The Cheapest New Cars in Australia (Updated for 2023)

Looking for a new car that offers affordable, reliable transportation without breaking the bank? Look no further than the many affordable new cars available in Australia. With a wide range of makes and models to choose from, you're sure to find the perfect car for your needs at a price that fits your budget. 

Whether you're browsing city cars for a stylish hatchback or even a small SUV, there's sure to be an affordable new car that suits your individual taste and budget. So, without further ado, here are our picks of the cheapest cars in Australia.

Here are the Cheapest New Cars on the Market in Australia in 2023

MG 3 (from $19,490)


  • Affordable Option: With its asking price of $19,490 drive-away, the MG 3 holds the title of the cheapest automatic car available in Australia for 2023, offering significant value.
  • Well-Equipped for the Price: The MG3 Core variant boasts a variety of features including 15-inch alloys, LED daytime running lamps, an 8.0-inch infotainment system with Apple CarPlay, and a leather-wrapped steering wheel.
  • Practical Dimensions: Benefitting from a spacious boot with a 307L capacity (expandable to 1081L with rear seats folded), the MG 3 ensures ample space for cargo, making it a practical choice for many.


  • Limited Active Safety: The MG 3 notably misses out on active safety features like Autonomous Emergency Braking (AEB).

The MG 3 has rapidly established a strong foothold in the Australian market, thanks to its enticing blend of affordability and features. Since its Australian debut in 2016, it has undergone significant improvements, including a 2018 facelift that introduced a touchscreen infotainment system and reshaped its aesthetics. 

Under the hood lies a 1.5-litre petrol engine paired with a four-speed automatic transmission, claiming a fuel consumption of 6.7L/100km. Its spacious boot and comprehensive equipment list, which includes modern amenities like Apple CarPlay, make it a tempting proposition. 

However, potential buyers should be aware of its omission of some active safety features. Overall, the MG 3 offers remarkable value for those seeking a well-equipped car on a budget.

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    MG ZS (from $23,990)


    • Generous Equipment: The MG ZS offers an impressive equipment list even in its base Excite variant, boasting features like a 8.0-inch touchscreen infotainment system with Apple CarPlay, 17-inch alloys, and leatherette upholstery.
    • Efficient Fuel Consumption: Powered by a 1.5-litre four-cylinder engine, the ZS provides a commendable fuel economy at 7.1L/100km, making it ideal for those conscious of fuel costs.
    • Affordability: With a drive-away price of $23,990, the MG ZS stands out as one of the cheapest new cars in the compact SUV segment in Australia, making it an appealing option for budget-conscious buyers.


    • Limited Active Safety: The MG ZS lacks crucial active safety technology like autonomous emergency braking in its base variant. Although more advanced safety features are available in the pricier ZST variant.

    The MG ZS has quickly become a standout in Australia's compact SUV market, blending affordability and a rich equipment list. Its efficient 1.5-litre engine paired with an automatic transmission makes for a smooth driving experience, and features like LED daytime running lights and cruise control come as standard, enhancing its value proposition. 

    While the base ZS is one of the cheapest new cars, especially with its Android Auto-ready infotainment system and rear parking sensors, it does come with a trade-off in terms of active safety features. Nonetheless, for those seeking a mix of features, efficiency, and affordability, the MG ZS ticks many boxes, especially in the realm of cheap cars with quality features.

    Mazda 2 (from $21,390)


    • Comprehensive Safety Package: The Mazda2 impresses with a wealth of standard safety features such as blind-spot monitoring, lane-keep assist, rear-cross traffic alert, and both forward and rear AEB – highlighting Mazda's commitment to driver safety.
    • Versatile Offerings: Uniquely available in both hatchback and sedan body styles at the same price, the Mazda2 gives buyers a choice to pick the variant that suits their needs best.
    • Tech-Loaded: With a 7.0-inch infotainment system supporting both Apple CarPlay & Android Auto, the Mazda2 ensures that users stay connected on the go.


    • Limited Boot Space in Hatch: While the sedan variant offers a generous 440L boot capacity, the hatchback falls short with just 250L.

    As one of the cheapest new cars in Mazda’s Australian lineup, the Mazda2 hatch stands as a testament to the brand's ability to blend style, comfort, and practicality effortlessly. Powered by a reliable 1.5-litre engine, buyers have the choice of a six-speed manual or an automatic transmission to suit their driving preference. 

    With LED daytime running lights, cruise control, and a plethora of standard safety features, this small car punches well above its weight. Additionally, with Android Auto and Apple CarPlay integration, it ensures that modern tech needs aren't compromised. 

    While the hatchback's boot space might be on the smaller side, opting for the sedan variant solves this minor hiccup. Overall, the Mazda2 provides an attractive package for those in the market for a cheap car without skimping on essential features.

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    Hyundai Venue (from $21,900)


    • Value Proposition: Being Hyundai’s most affordable vehicle in 2023, the Venue compact SUV offers a wealth of features at a compelling price point, making it an excellent choice for those on a budget.
    • Modern Connectivity: With wireless smartphone charging and an 8.0-inch infotainment system that supports wireless Apple CarPlay & Android Auto, the Venue is right in step with the latest tech trends.
    • Comprehensive Safety: From camera-based AEB to lane-keep assist and driver attention warning, every Venue ensures that the driver has an array of safety measures to rely upon.


    • Limited Boot Space: With just 355L of boot space when the rear seats are up, some users might find it slightly restrictive for larger hauls.

    Hyundai's Venue compact SUV shines as a perfect example of modern features meeting affordability. As one of the cheapest new cars in Australia for 2023, it manages to surprise with its suite of features, notably its wireless tech integrations like Apple CarPlay & Android Auto. 

    It's powered by a reliable 1.6-litre engine paired with either a manual or automatic transmission, ensuring drivers have flexibility in their driving experience. Safety hasn't been compromised either, with the Venue boasting features like lane-keep assist, AEB, and more. 

    While the boot space might be a tad limited for those who prioritise cargo, it's a trade-off for its compact size and manoeuvrability. All in all, for those after a modern, cheap car with essential features, the Hyundai Venue remains a standout option.

    Kia Stonic (from $22,290)


    • Affordability Meets Quality: With the Stonic S manual being Kia's most affordable compact SUV, the feature list is impressively comprehensive. It offers a quality package that seems to defy its price tag.
    • Infotainment and Connectivity: A definite plus is the inclusion of an 8.0-inch infotainment system with wireless Apple CarPlay & Android Auto, ensuring compatibility and ease for most smartphone users.
    • Safety is Paramount: Kia doesn't skimp on safety, even for its cheapest Stonic variant. AEB with pedestrian and cyclist detection, lane centring, driver attention monitoring, and other features highlight the brand's commitment to road safety.


    • Limited Engine Power: The 1.4-litre four-cylinder engine, while fuel-efficient, offers a rather modest 74kW of power and 133 Nm of torque. This might feel a bit restrained for those seeking more punch on the road.

    The 2023 Kia Stonic is a compact SUV that delivers an enticing package of features at a price point that's hard to overlook. Being one of the cheapest new cars in Australia for 2023, it boasts a range of modern tech integrations, particularly in the infotainment sector. 

    The wireless Apple CarPlay & Android Auto capabilities make for a seamless connectivity experience. Safety-wise, Kia has ensured that the Stonic is up to par, offering a suite of active and passive safety features that are often found in more expensive models. 

    While its engine might leave a bit to be desired in terms of raw power, its efficiency and overall package make the Stonic a compelling choice for budget-conscious buyers seeking a modern, safe, and tech-rich compact SUV.

    Suzuki Swift (from $22,490)


    • Time-Tested Legacy: With its Australian lineage tracing back to the mid-1980s, the Suzuki Swift has proven its mettle and garnered a loyal following over the decades.
    • Fuel Efficiency: A standout feature of the 2023 Suzuki Swift is its commendable fuel efficiency, clocking in at 4.6L/100km for the manual variant on a combined cycle.
    • Modern Tech: The 7.0-inch touchscreen infotainment system complemented by Android Auto and Apple CarPlay ensures that Swift drivers and passengers remain connected and entertained.


    • Somewhat Modest Boot Space: While the Swift offers a decent boot space of 242L, it's on the smaller side compared to some competitors in its class. However, it's worth noting the space can expand to 556L with the rear seats folded.

    The 2023 Suzuki Swift GL manual continues the brand's tradition of delivering reliable, efficient, and tech-equipped vehicles at a competitive price point, making it one of the cheapest new cars on sale in Australia for 2023. 

    With a legacy spanning several decades in Australia, it's evident that the Swift has evolved to meet the ever-changing needs of its audience. Its impressive fuel efficiency, paired with the 1.2-litre engine, offers buyers an economical driving experience. Additionally, the integration of modern infotainment systems ensures a seamless connectivity experience for both driver and passengers.

    The boot space might seem a tad restricted for those who prioritise storage, but it's expandable nature offers flexibility when needed. In summary, the Suzuki Swift stands as a compelling option for those in search of a dependable, efficient, and well-equipped hatchback.

    Fiat 500 (from $23,100)


    • Iconic Heritage: Like its peer, the Swift, the Fiat 500 too boasts an illustrious lineage in Australia. Its iconic design and stature in the world of compact cars have made it a favourite among many.
    • Fuel-Efficient Engine: With consumption figures standing at 4.8L/100km on a combined cycle, the Fiat 500 offers commendable fuel efficiency.
    • Packed with Features: For its price bracket, the Fiat 500 Lounge comes impressively equipped. Features like the 7.0-inch touchscreen infotainment system, 3.5-inch TFT digital instrument cluster, and wired Apple CarPlay and Android Auto enhance the driving experience and make for an enjoyable ride.
    • Safety Equipped: Seven airbags, rear parking sensors, hill hold assist, and a tyre pressure monitoring system ensure a comprehensive safety package for the occupants.


    • Compact Boot Space: One of the major compromises with compact vehicles like the Fiat 500 is often the boot space. With just 185 litres of storage, it may not cater to those needing more cargo room.

    The 2023 Fiat 500 Lounge, with its iconic design and rich Australian history, offers an appealing blend of style, fuel efficiency, and a notable list of standard features. Its compact dimensions make it perfect for urban environments, while the comprehensive safety equipment gives peace of mind to its passengers. 

    The 1.2-litre engine, combined with the 'Dualogic' semi-automatic transmission, provides a seamless drive, though some might miss the manual variants. The boot space is on the smaller end, which might be a drawback for those seeking more storage.

    However, for those who appreciate a compact car rich in features and history, the Fiat 500 Lounge remains an attractive choice in 2023's lineup of affordable cars in Australia.

    Looking for more affordable cars? 

    You’re in luck, every year we add the best cheapest car to this list, and our winning cars from last year are below…good news is, they’re likely even cheaper now! 

    Mitsubishi Mirage (2022 Winner)

    The Mitsubishi Mirage is the perfect car for those who are looking for an economical and practical solution for their transportation needs. The Mirage comes with a variety of features that make it an excellent choice for those who are looking for a reliable and affordable car. 

    Priced at $14,990, the Mitsubishi Mirage ES manual comes with a three-cylinder 1.2L engine that is capable of getting up to 4.7L/100km in combined fuel economy. It also has a five-speed manual transmission that helps to keep the car's running costs low. The Mitsubishi Mirage also comes with a five-star safety rating, reversing camera, forward collision mitigation, and active stability control. 

    Additionally, the Mirage comes with a five-year/100,000 km warranty, which gives you peace of mind in knowing that your new car is covered in the event of any unforeseen problems.

    Kia Rio S (2022 Winner)

    The affordable and stylish Kia Rio S is one of the most popular new cars in Australia. With a sporty design, impressive fuel economy, and a good range of standard features, the Kia Rio S is a great choice if you're looking for an affordable new car with plenty of style. 

    Priced at $21,490, the Kia Rios S hatchback offers a combined fuel economy rating of 5.6L/100km. It's powered by a 1.4L engine and comes with a five-star ANCAP safety rating. The interior is comfortable and roomy even for tall drivers, and the hatchback style has plenty of cargo space for groceries or luggage. The Rio comes fitted with all of the amenities that you would expect, such as Apple CarPlay/Android Auto, six-speed manual transmission, a rear-view camera, and a multi-function colour control screen. 

    As if that weren't enough, Kia's outstanding seven-year warranty guarantees that this car will be running like new for years to come. With its incredible value and amazing features, the Kia Rio S is sure to be a hit with car buyers of all types.

    Suzuki Ignis GL (2022 Winner)

    Another excellent choice for those who are looking for a stylish, affordable new car is the Suzuki Ignis GL manual. Priced at just $23,490, this ultra-compact SUV offers some pretty impressive fuel economy stats - just 4.7L/100km on the combined cycle. 

    The Ignis GL comes with a 1.2L engine, allowing you to zip around the city or take longer trips with ease. Additional features such as air conditioning, Apple CarPlay and Android Auto, a rear-view camera, cruise control, and keyless entry make this car a great choice for those who like to stay connected and enjoy a little extra convenience on the road. And with its five-year unlimited kilometre warranty, you can rest assured that this affordable new car will provide years of reliable transportation at an unbeatable price.

    Kia Picanto (2022 Winner)

    The Picanto S is an excellent car for those looking for a versatile and affordable option. The 1.25-litre engine is powerful and efficient, making it a great choice for city or suburban driving. The five-speed manual transmission is smooth and easy to use, while the optional four-speed auto transmission is a great choice for those who want a bit more convenience. 

    The Picanto has plenty of features to keep you safe and comfortable on the road, including Bluetooth connectivity, USB input, auto on/off headlights, and a four-speaker sound system. With its spacious interior and large boot capacity, the Picanto is a great choice for families or anyone who needs a little extra space. 

    Whether you're looking for an affordable and reliable car for your daily commute or a versatile vehicle for weekends away, the Picanto S is sure to meet your needs. With prices starting from just $15,990 this vehicle offers great bang for your buck.

    Volkswagen Polo (2022 Winner)

    The 2022 Volkswagen Polo 70 Trendline is a subcompact car that is both stylish and efficient. Powered by a 1.0-litre turbocharged three-cylinder engine that produces 70kW and 175Nm of torque, the Polo averages 4.8L/100km on the combined cycle. With a sleek and modern exterior, the 2022 Polo features 15-inch steel wheels. 

    In terms of safety and handling, the Polo features rear parking sensors and auto, not adaptive cruise control. The interior is equally impressive, with its leather-wrapped steering wheel, power windows wand and an 8-inch touchscreen infotainment display. ThePolo's sound system is also top-notch, with six speakers and wired Apple CarPlay and Android Auto. 

    Priced at $19,290 before on-road costs, the 2022 Volkswagen Polo 70 Trendline is a great choice for those looking for an affordable, yet well-equipped car.

    Final thoughts

    As you can see, there is no need to spend a fortune on a new car when there are so many excellent and affordable cars available on the Australian market

    Whether you're looking for comfort, style, versatility or all of the above, these five cars are sure to meet your needs. So why wait? Start shopping for a new car today, and find the perfect one to suit your needs and budget. But if you haven't set your budget yet, using a car finance calculator is a great way to see what you can afford. And to make your new car purchase even more affordable, it's important to find the right car loan option for your needs.

    At Driva, we specialise in helping Australians navigate their car financing options and find the best deals. Our digital platform makes it easy for you to compare quotes from different lenders and find the one that works best for you. 

    We've made it easy for you to get the best possible quotes from our lender panel. Just follow a few steps online and provide us with your basic information - you'll have the best rates for your next car loan in seconds! So what are you waiting for? 

    Find the right car loan today and start driving away in your new dream car.

    Frequently asked questions

    Which car brand is the cheapest in Australia?

    There is no definitive answer to this question, as the cost of cars varies depending on a number of factors. Some affordable car brands include Kia, Volkswagen, and Hyundai. However, the best way to find the cheapest new car in Australia is to shop around and compare quotes from a variety of dealerships and online platforms. We recommend CarSales, Cars24 and Autotrader. 

    Will new cars get cheaper in 2024?

    It is likely that the cost of new cars will continue to decrease in 2023/24 and beyond. This is due to a number of factors, including advances in technology and increasing competition among car manufacturers. Ultimately, it will all come down to supply and demand - as more people choose to buy new cars, prices will begin to drop. So if you're looking to buy a new car in the near future, it is a good idea to do your research and start comparing quotes now.

    What is the best but cheapest car?

    We're giving this to the Volkswagen Polo. This subcompact car is affordable, stylish and well-equipped with modern features like touchscreen infotainment and Apple CarPlay. Plus, in the performance stakes, the Polo offers a powerful 1.0-litre turbocharged engine that delivers 70kW and 175 Nm of torque. So if you're looking for a cheap, reliable and fuel-efficient option, the Volkswagen Polo is definitely worth considering.

    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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