10 Cheapest New Cars in Australia, Ranked by Price

With new safety and emissions regulations increasing prices, the cheapest new cars in Australia are not as affordable as they once were. Still, there are deals to be found on cars less than $20,000, and the Kia Picanto Sport proves it. This small hatchback holds the crown as Australia’s cheapest car with a starting price of just $18,290 plus on-road costs, and with an 8-inch floating touchscreen offering Apple CarPlay and Android Auto it has most of the features buyers need.

However, the cheap and cheerful Kia is closely followed by two Chinese SUVs from MG and Chery that offer outstanding value for money. These are brands the you might not recognise, and they’re examples of how the new manufacturers are pushing name stays like Suzuki, Kia, Hyundai, and Mazda to drive their prices down. Compared to their Japanese and Korean rivals, the Chinese vehicles come fully loaded with larger screens, comfort features like heated seats, panoramic roofs, and 10-year warranties.

Whether they’re worth your money is the big question, but having driven them, we’ll explain it on our list of the cheapest new cars in Australia below.

Cheapest News Cars in Australia at a Glance

Highlights from our list include the following options:

• Cheapest new car overall: Kia Picanto Sport
• For an SUV: Chery Tiggo 4 Pro Urban

Now you’ve read our favourites, let’s check out the complete list.

1. Kia Picanto Sport

Price: from $18,290 plus on-road costs.

There’s a lot to love about Australia’s cheapest new car, the Kia Picanto Sport. While the more expensive GT-Line Variant is a more complete package with premium styling elements and USB-C ports in the rear, the Sport variant carries a lot of the same standard kit, including “premium” artificial leather, 4.2-inch digital cluster, and an 8-inch floating touchscreen infotainment display with wireless Apple CarPlay and Android Auto. You also get features usually reserved for larger, more expensive cars such as folding side mirrors with integrated indicators, power windows on all doors (auto up/down for the driver), 60/40-split folding rear seats, and power-folding external mirrors.

While small cars usually get a bad reputation for safety, the Picanto comes with a large portion of Kia’s Advanced Driver Assistance Systems (ADAS) as standard across both trims, including Blind Spot Collision Avoidance Assist; Rear (BCA), Rear Cross-Traffic Collision-Avoidance Assist (RCCA), Lane Follow Assist (LFA), and Lane Keeping Assist (LKA). Still, we need to mention that it’s currently unrated by ANCAP.

Under the bonnet is a 1.2-litre MPI petrol engine that produces 62kW of power and 122 Nm of torque. It’s the least powerful engine on sale, but this is a fairly lightweight car and when you put that with a five-speed manual transmission (or four-speed automatic) it can get out of it’s own way around town.

Couple this with a 7-year warranty, 7-year capped price servicing, and 7-year roadside assist, and you have a very complete package for not a whole lot of money.

• Engine: 1.2-litre 4-cylinder petrol
• Transmission: 5-speed manual or 4-speed automatic
• Fuel Economy: 5.4 litres/100km (claimed)
• ANCAP safety rating: Unrated
• Infotainment: 8-inch touchscreen, Apple CarPlay & Android Auto
• Warranty: 7 years/unlimited km

2. MG ZST Vibe

Price: from $22,888 drive-away (regularly occurring deal).

To keep it in the lead as Australia’s cheapest SUV, MG has taken $4,515 off the price of the ZST Vibe. It’s marketed as a limited-time offer, but the same deal has applied since the start of the year, and it’s available for a very lucky $22,888 drive away.

The ZS range has remained the brand’s top-selling marque. However, with the new ZS now here it makes the ZST a harder recommendation. The new ZS (from AUD$26,990 drive away) is simply better value, a much newer car, and is part of a refreshed MG line-up that is higher in quality across the board. Still, the cheaper ZST comes with plenty of kit, including a 10.1-inch multi-function colour touchscreen with Apple CarPlay and Android Auto, 6 speaker sound system, 17-inch two-tone machined alloy wheels, LED headlights and taillights, keyless entry, push-button start, and 4-star ANCAP safety rating from 2017. If all you need is a city runaround, it’s not a bad choice.

Under the bonnet is a 1.5-litre 4-cylinder petrol engine producing 84kW of power and 150Nm of torque. There’s no nice way to say it, but this engine is quite underpowered, and the CVT transmission isn’t helping the cause either.

• Engine: 1.5-litre 4-cylinder petrol engine
• Transmission: Continuously Variable Transmission (CVT) driving the front wheels.
• Fuel Economy: 6.9L/100km (claimed).
• ANCAP safety rating: 4-star (old model)
• Infotainment: 10.1-inch touchscreen with Apple CarPlay and Android Auto integration.
• Warranty: 10-year or 250,000 kilometres, whichever comes first.

3. Chery Tiggo 4 Pro Urban

Price: from $23,990 drive-away.

Just when you thought you couldn’t get a brand-new SUV for less than $30,000, Chery released the Tiggo 4 Pro Urban to the market with a hardly-believable price of $23,990 drive away. That makes it significantly cheaper than the next most expensive SUV, the Hyundai Venue ($25,990 drive away), and that’s despite it being full of kit that you wouldn’t expect to see in anything with a car priced with a two at the front.

You’ll find a large 10.25-inch driver display, a 10.25-inch touchscreen infotainment system with Apple CarPlay and Android Auto, LED headlights, a four-speaker Sony sound system, 17-inch alloy wheels, and several important safety features, including a 360-degree camera, lane departure warning, and a suite of airbags that have helped the Tiggo 4 Pro achieve a 5-star ANCAP safety rating. Can you tell that it’s jam-packed with kit? Well, there’s some substance here too, and like the Chery Tiggo 7 Pro Max that we tested towards the end of last year, the materials, while synthetic, are premium to touch.

Unlike its competitors, including the MG ZS (84kW/150Nm), the Chery Tiggo 4 Pro Urban uses a turbocharged 1.5-litre engine that produces a solid 108kW of power and 210Nm of torque. It is a little thirsty at 7.3L/100km (claimed) but it’s not the worst on the list.

• Engine: 1.5-litre Turbo 4-cylinder petrol
• Transmission: Continuously Variable Transmission (CVT)
• Fuel Economy: 7.3L/100km (claimed)
• ANCAP safety rating: 5 stars (ANCAP)
• Infotainment: 10.25-inch touchscreen, Apple CarPlay & Android Auto
• Warranty: 7 years/unlimited km

4. Suzuki Swift Hybrid

Price: from $24,490 drive-away.

On paper, the Suzuki Swift Hybrid is one of the best value-for-money cars on this list as it brings great fuel efficiency and technology together for less than $25,000 drive away. However, like the MG5, it’s let down by a 1 star ANCAP safety rating that scores it 18.88 out of 40 for Adult Occupant Protection.

It’s unfortunate that this car is considered so unsafe by ANCAP because you’re getting a good amount of standard features for your money, including a large 9-inch multimedia touchscreen with DAB radio alongside Android Auto and wireless Apple CarPlay together with keyless entry and start, LED headlights, digital speedo, and advanced safety features such as traffic sign recognition, lane departure warning, lane departure prevention, weaving alert, rear parking sensors, rearview camera security alarm, high beam assist, and stop-start technology.

By the name alone, one would imagine the Suzuki Swift Hybrid has one of the most impressive powertrains on our list with a 1.2-litre hybrid engine and 5-speed manual or automatic CVT transmission. However, it’s merely a mind-hybrid with a small 12-volt electric motor that never drives the wheels. The result is a rather efficient vehicle, but one that is slower than the outgoing non-hybrid model and produces 61kW/112Nm vs 66kW/120Nm. It also makes peak power all the way at the top of the rev range at 5700rpm.

• Engine: 1.2-litre 4-cylinder petrol with mild-hybrid system
• Transmission: Continuously Variable Transmission (CVT)
• Fuel Economy: 4.0L/100km (claimed)
• ANCAP safety rating: 1 star (ANCAP)
• Infotainment: 7-inch touchscreen, Apple CarPlay & Android Auto
• Warranty: 5-years/unlimited km

5. Suzuki Ignis GL

Price: From $24,490 drive-away.

Next to the Swift Hybrid the brand also offers a raised-up Suzuki Ignis GL. This cheap car is better suited to those with limited mobility who simply need a basic city car that’s easy to get in and out of. Interestingly, the Ignis is smaller than the new Swift Hybrid (3,700mm in length vs. 3,860mm), but the raised 180mm of ground clearance does make it feel slightly larger when you’re behind the wheel. Calling it an SUV is still a stretch.

Having been around since 2016, this is an aging vehicle and is quite honestly the car equivalent of a Nokia phone. It’ll last forever, but you’re going to sacrifice modern technology and comfort features. There’s a 7-inch touchscreen infotainment unit with Apple Carplay and Android Auto, and next to this is a leather-wrapped steering wheel but that’s about it as far as soft-touch elements go. Again, this is a very basic vehicle, but that does suit some pragmatic buyers, especially in the older demographic.

• Engine: 1.2-litre 4-cylinder petrol
• Transmission: 5-speed manual or Continuously Variable Transmission (CVT)
• Fuel Economy: 4.9L/100km (claimed)
• ANCAP safety rating: Unrated
• Infotainment: 7-inch touchscreen, Apple CarPlay & Android Auto
• Warranty: 5 years/unlimited km

6. MG5 Vibe

Price: from $24,888 drive-away (regularly occurring deal).

Like the ZST, MG has taken $2,515 off the price of the MG5 Vibe as part of a “limited-time” drive-away discount that seems to keep rolling over month after month. What you’re getting for the money is a surprisingly dynamic vehicle, that while underpowered in the cheapest Vibe specification, comes with three steering modes (urban, normal and dynamic) and plenty of standard features shared with its ZST SUV cousin.

There’s a 10-inch multi-function colour touch screen with Apple CarPlay and Android Auto, 4 speaker audio, push-button start, keyless entry, automatic LED headlights, reverse camera, and 16-inch alloy wheels. Yes, the 1.5-litre 4-cylinder petrol engine under the bonnet only produces 84kW of power and 150Nm of torque, but it’s enough for most drivers and only becomes an issue on motorways. If it’s power that you’re after, the AUD$28,990 drive-away MG5 Essence is powered by a 1.5-litre turbo-petrol engine that produces 119kW at 5600rpm and 250Nm at 3000-4000rpm.

We have to mention that the MG5 was crash-tested by ANCAP and it received 0 stars, which is one of the worst scores in recent history. Worse still, it only scored 15.09 out of 40 for Adult Occupant Protection.

• Engine: 1.5-litre 4-cylinder petrol engine
• Transmission: Continuously Variable Transmission (CVT)
• Essence: 7-speed dual-clutch automatic
• Fuel Economy: 6.4L/100km (claimed)
• ANCAP safety rating: 0 stars (ANCAP)
• Infotainment: 10.25-inch touchscreen with Apple CarPlay and Android Auto integration.
• Warranty: 10 years or 250,000 kilometres, whichever comes first.

7. Hyundai Venue

Price: From $25,990 drive-away (based on Sydney 2000 postcode).

Technically, the Hyundai Venue competes with the Suzuki Ignis GL, but it’s not a very close race. The Venue is a much better car and is equipped with a higher level of standard features, especially on the safety front where this has scored a 4-star ANCAP safety rating (34.9 out of 38 for Adult Occupant Protection) in 2019.

Still, when you compare it to new entrants such as the Chery Tiggo 4 Pro it’s less impressive. We’re talking about a car that’s been around in its current form since late 2019, but it’s nice to see that wireless Apple CarPlay and Android Auto are included on an 8.0-inch touchscreen and the driver gets a 4.2-inch digital cluster. There’s even a wireless charger for your smartphone, a USB-C port, front centre console armrest, 15-inch alloy wheels, and 6 airbags.

Despite its age, the Hyundai Venue is quite a safe vehicle as it comes standard with Hyundai SmartSense, including a Driver Attention Warning (DAW), Forward Collision-Avoidance Assist (camera type), High Beam Assist (HBA), Rear Occupant Alert, and Lane Keeping Assist – Line/Road-Edge. You also get Cruise Control, which is a nice feature to see on a cheaper, older vehicle.

• Engine: 1.6-litre 4-cylinder petrol
• Transmission: 6-speed manual or 6-speed automatic
• Fuel Economy: 7.0L/100km (manual), 7.2L/100km (automatic) (claimed)
• ANCAP safety rating: 4-star (ANCAP)
• Infotainment: 8-inch touchscreen, Apple CarPlay & Android Auto
• Warranty: 5 years/unlimited km

8. MG3 Excite

Price: from $26,285 drive-away.

Keep an eye out, because you can often find the MG MG3 Excite for less than the $26,285 drive-away price we have listed above. If you can find one closer to twenty, this becomes one of the best value-for-money cars on our list with more standard features than its main competitors in the Suzuki Swift Hybrid and Kia Picanto. It’s also safer than these two, and while it’s not as safe as the Chery Tiggo 4 Pro, it recently received a 3-star ANCAP safety rating with a score of 28.85 out of 40 for Adult Occupant Protection.

If you’ve spent any time reading our review of the MG4 electric vehicle then you would recognise the interior of the MG3. There’s a 10.25-inch Infotainment Screen, a 7-inch digital cluster for the driver, and 6 speakers with above-average sound quality. You also get plenty of nice to haves such as electric auto fold side mirrors with heating, fabric seats, and 16-inch alloy wheels.

The 1.5-litre 4-cylinder petrol engine under the bonnet produces 81kW at 6000rpm and 142Nm at 4500rpm, which is more than the Picanto’s 62kW output. However, it’s quite thirsty because of this, and you won’t see better than the claimed 6.7L/100km fuel consumption figure.

• Engine: 1.5-litre 4-cylinder petrol
• Transmission: 3-speed automatic
• Fuel Economy: 6.7L/100km (claimed)
• ANCAP safety rating: 3-star (ANCAP)
• Infotainment: 8-inch touchscreen, Apple CarPlay
• Warranty: 7 years/unlimited km

9. Mazda2 Pure

Price: from $26,797 drive-away (based on Sydney 2000 postcode).

The Mazda2 has been around in its current form since 2014, but it’s been through several facelifts to update it and bring it into the modern era. That means you’re getting things like multiple USB charging points in the front, a 7-inch infotainment touchscreen with Apple CarPlay and Android Auto, advanced keyless push-button engine start, and cruise control as standard. It’s not the most feature-packed option on the market, but it’s not the worst either.

Under the bonnet is an 82 kW @ 6,000 rpm (manual) and 144 Nm @ 4,000 rpm (manual) 1.5-litre 4-cylinder petrol engine that’s mated to a 6-speed manual or 6-speed automatic transmission. With a fuel efficiency rating of 5.0L/100km for the automatic model, it’s one of the most fuel-efficient options of any cheap car on our list.

Safety is a concern for the Mazda2 as it’s unrated by ANCAP. This is despite it having a suite of airbags (SRS) – Front (driver & passenger), side (front), and curtain (front & rear) and Lane Departure Warning (LDW) and Lane-keep Assist System (LAS).

• Engine: 1.5-litre 4-cylinder petrol, producing 82kW and 144Nm
• Transmission: 6-speed manual or 6-speed automatic
• Fuel Economy: 5.0L/100km (automatic, claimed)
• ANCAP safety rating: Unrated
• Infotainment: 7-inch touchscreen, Apple CarPlay & Android Auto
• Warranty: 5 years/unlimited km

10. Kia Stonic S

Price: from $27,740 drive-away.

Rounding out our list of the cheapest new cars in Australia is the sharply-priced Kia Stonic S that comes in at AUD$27,740 drive-away (postcode dependent). Despite its sharp entry price, it comes with a fuel-efficient 1.0-litre three-cylinder turbo-petrol engine that produces 74kW at 4500-6000rpm and 172Nm at 1500-4000rpm. It’s combined with a 7-speed DCT transmission that shifts quickly and smoothly, although it can be laggy during stop-start traffic.

Previously the Stonic held a 5-star ANCAP safety rating (2017) but that expired in December of last year and it’s currently unrated. Still, you’re getting plenty of standard safety kit, including Autonomous Emergency Braking (AEB) with Forward Collision Warning System (FCWS), Lane Keeping Assist (LKA) and Lane Following Assist (LFA), Blind-Spot Collision Avoidance Assist (BCA), and Driver and Passenger SRS Airbags, Front Side Airbags, and Curtain Airbags.

Next to the safety equipment the technology on the inside is certainly up to scratch with an 8-inch touchscreen infotainment screen with wireless Apple CarPlay and Android Auto and a 6-speaker sound system.

• Engine: 1.4-litre 4-cylinder petrol
• Transmission: 6-speed automatic
• Fuel Economy: 6.0L/100km (claimed)
• ANCAP safety rating: Unrated
• Infotainment: 8-inch touchscreen, Apple CarPlay & Android Auto
• Warranty: 7 years/unlimited km

Alternatives to These Cheap Cars

• Cheapest Toyota: Toyota Yaris Ascent Sport (from AUD$32,296 drive away)
• Cheapest dual-cab ute: LDV T60 Max Pro (from AUD$36,990 drive away for ABN holders)
• Cheapest sports car: Mazda MX-5 Roadster (from AUD$46,523 drive away)

What Should You Consider When Buying a Cheap New Car?

1. Safety

The top priority for anyone shopping for a cheap car in Australia should be safety. The good news is that ANCAP has this information readily available on their website. Still, so many cars on our list are either unrated, low-scoring, or their ratings have expired as they’re an aging model. Chery’s Tiggo 4 Pro Urban (from $23,990 drive-away) is the only car on our list that received a 5-star safety rating from ANCAP.

Using this car as an example, here’s a list of general safety features that you should be looking for when buying any new car:

• Anti-Skid Brake System (ABS)​
• Brake Assist System (BAS)​
• Electronic Stability Program (ESP)​
• Traction Control System (TCS)​
• Multi-Collision Brake (MCB)​
• Hill-Start Assist Control (HAC)​
• Electronic Brake Assist (EBA)​
• Seatbelt Reminder for all positions​
• Seatbelt Pretensioners (1st Row, 2nd Row Outboard)​
• Height Adjustable Front Seatbelts​
• Child Safety Locks (Rear Doors)​
• Top Tether Anchors (3 Positions)​
• ISOFIX (2 Positions)​
• Driver & Front Passenger Airbags (2 Total)​
• Front Side Airbags (2 Total)​
• Curtain Airbags (2 Total)​
• Front Centre Airbag (1 Total)​
• Child Presence Detection (CPD) – Door History Type​
• Rear Parking Sensors
• Reverse Camera​
• 360° Around View Monitor (Ultimate Model Only)​

Then, there’s the Advanced Driver Assistance Systems (ADAS), including:

• Forward Collision Warning (FCW)​
• Autonomous Emergency Braking (AEB)​
• Emergency Lane Keeping (ELK)​
• Lane Departure Warning (LDW)​
• Lane Departure Prevention (LDP)​
• Adaptive Cruise Control (ACC)​
• Traffic Jam Assist (TJA)​
• Integrated Cruise Assist (ICA)​
• Blind Spot Detection (BSD)​
• Lane Change Assist (LCA)​
• Rear Collision Warning (RCW)​
• Rear Cross Traffic Alert (RCTA)​
• Rear Cross Traffic Braking (RCTB)​
• Door Opening Warning (DOW)​
• Speed Limit Information Function (SLIF)​
• Speed Control Assist (SCF)​
• Driver Monitoring System (DMS)

2. Total Cost of Ownership

• Fuel economy: This is fairly self-explanatory, but when you’re shopping for the cheapest cars on the market it’s important to remember that they’re not always the most efficient. The Suzuki Swift Hybrid combines a small displacement petrol engine with hybrid technology to achieve the lowest claimed fuel consumption figure on our list with a low 4.1 L/100km fuel economy rating. However, the cheaper MG5 Vibe has an inefficient 1.5-litre 4-cylinder engine that’s underpowered but consumes around 7.5 L/100 km. With the price of fuel being higher than ever, it’s an important cost of ownership consideration.
• Insurance premiums: Generally speaking, the smaller the car, the cheaper it is to insure, so keep this in mind when shopping for a new car. Of course, there are so many variables at play here that it’s hard to specify how cheap it is to insure a car like a Suzuki Swift Hybrid.
• Servicing and parts availability: Every car on our list has a service interval of 10,000-15,000km. However, service costs can come into play with some makes and models. Costs increase as the car ages and the biggest culprit here is the Kia Stonic S which has an average service cost of $481 per service over 84 months/70,000km.

3. Warranty

Warranties for cheap cars are often one of the biggest selling points for buyers, and manufacturers are fighting for the longest with MG and Mitsubishi both offering 10-year warranties of varying KMs.

Here’s a list of the longest warranties from car brands in Australia:

• Nissan: 10-year/300,000 km warranty ​
• MG: 10-year/250,000 km warranty (private buyers)
• Mitsubishi: 10-year/200,000 km warranty
• Kia: 7-year/unlimited-kilometre warranty
• GWM/Haval: 7-year/unlimited-kilometre warranty
• Skoda: 7-year/unlimited-kilometre warranty ​
• SsangYong: 7-year/unlimited-kilometre warranty
• LDV: Up to 7-year/200,000 km warranty
• BYD: 6-year/150,000 km warranty
• Isuzu Ute: 6-year/150,000 km warranty