What are the cheapest new cars on sale in Australia? (December 2022 Edition)

We take a look at the cheapest new cars available on the Australian market and how much they will cost to run

Buying a new car can be an exciting proposition, especially for those who have just received their driver’s licence.

In the current market, second-hand cars remain to hold their values, meaning that it is often cheaper to go to the dealership and purchase a brand-new car – even if you have to wait for it.

Mazda CX-3 2021 rear — A cheap car is about more than just what you pay for it at the dealer

A new car comes with the main benefits of a new car warranty and often road-side assistance – things you won’t receive if you’re purchasing from a private buyer.

In this article, Chasing Cars has compiled a list of the cheapest cars on sale in Australia, along with providing warranty information, servicing costs and more so you don’t have to.

Australia’s top ten cheapest new cars

Note that all pricing listed is driveaway.

1. Kia Picanto (from $18,490)

The Kia Picanto comes out on top as the cheapest new car you can buy in Australia. Available in three variants – S, GT-Line and GT – the Picanto has an average fuel economy of 5.5L/100km in S guise. The top-spec GT variant is priced from $20,490 before on-road costs.

Chasing Cars is currently running a sporty Picanto GT as a long-term review vehicle. You can read about our long-term Picanto GT here.

Warranty: seven year/ unlimited kilometre

Servicing: 1.2-litre manual will cost $1895 over five years, GT turbo triple will cost $1935 over the same time period.

Kia Picanto GT rear 3/4 with plant — The Kia Picanto packs quite a lot, for a little

2. MG MG3 (from $18,990 )

The MG MG3 comes in a close second, however it has a current national driveaway price of $18,990. The MG3 is only available in automatic guise and uses a 1.5-litre naturally-aspirated four-cylinder petrol engine. Average claimed fuel consumption for the MG3 is 6.7L/100km.

Warranty: seven year/ unlimited kilometre

Servicing: $1380 over five years

The MG3 wins points on style and its standard automatic transmission

3. Kia Rio (from $21,490)

The Kia Rio was once Australia’s cheapest car, however pricing has lifted somewhat over the years. The Kia Rio is either powered by a 1.4-litre petrol four-cylinder engine or a turbocharged three-cylinder engine. The base S variant has a claimed fuel economy of 5.6L/100km.

You can read a review of the Kia Rio here.

Warranty: seven year/ unlimited kilometre

Servicing: $1958 over five years

Kia Rio 2023 front ground — All Kia models come with a seven-year warranty

4. MG ZS (from $22,990)

MG’s ZS small SUV is a cheap car (currently priced from $22,990 driveaway) and offers plenty for the money. It uses a 1.5-litre four-cylinder engine and sips 7.1L/100km on the claimed combined cycle.

You can read a review of the MG ZS here.

Warranty: seven year/ unlimited kilometre

Servicing: $1407 over five years

Suzuki Ignis 2022 at Watson's Bay — If you want something slightly more rugged, the Suzuki Ignis might be worth a look

5. Suzuki Ignis (from $23,490)

Suzuki says the Ignis is a crossover between a hatchback and an SUV. The Ignis’ small size means it’s a good option for a first car. It’s powered by a 1.2-litre four-cylinder petrol engine and is either mated to a manual or automatic transmission. The Ignis has a claimed average fuel economy of 4.7L/100km.

You can read a review of the Suzuki Ignis here.

Warranty: five year/ unlimited kilometre

Servicing: $1465 over five years

Kia Stonic Sport 2021 silver — The Stonic is closely related to the Rio but has more ground clearance

6. Kia Stonic (from $24,690)

The Kia Stonic is a pumped-up, small SUV version of the Rio hatchback and, in base form, is powered by a 1.4-litre four-cylinder petrol engine. Kia claims a fuel consumption rating of 6.0L/100km.

You can read a review of the Kia Stonic here.

Warranty: seven year/ unlimited kilometre

Servicing: $2143 over five years

The Venue is the cheapest Hyundai you can buy

7. Hyundai Venue (from $24,990)

Hyundai’s Venue is the cheapest small SUV on this list, making it an attractive option for growing families. It’s fitted with a 1.6-litre four-cylinder petrol engine in base form and has a claimed combined fuel economy of 7.0L/100km.

You can read a review of the Hyundai Venue here.

Warranty: five year/ unlimited kilometre

Servicing: $1575 over five years

Mazda2 GT 2020 headline — A punchy 1.5-litre engine keeps fuel usage to a minimum

8. Mazda 2 (from $25,086)

Mazda’s cheapest 2 hatchback is the G15 Pure manual that uses a 1.5-litre four-cylinder petrol engine. The 2 in this guise has a claimed combined fuel economy of 5.2L/100km. If you’ve got more budget, Mazda offers a more premium GT model for around $5k more.

You can read about the Mazda 2 here.

Warranty: five year/ unlimited kilometre

Servicing: $1702 over five years

2020 Suzuki Swift Rear — The Swift has long been a good option for budget-conscious buyers

9. Suzuki Swift (from $25,990)

The Suzuki Swift remains a popular choice with young buyers and is commonly used by driving schools across the nation. The Swift is powered by either a turbocharged 1.4-litre engine or a 1.2-litre naturally-aspirated four cylinder engine. Lowest average fuel consumption is 4.6L/100km.

You can read more about the Suzuki Swift in our article here.

Warranty: five year/ unlimited kilometre

Servicing: turbo models: $1475/ five years. Non-turbo models: $1465/ five years

2019 Mazda CX-3 Akari LE Machine Grey front — The CX-3 has been a favourite among Australian buyers for some time

10. Mazda CX-3 Neo (from $27,203)

Mazda has positioned its CX-3 small SUV just above the $20k mark. Although it’s a pricier option than the likes of the Kia Picanto, with more space and more powerful 2.0-litre engine, it is definitely a car to consider.

You can read a review of the Mazda CX-3 here.

Warranty: five year/ unlimited kilometre

Servicing: $1839 for five years