Lyla Lindsey
Australia's cheapest cars in 2025 include the Kia Picanto, the Mazda2, the Mitsubishi ASX small SUV, the MG ZS small SUV, the Suzuki Ignis, the Toyota Corolla Cross, the Kia Seltos S, and the MG3. The cheapest electric car in Australia in 2025 is the MG4 EV, which starts at $32,990. While the cheapest car in Australia in 2024 was the Kia Picanto, which started at $17,890 before on-road costs.
| Characteristics | Values |
|---|---|
| Cheapest car model | Kia Picanto |
| Engine | 1.2-litre four-cylinder petrol engine |
| Power | 62kW |
| Torque | 122Nm |
| Transmission | 5-speed manual or 4-speed automatic |
| Length | 3595mm |
| Warranty | 7-year, unlimited-kilometre |
| Features | Wireless Apple CarPlay, Android Auto, cruise control, reversing camera, touchscreen |
| Price | $17,890-$21,290 plus on-road costs |
| Other Affordable Options | |
| --- | --- |
| Mazda2 | Affordable with a reputation for good value |
| Suzuki Ignis | Compact SUV with impressive fuel efficiency |
| Toyota Yaris | Excellent safety standing, low ownership costs, high resale value |
| MG4 EV | One of the cheapest new passenger cars with a 5-star ANCAP safety rating |
| Toyota Corolla Cross | Fuel-efficient with tuned suspension and stability |
| Kia Seltos S | Small SUV with excellent fuel economy and an affordable price |
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What You'll Learn
The Kia Picanto is Australia's cheapest car
The Picanto has a 1.2-litre naturally aspirated four-cylinder petrol engine, producing 62kW of power and 122Nm of torque. It is available with either a five-speed manual or a four-speed automatic gearbox. At 3595mm in length, it is a small car that is perfect for city driving and easy manoeuvring. The Picanto also offers a surprising amount of space, with plenty of headroom, shoulder room, and legroom.
In addition to its performance and space, the Picanto comes with a range of features that enhance its value. It includes wireless Apple CarPlay and Android Auto, as well as a choice of styling options inside and out, depending on the trim level. The Picanto also has advanced safety features such as Autonomous Emergency Braking (AEB) and rear parking sensors.
The Kia Picanto provides an excellent combination of affordability, functionality, and technology, making it a popular choice for buyers on a budget. With its compact size, efficient performance, and modern features, the Picanto is well-suited for city driving and offers a great option for those seeking a reliable and economical car in Australia.
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The Kia Stonic is a cheap light SUV
The Stonic's design stands out from the crowd, with a distinctive rear end featuring a sporty rear bumper and sleek LED lights. The interior is stylish, with a roomy cabin and advanced technology, including a vivid 8" colour LCD touchscreen, Bluetooth multi-connection, Android Auto & Apple CarPlay, and USB charging ports. The 60:40 split-folding rear seats provide versatile cargo space, and the sunroof and climate control air conditioning add to the comfort of the cabin.
The Stonic comes with a range of safety features, including driver and passenger airbags, Hill-start Assist Control (HAC) to prevent rolling backwards on inclines, Electronic Stability Control, and a rear-view camera with front and rear parking sensors.
The Kia Stonic is a fun and sleek subcompact crossover SUV, offering a combination of style and performance with excellent handling and ride. It provides a unique design and features across its range of models, including the GT-Line, which adds luxurious touches such as leather-covered D-cut steering wheels and sporty exterior elements. With its fine-tuned ride comfort and advanced technology, the Kia Stonic is an excellent choice for a cheap light SUV in Australia.
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The Suzuki Ignis is a compact car
The Ignis has a lightweight yet robust build, offering the feel of an SUV with the agility needed for city driving. Its high driving position provides a commanding view, and its compact dimensions make it ideal for navigating through urban environments. The SHVS (Smart Hybrid Vehicle by Suzuki) system further enhances fuel efficiency by converting kinetic energy during deceleration into electric energy, assisting the engine and resulting in lower CO2 emissions.
The Suzuki Ignis is known for its versatility and capability, offering a comfortable and efficient driving experience. Its safety features include Automated Emergency Braking, Lane Departure Warning, and Hill Hold Control, contributing to it being named the "Most Reliable City Car" by Which? in January 2023.
The car features a 7.0-inch infotainment screen with wired smartphone mirroring, Bluetooth connectivity, and Apple CarPlay, integrating seamlessly with modern smartphones. The audio system includes a touch-panel display, providing an intuitive and user-friendly interface.
With its combination of performance, efficiency, safety, and technology, the Suzuki Ignis is an attractive option for those seeking a compact and versatile vehicle for urban environments. Its responsive engine, fuel-efficient hybrid system, and array of modern features make it a compelling choice for drivers in Australia and beyond.
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The Toyota Yaris is a compact hatch
The second-generation models were marketed between 2005 and 2013 under the "Yaris" name worldwide. Both hatchback and sedan body styles were offered, although the hatchback version was discontinued in late 2013 for Asian markets.
The third-generation models have been available since 2011, initially only as a hatchback, with a sedan body style introduced in 2013. The Yaris hatchback sold in markets outside of the US is built on Toyota's TNGA platform, while the US model is a rebadged Mexican-built Mazda 2. The Yaris hatchback provides 16 cubic feet of cargo space, which is less than some rivals.
The 2020 Toyota Yaris offers a lot more than you might expect from a budget-priced car. It is available in both hatchback and sedan body styles, and boasts exceptional fuel economy. The Yaris hatchback is known for its keen handling and superb gas mileage, although it is not the quickest subcompact. Its suspension is tuned to facilitate driver engagement, and it has an upscale interior. The Yaris also comes with an impressive range of standard and available tech features, including a six-speaker sound system, a 7.0-inch touchscreen display, and Bluetooth phone and streaming audio.
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The MG3 is a small car
The MG3 is a hatchback, with a 1.5-litre engine and either a manual or automatic transmission. The car has had a few updates since its initial launch in China back in 2011, including a revised front design in 2013 and a facelift in 2018, which added an eight-inch touchscreen to the interior. The MG3 is also available in a crossover-style variant, known as the MG3 Xross.
Safety-wise, the MG3 has received mixed reviews. In 2018, it received a rating of 3 out of 5 stars from Euro NCAP, and in 2014, it received 2 out of 5 stars from the same organization. However, the car has not been crash-tested or rated by ANCAP.
Despite this, the MG3 is built to high standards in state-of-the-art manufacturing plants, and MG offers a 7-year manufacturer's warranty on the vehicle, indicating confidence in its quality and reliability. Overall, the MG3 is a great option for those seeking a brand-new car at a budget-friendly price.
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Frequently asked questions
The cheapest brand-new car in Australia is the Kia Picanto, which is priced from $17,890 before on-road costs.
The Mitsubishi ASX small SUV is a reliable favourite for buyers on a budget. A manual ASX GS with front-wheel drive starts at $24,490 before on-road costs.
The Suzuki Ignis is a compact car that features a 1.2-litre four-cylinder petrol engine. It is available with either a five-speed manual or a four-speed automatic transmission. The manual version is priced at just under $20,000.
The MG4 EV is one of the cheapest electric vehicles in Australia, priced at $32,990. It has a five-star ANCAP safety rating and benefits from longer service intervals and lower servicing costs.
