The kind of budget you told, first thing to freeze on used or new one. I suggest you to look at new vehicle only. Now comes which one ?? My suggestion would be as below
1. Ford fiesta classic - Proven car in all aspects
2. TATA Manza - Very good car, except if you have any reservations for TATA and be careful with its ASS
as you need to select a good Tata service center
3. Swift Dzire - Just no non-sense and reliable car, but It never looks like a complete sedan
4. Toyota Etios - Reliable product, but interiors are really cheap
5. Fiat Linea - Beautiful car, but check again for maintenance and ASS
issues. It might be good now a days as Fiat opened a dedicated showroom and service center, Tejaswini motors.
6. Nissan Sunny - New product and ASS
to be checked. I like the looks.
7. VW vento, Skoda Rapid are good but, budget may be problem here
1. Punto - Very good car, check on the ASS
and spare parts
2. Swift - Everything is known to everybody
3. Skoda Fabia - A very good car, check on the service and spares, I hope they are improved now a days
4. Ritz - I own it and no problem car. Features are minimum, on highway people complain about bumpyness and body roll.
5. Vista - Very good car, again TATA badge and service issues
6. Polo - Pricing looks high, but car seems to be good
7. Etios Liva - Looks are odd, interiors are not good, but Toyota car !!
8. I20 - Very good car especially on highway, but steering rattle repored, high maintenance cost of Hyundai and bit low mileage
On above all My personal suggestion would be, if you look at sedan it is better to go with
Fiesta classic or Swift Dzire. If it is hatch back, then my vote will be for Punto or Skoda Fabia.