New cars are hard to find for less than £20,000 these days as carmakers hunt for bigger profits. Don't fret, however, because that budget goes a lot further if you can don't mind missing out the very latest numberplate and choose a nearly new car.
A car's value depreciates the quickest when it's first sold, with that rate slowing down as the car gets older. That's why nearly new cars are usually thousands of pounds cheaper than an equivalent brand-new model, without losing the look and feel of a forecourt-fresh model. We've listed 10 of our favourite nearly new cars for less than £20,000 alphabetically, covering a choice of models and body styles.
1. Audi A1
The dinky Audi A1 scores highly across the board. You'll find an upmarket cabin, lots of on-board tech and a grippy, fuss-free driving experience. This is the most compact, city-friendly Audi you can buy, but your £20k budget will also stretch to nearly new examples of the larger A3 family hatchback and Q2 SUV if you need a little more interior space. Nevertheless, the A1's cabin is impressively practical for such a compact car, with space for four adults and a 335-litre boot that's among the largest in its class. £20,000 will buy you a nearly new A1 with the 95hp 25 TFSI engine, but keep a lookout for nearly new 30 TFSI or 35 TFSI versions, which are a bit faster and occasionally sneak under the £20k mark.
Shop nearly new Audi A1 cars for sale or read our Audi A1 review
2. Cupra Formentor
The Cupra Formentor is a really impressive bit of kit. It gives SUV practicality in a sleek and easy-to-park shape, wrapped up with sporty styling as standard. The interior is modern, with a crisp touchscreen and copper detailing, and hugely well equipped. We're talking adaptive cruise control, digital dials, wireless Apple CarPlay and LED headlights, and more besides. Choosing the 150hp 1.5-litre petrol lets you enjoy the sporty looks while keeping costs low – it's the cheapest to buy and promises 45mpg.
Shop used Cupra Formentor cars for sale or read our Cupra Formentor review
3. Ford Focus
The Ford Focus has such a broad range of talents, it's easy to see why so many have found homes with UK buyers. You get a driving experience that's refined and composed, while somehow also being direct and sporty. It's not just the driver who benefits from the Focus's skillset – there's enough passenger space for four adults to sit comfortably or five at a push, and a handily square 375-litre load space. The £20,000 budget gives a good selection of nearly new Focus models including the practical Focus Estate and chunky-looking Active versions, with a choice of frugal petrol, hybrid and diesel engines.
View a choice of nearly new Ford Focus cars for sale or read our Ford Focus review
4. Mini Hatchback
It's hardly news anymore that the Mini Hatchback is no longer very 'mini', but that does mean the latest version is safer and more practical than any of its predecessors. That's especially true of the five-door version, which has enough room for adults in the back seats and a boot large enough for most day-to-day duties. Our £20,000 budget here covers a lot of nearly new choices, so make sure you pick one that has a colour and spec you're happy with. The 1.5-litre Cooper has plenty of power but we can't deny the appeal of the sporty 2.0-litre Cooper S with 192hp and true hot-hatch pace. We think the snappy manual gearbox is more fun to use but the automatic option works extremely well so is still a great choice if you'd prefer a two-pedal option.
Check out nearly new Mini Hatchback cars for sale or read our Mini Hatchback review
5. Peugeot 208
If you're after something a little different, consider the Peugeot 208. This stylish hatchback has eye-catching looks and an interior that's significantly more posh than anything Peugeot has offered before. You'll find a minimal dashboard with most of the functions moved to the touchscreen, along with Peugeot's distinctive i-Cockpit layout featuring an oddly small steering wheel and high-mounted dials. There's no need to spend all of the £20,000 budget on a nearly new 208, with affordable mid-range versions coming in at less than £15,000 – and even delivery mileage examples well under budget. However, if you choose to splash the cash, you can choose a top-spec 208 with either the punchy 130hp turbo petrol engine and eight-speed automatic gearbox, or the battery-powered e-208 EV with around 200 miles of range.
Shop nearly new Peugeot 208 cars or read our Peugeot 208 review
6. Peugeot 408
Another car with a lion on its grille, but arguably even more distinctive – and, dare we say, better value. The 408 is deliciously striking, and its unusual shape gives you the sleekness of a saloon with the practicality of a family SUV. Its interior is similarly stylish, with a crystal-clear touchscreen and configurable shortcut tiles that'll be a godsend when you want to turn to the shipping forecast at a moment's notice. Petrol and plug-in hybrid versions are available; the latter promises a 40-mile electric range from a fully charged battery.
Want something a bit more conventional that still looks smart? Check out the spacious Peugeot 2008 which, like the 208, can be picked up for under £20,000 with very few miles on the clock.
Shop used Peugeot 408 cars for sale or read our Peugeot 408 review
7. Polestar 2
The Polestar 2 feels like it shouldn't cost less than £20,000, but it's true – they've started sneaking into budget. This Tesla Model 3 rival is a fantastic electric car, with a high-tech but intuitive interior, a smooth driving experience and a 340-mile range from the Long Range version. Charging at home is the cheapest and easiest way to keep your car's battery full, but fast-charging on the motorway is pretty convenient too – a 10-80% charge takes a little over half an hour. That's a coffee and a few emails.
Shop used Polestar 2 cars for sale or read our Polestar 2 review
8. Renault Clio
Consider this French fancy when you’re shopping for nearly new cars under £20,000. The Renault Clio is a small car icon that’s been on sale for decades. The current model has just been updated, with intricate LED headlights up front and cool materials inside – and a 24-plate Clio comes in well under budget. You can even pick the hybrid engine, which is the Clio’s best engine and returns up to 65mpg. With tiny fuel bills, you’ll have more money to spend on berets and Breton stripe jumpers.
Shop nearly new Renault Clio cars for sale or read our Renault Clio review
9. Vauxhall Grandland
This is one of the best ways to spend £20,000 if you want a car that's spacious and sensible. A low-mileage 24-plate car is within budget, and the best bit is that that's for a top-spec car. The Ultimate trim includes luxuries such as a powered tailgate, heated front seats, a heated steering wheel and wireless phone charging. Meanwhile, the 520-litre boot, wipe-clean materials and impressive passenger space make the Grandland ideal for family life.
Shop used Vauxhall Grandland cars for sale or read our used Vauxhall Grandland review
10. Volkswagen Golf
Volkswagen buyers have several options on the nearly new market for less than £20,000, including the smart Polo and the trendy Taigo SUV. But we’ve chosen the evergreen Golf for this list for its unbeatable all-round ability. It’s more than spacious enough for four adults and their luggage, and it’s a superb motorway car – especially with the 2.0-litre diesel that’s capable of over 60mpg – but it’s small enough to park without a problem. The latest Golf also comes with a vast array of connectivity tech, meaning you never have to be out of the loop.
Shop nearly new Volkswagen Golf cars for sale or read our Volkswagen Golf review
Chosen your £20k champion?
Shop our selection of top-quality used cars priced under £20,000. If you'd like to see more budget-beating options, see our picks for the best cheap electric cars.
