Looking For A New Car Under $20,000?

When it comes to buying a new car, not everyone wants to spend a fortune. Luckily, the Australian market is replete with excellent options for buyers on a budget. This article will look at some of the best cheap cars you can get under $20,000 here in Australia. And when we say "cheap cars" we don't mean that they're subpar in any way. 

These affordable compact vehicles manage to pack a lot of features and safety equipment into a tiny package. And with prices much lower than you might expect, these small cars are an excellent choice for anyone looking to buy their first car, upgrade from an old clunker, or get a great deal. Here's our list starting with Australia's cheapest car:

Mitsubishi Mirage

Powered by a 3-cylinder, 1.2L engine, the Mitsubishi Mirage is an ideal choice for anyone looking for their first car. Achieving a very fuel-efficient 4.7L/100km, this 5-door micro hatch will certainly help you save on those rising fuel prices! Its other features include Android Auto/Apple CAR Play, keyless entry, auto stability control, and a 5-star ANCAP safety rating. 

With prices starting from only $14,990, the Mitsubishi Mirage is a great option for anyone on a budget looking for a small,  affordable car that is big on fuel economy.

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    Kia Picanto

    If you're searching the affordable hatch market for a new car with heaps of the latest safety tech, not to mention style and comfort too, the Kia Picanto more than fits the bill. Ideal for city driving, this 5-door hatch is powered by a 1.2L 4-cylinder engine that offers great fuel economy at just 5.5L/100km. Other features include Android Auto and Apple Car Play, a rearview camera, autonomous emergency braking, and intelligent cruise control.

    With prices starting from just $15,990, the Kia Picanto is a fantastic option for anyone looking to save money on their next car purchase.

    MG 3

    The MG 3 is a real steal of a car for anyone looking for a fun and affordable way to get around town. Powered by a 1.5L 4-cylinder that produces a respectable 82kW, this 5-door micro hatch offers great fuel economy at 6.7L/100km. In terms of style, the MG 3 features a leather-wrapped steering wheel, LED headlights, an 8" touchscreen infotainment system, and tartan fabric trim. 

    Safety features include reversing camera, rear parking sensors, and emergency brake assist. With a sticker price of just $17,490 and an unlimited kilometre warranty, the MG 3 is one of the best cheap cars for those searching for a reliable and stylish car on a budget.

    Kia Rio

    The Kia Rio might be one of Australia's cheapest cars, but that doesn't mean it isn't packed with features. This 5-door hatch is powered by a 1.4L 4-cylinder engine that only uses 5.6L/100km of fuel. In terms of style, the Rio comes with alloy sports pedals, foglights, and body-coloured bumpers. Other features include Android Auto/Apple Car Play, lane keeping assist, forward collision warning, as well as solar control driver and passenger windows. 

    Priced at $19,690 the Kia Rio is one of the most advanced affordable hatches on the market.

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    Suzuki Ignis

    Tapping a step away from affordable hatches but still very much in the affordable consumer vehicles segment is the Suzuki Ignis. This micro SUV is powered by a 1.2L 4-cylinder engine that offers a truly impressive 4.7L/100km fuel economy. 

    Touted as "one of the best new cars under 20000" it still manages to offer features such as a leather steering wheel as well as a multimedia system featuring a 9" touchscreen and voice recognition. Boasting a 9-star ANCAP safety rating, the Ignis also features a reversing camera and brake assist. And only priced at $19,490 the Ignis represents incredible value for money.

    Volkswagen Polo

    Combining a modern, sleek exterior with 15-inch steel wheels and an advanced 1.0-litre turbocharged three-cylinder engine that generates 70kW of power and 175Nm of torque, the 2022 Polo can achieve up to 4.8L/100km on its combined cycle - making it one of the most efficient cars around! In terms of safety and style, the Polo also features an 8" touchscreen infotainment system with Apple CarPlay and Android Auto, side impact protection, as well as body-coloured mirrors, bumpers, and door handles. Priced at only $19,290, the VW Polo is a great option for anyone looking to save money without sacrificing style, safety, or comfort.

    Final thoughts

    In 2022, the affordable hatchback segment engaged in fierce competition between major manufacturers. This means that there are plenty of options out there for car buyers wanting style, safety and performance, without breaking the bank.

    We like to think that all of these affordable vehicles offer great style, comfort, and performance, just without the hefty price tag. And while yes, some of the more advanced safety features you would expect from a higher priced car, like rear cross-traffic alerts or pedestrian detection, are not available on these vehicles, they still offer a lot of bang for your buck. So if you're searching the market for an affordable new car, be sure to check out one of the models listed above. With so many great options available, you're bound to find your perfect match.

    With nothing left to do now apart from getting your finances in order and hitting the showroom, we hope you found this article helpful. If you haven't already used a car finance calculator to get a good idea of how much you can borrow, then now's the time to do so.

    If you're looking to find a car loan that is uniquely tailored to your specific needs, then Driva can help streamline the process of finding and applying for car finance to be simpler and faster.

    With Driva you get full visibility when choosing your perfect car loan, so you can get the car you want with the car loan that best suits your needs.

    Frequently asked questions

    What are the best-used cars under $20,000?

    There is no one "best" used car under $20,000, as the ideal car for you will depend on your personal preferences, needs, and budget. However, some good options to consider include the Toyota Corolla, the Mazda 3, and the Honda Civic. These cars are considered amongst the best-used cars under $20,000 because they are reliable, well-built, and affordable. 

    However, by doing some smart shopping you might find even more affordable options, such as older models of these cars or reliable pre-owned vehicles from other popular brands.

    What is the cheapest new car in Australia?

    The cheapest new car in Australia is the Mitsubishi Mirage. Priced at just $14,990, the Mirage represents great value for money, it is extremely fuel efficient and also offers a number of top safety features.

    Declan Flaherty

    As the Digital Marketing Manager at Driva you can find Declan during the day transfixed by a flurry of spreadsheets, mar-tech, Slack emojis and graphs all pointing in the right direction and keeping up to date with the latest car finance trends.

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