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The five cheapest cars in Australia right now

Buying a new car is the second-most expensive purchase most of us will ever make, behind the family home.


A recent survey by Australian consumer site Canstar Blue found that Aussies spend, on average, $40,128 on a new car and then hold onto that new car for around six years.

Canstar’s research went further, breaking down the average new car cost by segment and brand. The average spend on a small car was $27,092 while sedan owners spent an average of $37,846 on their new purchase. The popularity of SUVs is reflected in the average spend of $41,697. The rise and rise of utes, and especially highly-specified versions such as Ford Ranger Raptor, has seen Aussies spend an average of $50,523 on their beloved dual-cabs.

But, not everyone is in the market for ute, and the traditional and humble sedan, as we all know, is on the nose with the buying public as more and more Aussies gravitate towards SUVs.

And not everyone wants to drop upwards of $30,000 or more on a new car. For them cheap is best. Here then, are the five most affordable new cars on the Australian market.

 

MG 3 Core

Price: $16,690 driveaway

Engine: 1.5-litre four-cylinder petrol (82kW/150Nm)

Transmission: Four-speed automatic, front-wheel drive

Fuel: 6.7L/100km (claim)

Safety Rating: Three stars (Euro NCAP)

 

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It’s the most affordable car currently available in Australia, a position reflected in its sales figures. Over 7000 MG 3s found new driveways to call home in 2020, buyers no doubt lured by the MG 3’s affordable price, seven-year warranty, and a decent list of standard inclusions.

The MG 3 alone in this groups comes standard with an automatic transmission, the other contenders requiring anywhere from $1000-$2000 extra for an auto ’box.'

There’s Apple CarPlay (although no Android Auto), 15-inch alloy wheels, Bluetooth connectivity, an 8.0-inch colour touchscreen, a rear-view camera, cruise control, air conditioning, and rear parking sensors.

 

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There are six airbags, although none for the second row while safety tech is limited to the mandatory systems like traction control and anti-lock brakes. That clearly hasn’t deterred buyers, though who continue to hoover up the little hatchback in large numbers.

Like the rest of this group, there are no options other than metallic paint at $300 a pop.

Cargo capacity is rated at 307 litres with the second row in use, expanding to 1081 litres with the second row folded away.

What we said: "Overall, the MG 3 remains a solid choice for those looking for a reliable, well-backed small city runabout that will serve its purpose diligently."

 

Kia Picanto S

Price: $16,990 driveaway

Engine: 1.25-litre three-cylinder petrol (62kW/122Nm)

Transmission: Five-speed manual, front-wheel drive

Fuel: 5.0L/100km (claim)

Safety Rating: Four stars (2017)

 

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It’s the second-most affordable new car currently available in Australia, missing out on the top spot to the MG 3 by just $300. Kia’s sharp $16,990 driveaway deal is for the entry-level Picanto S with white paint and a manual gearbox. An automatic transmission will set you back an extra $1000 while any colour other than white is an extra $520.

Despite its positioning as a price-leader for the range, the Picanto S does come pretty well-equipped. Apple CarPlay and Android Auto are standard as is air conditioning, an 8.0-inch touchscreen, rear-view camera, remote central locking, power windows, Bluetooth connectivity, cruise control and dusk-sensing headlights.

Safety tech includes six airbags and autonomous emergency braking at city speeds, the entry-level model missing out on more advanced tech like blind-spot monitoring and rear cross-traffic alert.

 

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Kia covers the Picanto with its standard seven-year/unlimited km warranty, a surety that remains the industry leader.

Its boot space, however, is amongst the smallest of this group, a slim 255 litres with the second row in use, although expanding to a useful 1010 litres when folded away.

What we said: "Although it lacks some of the latest advanced safety aids, this is a fair alternative to an older used small car and feels right at home in tight city and suburban streets. It’s easy to see the renewed appeal of this car."

 

Suzuki Baleno GL

Price: $16,990 driveaway

Engine: 1.4-litre four-cylinder petrol (68kW/130Nm)

Transmission: Five-speed manual, front-wheel drive

Fuel: 5.1L/100km (claim)

Safety Rating: Untested

 

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Suzuki’s other light car might not garner the attention of the cute and cheerful (and popular) Swift. But, the Suzuki Baleno does present as a decent offering in the ‘most affordable cars’ bracket.

With a starting price of $16,990 driveaway with manual transmission (auto is $17,990 driveaway), the Baleno, like so many of its counterparts in this dogfight, comes with plenty of equipment.

Satellite navigation is standard as is smartphone mirroring via Apple CarPlay or Android Auto, a rear-view camera, air conditioning, Bluetooth connectivity, and infotainment touchscreen, and cruise control.

 

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On the downside, the rear brakes are ancient drum technology (only the front brakes are the more effective discs) and the Baleno remains untested by Australian safety regulatory body, ANCAP. The airbag count rests at six.

There are two standard paint colours (Arctic White and Fire Red) while the five metallic hues each ask for $595 extra.

The Baleno’s boot space measures in at 355 litres, expanding to 756 litres once the second row is folded away.

What we said: "The base Baleno continues to offer acres of space and decent levels of equipment, though the lack of safety tech puts it behind the class leaders."

 

Skoda Fabia 70TSI

Price: $17,990 driveaway

Engine: 1.0-litre three-cylinder petrol (70kW/160Nm)

Transmission: Five-speed manual, front-wheel drive

Fuel: 4.5L/100km (claim)

Safety Rating: Five stars (2015)

 

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Skoda’s city car stays true to the brand’s broader philosophy, with clever packaging and an extensive list of standard kit, certain to appeal to buyers in the segment.

That $17,990 driveaway deal is for the manual variant, those preferring an auto, or in this case, dual-clutch automatic, needing to find an extra $2000.

Still, with inclusions like smartphone mirroring via Apple CarPlay and Android Auto, a 6.5-inch colour touchscreen, autonomous emergency braking at city speeds, six airbags, air conditioning, a rear-view camera, and adaptive cruise control (the only car in this group with that technology), the Fabia makes a value case for itself.

With a boot measuring 330 litres (or 1150 litres with the second row stowed away), the Fabia is also amongst the most practical in terms of cargo capacity.

The Fabia is alone in offering a range of options that up the ante in safety technology and creature comforts (such as climate control and heated seats) while metallic and pearl paint finishes demand an extra $550.

 

Mitsubishi Mirage ES

Price: $14,990 plus on-road costs

Engine: 1.2-litre three-cylinder petrol (57kW/100Nm)

Transmission: Five-speed manual, front-wheel drive

Fuel: 4.7L/100km (claim)

Safety Rating: Five stars (2013)

 

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Yes, you can still get a Mitsubishi Mirage and in its most basic form, the little five-door hatch has a list price of under $15k. Once on-road costs are added, though, you can expect to pay around $18,000 driveaway, and that means the Mirage goes from having the cheapest list price to the most expensive of this quintet. No sharp deals here, something that could hurt sales.

Still, what does your money get you? Well, quite a lot. There’s Apple CarPlay and Android Auto smartphone integration, six airbags, Bluetooth connectivity, air conditioning, remote central locking, daytime running lights, a rear-view camera, and 7.0-inch touchscreen.

 

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If you want a colour other than white, then you’ll need to stump up an extra $740 for any of the other six available hues. And if your preference runs to an automatic transmission, that’ll set you back an extra $1500.

Mitsubishi’s standard owner surety is five years/100,000km, however if you commit to servicing your little Mirage at Mitsubishi dealerships, the warranty is doubled to 10 years/200,000km.

Those after lugging ability might look elsewhere, the Mirage offering only 235 litres with the second row in use by people, expanding to a paltry 599 litres when stowed away in split-fold fashion.

Rob Margeit

Rob Margeit is an award-winning Australian motoring journalist and editor who has been writing about cars and motorsport for over 25 years. A former editor of Australian Auto Action, Rob’s work has also appeared in the Sydney Morning Herald, The Age, Wheels, Motor Magazine, Street Machine and Top Gear Australia. Rob’s current rides include a 1996 Mercedes-Benz E-Class and a 2000 Honda HR-V Sport.

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