What are the most affordable cars in Australia?

New car prices have crept steadily upwards in recent years, but there are still a handful of budget-friendly models on sale in Australia. From pint-sized hatches through to small SUVs, the entry point for new-car ownership remains under $20,000, although options are becoming limited.

Whether you're looking for a runabout that doesn’t break the bank on fuel, or a small but safe driving option for teens on their P-plates, this list of the most affordable cars on the market will get you started. Using pricing before on-roads, we also look at how much fuel they use, how safe they are, and how they compare to rivals in their segment.

New cars under $20,000

Kia Picanto Sport – starts at $19,190

The Kia Picanto Sport is now the only new car in Australia priced under $20,000. A 1.3-litre four-cylinder engine drives the front wheels, making it a straightforward and simple hatch. While it is compact, it comes with Kia’s unlimited-kilometre, seven-year warranty, which offsets its limited boot space and relatively basic equipment list. On paper it uses six litres of fuel per 100km, and in the AAA Real-World Testing Program (RWTP) it showed only slightly higher fuel use at 6.7L/100km. Compared to slightly larger hatches like the Suzuki Ignis or MG3, the Picanto feels pared-back and has no ANCAP safety rating, but is unmatched on price.

New cars under $25,000

Chery Tiggo 4 Pro Urban – starts at $21,990

The compact Tiggo 4 Pro Urban is the cheapest SUV on sale, and the only one priced below $25,000. Its 1.5-litre turbo four should give it more grunt than rivals such as the Kia Stonic S or Hyundai Venue Active. On paper it uses 4.7L/100km (it hasn’t been through the RWTP). While Chery is still building its reputation in Australia, the Tiggo 4 Pro’s five-star ANCAP rating, sharp pricing and equipment levels make it a strong contender for those prioritising value.  

MG MG3 Vibe – starts at $21,990

MG has carved out a space in the budget hatchback market. While the MG3 Core priced under $20,000 has now been discontinued, the 2025 MG3 Vibe remains decent value. It packs a 1.5-litre four-cylinder engine that puts out 81kW, and the Vibe undercuts the Hyundai i30 Active by more than $2000. Although this variant hasn’t been through the RWTP, the fuel consumption program shows the Excite, which claims the same 6.0L/100km, uses 10 per cent more in real world conditions. A four-star ANCAP rating is acceptable for the price, but it doesn't quite match the Tiggo 4 Pro.

Suzuki Ignis GL – starts at $22,490

Suzuki’s quirky Ignis occupies the runabout middle ground between hatch and compact SUV. The 1.2-litre engine is less powerful than that in the MG3 and i30 but is frugal on fuel. It competes most closely with the Picanto, offering a bit more space but at a slightly higher price. Note, it also has no ANCAP rating, and its 2016 three-star European NCAP rating is now long expired. On paper it uses 4.7L/100km, but it’s worth noting Suzuki has not fared well in the RWTP ratings for other models, using up to 31 per cent more fuel than lab tests.

Hyundai i30 – starts at $24,000

The i30 remains a go-to small hatch. The 2023 release, which carries the $24,000 price tag before on-roads, carries a 2.0-litre engine that is on par with the Kia Cerato S but which puts out marginally more power – 120kW over the Kia’s 112kW – and for more than $3000 less (although be warned, it has a manual gearbox). Its fuel usage claims are on the high side for a small car but near spot-on: according to the RWTP, it uses just one per cent more than its 7.3L/100km claim. It does only achieve a three-star ANCAP safety rating. For another $5000 before on-roads, you can get the 2024 sedan with an automatic gearbox, 6.1L/100km claimed fuel consumption, and a five-star ANCAP rating (if built before January 2025).

Suzuki Swift Hybrid – Starts at $24,490

The Suzuki Swift hybrid uses a 1.2-litre three-cylinder with mild-hybrid assistance. Dubbed “Australia’s best value hybrid” by the brand, it is one of the few electrified options at this price point. It does, however, get a bad rap on the RWTP, using 31 per cent more fuel in real world conditions and taking its claimed range from 4.0L/100km to 5.2L. A three-star ANCAP rating also lets it down compared to rivals like the Tiggo 4 Pro and if you want an automatic gearbox that’ll be an extra $1000.

What is the most affordable hybrid car?

The cheapest hybrid on sale is the aforementioned Suzuki Swift hybrid at $24,490. Its mild-hybrid system supports the 1.2-litre engine to lower fuel consumption, though performance is modest (61kW/112Nm). For a full hybrid option, the MG3 Hybrid Excite at $26,990 offers more power (81kW/142Nm) and electric assistance. Both undercut Toyota’s Yaris Hybrid, which starts at $28,500. These prices show that hybrids are gradually becoming more accessible, though still costlier than basic petrol models.

The verdict

Australia’s cheapest new cars start with the Kia Picanto Sport, now the only vehicle below the $20k threshold. Between $20k and $30k, choice widens to include Chinese-built small SUVs and budget hatches, with hybrids edging into reach.

For buyers willing to look beyond established Japanese and Korean brands, models such as the Chery Tiggo 4 and MG3 offer sharp pricing with decent safety. Those prioritising familiarity and dealer networks will find the Hyundai i30, Kia Cerato and Mitsubishi ASX remain steady options. Lastly, beware fuel consumption claims – look beyond the official lab tests to make sure you don't get hit hard at the bowser.