Sunday, March 2, 2025
3 min read
Is the £500 Car Gone? What Cheap Used Cars Really Cost
You can still find cars for around £500, but they are rare and usually need work. For most people, spending a little more on a car with a clean MOT history and some service records is cheaper in the long run.
The bargain-basement runabout used to be the normal first step for new drivers. Today there are far fewer of them, and the ones that do turn up often come with a short MOT, high mileage or a repair bill waiting to happen.
Why are very cheap cars harder to find?
A few things have pushed the bottom of the used car market upwards:
Fewer older cars around. Many cars from the early 2000s have now been scrapped, so the supply of very old, very cheap cars has shrunk.
Repairs cost more. Parts and labour have gone up, so a single job can cost more than an old car is worth. Many end up being scrapped rather than sold.
Scrap value sets a floor. Even a non-runner has some value as scrap, which means sellers have less reason to let a car go for next to nothing.
Demand stays high. New drivers, second-car households and people commuting on a tight budget are all looking at the same small pool of cheap cars.
Where do people still find them?
Private sellers. Someone clearing a driveway or replacing a family car may want a quick, simple sale.
Word of mouth. Friends, family and neighbours often know of an older car that has been well looked after.
Auctions. Prices can be low, but you usually cannot test drive, and you have very little comeback if something is wrong.
What are the risks of a £500 car?
The purchase price is only part of the cost. Before you hand over cash, think about what could follow:
The next MOT. Check the car's MOT history for free on GOV.UK. Repeated advisories for corrosion, brakes or suspension are a warning sign.
Hidden faults. Clutches, cambelts and exhausts can each cost more than the car itself to put right.
History problems. Very cheap cars are more likely to have outstanding finance, a write-off record or a mileage discrepancy. A history check is worth doing on any car.
Running costs. Older cars can be thirstier, may cost more to tax and insure, and may not meet clean air zone standards in some cities.
Is it better to spend a bit more?
Often, yes. A car that costs a few thousand pounds but has a long MOT, a sensible mileage and a service history can work out cheaper over two or three years than a £500 car that needs a clutch, two tyres and a new exhaust. Our running cost calculator can help you compare.
Buying from a dealer also gives you stronger rights under the Consumer Rights Act if something goes wrong soon after purchase. Our guide to buying privately or from a dealer explains the difference.
How do I check a cheap car before buying?
Look up the MOT history and read every advisory.
Run a history check for finance, write-off and theft records.
Check the V5C log book matches the seller and the car.
Start the car from cold and listen for knocks, rattles or smoke.
Test drive it on a mix of roads, including a hill start.
Ask for any receipts and service records.
Common questions
Can I still buy a car for £500 in the UK?
Yes, but expect high mileage, an older model and some work needed. Treat it as short-term transport rather than a long-term car.
Is a car with a short MOT worth buying?
Only if the price reflects it and you are ready for repairs. Read the MOT history first so you know what the tester has already flagged. More in our guide to buying a car with a short MOT.
What should a first car cost to run?
It depends on insurance, fuel, tax and servicing. Insurance is usually the biggest cost for new drivers, so get quotes before you buy.
Looking for an affordable used car in Barnsley?
anycolourcar.com is based in Barnsley, South Yorkshire. Browse our cars in stock, get a value for your current car through sell your motor, or call sales on 01226 574410. If you already have an older car, our service centre on 01226 574321 can check it over before its MOT.
Updated October 2026.
