Buyers’ guide: The most affordable cars of 2025

Far from a few years ago, when it seemed every new-car price was skyrocketing following COVID-19 supply restraints, there is now a suite of options available to consumers. Whether you’re chasing adventure in a 4x4, practicality in a medium SUV, or thrills in a sports car, the sub-$50,000 price bracket caters to a wide range of buyers.

Our list is broken down by vehicle size and powertrain to help you understand the breadth of options. Our price guide details the manufacturer’s recommended retail price (unless otherwise stated ‘drive-away’), and the vehicles are ‘priced from’, meaning there could be multiple variants priced beneath our $50,000 cut-off. All prices are correct as of September 2025.

• Size: Hatchback
• Fuel: Petrol
• Price: $18,690

Where buyers not all that long ago were afforded plenty of choice in the Under $20,000 bracket, today just a single model comes in under what is something of a psychological barrier.

Lauded for its compact dimensions, which make it perfect for zipping around town, the Picanto doesn’t want for the kind of equipment and technology buyers expect today. 

• Size: Hatchback
• Fuel: Petrol
• Price: $21,990 drive-away

Once one of Australia's cheapest cars, the new MG 3 moves the brand to a more mainstream position. A thorough rethink of the city car segment sees the new model equipped with competitive safety and technology.

• Size: Light SUV
• Fuel: Petrol
• Price: $23,990 drive-away

The Chery Tiggo 4 reignites Australia's budget car market with sharp pricing, high levels of equipment, a seven-year warranty and an interior that defies its price.

• Size: Hatchback
• Fuel: Hybrid
• Price: $28,990

A mainstay of the affordable new car diaspora, the Toyota Yaris jumped up in price dramatically when the new model was released in late 2020. But it also came with a vast swag of new equipment and technology, bringing the once cheap-and-cheerful into line with modern expectations.  

• Hatchback
• Electric
• $29,990

Australia’s most affordable EV, the BYD Dolphin is an easy recommendation for buyers looking to go electric on a budget. Plenty of standard equipment is the icing on the cake.

• Sedan
• Petrol
• $30,590

With SUVs taking over the road and dealership forecourts, it’s refreshing to see there’s still appetite for small sedans like the Kia K4. Brimming with standard equipment and backed by Kia’s standard seven-year warranty, the K4 is the perfect antidote to a world of SUVs. 

• Small SUV
• Petrol
• $31,990 drive-away

A newcomer to Australia, the Renault Duster brings rugged styling and pleasing on-road manners and in the case of 4x4 models, off-road capability.

• Hatchback
• Hybrid
• $32,110

A mainstay of the affordable car market since it first arrived here in 1968, the Corolla has become Australia’s favourite small car with a solid reputation for affordability and reliability. Over 50 million have been sold around the world over its lifespan.

• Small SUV
• Petrol
• $33,990 drive-away

Compact on the outside, but surprisingly spacious on the inside, the Skoda Kamiq offers a long warranty and polished presentation in the small SUV segment.

• Ute 4x2
• Diesel
• $36,490 drive-away

A dual-cab ute that doesn't break the bank, the GWM Cannon offers decent payload and towing ability. A 2025 update brought a more powerful 2.4-litre engine, bringing the Cannon into line with some mainstream utes like Nissan’s Navara and Mitsubishi’s Triton.

• Hatchback
• Petrol
• $37,500 

The pint-sized hatchback brings performance motoring within reach of the masses with a perky turbo engine, manual transmission, a nicely balanced chassis and plenty of grip. 

• Medium
• SUV Petrol
• $39,990 

The Mitsubishi Outlander remains a medium SUV favourite, offering pricing and features on par with its rivals, and the option of seven seats

• Sedan
• Hybrid
• $39,990

One of Australia’s most popular mid-size sedans features a powerful hybrid drivetrain, and high levels of standard safety technology, all packaged up in sharp style that disguises a roomy, comfortable interior.

• Small SUV
• Electric
• $40,490 drive-away

One of Australia’s most-affordable electric SUV, the MG S5 lands here with some pretty sharp drive-away pricing, a nicely designed and thoughtful cabin and a driving experience that is comfortable and pleasant.

• Medium SUV
• Petrol
• $43,490

An all-new Forester brings a new look and a new hybrid powertrain giving the popular mid-size SUV the armoury to take on the best-selling Toyota RAV4 in the segment.

• Medium SUV
• Petrol
• $44,990

An all-new Tiguan has arrived in Australia, the model line-up growing in size and bringing with it more powerful engines, revised exterior styling, updated technology and new equipment across the range.

• Small SUV
• Petrol
• $45,900

Alfa Romeo’s compact SUV brings a touch of Italian flair at a price that won’t break the bank. With a punchy three-cylinder engine, the Junior matches its Italian good lucks with a n excellent driving experience.

• Medium SUV
• Electric
• $49,990

Chinese newcomer Deepal enters the Australian market with a stylish and well-equipped fully-electric SUV with 475km of driving range.

Tom started out in the automotive industry by exploiting his photographic skills but quickly learned journalists got the better end of the deal. With tenures at CarAdvice, Wheels Media, and now Drive, Tom's breadth of experience and industry knowledge informs a strong opinion on all things automotive. At Drive, Tom covers automotive news, car reviews, advice, and holds a special interest in long-form feature stories.

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