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Australia’s five cheapest new cars

By Chris Thompson, 01 Oct 2020 Car Advice

Kia Picanto

Here are five solid new car options when budget is the main priority

If you need a car soon, and you aren’t particularly concerned about its features or style status, you might be wondering what the cheapest new cars in Australia are.

We’ve gathered a list of five decent, honest new cars that won’t break the bank or break your heart by being commuting nightmares while you’re trying to avoid public transport.

Alternatively, if you're set on spending a bit more but are still keen on a good deal, our new car discount guide might suit you.

Kia Picanto - $14,690

As of October 2020, the Kia Picanto is the cheapest new car for sale in Australia, with its $14,690 entry-level Picanto S Manual variant. The Picanto is a comfortable, compact, and efficient car that’s even got a full five-star rating from ANCAP.

2017 Kia Picanto S

The Picanto also has a clever smartphone mirroring setup with Android Auto or Apple CarPlay, allowing plenty of functionality from the infotainment system.

If you’re concerned you’re not going to enjoy driving a manual day-to-day, the cheapest auto version is only $16,290 for the Picanto S Auto.

MORE Safest affordable cars for first time drivers

Running costs should also be of little concern, as the Picanto’s base models claim a 5.0L/100km fuel consumption rate, and Kia offers a seven-year warranty with unlimited kilometres.

The entire Picanto range, even the sporty Picanto GT, sits below the $19,000 mark.

Mitsubishi Mirage - $14,990

Coming in at a close second-place for Australia’s most affordable cars, the base Mitsubishi Mirage ES Manual costs just $14,990.

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Like the Picanto, it has a small engine and doesn’t use much fuel (Mistubishi claims 4.7L/100km), though its engine can be noisy and its warranty isn’t quite as generous. The Mitsubishi Mirage comes with a 5-year/100,000km warranty.

Read more about the Mirage

Safety should still be of no concern, the Mirage has five stars from ANCAP. Additionally, you can spend a little extra for the $16,490 Mirage ES with a CVT gearbox, as an alternative to owning a manual.

MG3 - $15,990

Next up is the relatively new-to-Australia MG3 (or MG 3), with a base price of $15,990 for the MG3 Core.

The MG 3 only comes with an automatic gearbox, and it comes with a slightly larger engine. This also contributes to a higher fuel consumption rate of 6.7L/100km.

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The MG 3 is, by all reports, a decent car to drive (a certain global situation has made it harder for us to get behind the wheel just yet), though one aspect of the car that may be of concern to buyers is its three-star ANCAP rating from 2014.

MORE MG's plan to coax people out of public transport

ANCAP (and Euro NCAP) lists no updated rating for the MG 3 since, though the car is still in the same generation albeit some updates since 2014.

The MG 3 doesn’t have AEB or lane-keep assist, though does have the required basics such as ABS and six airbags.

Honda City - $16,490

At $16,490 for the base Honda City VTi manual, the City is actually cheaper than its Jazz hatchback sibling. This is good news if you’re bargain hunting and would like a sedan over a hatch, but the catch is you’ll need to spend another $2000 for the Honda City VTi fitted with a CVT transmission.

Its 1.5-litre engine is relatively efficient, with a 5.9L/100km consumption claim, plus Honda offers a five-year, unlimited-kilometre warranty.

MORE Sweeping changes to the Honda dealership model

ANCAP awarded the Honda City five stars for safety in a 2014, though since then its criteria have changed, and the Honda City misses out on active safety features such as AEB.

Suzuki Baleno - $16,990

The Suzuki Baleno GL is the $16,990 entry-level model for Suzuki, though even the brand’s Swift and Ignis have entry variants below the $20,000 mark.

The cheapest automatic variant is $17,990, though it has a higher fuel consumption claim than the manual. It’s 5.1L/100km for the manual, or 5.4L/100km for the auto Baleno.

Suzuki Baleno GL

The Baleno is covered by Suzuki’s 5-year and unlimited-kilometre warranty, with a service interval of 15,000km or one year.

MORE Boot sizes of Australia's favourite hatchbacks

Unfortunately, the Suzuki Baleno scored just three stars from ANCAP in a 2014 test and doesn’t have active safety features like AEB.

NOW CHECK OUT The cheapest small SUVs you can buy