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New & Used Cars Under 5 Lakhs: Festive Season Buyer's Guide

Soumi Roy 16-10-2025

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The festive season is here, and the whole nation is on a buying spree. So, if it is that time in your life when you have saved enough to own a car, this is the perfect opportunity to do just that.

New car showrooms will offer significant discounts to clear out their inventory. On the other hand, second-hand car sellers will mirror the new car market in an effort to make room for new inventory by disposing of the old.

Whatever your preference, we have got your back!

This blog will cover two separate lists of cars under 5 lakhs. One list will cover new cars, and the other list will cover second-hand cars. Additionally, we will also offer you tips that you need to remember while buying a new or used car.

Let's dive in and explore your options!

Best New Car Under 5 Lakhs In India

Maruti Suzuki S-Presso

Price Range

Starts from ₹3.50 Lakhs

Why Buy A New Maruti Suzuki S-Presso?

  • Most affordable compact faux SUV.
  • High ground clearance.
  • Lightweight – ideal for hill ascents.

Maruti Suzuki Alto K10

Price Range

Starts from ₹3.70 Lakhs.

Why Buy A New Maruti Suzuki Alto K10?

  • Extremely reliable engine.
  • Excellent fuel efficiency.
  • Backed by Maruti Suzuki’s extensive service network.
  • Well-suited for first-time buyers looking to improve their driving skills.

Tata Tiago

Price Range

Starts from ₹4.57 Lakh.

Why Buy A New Tata Tiago?

  • Strong build quality.
  • A hatchback with 4 4-Star safety rating.
  • A hatchback with 4 4-Star safety rating.
  • Available in both petrol and CNG!

Maruti Suzuki Celerio

Price Range

Starts from ₹4.70 Lakhs.

Why Buy A New Maruti Suzuki Celerio?

  • Fuel-efficient engine.
  • Tall-boy design.
  • Essential features & safety package!

Things To Consider Before Buying A New Car Under 5 Lakhs

Before buying a new car under 5 lakhs, remember the following tips -

  • Make sure the new car you are buying is fuel-efficient.
  • The best new car is the one that is cheap to maintain.
  • Road accidents claim a lot of lives each year in India. Hence, make sure that you are buying a new car that has at least 4 4-star safety rating either on NCAP or on Bharat NCAP.

Best Second-Hand Cars Under 5 Lakhs in India

Maruti Suzuki Swift

Price Range

₹3.00 Lakh – ₹5.00 Lakh

Why Buy A Second-Hand Maruti Suzuki Swift?

  • Fun to drive.
  • Widely available parts.
  • Excellent fuel efficiency.
  • High resale value.

Hyundai Grand i10

Price Range

₹1.05 Lakh – ₹5.00 Lakh

Why Buy A Second-Hand Hyundai Grand i10?

  • Refined engine.
  • Packed with features.
  • Comfortable.
  • Reliable brand!

Maruti Suzuki Wagon R

Price Range

₹2.50 Lakh – ₹4.95 Lakh

Why Buy A Second-Hand Maruti Suzuki Wagon R?

  • Extremely spacious considering the limited dimensions of a hatchback.
  • Easy to drive.
  • Easy to park.
  • Fuel efficiency is the highest among competing hatchbacks!
  • Lowest maintenance costs, compared to competitors!

Tata Tiago

Price Range

₹2.05 Lakh – ₹4.95 Lakh

Why Buy A Second-Hand Tata Tiago?

  • 4-star Global NCAP safety rating.
  • Solid build quality.
  • Modern design
  • Low ownership costs!

Things To Consider Before Buying A Second-Hand Car Under 5 Lakhs

A second-hand car under 5 lakhs can be a blessing or a curse. It all boils down to one step – you checking its past by getting your hands on a vehicle history report. Additionally, since a pre-owned car will always have a history, it is best to learn about that by taking help from independent service providers or by getting the vehicle you are interested in inspected by an independent mechanic.

Next, make sure that you are selecting a used car based on the following parameters –

  • The car maker has to have a reputation for making reliable cars.
  • The maintenance costs of the car have to be affordable.
  • Select a car that comes with a basic safety package—this should include features like 6 airbags, ABS, EBD, or traction control. Before buying, verify that these safety features are present and functioning properly in the used car.
  • The car’s body type should be selected based on how it will be used. Experts recommend hatchbacks if your priority is fuel efficiency and peppiness. Sedans are ideal for comfort, luggage space, and legroom. Micro SUVs like MS S-Presso, on the other hand, are perfect for the hills, whereas hatchbacks are perfect for short road trips, especially for micro families with less than 4 members!

But Keep Eyes Wide Open While Buying second-hand Hand Cars

Things you buy during the festive days should bring you joy, not stress. If you decide against buying a new car but go ahead with a second-hand car, make sure that you scour the used car market of India on a local as well as national level. And when you finally find that perfect second-hand car, you need to get an AutoHealth vehicle history report for it, as that will help you verify the mileage, title status, as well as pertinent vehicle history to ensure you do not end up with a lemon!

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