Australia's 10 cheapest new cars in 2026

The cost of living in Australia only keeps rising, but rest assured there are still plenty of affordable avenues into new car ownership.

In fact, an influx of new Chinese automakers in the local market has placed downward pressure on car prices, and there are bargains to be had as a result.

We last covered the 10 cheapest new cars you could buy in April last year – not so long ago. But three new models have arrived even since then to claim a spot on the list, and several more are nipping at the heels of renowned value heroes.

As such, now is a great time to revisit Australia’s cheapest new car rankings.

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In most cases, brands list a separate price that excludes on-road costs, which isn’t representative of what the average Australian motorist will pay. For that reason, we’ve ranked this list by estimated drive-away prices for a buyer living in New South Wales, as it’s Australia’s population state.

We’ve also chosen to exclude the Suzuki Ignis, because it’s no longer available to order but can still be purchased from remaining dealer stock.

Kia Picanto

Australia’s new-car market has seen significant change over the past few years, but Kia’s little micro-hatch still remains the cheapest new car money can buy.

Starting from just $19,190 before on-road costs, the base Picanto Sport brings a ‘less is more’ ethos to budget-friendly motoring.

For example, it’s the smallest car on this list, measuring in at just 3.6 metres long. It’s also a little lacking in the performance department, with power coming from a 1.2-litre non-turbo four-cylinder petrol engine that produces 62kW of power and 122Nm of torque. As for the transmission, well it’s a do-it-yourself manual – very old-school.

That’s not to say the Picanto is a little bucket of bolts – far from it. You still get modern features including wireless Apple CarPlay and Android Auto, a digital instrument cluster, and leatherette interior accents. The Picanto also comes with the backing of Kia’s seven-year, unlimited-kilometre warranty.

As such, the Korean micro-car remains a cheap and cheerful entry point into the new-car market.

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MORE: Explore the Kia Picanto showroom

MG 3

It mightn’t be quite as cheap as the Picanto, but China’s MG 3 also promises value as a sub-$25k hatch, albeit with some safety concerns.

MG Motor Australiahas recalled more than 10,000 examples of the current-generation MG 3 to address an issue identified by safety authority Euro NCAP during crash-testing – in what was described as a “critical safety failure”, the driver’s seat slid forward by 111.5mm on the side closest to the centre console upon impact.

Nevertheless, the MG 3 still received a four-star safety rating overall, which has also been applied to Australia’s version of the light hatch by local safety authority ANCAP.

And if you can look past the crash test failure, MG’s light hatch comes standard with safety equipment including a reversing camera, rear parking sensors, and semi-autonomous driving capability.

Under the bonnet of the base Excite is a 1.5-litre four-cylinder non-turbo petrol engine producing 81kW and 142Nm, teamed to a continuously variable automatic transmission (CVT) and front-wheel drive – not quite as exciting as the name suggests, but that’s par for the course.

CarExpert can save you thousands on a new MG 3. Click here to get a great deal.

MORE: Explore the MG 3 showroom

Chery Tiggo 4

Australians love an SUV and the Tiggo 4 is one of six on this list.

Priced from $23,990 drive-away, Chery’s compact city-SUV has become a top-seller since hitting the local market in 2024, and north of one million units have been delivered worldwide.

The most affordable variants are powered by the same 1.5-litre turbocharged four-cylinder petrol engine, which produces 108kW/210Nm. Drive is sent through a CVT to the front wheels only.

Hybrid versions of the Tiggo 4 were made available last year, although both carry a $6000 premium over the turbo-petrol equivalent.

Wireless Apple CarPlay and Android Auto are standard across the range, along with a single-screen panel comprising two 10.25-inch media displays. Other key selling points for the small Chinese SUV include a seven-year, unlimited-kilometre warranty and a five-star ANCAP safety rating.

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MORE:Explore the Chery Tiggo 4 showroom

Mahindra XUV 3XO

The Mahindra XUV 3XO is the only Indian-made model on this list and one of three new entrants for 2026, slotting in with a starting price of $23,990 drive-away.

Categorised as a light SUV, the XUV 3XO is small in stature but big on value. Power comes from a 1.2-litre three-cylinder turbo-petrol engine producing 82kW and 200Nm, with drive sent to the front wheels through a six-speed automatic transmission.

Standard equipment across the range includes alloy wheels, LED headlights and front fog lamps, a sunroof, keyless entry and engine start, and a surround-view camera with rear parking sensors.

Inside, there’s a leather-wrapped steering wheel, 10.25-inch digital instrument cluster, and a 10.25-inch infotainment touchscreen with wireless Apple CarPlay and Android Auto.

The XUV 3XO is backed by a seven-year, 150,000km warranty – long by most standards – although it has not been rated by ANCAP and does not have an official independent safety rating.

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MORE:Explore the Mahindra XUV 3XO showroom

GWM Haval Jolion

The Jolion remains one of Australia’s most popular small SUVs, and that’s in no small part down to its affordable pricing.

The base Premium starts from $23,990 drive-away, thousands cheaper than the equivalent Toyota or Mazda, and features a 1.5-litre four-cylinder turbo-petrol engine producing 105kW and 210Nm.

Power is sent to the front wheels through a seven-speed dual-clutch automatic transmission, while fuel consumption is rated at 8.1L/100km.

Inside, the Chinese-made Jolion Premium gets a 10.25-inch infotainment touchscreen with wireless smartphone mirroring, a 3.5-inch instrument cluster screen, cloth upholstery, and a four-speaker sound system.

All versions of the Jolion wear a five-star ANCAP safety rating based on testing conducted in 2022, and GWM Australia backs its range with a seven-year, unlimited-kilometre warranty.

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MORE:Explore the GWM Haval Jolion showroom

Suzuki Swift Hybrid

You can’t talk about cheap runabouts without mentioning the Suzuki Swift, an iconic light hatch that’s now in its fourth generation.

While not as cheap as the Picanto or MG 3, the Swift promises Japanese reliability and cute styling, as well as the additional benefits of a 12V mild-hybrid system.

The latter pairs with a 1.2-litre non-turbo three-cylinder petrol engine to give the Swift Hybrid outputs of 61kW and 112Nm, while combined fuel consumption is an impressive 4.0L/100km. The cheapest new Swift is served with a manual transmission, but you can get behind the wheel of an auto for an extra $2500.

Regardless of transmission, all base Swifts come with automatic LED headlights, a 9.0-inch infotainment touchscreen with wireless smartphone mirroring (Apple CarPlay only), native satellite navigation, DAB+ digital radio, and traditional analogue gauges.

However, the Swift leaves a bit to be desired in the safety department – it arrived in 2024 with a one-star ANCAP rating, although that was upgraded to three stars last year as a result of front-end reinforcements.

Suzuki Australia backs its vehicles with a five-year, unlimited-kilometre warranty.

CarExpert can save you thousands on a new Suzuki Swift. Clickhereto get a great deal.

MORE:Explore the Suzuki Swift showroom

MG ZS

China’s MG is the only automaker to boast two models in this top-10 list, with the ZS small SUV joining the MG 3 hatch among the cheapest new cars currently available in Australia.

Priced from $26,990 drive-away, the ZS is bigger than the likes of the Tiggo 4 and XUV 3XO but not significantly dearer.

However, it’s down on grunt compared to the former, as lower grades use a 1.5-litre four-cylinder petrol engine making just 81kW and 140Nm. Power is sent to the front wheels through a CVT auto, with average fuel economy rated at 6.7L/100km.

In base Excite guise, the ZS also comes with a 10.25-inch touchscreen infotainment system, 3.5-inch instrument cluster screen, wired smartphone mirroring, halogen headlights, satellite navigation, and a four-speaker sound system.

All variants built from December 4, 2025 wear a five-star ANCAP safety rating thanks to the addition of a front-centre airbag, while the warranty extends up to an industry-leading 10 years and 250,000km if your vehicle is serviced exclusively at MG dealerships.

CarExpert can save you thousands on a new MG ZS. Clickhereto get a great deal

MORE:Explore the MG ZS showroom

BYD Atto 1

BYD broke new ground last year by launching the all-electric Atto 1 city hatch as one of the cheapest vehicles in the market.

Electric vehicles have historically commanded a sizeable price premium over their internal combustion counterparts, but the arrival of the Atto 1 proves that EV price parity mightn’t be so far away after all.

There are two single-motor electric powertrains available for the Atto 1, the more attainable of which produces 65kW and 175Nm. The base Essential can travel a claimed 220km on a single charge – inadequate for long road trips but suitable for urban commuting.

The list of standard equipment is headlined by a 10.1-inch infotainment touchscreen, 7.0-inch digital instrument cluster, wireless smartphone mirroring and leatherette upholstery, while the Premium variant adds a wireless phone charger, LED headlights, and power-adjustable front seats with heating.

Despite its tiny footprint, the Atto 1 wears a five-star ANCAP safety rating, and owners also stand to benefit from a six-year, 150,000km warranty, as well as a separate eight-year, 160,000km battery warranty.

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MORE:Explore the BYD Atto 1 showroom

Hyundai Venue

The Venue serves as further proof that one of the best ways to save money on a new car is to buy a manual.

Priced from $23,000 before on-roads, the Venue manual is powered by a non-turbo 1.6-litre four-cylinder petrol engine producing 90kW and 151Nm. It’s not the punchiest light SUV in its class, nor is it the most frugal, with average fuel consumption rated at 7.0L/100km.

The Venue is also a little older than alternatives on this list, although it still presents a modern image courtesy of an 8.0-inch infotainment touchscreen, 4.2-inch instrument screen, and wireless smartphone mirroring compatibility. Other standard features include a four-speaker sound system, wireless phone charger, space-saver spare wheel, and halogen headlights.

Safety equipment is also in decent supply, although the Venue’s previous four-star ANCAP rating expired last year.

Like the rest of the Korean automaker’s range, the Venue is covered by a recently extended seven-year, unlimited-kilometre warranty and ‘lifetime’ capped-price servicing.

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MORE:Explore the Hyundai Venue showroom

GAC Emzoom

The GAC Emzoom is the latest contender in the sub-$30,000 small SUV segment, and it brings some unique attributes to the fight.

For one, the new Chinese model offers superior performance to most rivals courtesy of a 1.5-litre turbocharged four-cylinder petrol engine making 125kW/270Nm of torque, mated to a seven-speed dual-clutch automatic transmission.

Then there’s the standard equipment list, which is both long and littered with premium features. Just for a taste, you get a 14.6-inch infotainment touchscreen, 7.0-inch instrument display, wireless smartphone mirroring, power-adjustable front seats, leatherette upholstery, six-speaker sound system, and a panoramic sunroof.

Neither the Australasian New Car Assessment Program (ANCAP) nor Euro NCAP have tested the GAC Emzoom just yet, so we’ll reserve judgement on its safety credentials for now.

On the warranty front, the GAC Emzoom comes with seven years of coverage.

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MORE:Explore the GAC Emzoom showroom

Which one of Australia’s cheapest new cars would you buy? Let us know in the comments below!