If you know where to look and what to watch for, it is possible to get a decent used car in Canada for $5,000 or less. This can be a great option for people whose budgets are strained, parents looking for a first car for a student headed off to university, or those who are simply frugal and don’t mind driving something older without modern features and technologies. With a bit of research and patience, it can save a lot of money in the long run.
In this guide we've picked what we rate as the best cheap used cars for under $5,000. Scroll to the bottom of the page for general buying tips associated with low-budget used cars.
Best Used Cars in Canada for Under $5,000
- Honda Civic
- Toyota Corolla
- Honda Accord
- Toyota Camry
- Toyota Matrix
- Honda CR-V
- Toyota Sienna
- Acura TL
- Lexus ES
- Mazda3
- What to Know Before You Buy a Low-Budget Used Car
Honda Civic
The Civic had nearly a 25-year run of being the best-selling passenger car in Canada, which means there are plenty of used examples out there to choose from. You’ll find used Civics in this price bracket in a healthy variety of sedan, coupe, and hatchback body styles. There’s a reason why so many Canadians have flocked to the Civic over the years: it’s got a reputation for reliability, which is another reason why there’s a wealth of selection. That said, some Civic drivers like to be pretty hard on their cars, so you’ll want to take the time to seek out a used model that’s been driven gently and well cared for. Given that there’s so much inventory to choose from, your patience will pay off.
Toyota Corolla
The Toyota Corolla is another compact car you’ll find a glut of on the used market in Canada. This is in no small part thanks to Toyota’s well-earned reputation for reliability. As a result, Corollas are considered reliable cars that are nearly impossible to kill. Like the Civic, you’ll want to look for a well-maintained example. The profile of the typical Corolla owner, by stereotype at least, makes that somewhat more likely. A scan through used car listings on CarGurus shows plenty of reasonably priced examples with model years spanning 2000 to 2010.
Honda Accord
We’re going to start to sound like a broken record here in a moment. But all the things that make the Civic a great choice also apply to the slightly larger Honda Accord. Plus, you’ll tend to find these mid-size sedans are more gently driven and designed for a more comfortable ride than their smaller counterparts. This could make a difference if you’re looking for car that’s built for longer highway cruises. Accords with model years from 2007 to 2010 are commonly found in Canada at this price point.
Toyota Camry
If you’re looking to spend less than $5,000 on a used car, here’s a good bet: if you see a ton of older examples still being used as daily drivers, there’s a decent chance they were built to last. The principal competitor to the Accord, the Toyota Camry, fits that bill handily. The catch here is that Camry owners tend to appreciate their ease of highway use and don’t shy away from longer drives. This means you may need to build a tolerance for higher odometer readings, though even long-distance Camrys likely have plenty of life in them. Today, 2002 to 2009 Camrys are common on the used market, and you may even find some fuel-efficient hybrids in the mix.
Toyota Matrix
The Toyota Matrix wasn’t very popular in the United States, but it was one of the brand’s more successful models during its time on sale in Canada. Matrix owners love these vehicles for their reliability and relatively low maintenance costs. They also have SUV-like properties such as a tall profile and large cargo space in a more frugal package. Numerous examples of the Toyota Matrix from the mid-2000s can be found on the used market at any given time that are priced at $5,000 or lower.
Honda CR-V
It’s not uncommon to see even a first-generation Honda CR-V from the late 1990s—with its rear-mounted spare tire and side-hinging rear door—trundling along today on Canadian roads. This is a real testament to the SUV’s longevity. Canadians will appreciate being accessing a used vehicle in an SUV body style, possibly even with all-wheel drive, for less than $5,000. The Toyota RAV4 could be considered in very similar terms, although the used market in Canada has far fewer examples of older models at this lower price point.
Toyota Sienna
If you need a really cheap people mover, consider a Toyota Sienna. One benefit of how unfashionable minivans are is that they don’t command as high a price on the used vehicle market as trendier SUVs and trucks do. Quite a few Siennas have appeared on CarGurus.ca’s used vehicle listings recently, and some of them don’t even have ridiculously high kilometre counts. Given Toyota’s reputation for safety and reliability, this could be a great way to score affordable and dependable transportation for a large family.
Acura TL
Here’s another point that’s unsurprising: the pair of luxury cars that make this list are also built by Honda and Toyota. For Honda’s part, there are plenty of 2001-2005 Acura TL sedans on the used market today, and they’re a solid bet given the brand’s reputation for reliability in that era. This was considered one of the best premium cars around at the time thanks to refined styling and a comfortable ride, and you may even find a gently driven example with surprising features such as heated seats or an on-board navigation system.
Lexus ES
And here’s the Toyota side of the equation, the Lexus ES. When we looked this up, one listing labeled this car as “grandpa’s grocery-getter,” which is a great explanation of why this car’s typical owner would make it desirable. On top of being comfortable and Toyota-level indestructible, it’s also very likely that any ES you come across has been driven carefully and maintained meticulously. Expect to find the 2004 to 2006 model years. Although they’ll almost certainly have more than 200,000 km on the odometer, your mechanic can confirm whether they are likely to still have plenty of life in them.
Mazda3
This one comes with a caveat: some people will tell you that older Mazdas have a reputation for rusting at the drop of a snowflake, especially in combination with the salt that’s common on Canadian roads. However, if you can find a rust-free example that’s also been pre-emptively treated, you might score a deal on a car that’s fun to drive and priced lower than average for a vehicle of its age. Be prepared to do your homework if you go looking for one of these, but the extra legwork may be worth it.
What to Know Before You Buy a Low-Budget Used Car
1. Be ready for unexpected maintenance
This shouldn’t come as a surprise to anyone considering buying a used car for under $5,000 in Canada, but an older vehicle will almost certainly need more frequent and unexpected servicing. If you’re not mechanically inclined yourself, be sure you’re prepared to take on this time and expense in the short term.
2. Budget for higher fuel bills
The fuel consumption ratings that were published in the year a given vehicle was sold should not be expected to apply once it’s a few years older. Engines become less efficient as they clock more time and kilometres, so expect to lose some fuel economy and pay more at the pumps than you would for a newer vehicle with a similar powertrain.
3. Understand your insurance options
Carrying insurance for certain categories, such as liability and accident medical expenses, is required by law. However, if you find a deal on a used car and can afford to do the same again if something happens to it, there may not be much value in paying to carry insurance that covers your full replacement costs in a loss or collision. The best practice here is to get a quote from your insurance company and calculate how long it would take for you to spend the same on insuring it as you would to simply replace it with cash. In some cases, you may be better off keeping the money.
4. Be prepared to do your research
It takes more work with a used car to determine whether you’re getting a good deal when you’re shopping for older or higher-mileage cars. Look into things like the automaker’s reputation for reliability and whether problems are commonly reported for the specific vehicle and model year in question. Ask the seller for any maintenance records to ensure the vehicle has been well-maintained, and be suspicious if you happen across a car priced this low that’s typically more expensive. No car being sold in this price range is in perfect condition, and a scrupulous seller will tell you so and make you aware of any issues. If the deal seems too good to be true, it probably is.
Note: Images may show US models.