Best new car options under $20,000, $25,000 & $30,000 in Australia

There are plenty of reasons for buying brand-new cars.

Fiscal acumen is not always one of them, as a second-hand car which has already done the bulk of its depreciating will often be a wiser financial option, but many people aspire to a new car anyway. That’s because there’s that peace of mind that comes with a car that has a factory warranty for several years, not to mention that a second-hand car can often represent taking on somebody else’s problems. But there’s also a lot to be said for knowing that you’re the first owner of a car, not to mention that you’ll be buying the latest convenience and safety tech.

The catch has always been, of course, that a brand new car represents a bigger spend.

The reality, however, is that new cars – when adjusted for inflation and wages growth over time and the sheer amount of kit you get – have never been cheaper. Or better. And, when you look around at what’s available with relatively small price-tags, you realise that there are plenty of budget choices that still carry that warranty and the new-car smell.

So what’s around out there? What can a budget of $20,000, $25,000 and $30,000 get you into? Of course, it’s not quite that simple and you still need to factor in other costs such as dealer-delivery fees (a fee that sometimes seems hard to justify) on-road costs and your insurance and registration charges. That’s why it’s important to look closely at any for sale advert, as the magic letters `Plus ORC’ means the advertised price is just the start of your spend. What you really want to see is the notation of `Drive-Away’, which means all those costs have been included in the price you see on the ad. Dealers are permitted to advertise cars both ways. And they do.

Meantime, let’s dive in.
 

New cars under $20,000

1. Kia Picanto – From $18,290 (plus on-road costs)

Cheap new cars are not as cheap as they once were, even if they’re better value now. Which means the best new car with a sub-$20K sticker is also the smallest, the largest and the best value. And that’s because there’s only one these days. Take a bow, Kia Picanto; you’re the only car available new in Australia with a price-tag that starts with a number less than 20. The catch is that you won’t be driving anywhere with change from $20,000, as that’s a recommended retail – or list – price, and doesn’t include on-road costs. Bank on closer to $21,000 by the time it’s registered and the dealer has taken their slice. The good news, however, is that even the automatic version scrapes in under $20,000 before those on-road costs. Any colour other than white also adds $550.

All, this is in stark contrast to just a few years ago when there was plenty of sub-20K choice from various car-makers. Post-Covid, however? Not so much. The better news is that the Picanto is a worthy little car with great steering and funky looks.

 

New cars under $25,000

Here’s where the market gets interesting. Not only do you have more choice, you can also move beyond the default small hatchback and into the realm of small SUVs and even a hybrid model.

So the pick of the sub-25K bunch starts with…

3. Suzuki Swift – From $24,490 (drive-away)

A hybrid hatchback for under 25 grand? That’s how it pans out with the new Swift. A big tech upgrade (including the driveline) has pushed the car into new price territory, but it’s still a decent proposition. To be fair, the hybrid system is a mild one, with a small amount of electrical assistance from a small motor and battery for the three-cylinder petrol engine.

2. Suzuki Ignis – From $24,490 (drive-away)

Yes, another Suzuki, but it’s worth remembering that budget small cars with a bit of sparkle is where Suzuki got its original foothold in the Aussie market. And the point with the Ignis is that it’s actually an SUV. Well, more or less, because it also passes for a small five-door hatch, too, and even though it has the SUV’s elbows-out appearance, it’s never going to see a bush track. A CVT transmission and basic three-cylinder non-turbo engine don’t exactly shine, but they does the job. It's in runout, though, so get in quick.

1. Mazda 2 – From $22,870 (plus on-road costs)

Mazda’s 2 ruled the roost of cheap small cars for years on end. But that was back when it was closer to $15,000 than $25,000. But even at its new price, it’s a great car with decent packaging, a cool look, and is fun to drive. The 1.5 litre engine is a good one and for those who want an automatic, the Mazda features a conventional auto rather than a CVT. Is that better? Yes, in our opinion. The 2 has outlived many of its hatchback competitors which have succumbed to the cult of the SUV.

 

New cars under $30,000

Take it as read that 30K is the new 20K when it comes to new cars. This price-point is where the real fun stuff starts to happen and your choices are magnified with options including family SUVs and some more serious makes and models.

3. MG ZST – From $28,408 (drive-away)

A new compact (as opposed to city) SUV under $30,000? Yep. Regardless of what you think of the Chinese-car invasion, the MG ZST offers an incredible amount of car for the money. While the Chery Omoda 5 and the Haval Jolion occupy similar price-points, the MG has kind of emerged as the one to buy. That’s down to the price (of course) and an industry-leading 10-year/250,000km warranty. Performance from the 1.5-litre petrol engine and CVT transmission is adequate, but the interior space will be a big selling point for families on a budget. Be quick as it's in runout.

2. Hyundai i30 Sedan – From $29,000 (plus-on-road costs)

Here’s a car that helps prove that we’ve been hasty ditching conventional hatchbacks and sedans for SUVs. With a two-litre powerplant for good thrust and a CVT transmission for efficiency, the i30 in sedan form is a sharp-dresser par excellence. Okay, so there’s only one variant that comes in sub-30K, but with Hyundai’s good warranty, great reputation and the sedan’s svelte looks, this is a statement car on a tight budget.

1. Toyota Corolla Ascent Sport – From $29,610 (plus on-road costs)

Okay, so you knew there was going to be a Toyota in here somewhere, right? It’s kind of the default answer when anybody asks the question: which car should I buy. The bad news is that our 30K budget won’t get you into the popular hybrid version of the Corolla, so it’ll be the CVT transmission and two-litre petrol engine. Which is fine, except for the fact that it's in runout. The good news is that there’s both a hatchback and a sedan variant of the Corolla within a few hundred dollars of each other, and they both come in under 30-grand. And if you ever want to trade up, then a Corolla has the retained value to make that a lot less painful.

What else?

Meantime, don’t forget about demonstrator models and cars that are being discounted beyond their normal price-tags. Sometimes a car with last year’s build date will represent a good bargain as dealers slash the price to clear older stock. That’s because the trade already considers it last year’s model and will adjust any trade-in price for it accordingly. But if you plan to keep it for many years, then that trade-in variation will disappear by the time you’re ready to trade up.

Right now, for instance, many dealers are selling 2024-plated MG3s with a drive-away price of less than $20,000. That’s good value, provided you don’t care about the car already being a year old (as far as the industry is concerned). Google MG deals near me, for proof, but be sure to check that build date.

The next question is what about utes? Are there any new utes under $30,000 in Australia? The answer is no, but not by as much as you might think. Of course, you have to forget about dual-cabs and four-wheel-drive, but if a bare-bones work ute is what you want, there are choices out there from Isuzu, Toyota, and Mitsubishi that all list for under $35,000.