You can read our guide to our pick of used cars including hatchbacks for £5,000 here - www.honestjohn.co.uk/guides/used-cars/cheap-used-c.../ but for a smaller option we would look at the Toyota Aygo. There are plenty on the market, it has an excellent reliability record, very low insurance and its 1.0-litre petrol engine is very efficient. For something larger we would suggest looking at the Hyundai i30, which offers good fuel economy if you go for the 1.6-litre diesel or 1.4-litre petrol and should prove reliable.