The biggest advantage of buying cars under RM5000 dollars is that the maximum depreciation will not over RM5000. This is because the car can be sold as scrapped metal for at least RM500 dollars at the end of the day. Buying a reliable budget car is good but buying a bad and unreliable budget car will bring many hassles and extra money will be wasted to repair the car. Therefore, choose properly before decision is made.

Toyota Corolla KE70 (up to 1990s)

It is always good to give a try either it is GL or DX since it is Toyota Corolla KE70. The KE70 is well-known for its tough body. It is like the ‘80s Hummer. It is also the reason why many drift enthusiasts purchase the car and turn it into a scary drift machine. An original KE70 may with the price tag as cheap RM1000 dollar. Often there are ex-drifters who would like to let go their KE70 with 4AGE engine below RM5000. If the condition is good, it is a great car to use daily.

Toyota Corolla LE

The Corolla LE is another option for Toyota fans that do not prefer the “square square” KE70. Most of the LE priced below RM5000 is in between 1983 and 1989 in the market. The biggest advantage of buying this car is nothing to worry about the parts as it is available at most of the spare parts shop.

Proton Iswara

We highly recommended the Proton Iswara especially newer model. It will be a good option for those who need a reliable local made car to go for work or daily drive. With the budget below RM5000, a good used Iswara in between 1995 and 2003 is ideal. Why we say ideal because a 2003 Proton Iswara is less than ten year-old which will be good.

Proton Saga

If the preference is local made car other than Iswara, it will be Proton Saga. There are tons of Proton Saga for sale from RM1000 to RM5000. From RM1000 to RM3000, you can get model year in between 1985 and 1990. From RM3000 and RM5000, you can get model year in between 1990 and 1994. Although the budget is low, you should consider buying the newer model, see the reason why here: Buy a Proton Saga.

Proton Tiara

Proton Tiara did not live in the planet for long. The production only last for four years from 1996 to 2000 and continues with Proton Savvy. Any model year is selling under RM5000. One thing good to choose this car is the body is not too old compared to other ‘80s model. The 1.1L engine is another consideration for low fuel consumption is low. Because it is Proton, spare parts are still available across the country.

Perodua Kancil

Perodua Kancil will be a good option for those who did not travel long distance. We have tested to run the car for about 50 km a day in a month, it works well. However, it is not recommended for those who need a car to travel out station. The newest model you can get below RM5000 is up to year 2003 as of 2012.

Honda Accord (From year 1990)

This car is good for buyer who needs a spacious and cheap car. It is not recommended to go for model year earlier than 1990 because most of them are rusty. Some earlier models may have a hole at the floorboard, check properly the floorboard by removing the carpet. For more details see what to check when buying used cars. Try to look for newer model like 1994 because the fuel system is using fuel injection rather than the old carburetor type. Fuel consumption for injection system is much better than carburetor system.

Honda Civic

We know that the Honda Civic is many teenager’s dream car due to its outlook and performance especially the RM128,000 eight generation Honda Civic. Need no sad if the price is sky high. A good alternative is to go for the fourth generation Civic in between 1988 and 1991. It looks well and performs as a good transport for a person who needs a car within budget.

Nissan Sentra (up to year 1995)

The Nissan Sentra SLX or N13 is a reliable four-door sedan with low fuel consumption. The body is tough therefore you can still find some used cars with least rust on the body. An alternative to the Nissan family is the Nissan Sunny, Nissan Bluebird, or Nissan Datsun 120Y, both of them are in between RM1000 to RM3000. However, Nissan Datsun 120Y is not really recommended because 99 out of 100 are full of rust.

Daihatsu Charade

The strength of the car body is what makes the Charade goes into the list here. The Charade is a four-door car, with 1000cc engine, and available in manual and automatic transmission. These are good for small family use, save petrol, fun to drive, cheap road tax, and cheap car insurance. Try to look for model after the 1990.

Cars under RM5000 dollars that are not recommended

Ford Laser, Mitsubishi Lancer, Mitsubishi Galant, Mazda 626, Citroen ZX (before 1999), Volvo 240GL, Toyota Corolla KE10, KE20, KE25, KE30, KE35 and some other old cars like BMW, Peugeot, Jaguar, or cars you cannot even name it when you see it are NOT recommended except you are a mechanic or you have budget to restore it. It will be very costy to repair these import vehicles if there is some parts wear out. This is because import spare parts are limited especially for cars over 20 years.

Extra attention should be paid to the car body chassis when buying cheap cars below RM5000 dollars. Most of the body parts can be replaced but not the chassis or mainframe. Avoid rusty car or car with too much of filler. In a nutshell, it is always recommended to choose newer model within the price range.