Australia’s cheapest cars: 6 new cars under $25,000

The Australian new car scene has gone upmarket in recent years, with there now being a distinct lack of inexpensive, high-quality vehicles.

Seven years' ago we had eight vehicles on sale under $15,000 – now there are only a handful available for $10k more.

Here’s a quick look at what you can buy brand-new for less than $25,000 drive-away.

MG 3

Price: $18,990

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The biggest player in the small car segment, the MG3 has sold over 3,000 units just this year.

The MG3 has no ANCAP safety rating from 2018 onwards, but an all-new model is expected this year. It will also get a heap of new tech, meaning a roughly $5k price rise in incoming. However, the current MG is still on-sale for the under $20 mark.

The current runout MG3 is powered by a 1.5-litre four-cylinder petrol engine, which in base Core form is mated to a four-speed auto. Note this price is based on the Core, but the Core with satellite navigation still comes in at under $20k drive-away too, as does the Excite – costing $19,990. Fuel economy is rated at 6.7L/100km on the WLTP combined cycle.

This little MG comes with a reversing camera, rear parking sensors, a leather-trimmed steering wheel with contrast stitching, LED daytime running lights and an 8-inch touchscreen with Apple CarPlay.

Kia Picanto

Price: $17,890 before on-roads

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Remaining a dominant player in the niche micro-car segment, the Kia Picanto holds its own, with 7,706 examples sold in 2023.

It's powered by a 1.2-litre four-cylinder petrol engine, which in base Sport form is mated to either a five-speed manual or four-speed auto. Note this price is based on the manual, but the auto S sits just over $20k drive-away. Fuel economy for the manual is rated at 5.4L/100km and automatic at 6.0L/100km on the WLTP combined cycle.

The tiniest Kia comes with cruise control, a reversing camera, and a big touchscreen that does a lot with your smartphone. Broadly effective autonomous emergency braking is also standard.

MG ZS

Price: $22,990

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Since its Australian debut in 2017, the MG ZS has quickly become a top contender, acclaimed for its exceptional value and emerging as the most sought-after vehicle in its category by 2023.

This compact SUV is well-equipped with modern features, including an 8-inch touchscreen integrated with Apple CarPlay, rear parking sensors, a rear-view camera, roof rails, and a premium 6-speaker Yamaha audio system.

For those seeking a touch more luxury, the MG ZST starts at $25,490 and is available in three additional variants. These upscale models include enhancements such as a sunroof and a 360-degree camera, offering an elevated driving experience.

At its introduction, the MG ZS received a commendable four-star safety rating from ANCAP, which remains valid until the end of this year.

Suzuki Ignis

Price: $21,490 before on-roads

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A notable contender in the compact car category, the Suzuki Ignis continues to capture attention with 7,706 units sold in 2023.

This model features a 1.2-litre four-cylinder petrol engine. In its standard configuration, it pairs with either a five-speed manual or a four-speed automatic transmission. The advertised price pertains to the manual version, while the automatic model is available for slightly over $20,000 drive-away. The fuel efficiency of the manual version is impressive at 5.4L/100km, and the automatic achieves 6.0L/100km according to the WLTP combined cycle.

The compact Suzuki is equipped with cruise control, a reverse camera, and a large touchscreen that integrates seamlessly with smartphones. It also includes comprehensive autonomous emergency braking as a standard feature.

Kia Stonic

Price: $22,290 before on-roads

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GT-Line pictured

A relative newcomer to the competitive subcompact SUV market, the Kia Stonic has made quite the mark.

The vehicle is equipped with a powered by a 74kW/133Nm 1.4-litre four-cylinder engine. The starting price is for the manual model, with the automatic version available for an extra $1500. The manual version boasts a fuel efficiency of 6.0L/100km, and the automatic registers 6.7L/100km on the WLTP combined cycle.

The Stonic features essential modern conveniences such as cruise control, a reverse camera, rear parking sensors, an 8-inch touchscreen and wireless Apple Carplay.

The compact SUV has a five-star ANCAP rating and houses safety features such as lane-keep assist, lane departure warning and autonomous emergency braking.

At the time of writing the Stonic S & Stonic Sport grade orders are on pause due to extended lead times.

MG 5

Price: $24,990

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Sneaking into the category is the new MG 5, a small sedan from the budget brand.

The entry-level vibe is offered in a sinle automatic option and comes equipped with a 1.5-litre petrol engine. It claims 6.6 litres per/100km used on a combined cycle.

Inside you'll get a 10-inch touchscreen that connects via cable to Apple CarPlay and Android Auto, a rear view camera, push button start and synthetic leather seats.

The car was tested by ANCAP in 2022 and received zero stars. It does however come equipped with autonomous emergency braking, emergency brake assist, electronic brake force distribution and a suit of other safety features.

Cheap cars - 6 new cars under $25,000

Pricing, specifications and performance figures refer to entry-level variants.