What Can You Get For Rs. 5 Lakh Today?

Cars have been getting more and more expensive as the years have progressed. A few short years ago, you could have a brand-new BMW 3 Series or a Mercedes C Class at about 25 Lakh rupees! Now, those are firmly 60-70 Lakh rupee cars. This begs the question, what exactly can you get at the lower end of the price spectrum now?

The Dilemma – Pre-Owned Or New?

With a budget of Rs. 5 Lakh, the first decision one must make is between going through the pre-owned market or going for a new car. Going pre-owned can get you far more car for your money, providing vehicles that blow new cars in the same price range out of the water in every single aspect. For example, one can easily find a pre-owned 2014-16 Honda City in this price range including automatic models. Despite its age, it still provides a more powerful 1.5L i-VTEC naturally aspirated petrol engine with 117 BHP & 145 NM of torque, comes with a smooth CVT transmission, had a four-star safety rating when it was launched & offers a far more spacious and comfortable interior too. There are only two new cars you can get below 5 lakhs, the Maruti Alto K10 & the Maruti S-Presso. These cars come with Suzuki’s K10C petrol engine producing 65 BHP & 89 NM of torque, an AMT automatic (inferior & not as smooth as a CVT), a zero-star safety rating (for the S-Presso) and a cabin that’s no comparison to that of the older City’s.

While this might make going the pre-owned route sound like a no-brainer, things aren’t always that simple. At this price bracket, reliability, affordable spare parts, fuel efficiency & maintenance costs matter the most. It’s precisely in these factors that the two Marutis cannot be beaten. The Honda City might be just as reliable as them, but won’t offer the same frugal fuel efficiency and will cost more to maintain. Buying a new car also brings peace of mind to the customer buying his first car, coupled with a brand warranty. You’d also probably be able to get more life out of a new car, owing to mandatory scrappage policies slowly being implemented across the country.

What Used Cars Can You Buy?

Honda City (2014-2016)

The Honda City is a well known car in the Indian market. Launched back in 1998, it marked Honda’s entry into the Indian market. It’s been a consistent performer ever since. The car offers the famed Japanese reliability, a free-revving powerful 1.5L i-VTEC motor and the most spacious and comfortable interior in its class. It’s a well-built, safe car. You can find a 2014-2016 model, and even automatic models in this price range.

Ford EcoSport (2014-16)

If you want an SUV, look no further than the Ford EcoSport. The car boasts solid build quality, fast & competent 1.5L petrol & turbo-diesel engines, automatic & manual transmissions, and best-in-class driving dynamics. The car also came with a five-star safety rating. However, remember that Ford as a brand has left India & spare parts might be a little harder to find than other competitors.

Toyota Etios

A favourite amongst taxi drivers, the Toyota Etios offers legendary Toyota reliability coupled with frugal running costs, a comfortable yet old-fashioned cabin, and a four-star safety rating. This is the safest option among all the cars listed here.

Honda Brio

The Honda Brio offers a fast, free-revving 1.2L i-VTEC petrol engine and fun dynamics, making it a good city car. The car is reliable, easy to maintain and fuel efficient. A Brio is one of the more affordable cars in the segment, and can be had for about 2.5-3.5 lakh rupees.

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