To my view buying a new car with lower variants by paying 5 lakhs is not a good option. At the price tag of 5 lakh you may not get a safe car, plus you miss on so many features. Over the period of 2-3 year the car will look outdated.
So buying a used car which may be 3-4 years old would be a better option. At that price tag you may get a top variant of cars like Hyundai i20, Ford Figo. Since the built quality is such cars is better than of those like Celerio, Alto, Kwid and many more, so that last long. Just to verify this compare a 3-4 year old Figo vs 3-4 year old Celerio. You will have an idea of what will be your new car after 3 years.
Below are some examples for your reference.
https://www.olx.in/item/2015-hyundai-elite-i20-petrol-70800-kms-ID1nUQRw.html#0bbc7a5542
https://www.olx.in/item/ford-figo-figo-1-5d-titanium-2014-diesel-ID1mP1nw.html#cd6b788301
This is just to elaborate my point. Buying used car is not a easy process, so thorough checking is required in some cases. So think before you buy a car. Take a time to decide. Visit car dealers/ online web portals etc.