Lyla Lindsey
When buying your first car in Australia, there are many factors to consider, including budget, safety, size, style, and reliability. While buying a new car is attractive, used cars are cheaper and can be a smarter choice for budget-conscious first-time buyers. Safety is the most important factor when selecting your first car, and many modern vehicles, both new and used, come equipped with advanced safety technology. When it comes to specific car models, the Mazda3, Toyota Yaris, and Suzuki Swift are all popular choices for first cars in Australia, offering a balance of affordability, reliability, and ease of driving. For those seeking a larger and more versatile option, entry-level SUVs like the Hyundai Venue and Kia Seltos are worth considering.
| Characteristics | Values |
|---|---|
| Price | Attractive prices can save $2500-$4000 |
| Fuel consumption | Fuel-efficient commuter |
| Safety | 5-star ANCAP safety rating |
| Resale value | High resale value |
| Reliability | Reliable |
| Affordability | Affordable |
| Size | Compact |
| Style | Stylish |
| Enjoyability | Fun to drive |
| Running costs | Low running costs |
| Warranty | Long warranty |
| Type | Compact city car, sedan, SUV, hatchback, crossover, EV |
| Models | Suzuki Swift, Toyota Yaris, Mazda CX-3, Hyundai Venue, Kia Seltos, MG4 EV, Mazda MX-5, Ford Fiesta, Ford Ranger |
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What You'll Learn
Budget
When it comes to buying your first car, there are many factors to consider, especially if you are on a budget. Firstly, you should decide whether to buy a new or used car. While a new car is attractive, a used car is cheaper. If you opt for a new car, you will benefit from a full-term warranty, the latest model, and new technology and safety equipment. However, used cars are more affordable, and you can still find ones with warranties from dealerships.
If you are a learner driver or first-time buyer, it is recommended that you choose an affordable, reliable, and safe vehicle. Smaller cars are generally cheaper to insure, and you should consider the cost of insurance, registration, and repairs. Some car brands are cheaper to buy and maintain, such as Suzuki, Volkswagen, Seat, and Skoda. However, these brands are newer to the Australian market, so repair parts may be less abundant, and repair costs may be higher.
If you are looking for a cheap, reliable, and safe first car in Australia, here are some options to consider:
- The 2025 Kia Cerato is one of the biggest-selling small cars in Australia, known for its appealing price tag, adequate features, and honest performance. It has a five-star ANCAP rating when fitted with the $1500 Safety Pack, and Kia offers an attractive seven-year/unlimited-kilometre warranty.
- The 2025 Toyota Yaris compact hatch is a strong contender, known for its excellent safety standing, economical hybrid powertrain, low ownership costs, high resale value, and great driving dynamics. It comes with a five-year/unlimited-kilometre factory warranty and access to Toyota Connected Services, which offers safety, security, and multimedia features.
- The 2025 MG4 EV is a compelling alternative to traditional petrol-engined hatchbacks, offering a five-star ANCAP safety rating, longer service intervals, lower servicing costs, and zero tailpipe emissions. It is one of the cheapest new passenger cars in Australia and comes with a class-leading 10-year/250,000km new vehicle warranty.
It is important to note that sports cars, such as the Chevrolet Camaro and high-performance engine vehicles, are generally not recommended as first cars due to their high cost of ownership, poor fuel efficiency, and expensive insurance rates. Instead, focus on reliable and safe options within your budget.
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Safety
When buying a new car, you are more likely to benefit from the latest safety technology and advancements. However, this is not always the case with cheaper vehicles, where manufacturers sometimes cut corners to keep prices low. Therefore, it is important to do your research and not compromise on safety features to save money.
When buying a used car, you may have to make some sacrifices regarding the latest safety features. However, you can still find models with good safety ratings and features. For example, the 2018 Mazda2 Neo has a five-star ANCAP safety rating and comes with rear parking sensors. The Fiat 500 is another good option, with a five-star ANCAP rating and a super-efficient engine.
If you're looking for a new car with excellent safety features, there are several options to consider. The 2025 Kia Cerato, a popular small car in Australia, offers a five-star ANCAP safety rating when purchased with the $1500 Safety Pack. The Volkswagen Polo GTI, a stylish hatchback, blends safety, technology, style, and performance and has a nine-star ANCAP crash safety rating. The Toyota Corolla Ascent Sport is another excellent choice, featuring advanced safety equipment, such as autonomous emergency braking and cyclist recognition, along with impressive fuel efficiency.
When it comes to electric vehicles, the Toyota Camry Hybrid Ascent stands out with its impressive safety features, including lane-keeping assist and autonomous emergency braking. The MG4 EV is another option, boasting a five-star ANCAP safety rating and lower servicing costs due to longer service intervals.
In addition to safety ratings and features, it is essential to consider other factors that contribute to safe driving. For example, fuel efficiency can impact your overall vehicle affordability and insurance rates. Furthermore, specific learner driver restrictions in some Australian states and territories limit the engine power that new drivers can operate. Therefore, choosing a vehicle with good fuel economy and complying with engine power restrictions can contribute to a safer driving experience.
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Resale value
When buying your first car, there are many factors to consider, such as safety, comfort, and technology. One important consideration is the resale value of the car. Resale value is a tricky thing to quantify, as it can vary depending on how long the owner has used the car before reselling it. However, it can still serve as a helpful guide for new car buyers looking to improve their return on investment.
In Australia, Toyota is a well-known brand that holds its value well. The Toyota RAV4 and Camry are among the top five cars with the best resale value, losing only a small percentage of their resale value. The Toyota Corolla, a compact hybrid car, is another excellent choice, as it tends to increase in value over time, making it a great investment option. The Toyota Yaris compact hatch is another strong contender, offering excellent safety, a hybrid powertrain, low ownership costs, high resale value, and great driving dynamics.
Other cars that have good resale value in Australia include the Honda CR-V, which holds its value well at 94.13%. The Hyundai Tucson and the Toyota HiLux also tend to increase in value. The HSV Clubsport, a 5-7 year old passenger car, retains an impressive 120.2% of its value on average.
Electric vehicles, such as the Nissan Leaf, also show excellent value retention. The entry-level grade retains 81.4% of its value after three years, while the Leaf e+ variant is close behind at 81.3% resale value. The Tesla Model 3, which arrived in Australia in 2019, has since claimed a significant share of the local electric vehicle market, with the Long Range AWD variant retaining 82.6% of its resale value after three years.
When considering the resale value of a car, it's important to look at various factors, including the age of the car, its condition, and any additional features or warranties that may enhance its value.
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Fuel consumption
According to a February 2024 report by the Climate Council, the average new passenger car in Australia consumes 6.9L/100km. This is higher than other major markets like the United States (4.2L/100km) and the United Kingdom (3.6L/100km).
As a general rule, smaller vehicles tend to be more fuel-efficient than larger ones. A fuel consumption rate of 6-8 L/100km is considered good for a small or medium-sized car, while 9-11 L/100km is considered efficient for larger vehicles like SUVs.
There are several ways to improve fuel efficiency, such as driving at a steady speed, keeping tyres properly inflated, and removing unnecessary weight from the car.
When considering the fuel efficiency of a car, it's important to note that lab-tested fuel consumption figures may not always match real-world usage. Factors such as driving conditions, terrain, load weight, and individual driving habits can impact fuel consumption.
Some fuel-efficient cars available in Australia include:
- Toyota Corolla Hybrid: 4.0 L/100km
- Audi Q5 (diesel): 4.8 L/100km
- Mazda 2: 5.4 L/100km
- Suzuki Swift: 4.6 L/100km
- Toyota Camry Hybrid: 4.0 L/100km
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Size
When it comes to size, there are a few things to consider when looking for a good first car in Australia. Firstly, it is important to think about the practicality of the car's size in terms of your day-to-day usage. If you often share rides with friends, a two-door sports car may be inconvenient. Similarly, if you have limited parking space, you'll want to consider a smaller car that fits.
Small cars are the go-to market segment for most new drivers in Australia. They are cheap, easy to park, relatively affordable to insure, and well-suited for short city commutes. Examples of good small cars include the Volkswagen Up, the Ford Fiesta, the Toyota Yaris, and the Suzuki Swift. The Kia Cerato is one of the biggest-selling small cars in Australia, offering an appealing price tag, adequate features, and good performance.
If you're looking for something a little bigger, you might consider an SUV. SUVs outsell more traditional hatchbacks and sedans, offering a high-ride stance and often a more attractive price range. However, it's important to note that larger engines in older models will be heavy on fuel, and many newer models with more fuel-efficient engines will violate restrictions on high-power engines for novice drivers in Australia.
If you're specifically looking for a mid-sized sedan, the Hyundai Sonata is a moderately good option with reasonable insurance rates and average maintenance and repair costs. For a large family sedan, the Mazda 6 offers good fuel efficiency and excellent safety features, but it may be unsuitable for younger first-time buyers due to its size.
Ultimately, the size of your first car will depend on your personal preferences, budget, and intended usage.
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Frequently asked questions
Here are some good first cars in Australia:
- Mazda3
- Suzuki Swift
- Toyota Yaris
- Hyundai Venue
- Kia Seltos
- Toyota Corolla
- Mitsubishi Lancer
- Mazda CX-3
- MG4 EV
Price is key when it comes to buying your first car. You should also consider safety, affordability, size, style, reliability, and the enjoyability factor. It's also important to look at the running costs of the car, such as fuel, servicing, tyres, and insurance.
If you're on a budget, a well-maintained, low-kilometre used car may be a good option. Safety is the top priority when selecting your first car, so look for models with a 5-star ANCAP safety rating. You can also save $2500-$4000 by buying a car at 'driveaway' prices.
