Australia's Top Budget Cars

New cars in Australia are quite affordable nowadays, but it's the running costs—fuel, insurance, and registration—that require careful budgeting. Even the most economical vehicles now come equipped with features like air conditioning, Bluetooth, and electronic driver aids, which were once exclusive to large and expensive imports.

Compared to the budget cars of the last century, today's affordable models boast improved handling, performance, quality standards, and safety. However, it's wise to approach car buying with caution, starting with a clear budget and understanding what type of car suits your needs.

In this segment of the market, it's best to stick with reputable brands, particularly those from Japan or Korea. While other options might have tempting price tags, they could be harder to sell later on. Top contenders in the compact car category include the Toyota Yaris, Kia Picanto, Mazda 2, Mitsubishi Mirage, and Honda Jazz. All are available for under $30,000 for base models and feature front-wheel drive.

It's worth noting that while most of these budget cars come with manual transmissions, opting for an automatic can increase the cost.

Honda Jazz

The latest iteration of the Honda Jazz offers a starting list price ranging from $14,990 to $24,490\*, making it an attractive choice for budget-conscious buyers. This compact car comes with a comprehensive five-year warranty, providing peace of mind for new owners. Its clever interior packaging maximizes space and comfort, allowing passengers to enjoy a roomy and flexible cabin. Under the hood, the Jazz is equipped with a handy 1.5-litre engine that delivers an impressive 88kW of power and 145Nm of torque, ensuring a smooth and responsive driving experience. Of course, it also proudly features the iconic Honda badge, a symbol of reliability and quality.

Kia Picanto

The Korean-built, five-door Kia Picanto arrives with a tonne of safety and convenience gear designed to enhance both driving experience and passenger protection. Its impressive features include Bluetooth connectivity for seamless smartphone integration, Apple CarPlay for easy access to apps and media, dusk-sensing headlights that automatically adjust to fading light conditions, and automatic emergency braking to help prevent collisions. This comprehensive package of features aims to cater to modern drivers who value technology and safety. The recommended retail price for this versatile vehicle, excluding on-road costs, ranges from $14,190 to $21,690\* for the 2024 range of models, offering an attractive option for budget-conscious consumers seeking reliable transportation.

Mazda 2

The pert-looking Mazda 2 is not only stylish but also offers impressive safety and reliability features. It boasts a five-star ANCAP safety rating, ensuring top-notch protection for drivers and passengers alike. Additionally, it comes with a comprehensive five-year warranty, providing peace of mind for buyers. Among its standout features is the Smart City Brake Support system, which is designed to enhance safety in urban environments. This innovative system automatically applies the brakes if it detects potential trouble ahead and the driver is slow to react, reducing the risk of collisions. The Mazda 2 is competitively priced, with prices starting at $14,990 and going up to $28,070\*, making it an attractive option for a wide range of budgets.

Mitsubishi Mirage

Mitsubishi’s Mirage is the most affordable option among our selection, with a base list price of $13,490. However, depending on the time of year and ongoing sales promotions, you might find a driveway price ranging from $8,800 to $17,490\*. This compact vehicle, measuring 3.7 meters in length, offers exceptional value. It comes equipped with a range of modern comfort and safety features, making it a suitable choice for daily commuting. Under the hood, the Mirage boasts a 1.2-litre engine that delivers 57 kW of power and 100 Nm of torque, providing a balanced performance for urban driving. Whether you’re navigating city streets or hitting the open road, the Mirage is designed to offer both efficiency and reliability.

Toyota Yaris

Then there’s the Toyota Yaris, priced from $15,390 to $24,800 for the 1.3-litre Ascent model, equipped with a five-speed manual transmission and steel wheels. While it may not boast the luxurious features of some of its competitors, the Yaris is renowned for its dependable performance and low maintenance costs. It has a well-credentialed reputation as reliable transport, making it a popular choice for budget-conscious buyers. Additionally, Toyota offers a wide dealer network, ensuring easy access to service and support for owners across various regions.

Splitting them is no simple task. Each of the five cars is safe, relatively comfortable, and stylish, making them appealing choices. Ultimately, the decision may hinge on personal preference and the deal available at the time.

Just ensure a mechanic checks out that budget buy; Australia’s auto clubs have services to look over a prospective used car buy, and the local and trusted mechanic remains a sensible option to advise a buyer.

*All data was gathered in November 2024.