£5k is banger territory.
This is a term in fairly common use on the forum now to describe cars in the (roughly) £3-5k range. It is undoubtedly a bit of an exaggeration (and so probably shouldn't be taken too literally), but it is perhaps useful to point out that with the rise of used car prices over the last 5 years or so, that budget isn't going to go as far now as it once did.
Personally, my advice for the OP would be to stick with the current car. No, not very exciting, no, not exactly a rocketship, and no, not that efficient. But as you already have it, it is a known quantity and as such (unless there are problems you are aware of) it is already a safer bet than anything else you may consider. As for performance, yes you may hanker after more, but the max speed limit is 70mph and the Focus will happily do that all day long.
Diesel purchase at this price is an absolute minefield, you may get lucky, but equally you may end up with something on the cusp of very expensive problems, blocked DPF, injectors, etc. In fact my mate's Brother is currently in the middle of trying to sort out problems on a diesel Honda CRV he bought. Don't know much details as my mate isn't really a "car man", so don't know the age, mileage or whether 2.2 or 1.6, but I'd suspect the price paid for it was some way north of £5k.
For a petrol engine with more power, you'd need to be looking at either a larger capacity n/a or something with a turbo. With the former, you have a decent chance of reliability, but the economy will probably be worse, with the latter you have a merry-go-round of potential problems not unlike diesel. Probably the most common turbo motor at this budget would be the Ford Ecoboost, but that has a well known reputation for problems. Then you have early VAG TSI engines with their potential timing chain problems. You're also got early PSA Pure tech engines and their potential wet belt problems. Again, you may get lucky, but why would you risk it when you already have a car that does what you need for the majority of the time?.
As has been said, the dated radio is not a major stumbling block, either an aftermarket job or some bluetooth or DAB converter/connector.
As for the economy of your Focus and running costs in general, it is easy to fixate solely on mpg, but reliability is likely to play a much bigger part of the running costs of a £5k car. Your current mpg may not be brilliant, but it only needs one relatively minor problem on a diesel to wipe out what you've saved on fuel.
If you really must change, I'd be thinking along the lines of SLO's, now departed, Terrence the Toyota. This was a 3rd gen (2009-2018) Avensis 1.8 petrol, and they are pretty much bulletproof in terms of reliability (though there is a possibility the EPB may misbehave). Decent economy if driven sensibly, and very comfortable. Performance wise, 145ish bhp (if memory serves, not much less than the 2.0), so a chunk more than a Focus 1.6, but bear in mind it is n/a, so will need some revs to get things moving.
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