Best Cars for Students in Australia: Affordable, Easy to Maintain & Reliable

Being a student in Australia comes with plenty of expenses – tuition fees, rent, textbooks, and daily living costs. Owning a car can feel like a luxury, but for many students it’s also a necessity. Whether you need to commute to uni, get to part-time work, or explore beyond campus, the right car can make your life significantly easier.

The challenge? Finding a car that is affordable to buy, cheap to run, reliable for years, and easy to maintain. This comprehensive guide explores the best student cars available in Australia in 2025, including new and used options, hatchbacks, compact sedans, hybrids, and budget-friendly petrol cars.

We’ll break down what makes a great student car, the most popular models, key features to look for, and some handy buying tips tailored to the student lifestyle.

What Makes a Great Student Car?

Not every car is ideal for students. A flashy performance car may look appealing, but it’ll drain your wallet with insurance, maintenance, and fuel costs. Here are the main factors that matter most:

Affordability

Students usually have tight budgets, so the purchase price is critical. Many will consider used cars, but entry-level new cars can also be affordable with finance.

Running Costs

Low fuel consumption, cheap servicing, and affordable spare parts make certain cars much better suited to students.

Reliability

A student car should start every morning without drama. Reliability means fewer breakdowns and less money wasted on surprise repairs.

Practicality

Hatchbacks with good boot space or compact sedans that fit friends and groceries make more sense than oversized SUVs.

Easy Maintenance

Cars with wide service networks, low-cost parts, and simple mechanics save students time and stress.

Insurance Costs

Younger drivers already pay more for insurance. Choosing cars with good safety ratings and smaller engines helps keep premiums manageable.

Best Affordable New Cars for Students in Australia

Toyota Corolla

The Toyota Corolla is one of Australia’s most popular cars – and for good reason. Known for its rock-solid reliability and fuel efficiency, the Corolla is available as both a hatchback and sedan. For students, the hybrid option is especially appealing, as it slashes running costs with incredible fuel economy.

• Why it’s great for students: Reliable, cheap to run, strong resale value.
• Fuel economy: As low as 4.2L/100km (hybrid).
• Price range (new): From ~$30,000 drive-away.

Hyundai i30

Another student-friendly hatchback is the Hyundai i30. It combines modern styling, practicality, and affordable ownership costs. Hyundai’s 5-year unlimited kilometre warranty provides peace of mind for young buyers.

• Why it’s great for students: Stylish, practical hatch, affordable servicing.
• Fuel economy: Around 7.0L/100km.
• Price range (new): From ~$25,000 drive-away.

Kia Picanto

If you’re looking for something ultra-compact and budget-friendly, the Kia Picanto ticks all the boxes. It’s Australia’s cheapest new car in 2025, perfect for students in cities where parking is tight.

• Why it’s great for students: Very cheap to buy new, excellent warranty, easy to park.
• Fuel economy: 5.8L/100km.
• Price range (new): From ~$19,500 drive-away.

Mazda 2

The Mazda 2 remains a favourite for students thanks to its small size, agile handling, and high build quality. Despite being compact, it feels surprisingly premium inside.

• Why it’s great for students: Fun to drive, reliable, stylish for the price.
• Fuel economy: 5.3L/100km.
• Price range (new): From ~$22,500 drive-away.

MG3 Hatch

For those who want maximum features for the lowest price, the MG3 is hard to ignore. It’s one of Australia’s cheapest new hatchbacks and includes a strong infotainment system and warranty.

• Why it’s great for students: Budget price, generous features, sporty look.
• Fuel economy: 6.7L/100km.
• Price range (new): From ~$19,990 drive-away.

Best Used Cars for Students in Australia

Buying a used car often makes the most sense for students. It’s cheaper upfront, and many models are still extremely reliable after a few years.

Toyota Yaris

The Yaris is compact, fuel-efficient, and widely available in the used market. Maintenance is cheap thanks to Toyota’s service network.

• Why it’s great for students: Small, cheap to run, reliable even with high kilometres.
• Used price range: From ~$8,000–$18,000 depending on year and condition.

Honda Jazz

The Jazz is one of the most practical student cars thanks to its “Magic Seats” – foldable seats that allow for amazing cargo flexibility.

• Why it’s great for students: Super practical interior, reliable, economical.
• Used price range: From ~$7,000–$15,000.

Mazda 3

A slightly larger option than the Mazda 2, the Mazda 3 offers style, comfort, and reliability in both hatch and sedan form. Used examples are plentiful in Australia.

• Why it’s great for students: Reliable, fun to drive, good resale value.
• Used price range: From ~$9,000–$20,000.

Hyundai Accent

Although discontinued as a new model, the Hyundai Accent remains a smart used choice for students. It’s cheap to buy, cheap to insure, and parts are easy to find.

• Why it’s great for students: Affordable used prices, simple maintenance.
• Used price range: From ~$6,000–$14,000.

Suzuki Swift

The Suzuki Swift has long been loved by students. It’s compact, stylish, and cheap to run, making it a fun and economical choice.

• Why it’s great for students: Zippy handling, affordable to maintain, fun design.
• Used price range: From ~$8,000–$18,000.

Hatchbacks vs Sedans: Which is Better for Students?

For most students, a hatchback is the better choice. Hatchbacks are compact, easy to park, fuel-efficient, and provide surprising boot space with rear seats folded down.

Sedans, however, might appeal to students who want a slightly more grown-up look, more boot security, and often lower used car prices compared to hatchbacks.

Ultimately, hatchbacks dominate the student car market because of their practicality and lower running costs.

Petrol vs Hybrid: Should Students Consider Hybrids?

Hybrids are becoming increasingly popular in Australia thanks to better fuel economy and environmental benefits.

• Hybrids (like Toyota Corolla Hybrid): Excellent for students driving long distances; lower fuel bills.
• Petrol cars (like Kia Picanto, Mazda 2): Lower purchase price, often cheaper insurance.

If you’re mainly driving short distances around town, a small petrol hatchback is fine. But for students who commute long distances, a hybrid can save money over time.

Buying Tips for Students

Set a Realistic Budget

Remember to factor in on-road costs, insurance, rego, and ongoing maintenance, not just the sticker price.

Consider Used Cars from Reputable Sources

Buying from private sellers may save money but comes with risk. Dealerships and certified used programs provide more peace of mind.

Prioritise Safety

Look for models with at least a 4- or 5-star ANCAP safety rating. Features like ABS, stability control, and multiple airbags are essential.

Check Running Costs

Websites like NRMA and RACV can help estimate fuel, servicing, and insurance costs.

Test Drive Multiple Options

Comfort, visibility, and ease of driving are all crucial – don’t just go with the cheapest option.

Don’t Overlook Insurance

Cars with smaller engines, good safety ratings, and less sporty designs are cheaper to insure for students.

Conclusion: The Best Cars for Students in Australia

The best student car in Australia ultimately depends on budget, lifestyle, and driving needs.

• For new cars: The Kia Picanto and MG3 stand out for affordability, while the Toyota Corolla Hybrid is unbeatable for long-term savings.
• For used cars: The Honda Jazz and Toyota Yaris are practical and reliable, while the Suzuki Swift and Mazda 3 provide style and fun.

Choosing wisely ensures that your car supports your student life instead of draining your wallet. Affordable, reliable, and practical – that’s what the best cars for students in Australia should be all about.