
With car prices on the rise, it can be challenging to find a good deal on a new vehicle. However, there are still some affordable options available in Australia. This article will explore the best cheap cars in Australia, taking into account factors such as price, features, and customer feedback to help you make an informed decision on your next purchase. We will look at various models, including hatchbacks, sedans, and SUVs, and highlight their key specifications and advantages to help you choose the best option for your needs and budget.
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Cheapest cars in Australia
Australia has seen a rise in car prices in recent years, with the cheapest cars now costing over $20,000. However, there are still some budget-friendly options available. Here is a list of some of the cheapest cars in Australia:
Kia Picanto
The Kia Picanto is currently Australia's cheapest new car, with prices starting from $17,890 before on-road costs. It has a 1.2-litre engine and is a great choice for a compact, economical city car. It comes with wireless Apple CarPlay and Android Auto, as well as a seven-year unlimited-kilometre warranty.
MG 3
The MG 3 is a popular small hatch that was once the cheapest car in Australia. While recent updates have increased its price, it still offers good value for money, with a starting price of $23,990 before on-roads. It has a 1.5-litre engine and is available with either a petrol or hybrid powertrain.
Suzuki Swift Hybrid
The Suzuki Swift Hybrid is Australia's most affordable hybrid car, with a base price of $24,490 drive-away. It has a 1.2-litre engine and a mild-hybrid 12V system for improved fuel efficiency. It comes with a five-year unlimited-kilometre warranty.
Chery Tiggo 4 Pro
The Chery Tiggo 4 Pro is a compact SUV that offers a good balance between price and space. It has a 1.5-litre turbocharged engine and includes features such as wireless Apple CarPlay and Android Auto. It has a base price of $24,990 drive-away (limited-time deal).
MG ZS
The MG ZS is a small SUV that was Australia's top-selling 'cheap' car in 2023, with almost 30,000 sales. It has a 1.5-litre engine and comes with a suite of tech features, including Apple CarPlay and Android Auto. It is backed by MG's impressive 10-year warranty.
Toyota Yaris
The Toyota Yaris is a compact hatch that offers excellent safety, low ownership costs, and high resale value. While it may not be the cheapest option, it is worth considering for its overall value and driving dynamics.
There are also other affordable options available in Australia, such as the Hyundai Venue, Chery Omoda 5 FX, and the Kia Stonic S, which offer a range of features and good value for money.
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Hybrid and electric cars
There are three types of hybrids: a mild hybrid, where the ICE receives only a small amount of electrical assistance; a standard hybrid with a self-charging battery; and a plug-in hybrid electric vehicle (PHEV), which needs to be plugged into an external power source to charge the battery. PHEVs usually have a price premium but should bring long-term savings and are gaining in popularity.
Toyota has dominated the hybrid car market in Australia for over 20 years, with its luxury subsidiary Lexus also featuring heavily. However, other manufacturers are now offering hybrid models, including Hyundai, Subaru, Kia, Honda, and MG.
Some of the cheapest hybrids on the market in Australia include the MG 3, which has a starting price of $27,990 plus on-roads, and the Toyota Yaris, which features a 1.5-litre three-cylinder hybrid powertrain and starts at $30,900 plus on-roads. The GWM Haval Jolion Hybrid is another affordable option, priced at $32,990 drive-away, and the Subaru XV Hybrid SUV combines a 2.0-litre four-cylinder engine with an electric motor. The MG HS Plus EV Excite model is Australia's cheapest PHEV, offering features such as a 12.3-inch digital gauge cluster, 10.1-inch touchscreen, and satellite navigation.
If you are looking for a fully electric vehicle, the Tesla Model 3 is a popular choice.
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SUVs
Australians are increasingly favouring SUVs over other types of vehicles, with more than 700,000 new SUVs sold in 2024. This shift in consumer preference has led to a surge in the availability of budget-oriented SUVs in various sizes and capabilities, including compact, small, medium, large, and 4x4 off-roaders.
Small SUVs
Small SUVs are the fastest-growing category in the new vehicle market. They are designed to blend low running costs, practicality, and affordability for a range of buyers, from city dwellers to young families. Here are some of the cheapest small SUVs available in Australia:
- Chery Tiggo 4 Urban: from $23,990 driveaway
- Suzuki Ignis: from $24,490 driveaway
- Hyundai Venue: from $25,990 driveaway
- GWM Haval Jolion: from $24,990 driveaway
- MG ZS: from $26,990 driveaway
- Chery Omoda 5: from $27,990 driveaway
- Mitsubishi ASX: from $28,490 driveaway
- MG ZS Excite: from $22,990 driveaway
- Suzuki Vitara: from $30,990 driveaway
Medium SUVs
Medium-sized SUVs are popular among families due to their practicality and versatility. They offer ample space, efficiency, and value for money. Here are some options for medium SUVs:
- Chery Tiggo 7 Pro SE: price unavailable
- Kia Sportage: price unavailable
- Haval H6: price unavailable
- Subaru Forester: price unavailable
- Hyundai Tucson: price unavailable
- Mazda CX-5: price unavailable
- Volkswagen Tiguan: price unavailable
Second-Hand SUVs
For those on a tighter budget, second-hand SUVs can be a great option. Some popular choices for pre-owned SUVs in Australia include:
- Subaru Outback: known for its practicality, fuel economy, and all-wheel-drive option
- Toyota Prado: maintains power in second-hand versions, offering both off-road and city driving capabilities
- Toyota C-HR: great value for money and one of the best drives in the Toyota range
- Mazda CX-5: reliable, popular, and packed with technology and safety features, making it a top family vehicle
- Volkswagen Tiguan: well-equipped with top-end technology and refinement, including an excellent climate control system
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Hatchbacks
If you're looking for a cheap car in Australia, a hatchback might be a great choice. Hatchbacks are known for their practicality, style, and affordability. They are usually smaller than traditional sedans, but they offer good interior space, with room for passengers and storage. You can find hatchbacks in various sizes, from small city cars to larger luxury models, and they are often excellent choices for fuel efficiency and ease of parking.
Kia Picanto
The Kia Picanto is Australia's cheapest hatchback in 2025. It is fun to drive, user-friendly, and super affordable. The Picanto offers excellent value for money and is perfect for navigating city streets.
Suzuki Swift
The Suzuki Swift is a pint-sized hatchback known for its fun-loving handling and impressive fuel economy. The latest model features a new, mild-hybrid powertrain, making it an affordable and environmentally friendly option.
Mazda 2
The Mazda 2 is a relatively inexpensive hatchback that offers a nice balance between size and features. It excels as a city car, with easy manoeuvrability and surprising smoothness when picking up speed. The Mazda 2 also provides excellent fuel economy without any hybrid assistance.
Toyota Yaris
The Toyota Yaris is a well-known name in the world of affordable hatchbacks. While prices have increased recently, the Yaris remains a benchmark for fuel efficiency in the hatchback segment, with impressive fuel economy figures.
Honda Civic
The Honda Civic is an all-hybrid hatchback option in Australia. It is a favourite among many, offering a premium experience. However, its price point may be a sticking point for those on a tighter budget.
Toyota Corolla
The current-generation Toyota Corolla hatchback remains a solid choice in a market filled with small SUVs. It offers a good balance of features and price competitiveness.
These hatchbacks provide a range of options for those seeking a cheap and reliable car in Australia, with a focus on value, fuel efficiency, and practicality.
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Sedans
If you're looking for a cheap sedan in Australia, there are a few options to consider. Firstly, the MG5 is Australia's cheapest sedan, starting at $25,990 drive-away, with the range-topping Essence variant coming in at $29,990. The MG5 is powered by a 1.5-litre four-cylinder petrol engine and offers features like a 10-inch infotainment touchscreen, leatherette upholstery, and wired smartphone mirroring. However, it's important to note that the MG5 received a zero-star safety rating from ANCAP in 2023.
Another option is the Hyundai i30 Sedan, which was, for a time, Australia's cheapest sedan, priced at $30,990 drive-away. The Mazda 2 Sedan is also a good choice, offering fuel efficiency, surprising handling, and a user-friendly platform for town driving. It's priced just under $30,000 and comes with features like a surround-view camera, keyless entry, and leather and suede upholstery.
If you're looking for something even more affordable, you can consider used sedans. For example, Autotrader offers cheap sedan cars under $10,000, including models like the Mazda3, Holden Cruze, Ford Focus, and Nissan Pulsar. These options may not have the latest features, but they can still provide reliable transportation.
Finally, other sedans worth considering include the Kia Cerato, which offers excellent value for money, and the BYD Seal, an affordable electric sedan with a realistic range for Australian buyers.
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Frequently asked questions
The Kia Picanto is Australia's cheapest new car for 2025. It's a compact, economical city car, powered by a 1.2-litre engine. It's small in size but comes with wireless Apple CarPlay, Android Auto, and a seven-year unlimited-kilometre warranty.
The Suzuki Swift Hybrid is Australia's cheapest hybrid car, with a base price of $24,490 drive-away. It has a 12V mild-hybrid system, which supplements a 1.2-litre naturally aspirated three-cylinder petrol engine.
The MG4 EV is one of the cheapest new passenger cars in Australia, with a starting price of $32,990. It has a five-star ANCAP safety rating and benefits from lower servicing costs and zero tailpipe emissions.























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