Best New Cars 2025: MG3 – Budget Car of the Year

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The number of new cars on sale for less than $25,000 has dwindled over the last decade.

Mainstays such as the Toyota Yaris, Hyundai i20, Volkswagen Polo, Mazda 2, Kia Rio and others all either too pricey or put to pasture due to insufficient demand. 

Having such a scarce selection of superminis on sale is a great shame, especially in the current cost-of-living crisis. Yet two mainstays, the MG3 and Suzuki Swift, have stayed true to the mission in new-gen guise, offering fuss-free motoring for less than $25K — and it’s these two vehicles we invited to Car of the Year. 

Aside from the list of too-expensive (or defunct) light cars above, there are a few more rivals for less than $25,000; the Haval Jolion comes to mind but it isn’t new enough, and nor is the cute Kia Picanto. 

And, crucially, when sending invites to Car of the Year 2025, each model must be considered capable of winning the outright award — not just filling seats. That’s why the Chery Tiggo 4 Pro, despite offering more space and equipment than either contender, didn’t make it to the starting grid. Being cheap alone isn’t enough to qualify. 

WINNER — MG3

Excite Petrol ($23,990 before ORC); Essence Hybrid ($29,990 before ORC)

Talk about a glow-up. Based on an all-new platform, the second-generation MG3 hatch all-but blew us away at launch. From cheap and very uncheerful in outgoing form to a genuinely complete package that’s sophisticated to drive in the newcomer. 

It starts with the inclusions. This Excite petrol is as cheap as things get at $23,990 list but you still get 16-inch alloy wheels, adaptive cruise control, tyre pressure monitoring, a 10.25-inch touchscreen, artificial leather-appointed steering wheel with tilt adjust, and a 7.0-inch digital driver’s display. 

The Essence brings a few extra goodies and you’ll regularly find sharp deals to bring it within the $25K budgetary constraints. 

The upholstery is upgraded from fabric to artificial leather-faced while the headlights are LEDs, and the Essence even gets premium-sounding extras such as a sunroof, connected services and a 360-degree camera. Adding to the value proposition of the MG3 is a 10-year/250,000km warranty. 

The driver’s seat has six-way manual adjustment with reasonable back support, and the Excite’s cloth is relatively pleasant. Material quality is better than you might expect (and way better than base Swift) with a covered centre cubby between the two seats. 

Even the faux leather covered shifter feels high quality, and is actually preferable to the MG3 Hybrid’s cheap-feeling rotary item. 

Although it’s not luxurious in the MG3’s second row, there’s a fair amount of space for adults with good head and knee room even for six-footers. Width is adequate for three in a pinch and the backrest is quite supportive. Accommodation for child seats include two Isofix ports and a trio of top tether anchors. 

Not all is perfect, however. There are some technology glitches — a laggy screen that runs the manual air-conditioning and cable-only Apple CarPlay via an old-school USB port doesn’t feel very 2025 and can be frustrating. Also missing is a split-fold seatback.

The MG3 is missing moxy, too. Its petrol engine and CVT combination is lethargic and noisy, meaning the much-less-powerful Suzuki feels nippier in the real world. You have to use full throttle often just to keep up with traffic.

Fuel consumption is a sore point in the MG3. Far from its 6.0L/100km rating, our drive loop saw the 81kW MG gulp down E10 unleaded at 9.6L/100km — including some spirited laps of our private test track. Spend a bit more and MG will sell you a pretty punchy hybrid MG3. The extra punch and improved economy make that an easy choice. 

On-limit handling is not where the MG3 shines with plenty of body roll and pitch under braking. That said, the steering is well-weighted, direct and confidence inspiring and the MG3’s brakes are quite strong. 

More important is the ride quality, and it’s one area the MG3 mostly excels. It’s calmer and softer than the Swift — both have struts up front and torsion beam rear suspension — which suits urban driving better. There’s a lot more substance than you might expect for the price. 

The MG’s safety assistance features are mostly subdued, too, and it was awarded three stars in ANCAP safety testing. That may not be the five of some rivals, but scores over 70 percent for occupant protection indicate MG3 passengers will be better off in the event of a collision than those in a one-star Swift. 

In the end, the MG3 is our winner. Sure, that’s sacrificing outright driving joy but the 3 does more for less, and that’s something we all need right now. It goes further than being a minimal viable vehicle, instead offering a surprising sheen of excellence through much of the cabin and improved driving experience.

READ MORE: MG3

RUNNER-UP — Suzuki Swift

Hybrid manual ($24,490 before ORC) and GLX ($27,990 before ORC)

If the latest MG3 was a revelation, the fourth-gen Suzuki Swift was more of the same. Not that there’s anything wrong with a cheap, light car that still uses skinny 175mm-wide tyres. 

Compared to the focus-group MG, the Swift is like the Lotus Elise of budget cars, hitting the scales at a scant 919kg. 

With 20kW less than the MG — yep, just 61kW — and a scant 112Nm torque peak, the Swift’s pep comes as a surprise. Plus, it’s got a friendly (if rather vague) five-speed manual transmission as standard. Talk about stepping back in time. 

Amazingly, the Swift used nearly 50 percent less fuel on test, at 5.3L/100km. If nothing else, that exemplifies how constant bloat in the car industry is making cars worse… at least in one way.

You can, of course, get a CVT automatic Swift Hybrid and the system is far better than MG’s lethargic set-up but the cost is a stinging $2500 — ouch. 

Where the MG3 got the job done on our undulating test track, the Suzuki Swift relished the challenge. A responsive throttle, bitey brake pedal, and meaty steering feel give confidence. Then comes the chassis — like a classic lightweight hatch, the Swift’s rear tyres are constantly wiggling to help get the thing turned. 

In terms of smiles on the track, the Swift nearly matched heavyweights like the Hyundai Ioniq 5 N and Ford Mustang. Editor Spinks was spotted taking passengers for rides, and unconfirmed reports suggest much maniacal laughter was coming from the driver’s seat. 

Out on the road, though, the Swift was less pleasant. Even at 50km/h, tyre roar drills into your ears. With its short wheelbase and short suspension travel, the Swift is busy over big bumps, even if its 15-inch steelies and chubby rubber help it glide over small ones. 

Speaking of those 15s, the Swift’s spec list reads like one from a decade ago, save for today’s must-haves like a reverse camera, auto LED headlights with high beam assist, adaptive cruise control and wireless Apple CarPlay (wired Android Auto). 

Surprisingly, you get keyless entry with push-button start, too, but the rest of the features are limited, including air conditioning, fabric upholstery, and four-way (non-height adjustable) front seats. 

The Swift’s two-speaker sound system amazingly performed much better than the MG’s six-speaker, which sounded more like someone had stashed a portable wireless deep inside the dash. 

It is really the interior presentation, material quality and space that lets the Swift down. The fabric upholstery is sweaty, the cabin is a sea of nasty scratchy plastics, there’s no centre armrest and the cup holsters are square, for some reason.

Illustrating its budget-ness are the 00s-era chunky buttons — of the 12 scattered around the cabin, seven are blanks! And then there’s the digital read-out between the analogue dials that has all manner of unnecessary information, like throttle position and G-force. 

The 9.0-inch multimedia screen says eBay special, rather than bespoke Suzuki, and it’s very laggy. Moving up the trim tree to GLX doesn’t enhance the Swift’s appeal, either. 

Unlike the MG3, the Swift’s back seat is cramped in all dimensions, without a soft touch material in sight. At least the back rest is split 60:40.

There’s a thread of engineering goodness running through the Swift’s oily bits, but at its core, this is still a cheap car built in the traditional way. That means, as good as it may be to drive, the Swift doesn’t move the game on.