Top Budget Cars That Are Cheap to Own and Run in Australia

Top Budget Cars That Are Cheap to Own and Run in Australia

If you're in the market for a car that’s light on fuel, affordable to maintain, and won’t break the bank on servicing or insurance, you’re not alone. More Australians are leaning toward budget-friendly options, especially with rising living costs and the ever-fluctuating fuel prices.

In this comprehensive guide, we highlight the top budget cars in Australia (2025) that are not only affordable upfront but also offer long-term savings. These picks are ideal for first-time buyers, families on a budget, students, or anyone who values low running costs, durability, and reliability.

🔧 What Makes a Car Cheap to Own and Run?

Before diving into the list, let’s quickly define the main factors that make a vehicle budget-friendly over time:

• Fuel Efficiency: Low L/100km figures mean you’ll visit the servo less often.

• Affordable Servicing: Some brands offer capped-price servicing, saving you hundreds over the years.

• Low Insurance Premiums: Budget cars usually fall into lower insurance brackets.

• Reliable Resale Value: Cars that retain their value can reduce long-term costs.

• Affordable Parts & Repairs: Widely available parts and simple mechanics keep service costs down.

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🚗 Top Budget Cars in Australia for 2025

1. Toyota Yaris Ascent Sport (Petrol)

• Price: From $24,800 drive-away

• Fuel Efficiency: 4.9L/100km

• Ownership Cost: Low

• Servicing: Capped-price ($205 avg per service)

The Toyota Yaris remains a top pick for city driving and budget ownership. With Toyota’s legendary reliability, a fuel-sipping engine, and one of the lowest servicing costs in its class, it’s easy to see why Aussies love it.

✅ Pros:

• Great fuel economy

• Toyota reputation

• Smart safety features even in base model

❌ Cons:

• Smaller boot

• Basic infotainment

2. Kia Picanto S (Petrol)

• Price: From $20,690 drive-away

• Fuel Efficiency: 5.0L/100km

• Warranty: 7 years/unlimited km

• Servicing: Capped-price, cheap parts

The Picanto is one of Australia’s cheapest new cars. Ideal for city zipping, it’s packed with value and backed by Kia’s unbeatable warranty.

✅ Pros:

• Low purchase price

• Excellent warranty

• Easy to park and drive

❌ Cons:

• Limited power on highways

• Minimal cargo space

3. Suzuki Swift GL (Petrol)

• Price: From $25,490 drive-away

• Fuel Efficiency: 4.8L/100km

• Resale Value: Strong

• Reliability: Proven track record

The Swift combines fun driving dynamics with practicality and strong resale value. It’s cheap to run and often overlooked for how solid it is in the long term.

✅ Pros:

• Light and zippy

• Easy on fuel

• Great handling

❌ Cons:

• Basic tech in entry models

• No hybrid option

4. Hyundai i30 (Base Manual Hatch)

• Price: From $27,000 drive-away

• Fuel Efficiency: 7.0L/100km (manual)

• Warranty: 5 years/unlimited km

• Servicing: Affordable, common parts

For buyers wanting something roomier than a micro car, the i30 hatch is one of the most well-rounded picks. It balances practicality, reliability, and ongoing affordability.

✅ Pros:

• Spacious cabin

• Long-term durability

• Good features for the price

❌ Cons:

• Less efficient than smaller hatches

• No turbo in base variant

5. MG3 Core Auto (Petrol)

• Price: From $19,990 drive-away

• Fuel Efficiency: 6.7L/100km

• Warranty: 7 years/unlimited km

• Ownership Cost: One of the lowest in Australia

While the MG3 doesn’t lead in refinement, it’s hard to ignore its price. For under $20K, you get a spacious hatch with a modern interior and growing brand confidence.

✅ Pros:

• Cheapest new car in Australia

• Great standard features

• Long warranty

❌ Cons:

• Older engine tech

• Crash safety not class-leading

6. Mazda2 Pure Hatch (Petrol)

• Price: From $26,500 drive-away

• Fuel Efficiency: 5.3L/100km

• Servicing: Mazda’s capped program

• Resale Value: High

Mazda2 is a premium-feeling small car. With good fuel economy, enjoyable drive quality, and tight build quality, it makes a strong case for small car buyers.

✅ Pros:

• Quality cabin feel

• Fun to drive

• Solid fuel numbers

❌ Cons:

• Cramped rear seats

• Smaller boot

7. Mitsubishi Mirage ES (Petrol)

• Price: From $18,990 drive-away

• Fuel Efficiency: 4.7L/100km

• Warranty: 10 years/200,000km (conditional)

• Servicing: Very affordable

Though basic, the Mirage is still available in 2025 as one of the lowest-cost options on sale. It’s an honest, simple car for people who need wheels without frills.

✅ Pros:

• Ultra-low price

• Extremely efficient

• Long warranty

❌ Cons:

• Noisy engine

• Feels dated

8. Honda Jazz (Used Market Pick)

• Price (Used): ~$12,000–$18,000 (2018–2021 models)

• Fuel Efficiency: ~5.2L/100km

• Maintenance: Low-cost parts, highly reliable

Though discontinued new in Australia, the Honda Jazz remains one of the most practical and cost-effective small cars in the used market. Its magic seat system and fuel economy make it a hit with smart buyers.

✅ Pros:

• Great interior flexibility

• Strong reliability record

• Ideal for city or small families

❌ Cons:

• Hard to find newer models

• No new warranty

🔄 Comparison: Cheapest Cars to Own – Highlights Table

🛠️ Tips to Keep Your Car Running Cheap

1. Stick to Capped-Price Servicing: Brands like Toyota, Kia, and Mazda offer this – use it!

2. Use the Right Tyres and Pressure: Reduces fuel usage and extends tyre life.

3. Avoid Premium Fuel (unless required): Most budget cars run on 91 RON.

4. Keep Insurance Competitive: Shop around yearly.

5. Don’t Delay Maintenance: Preventive care is cheaper than repairs.

💡 Final Thoughts: What’s the Best Budget Car in 2025?

There’s no one-size-fits-all answer, but if you're purely after value for money, the Kia Picanto, Toyota Yaris, and MG3 stand out as the most affordable to buy and run. For those needing more space or refinement, the Hyundai i30 or Mazda2 are excellent picks.

If you’re open to used options, the Honda Jazz and older Hyundai i20 models can be gems for less than $15K.

Buying a budget car doesn’t mean compromising on safety, comfort, or style. With the options available in 2025, smart Aussie drivers can enjoy low running costs without sacrificing peace of mind.