We tracked down some of the best affordable project cars on the used market for under $5,000. You’ll be surprised at what’s out there.

Building on A Budget

Classic car ready to be restored
Classic car ready to be restored

To take on a project car is to cross an automotive Rubicon. There really is no turning back. You’ve joined the tribe and from that point on, you’re a car person. Whether you eventually “finish” the project is secondary to your level of devotion: how many nights’ sleep are ruined worrying about whether you should’ve replaced that one O-ring, how much of your kid’s college fund went to that transmission overhaul, being torn over whether to go with a supercharger over a turbo.

It’s not easy to find a good car for less than $5,000 these days, and finding a good project car candidate for that price is even trickier. But, depending on your level of commitment (mostly financial), there are not only project cars to be found for $5,000, there are even plenty of good ones. As part of your search for the right example, you’ll need to balance condition and price. Ideally, a $5,000 price tag should leave you with plenty of budget left over for fixes and upgrades.

What Makes a Good Project Car?

Man maintaining his classic car
Man maintaining his classic car

Ease of Work: Just take the engine bay on a modern BMW and compare it to the engine bay of a 1950s Chevy 3100 and you’ll see why the latter is much easier to work on. Aside from the relative engineering simplicity, you can actually reach things in the Chevy 3100 without disassembling half the electrical/exhaust/cooling/fuel systems to get at them. For shadetree mechanics, it’s important to know your limitations and choose your project car accordingly.

Aftermarket Support: Some cars were more popular than others. Higher volume cars tend to have better aftermarket support from OEMs (original equipment manufacturers) and parts for even old vehicles are still readily available.

Restoring an old car
Restoring an old car

Cult Followings: Another function of popularity, a good project car candidate has a devoted following. Cars like those seen below have lots of fans and dedicated forums where would-be mechanics can go to ask questions, trace common issues, and otherwise crowdsource their troubleshooting.

Sparks Joy: Don’t settle on your choice of project car. This will be one of those quintessential labors of love, so make sure the vehicle in question inspires a deep devotion.

Ford Mustang (1994-2004)

1999 Ford Mustang - netcarshow.com
1999 Ford Mustang - netcarshow.com

It’s no secret that people love the Mustang. With lots of aftermarket support and legions of knowledgeable fans, wrenching on a Mustang means you won’t get lost in the weeds, at least, not for long. The fourth-generation Mustang sits in a sweet spot of not too old or too new. It’s neither a classic with an inflated price nor a more modern used car with … an inflated price. You can even still find GTs out there if you’re willing to put some work in on them. Those equipped with the V6 are perfect for those looking to do a full engine swap. The 4.9L small-block and 4.6L SOHC (single overhead cam) V8s offer decent grunt and the opportunity to tune as you wish. And the fourth gen, while distinctive, is certainly a better-looking Mustang than some other generations (like the Mustang II or early Fox bodies for instance).

Subaru Forester (2003-08)

2004 Subaru Forester - netcarshow.com
2004 Subaru Forester - netcarshow.com

The Subaru Forester of the mid-aughts is the hipster’s WRX. Like it’s other Subaru siblings, there is a ton of aftermarket stuff for you to tack on, bolt on, or zip-tie on if need be. The turbocharged XT is going to be tough to find under $5,000, but the X or XS trims with their naturally-aspirated 2.5L boxer engines aren’t too hard to locate. Forester owners often go one of two ways either lifting their Foresters and slapping on some knobby tires and a roof rack for a weekend overlander or going the “build-your-own-STI” route by lowering it, finding some gaudy rims, and turbocharging it. Or you can be a true iconoclast and painstakingly restore yours to original 2005 specs.

Mazda Miata (1989-2005)

2004 Mazda Miata - news.mazdausa.com
2004 Mazda Miata - news.mazdausa.com

Some people still make snide references to hairdressers and homemakers when they talk about the Miata. Turns out, hairdressers and homemakers (and car lovers) have been right all along. The Mazda MX-5 Miata is a small, fun, perfectly balanced convertible (with a manual) that offers more joy than mere mortals can stand in anything but small doses. That means if you’re a gearhead looking for the perfect project car, look no further. Easy to work on, easy to mod to your heart’s content, and easy to love, the Miata’s greatness can’t be measured in horsepower, but smiles-per-mile might be a good substitute.

Mercedes-Benz 300D W123 (1979-85)

1985 Mercedes-Benz 300D W123 - netcarshow.com
1985 Mercedes-Benz 300D W123 - netcarshow.com

When your dear old dad tells you Mercedes makes the most reliable luxury cars around and you nearly choke on your Cheerios, remember it’s cars like the Mercedes-Benz 300D your dad is referring to. These cars were over-engineered but in the best possible way. Unlike modern Mercedes where that means lots of complicated and expensive parts, the 300D was built with the same over-engineering we’ve come to love from the likes of Toyota. Foolishly building vehicles to last decades rather than years.

With a 3.0L turbodiesel I-5, few cars sound like an 80s 300D. And tank-like isn’t just applicable to the exhaust note either. The modest 120 horsepower means this puppy is the opposite of the AMGs when it comes to raw pickup, but don’t be fooled, this is still a driver’s car. The smooth ride feels all the smoother knowing there’ll always be plenty of work to do on with your 300D, but it’ll (probably) be roadworthy regardless.

Chevrolet Corvette (1984-96)

1987 Chevrolet Corvette - media.chevrolet.com
1987 Chevrolet Corvette - media.chevrolet.com

The fourth-generation Corvette can indeed be found for around $5,000. Though C4s came with 350 cu-in V8s, such a machine is the perfect candidate for an LS swap, trading out an old Corvette motor for a more modern one. Why not the LT1 from the C7 Stingray? That 6.2L V8 makes 460 horsepower and 465 lb-ft of torque. Pretty spicy. The C4 was a thoroughly modern interpretation of the Corvette, at least in the mid-1980s. Its signature round taillights and aggressively sloped hood are instantly recognizable. Plus, the standard Targa top is there to muss your perfectly moused 80s pompadour (gotta look the part once your project is finally complete, right?).

Jeep Wrangler (1996-2006)

1997 Jeep Wrangler - netcarshow.com
1997 Jeep Wrangler - netcarshow.com

If your idea of the perfect project vehicle is one that you can take out rock crawling on the weekend and/or mudding this spring, we suggest the TJ-generation Jeep Wrangler. The Wrangler ticks all the project car boxes. They are easy to work on. They are super popular with the Jeep faithful, who are always happy to lend advice (and sometimes spare parts). The Jeep aesthetic and the Jeep experience both spark joy even among enthusiasts who prefer sports cars to off-roaders. And yes, you can find plenty of examples under $5,000, leaving you with room in your budget for suspension upgrades, quirky tire covers, and off-road tires.

Old Shell of Your Choice

Classic VW Beetle body - classiccult.com
Classic VW Beetle body - classiccult.com

For the truly ambitious amateur mechanic, there’s always the option of finding yourself an old shell to resurrect. Who hasn’t seen an old, rusty hull nested waist-deep in the unmown grass out back of a smalltown body shop and thought, for a split second, what if? For a few grand you can get the body and chassis of many a classic car: Beetles, Cadillacs, F-1 pickups, and more. Sure, they’re just the thinnest of bases for what would be literal ground-up builds, but then, that’s the point. Your options here run the gamut from a full restoration to a complete reimagining (check out James Hetfield’s car collection for reference). Just know, your initial $5,000 (or less) investment is just the beginning of a much larger financial commitment.

Editor’s Note: This post was originally published in April 2020 and has been completely revamped and updated for accuracy and comprehensiveness.

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Chris Kaiser

With two decades of writing experience and five years of creating advertising materials for car dealerships across the U.S., Chris Kaiser explores and documents the car world’s latest innovations, unique subcultures, and era-defining classics. Armed with a Master's Degree in English from the University of South Dakota, Chris left an academic career to return to writing full-time. He is passionate about covering all aspects of the continuing evolution of personal transportation, but he specializes in automotive history, industry news, and car buying advice.

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