Australia: The cost of living and environmental issues increasingly dominate the public agenda, an affordable vehicle that doesn’t compromise on quality, features or fuel efficiency is a priority for many Australian motorists.
Despite the popularity of the medium-sized SUV, there is still a strong market for cost effective options that allow people to get from A to B without spending a fortune in the process.
As Australia’s New Vehicle Efficiency Standard (NVES) comes in from January 2025, car companies are rolling out fuel-saving models. This transfer brings about better VFM in terms of better technology and mileage in the budget category for buyers.
Here’s a look at the top 10 budget cars in Australia for 2025, along with what makes them exactly the kind of options you want to consider if you’re on a budget in the market for a vehicle.
Table of Contents
1. Kia Picanto Sport Manual
Drive-away price (NSW): $21,340
The Kia Picanto is still Australia’s cheapest new car for 2025. Value is in the small size and low cost city car, the heart of this little city car is the 1.2lt with 62kW of power and 122Nm of torque. Great for city-based motoring, the Picanto is small enough to be nimble around town and yet it still offers a fair amount of space.
Tech is often a bright spot, with an 8.0-inch touchscreen that includes wireless Apple CarPlay and Android Auto; depending on the trim level, there are myriad powertrain, wheel, and color choices, as well as even more tech features such as Qi wireless phone chargers and power-adjustable seats.
Nor has safety been short changed, the recent update delivering a range of substantial enhancements in this area.
One strong selling point for the Picanto is Kia’s generously long seven-year, unlimited-kilometer warranty, which offers peace of mind that’s especially important to many prospective budget car buyers.
2. MG 3 Excite
Drive-away price (NSW): $22,888 (price is a limited-time deal)
But with recent updates, the MG 3 is still one of the most appealing budget buys in Australia. It’s powered by a 1.5-litre engine and is more spacious than you’d maybe think for its price tag. Surprisingly spacious inside; suitable for daily use.
The MG 3 has some features seen in more expensive rivals, such as an 8.0-inch touchscreen infotainment system with Apple CarPlay. MG’s impressive 10-year/250,000km warranty certainly gets the foot in the door of the decision room – it is one of the longest out there in the Australian new-car market.
If you want to maximise cut price without clipping away at comfort or features, then the MG 3 is fantastic value for money.
3. Chery Tiggo 4 Pro Urban
Drive-away price (NSW): $23,990
And for people who want to join the SUV party without the often associated price premium, the Chery Tiggo 4 Pro is a fantastic proposition. With this compact sport utility you get a the zippy driving 1.5L turbo charged engine with saneish fuel consumption.
Technology has wireless Apple CarPlay and Android Auto controls for a connected driving experience that won’t strong arm your budget. The cabin has more space than many rivals, and it’s big enough for small families.
As Chinese car makers get better and better at playing the Aussie car game, the Tiggo 4 Pro is young Diane Keaton good: a high-quality, well-specified vehicle with remarkably low-cost pricing that underscores how far they’ve come.
4. Suzuki Swift Hybrid Manual
Drive-away price (NSW): $24,490
Add the Suzuki Swift Hybrid to Australia’s list of affordable hybrid cars. This current model features the Suzuki reputation for reliability while also offering 12V mild-hybrid technology which will boost overall economy without increasing costs too much.
Peppy handling and a lightweight body ensure the Swift remains as fun to drive as its predecessors and the hybrid tech keeps fuel use low around town. Its smaller size is ideal for navigating through urban centers and parking in tight spots.
With a five-star warranty, the Swift Hybrid is a clever introduction to electrified motoring without the premium buyers traditionally had to pay to plug in.
5. GWM Haval Jolion Premium
Drive-away price (NSW): $24,990 (for a limited time)
There is no denying that the GWM Haval Jolion Premium represents really strong value in the small SUV category. It’s motivated by a 1.5-litre turbocharged mill that has plenty of pop and reasonable fuel economy for its class.
It doesn’t disappoint inside either, with a clean and modern interior the sort of which you wouldn’t be surprised to find in a car many thousands of dollars more expensive. Standard tech equipment is highlighted by a big touchscreen, wireless smartphone integration and a full arsenal of driver aids.
GWM supports the Jolion with a warranty of seven years and unlimited kilometers, making this an affordable package with long-term security.
6. Hyundai Venue Manual
Drive-away price (NSW): $25,990 (not available elsewhere, for now anyway)
As Hyundai’s least expensive product, the Venue small SUV is reflective of how the brand has evolved from its “cheap and cheerful” roots to a more refined sports utility proposition. It’s powered by a 1.6-litre naturally aspirated engine which makes 90kW/151Nm, so it’s fine for general running about.
The Venue’s interior is filled with an 8.0-inch touchscreen in a sculpted dash that offers wireless Apple CarPlay and Android Auto. In cities, the Kicks’ small size makes it easy to drive, and its raised seating position gives it the commanding view of the road that car shoppers are looking for.
The entry-level SUV package is given even more value in the fact that Hyundai offer a five-year, unlimited-kilometre warranty.
7. MG ZS Excite
MG ZS Excite
Drive-away price (NSW): $26,990 (limited-time deal)
The MG ZS Excite is a spacious, feature-packed SUV that is priced to undercut many of its competitors. It comes with a 1.5-litre engine that offers a good blend of performance and fuel economy.
As a budget model, this SUV is backed by modern features such as Apple CarPlay and Android Auto in its infotainment system. The ideal spacious interior and the SUV’s cargo capacity make it an ideal car for small families.
Like any other MG models, ZS runs on a 10-year warranty, making it a very strong model to consider for one’s next car.
Chery Omoda 5 FX
Drive-away price (NSW): $27,990
The Chery Omoda 5 FX has a unique design approach that diverges subtly from the conservative car design that characterizes budget models. It is powered by a 1.5-litre turbocharged engine that provides more power than a car in its price range.
This car offers unique technology features such as wireless Apple CarP and a handsome infotainment system. The interior is detailed and has a suitable layout, and the floor is made from high-quality material. This car offers both brand value and extra comfort.
Kia Stonic S
Drive-away price (NSW): $27,990
Kia Stonic S features an out-of-place European design that is more commonly found in small SUV cars. Its 1.0-litre turbocharged engine provides power and maintains fuel efficiency.
The standard wireless Apple Carplay and Android Auto features an association that make it a comfortable entry-level car to drive. Despite its small size, the interior is spacious enough for a comfortable ride. The seven-year warranty k line-up remains the same and is an excellent budget car choice.
Mazda 2 G15 Evolve
Drive-away priced (NSW): $30,402
And our manufacturer’s honours board is completed by Mazda with its 2 G15 Evolve, delivering the company’s famous build quality and engaging drive in a value package. Driven by an upgraded 1.5-litre engine mated to a six-speed automatic transmission, it provides a more upscale and engaging drive than most competitors.
Quality on the inside is better than expected for the price point, with materials and design that seem a class above. Mazda paid a lot of attention to noise insulation and ride comfort, which means a small car that doesn’t feel its size on the road.
The Mazda 2 is the pricier end of the budget scale, but offers a solid quality advantage and comes as standard with a five-year warranty.
The Budget Car Scene 2025
Australia’s affordable car market has come a long way in recent years. Formerly common sub-$20,000 vehicles have largely disappeared as a result of inflation as well as added safety and technology requirements that have driven up the entry-level price.
However, today’s bottom of the barrel cars have divied up a lot more features, safety and efficiency than they have in the past.
The New Vehicle Efficiency Standard to be applied from January 2025 will take this a step further. The proposal would cut carbon pollution from new passenger cars by more than 60 percent by 2030 and save motorists nearly $95 billion in fuel costs by 2050.
For the budget-minded consumer, that will mean access to more fuel-efficient options at every price point.
And Chinese manufactures keep the prices competitive in the market with a great warranty program. Players such as MG, GWM, Chery have earned themselves decades-long contenders, which in turn forces the established players to offer more bang for the buck.
Picking the Best Budget Car
If you want to make a cheap car purchase in 2025, you can keep the following in mind:
Total cost of ownership: Remember there’s more to the cost of a vehicle than its purchase price, such as fuel economy, insurance and servicing.
Save on repairs: Longer warranties (such those offered by Kia, MG, GWM) offer financial protection and peace of mind.
Safety features: Basic safety tech should be available on even budget cars. All cars on our list comply with Australia’s safety standards.
Technology integration: Such extras as smartphone connectivity are now every car must-have, not a luxury.
Resale value: Some brands and models hold their value better than others, which will affect your long-term ownership costs.
It’s never been better when it comes to value for money in the budget car market in Australia in 2025. Whether it’s a city-suited hatchback or a sensible small SUV, brands are serving up appealing packages that sprinkle easy-to-swallow price tags with contemporary technology, improved fuel efficiency and up-to-the-minute safety.
Though prices have risen to put entry cars higher up the chain than even 10 or 20 years ago, budget cars now were a whole lot more car than their historical counterparts. For those on a budget, the good news is there are all-purpose or affordable new cars that don’t require a great deal of sacrifice.
A move to more fuel-efficient cars across Australia’s fleets means budget buyers can expect cheaper-running vehicles, with more choice.
These are the cars Our list is made up of the best combination of price, features and value on offer to Australian buyers in 2025.
