", a better question is, "Does this particular car represent good value for what I need?"

How Do I Work Out My Used Car Budget?

A good starting point is with the amount you'd be comfortable spending rather than the absolute maximum you could afford.

There's an important difference between the two.

If you have £15,000 available, for example, you don't necessarily have to spend £15,000. You might find a car that meets all your requirements for £12,500 and decide you'd rather keep the difference available for other things.

Once you have a comfortable upper limit in mind, think about what you genuinely need from your next car.

Consider the type of journeys you make and how much space you regularly use. If your current car has features you couldn't be without, include those in your requirements too.

This helps separate the things you genuinely need from the things that might be nice to have but aren't worth increasing your budget for.

What Other Costs Should I Consider When Setting My Budget?

The purchase price is only part of what your next car will cost you, so it's worth thinking about ownership costs before committing your entire budget to the vehicle itself.

Insurance is a good example. Rather than assuming your next car will cost roughly the same to insure as your current one, get a quote for the vehicle you're considering before you buy it.

You'll also need to consider Vehicle Excise Duty where applicable and how much the car is likely to cost you in fuel or electricity.

If you're considering an electric car, our guide to how much it costs to charge an electric car at home in the UK explains how home charging costs work in more detail.

Servicing and normal maintenance need to be taken into consideration, too. Even a well-maintained used car will have components that wear through normal use, so your budget shouldn't leave you struggling to cover routine maintenance at a later date.

A car that is affordable to buy isn't necessarily affordable for you to own, which is why we'd always suggest looking at the bigger picture.

Should I Spend My Entire Budget on the Car?

You don't have to, and in many cases you may prefer not to.

Imagine you've decided you're comfortable spending up to £15,000. You find one suitable car for £13,000 and another for £14,750. The more expensive car isn't automatically the better choice simply because it’s closer to your maximum budget.

Compare what you're getting for the additional money and decide if those differences are valuable to you. If they're not, keeping some of your budget aside can give you more flexibility once you own the vehicle.

The aim isn't to spend as much as you can afford. It's to find a car that does what you need it to do at a price you're comfortable paying.

Should I Buy the Cheapest Used Car I Can Afford?

There's nothing wrong with looking for a good deal. The problem comes when price becomes the only thing you use to judge whether a used car represents good value.

Imagine you've found two examples of the same model. One is noticeably cheaper, so at first glance it appears to be the obvious choice. Look more closely, though, and there could be good reasons for the difference. The cheaper car may have covered significantly more miles or have a different service history. Its condition could also be different.

This doesn't mean the more expensive vehicle is automatically better either.

What is important is understanding why there is a price difference and deciding which car gives you the best overall package for your budget.

Does Mileage Matter More Than Age When Buying a Used Car?

This is another area where buyers can become focused on a single number.

Lower mileage can be attractive, but it doesn't tell you everything about the car. A higher-mileage vehicle that has been regularly serviced and properly maintained could still be an excellent used car.

The same applies to age. A newer vehicle isn't automatically in better condition simply because it was registered more recently.

Rather than choosing between two cars based purely on mileage or age, look at the complete history of each vehicle and its current condition. That gives you much more useful information about what you're actually buying.

Should I Pay More for an Approved Used Car?

If you're comparing an approved used car with a vehicle being sold elsewhere for less, it's beneficial to look at what is included before deciding which represents better value.

Hilton Suzuki's dealerships are part of the Suzuki Approved Used programme. Eligible Suzuki Approved Used vehicles come with a minimum 12-month warranty and roadside assistance, alongside vehicle and provenance checks.

Hilton Suzuki is also an RAC Approved Dealer, which provides additional standards around the preparation and sale of eligible used vehicles.

These programmes don't mean that you should automatically spend more on a car simply because it has an approved label attached to it. But what they do give you is additional information about how the vehicle has been checked and what support is included with your purchase. You can then take that into account when comparing it with another car.

If one vehicle costs slightly more but includes benefits that are important to you, the difference may be worthwhile. If those benefits aren't relevant to your circumstances, you can factor that into your decision too.

What If I'm Buying a Used Car on Finance?

If you're considering finance, it's easy to start thinking about your budget purely in terms of the monthly payment. However, a monthly payment doesn't tell you the total cost of buying the car using finance.

Before entering into an agreement, make sure you understand the deposit required and how long the agreement will run. You should also consider the total amount payable and any applicable interest or charges.

Think about how that commitment would sit alongside your existing household expenditure as well as the ongoing cost of running the car.

Most importantly, don't increase your vehicle budget simply because a longer agreement makes the monthly figure appear more manageable. Look at the agreement as a whole and make sure you're comfortable with the commitment you're making.

Finance is subject to status and terms and conditions. Your individual circumstances will determine which options are available to you.

Is It Worth Spending More on a Newer Used Car?

It can be, but only if the additional cost gives you something that is important to you.

Perhaps the newer car has considerably fewer miles or has a feature you'll use regularly. You might also be planning to keep the vehicle for a long time and feel that starting with a newer example better suits your plans.

Those can be reasonable reasons to increase your budget.

What we'd avoid is spending more simply because you feel you should buy the newest car you can afford. If a slightly older vehicle meets your needs and you're happy with its condition and history, there may be little benefit in stretching your budget further.

How Can I Tell If a Used Car Is Good Value?

This is ultimately a better question than asking if a used car is cheap. Start by comparing it with similar vehicles currently for sale, making sure the cars you're comparing are genuinely similar. A different engine or specification can affect the price, while age and mileage need to be considered too.

Then look at the individual vehicle. Check its service history and understand how it has been prepared for sale. Find out what warranty or other support is included with the purchase.

By doing this, you start to understand what you're getting for your money rather than simply comparing numbers on adverts. The cheapest car isn't automatically the best value, just as the most expensive car isn't automatically the best.

Used Car Budget FAQs

How much should a first-time buyer spend on a used car?

There's no set amount that a first-time buyer should spend. Work out what you can comfortably afford and consider the costs you'll face after buying the car. Insurance can be particularly important for newer drivers, so getting quotes for vehicles you're considering before buying can help you set a more realistic budget.

Is £10,000 enough for a good used car?

Yes, there are good used cars available for less than £10,000, although you may need to be more flexible about age or mileage. Pay close attention to the condition and history of the individual vehicle rather than assuming you need to reach a certain price to get a good car.

Is it worth spending more than £20,000 on a used car?

Yes, it can be. Nearly new cars and some electric vehicles can cost more than £20,000, so spending above this amount isn't unusual in some parts of the used market. The important question is whether the individual vehicle represents good value for your needs and is comfortably within your budget.

Is a low-mileage used car worth paying more for?

Sometimes, but lower mileage shouldn't be considered on its own. Compare the vehicle's condition and maintenance history as well before deciding if the additional cost is worthwhile.

Should I use all my savings to buy a used car?

Think about what money you would have available afterwards and how you would manage unexpected expenses. Your car budget should work alongside your wider financial circumstances rather than leaving you without a financial buffer.

So, How Much Should You Spend on a Used Car?

The right amount to spend on a used car is the amount that gets you a vehicle suitable for your needs without making the rest of your finances uncomfortable.

That might be less than £10,000. You might decide that spending £15,000 gives you the age and specification you're looking for, while another buyer could comfortably spend more than £20,000.

There isn't a figure that makes one of those decisions better than another.

Set your budget before you become attached to a car, then compare what is available within it. Consider the vehicle's condition and history, alongside what is included when you buy it in addition to the advertised price.

At Hilton Suzuki, we have a range of used cars available from our Bedford and Bishop's Stortford dealerships, including vehicles available through the Suzuki Approved Used programme.

If you're looking for your next car, you can view our current used stock online and see what's available within your budget.