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

Top Budget Cars That Are Cheap to Own and Run in Australia (2025 Guide)

Introduction

In a time where fuel prices fluctuate, insurance premiums climb, and servicing costs vary dramatically, owning a car in Australia is more than just an upfront purchase—it’s about long-term affordability. If you're hunting for a budget car that’s cheap to buy, own, and run, this guide is for you.

We’ll take you through the most cost-effective vehicles available in 2025, covering both new and used models. From zippy hatchbacks to efficient sedans, this list is geared toward value-conscious Aussies looking to save on running costs without sacrificing comfort or reliability.

Why Budget Cars Matter in Australia

With the cost of living rising, every dollar saved matters. Budget cars allow drivers to:

• Minimise ongoing maintenance costs

• Save on fuel due to improved efficiency

• Lower insurance premiums

• Avoid high depreciation by choosing smart resale-value models

• Get more bang for their buck with better features at lower price points

What Makes a Car Cheap to Own and Run?

Before diving into the top picks, let’s define the criteria for affordability:

1. Low Fuel Consumption

Fuel-efficient cars can save you thousands annually. Most budget cars offer combined cycle consumption between 4.5L/100km and 6.5L/100km.

2. Affordable Insurance Premiums

Cars with smaller engines, strong safety ratings, and low theft rates tend to be cheaper to insure.

3. Low Servicing Costs

Fixed-price servicing plans, long service intervals, and low-cost parts all reduce maintenance expenses.

4. Reliable Performance

A reliable engine and fewer issues over time mean less money spent on breakdowns.

5. Strong Resale Value

Some budget cars depreciate slower due to demand, brand trust, and reliability.

Top Budget Cars in Australia – 2025 Picks

🔹 1. Kia Picanto S (Manual)

Driveaway Price: From $18,490
Fuel Efficiency: 5.0L/100km
Warranty: 7 years/unlimited km

Why It’s Cheap to Own:
This compact city car is a winner for young drivers and inner-city commuters. It offers fixed-price servicing, strong warranty support, and cheap parts. Plus, it’s surprisingly fun to drive.

Pros:

• Excellent resale value

• Cheap tyres and parts

• Low rego and insurance

🔹 2. MG3 Core

Driveaway Price: From $19,990
Fuel Efficiency: 6.7L/100km
Warranty: 7 years/unlimited km

Why It’s Popular:
Despite being a little thirstier than others, the MG3 is Australia’s best-selling light hatchback thanks to its low price, big infotainment screen, and generous space.

Pros:

• Large boot

• Value-packed features

• Long warranty

Cons:

• No autonomous emergency braking (AEB)

• Higher fuel consumption

🔹 3. Hyundai i20 N Line

Driveaway Price: From $27,990
Fuel Efficiency: 6.0L/100km
Warranty: 5 years/unlimited km

Why It’s on This List:
While pricier than the MG3, the i20 N Line offers better tech, safety features, and build quality. It’s one of the best all-rounders in terms of affordability, performance, and ownership cost.

Pros:

• Great infotainment and safety tech

• Turbocharged fun

• Low depreciation

🔹 4. Toyota Yaris Ascent Sport

Driveaway Price: From $25,500
Fuel Efficiency: 4.9L/100km
Warranty: 5 years/unlimited km

Why It’s Worth It:
Toyota’s reputation for reliability and resale value means you’ll save in the long run. The Yaris also boasts Toyota Safety Sense, making it a great pick for new or budget-conscious drivers.

Pros:

• Best-in-class fuel economy

• Stellar resale value

• Comprehensive safety suite

🔹 5. Suzuki Swift GL Plus

Driveaway Price: From $24,290
Fuel Efficiency: 4.8L/100km
Warranty: 5 years/unlimited km

Budget-Friendly Bonus:
Suzuki’s Swift is compact, reliable, and stylish. Parts are cheap, and it has a proven history of dependability.

Pros:

• Light on fuel

• Easy to park and maintain

• Surprisingly spacious

Affordable Used Cars That Still Deliver

Not everyone wants new. Here are used cars under $20K that are still cheap to own:

🔸 6. Mazda2 (2018–2022 models)

Used Price Range: $14,000–$18,000
Fuel Efficiency: 5.5L/100km
Why It’s Great:
Mazda2 models have a strong resale reputation and punch above their weight in styling and equipment.

🔸 7. Honda Jazz (2016–2020 models)

Used Price Range: $13,000–$16,000
Fuel Efficiency: 5.8L/100km
Why It Works:
Legendary for its magic seat system and reliability, the Jazz is ideal for urban life and budget drivers alike.

🔸 8. Hyundai Accent (2017–2019)

Used Price Range: $12,000–$15,000
Fuel Efficiency: 6.3L/100km
Why It Lasts:
Parts are cheap, the engine is unbreakable, and you’ll find plenty of them with full-service history.

Fuel Types and Ownership Costs Compared

Note: EVs can be cheap to run, but upfront cost is higher. Budget hybrids (like the Toyota Corolla Hybrid) offer a perfect middle ground.

Cheapest Cars to Maintain – Brands That Shine

Here’s a quick snapshot of the most affordable brands to service and maintain in Australia:

• Toyota – Vast network, long-lasting engines

• Suzuki – Simple and reliable engines

• Mazda – Great resale, low breakage rate

• Hyundai/Kia – Long warranties, capped servicing

• MG – Budget-friendly Chinese option, with growing support

Tips to Keep Your Budget Car Even Cheaper

1. Choose fixed-price servicing plans

2. Opt for smaller engines (under 1.5L)

3. Avoid luxury add-ons that increase repair cost

4. Check tyre size – smaller tyres = cheaper replacement

5. Consider insurance before buying

6. Stick with reliable brands with wide service networks

7. Buy used with full service history to avoid hidden issues

Budget Hatchbacks vs Budget Sedans – What’s Better?

For most Aussies in metro areas, hatchbacks offer a better deal overall.

Should You Buy Used or New?

Buy New If:

• You want warranty protection

• Prefer latest tech/safety

• Plan to keep car long-term

Buy Used If:

• You want to save 20–40% off RRP

• Don't mind basic features

• You’re buying a second car or short-term vehicle

Final Thoughts: Best Value Budget Car in 2025?

It’s hard to beat the Kia Picanto or Toyota Yaris for reliability and long-term value. But if you’re after the cheapest upfront deal, the MG3 remains unbeatable. For those with a little more budget, Hyundai i20 N Line offers better equipment and long-term joy.

Summary Table: Top Budget Cars to Own in 2025

Conclusion

Owning a car in Australia doesn’t have to be expensive. The key is choosing wisely based on fuel efficiency, servicing costs, insurance rates, and resale potential. Whether you're a student, family driver, or looking for a second vehicle, these budget-friendly models can help you cruise without breaking the bank.