20 great modern classics – for less than £5000

With any luck, things should start returning to normal in the spring, as we emerge from the lingering effects of the coronavirus pandemic.

Many of us will be dreaming of life on the open road in a car with character and some degree of performance. This is why we’ve selected 20 modern classics you can buy for £5000 or less. Invest wisely and you could even get your money back when the nights start drawing in again. 

When considering them, please be alert to local ULEZ restrictions and charges that may apply to older cars.

Yes, the Ford Focus ST170 is old enough to be considered a modern classic. Launched in March 2002, the ‘Sports Technology’ hot hatch and estate featured a reworked 2.0-litre engine producing 172bhp at 7000rpm, a new Getrag six-speed gearbox, stiffer springs, tuned dampers and 17-inch alloys. Significantly cheaper than a Focus RS, although prices vary, the days of the ST170 playing the role of engine donor appear to be over.

Few cars from around the turn of the millennium look as eye-catching as the original Audi TT. From a styling perspective, the Mk1 TT is the best TT; a concept car for the road that wasn’t forced to conform to a corporate identity. Even in 222bhp 1.8-litre guise, it’s quick, while the 247bhp 3.2-litre V6 is fast enough to keep up with plenty of modern day sports cars. That said, performance isn’t the TT’s headline act; just admire the styling and that wonderful interior.

Launched in 2003, the E85 BMW Z4 was a significant step up from the Z3. Bigger, stiffer and blessed with Chris Bangle’s boldly handsome styling, the Z4 cemented its position as a slightly softer alternative to the Porsche Boxster. You can choose from a wide choice of engines, with all versions boasting a fully automatic roof that takes just 10sec to open. Facelifted cars from 2006 command a premium, but the earlier cars are less complex and ideal for anyone buying on a budget.

“Pretty, fun to drive and a worthy successor to the Duetto,” was our assessment of the Alfa Romeo Spider in 1995. UK sales began in 1996, with all early cars powered by a 2.0-litre Twin Spark engine. Other options followed, including the evocative 3.0-litre V6 and its creamy soundtrack. There was also a 3.2-litre V6, but these are rare and valued accordingly. Thanks to the smoothness and melodic nature of the Twin Spark, we’d happily spend time in a four-pot GTV or Spider.

Pound-for-pound, the Mk5 is the best value VW Golf GTI you can buy. It represented a return to form after the disappointing Mk3 and Mk4 versions, and today it feels suitably analogue in a new digital era for the GTI badge. It’s this bridging of the gap between old and new that makes the Mk5 Golf GTI such a compelling proposition. A 2.0-litre turbocharged engine producing ‘just’ 197bhp might seem inadequate in 2022, but few cars make better use of 200 horses.

From a styling perspective, the Honda Accord Type R is the antithesis of the current Civic Type R. Discreet to the point of being anonymous, the original owner could even choose to remove the rear wing. Prices vary, with the best examples fetching big money, but a rust-free ATR with a strong engine is a fine buy. Few saloon cars are this good to drive, especially once the 2.2-litre VTEC engine hits 5000rpm.

The best thing about spending £5000 on a TF is that you can afford one of the last models produced before MG Rover went pop. MG revised the TF in 2005, with highlights including a glass rear screen and revised suspension. In all cases, the TF is sharper to drive than the MGF, although not as precise as an MX-5. We found a 2005 MG TF with 70,000 miles on the clock for just £1650.

It might be a small car, but rust is a big problem on the Daihatsu Copen. A car that looks good on the outside might be hiding terminal rust, so check the MOT history before parting with your cash. Better still, arrange a thorough inspection with the car on a lift. Many cars are advertised with the line ‘too good to scrap’ but get a good one and you’ll discover a car that’s great fun to drive and benefits from an electric folding roof. We’d opt for the turbocharged 660cc engine, but don’t rule out the 1.3-litre unit.

You can buy a first-generation R170 Mercedes-Benz SLK for around £1500, but it will almost certainly have rust issues. Rust can affect the rear subframe of the R171 model, but a galvanised body should deliver fewer sleepless nights. The R171 arrived in 2004 with a choice of two engines: a 159bhp supercharged 1.8 and a 264bhp 3.5-litre V6. Other engines followed, while a 2008 facelift brought a nose job and some 650 new components. Make sure the roof works!

Rust has led to the premature death of many Ford Pumas, which has robbed us of one of the sweetest handling front-wheel-drive cars of the era. Launched in 1997 with the posthumous assistance of Steve McQueen, the Puma made terrific use of its chassis to render all other small coupés null and void. The Yamaha-developed 1.7-litre engine is the top choice, but the 1.4 and 1.6 versions are worth a look, especially if the body is free of corrosion.

If you intend to spend the post-pandemic spring and summer at a more leisurely pace, might we suggest the Rover 75? For as little as £1000, you can buy a car built under the guidance of BMW using an all-new platform, with a wide range of engines. Timeless styling, an upmarket interior and a long list of equipment, even on the Club SE model, are the highlights of this classy saloon and estate car. The BMW diesels and Rover V6 petrols are the pick of the engines.

The A2 was Audi’s vision of the future in the year 2000. Lightweight aluminium construction, timeless styling and efficient engines are the hallmarks of this innovative supermini that was years ahead of it times. Sadly, this proved to be its undoing, as the market wasn’t ready for the A2, especially at the prices Audi was asking. It’s a modern classic and prices appear to be on the rise. The best examples fetch £3500. Buy a 1.4 TDI and look forward to 70mpg.

It would have been too easy to recommend a Mazda MX-5 for some open-top sun this year. You know all about its greatness, but have you considered taking a punt on an RX-8? Yes, the rotary engine can be troublesome, but a good one will last around 100,000 miles. Budget for a £2500 rebuild if the worst happens, and you’re still quids in on a £2k car. Bold styling, reversed rear doors, a delightful interior and a free-revving engine might tempt you out of an MX-5.

The Mk3 Toyota MR2 is the perfect riposte to those who say two-seater sports cars are fragile and have a limited lifespan. Scroll through the classifieds and you’ll discover dozens of examples with 100,000+ miles on the clock, proving that a cherished MR2 can go the distance. Practicality isn’t a strong point, but you’ll having too much with the 138bhp 1.8-litre engine to care. Just check the rustprone rear subframe.

EP3-generation Civic Type R prices vary considerably, from ropey examples for around £2000 to minters costing £10k. A budget of £5k is enough to secure a good Type R with service history and plenty of summers left in the engine. The 2.0-litre K20 engine is robust if treated to proper maintenance, but we’d avoid modified examples, tasteful or otherwise. A future classic in the making; we can see prices rising beyond the £5k mark.

Buy any Renault Sport Clio from this era and you won’t be disappointed. The story started with the 172 Phase 1, which was powered by a 2.0-litre engine developing 168bhp and featured a chassis developed by the wizards at Renault Sport. The Phase 2 arrived in 2001, followed by the hardcore 172 Cup and more powerful 182 and 182 Cup. These are fragile cars, and many have been modified to death, but a good example won’t disappoint.

Reasons to avoid the Fiat Barchetta include the fact that - RHD conversions aside - you sit on the ‘wrong’ side of the car, it’s front-wheel-drive and the lingering threat of terminal corrosion. But let’s look at the positives. It’s more exclusive than a Mazda MX-5, it’s oh-so-pretty, especially in pre-facelift guise, and it’s hugely entertaining to drive. Its 1.8-litre engine produces 128bhp, which is enough to propel the 1860kg roadster to 62mph in just 8.6sec.

Such was the dominance of the old Renault Sport Clio, it was easy to overlook rival hot hatches like the Ford Fiesta ST 150. True, it lacked the playfulness of the Clio and the raw appeal of the Suzuki Swift Sport, but there’s something very appealing about a Fiesta with a 2.0-litre engine producing 148bhp. It’s not the most characterful of engines, but it’s certainly quick enough to keep up with modern traffic. The Fiesta ST 150 also looks excellent with go-faster stripes.

If you’ve been priced out of the market for a Land Rover Defender, it’s worth looking at the Discovery 2. With the Disco 1 well on the way to classic status, the Disco 2 is the better choice for anyone new to Land Rover ownership. The Td5 is the best option for daily use, but our hearts are drawn to the 4.0-litre V8. Rust remains an issue, but these workhorses respond well to modifications and are superb off-road.

BMW Z3 prices start from around £1500, but it’s not uncommon to see some cars change hands for less than £1000. It’s odd that the Z3 remains undervalued and unloved, because here is a BMW roadster with timeless styling, rear-wheel-drive handling, and a choice of engines. Even the 1.9-litre four-pot is quick, while the 2.8 boasts more power, chunkier styling and more equipment.