Best Budget Cars Under $25K in Australia – Full 2025 List

Looking for a reliable, well-featured car without emptying your wallet? The Australian market in 2025 has no shortage of smart, value-packed cars under $25,000. Whether you're a first-time buyer, a student, or someone seeking a second runabout car for the household, these budget cars deliver far more than just affordability.

Let’s explore the top contenders across categories including hatchbacks, sedans, small SUVs and more — all available for under $25K in Australia in 2025.

🚗 Why Choose a Car Under $25K?

✅ Budget-Friendly, But Not Basic

Gone are the days when affordable cars meant sparse interiors and zero features. Many cars under $25,000 now come with advanced safety systems, touchscreen infotainment, Apple CarPlay/Android Auto, reverse cameras, and even autonomous emergency braking (AEB).

✅ Lower Running Costs

Most cars in this segment are compact and lightweight, meaning they’re easier on fuel and maintenance. Perfect for urban dwellers and those watching their budgets.

✅ Great for First-Time Buyers & Learners

With lower insurance premiums, easy handling, and P-plate approval in most cases, these vehicles are ideal for younger drivers.

🔟 Top 10 Budget Cars Under $25K in Australia – 2025

Here are the best new cars that fit within the $25,000 price tag:

1. MG3 Core Auto – From $18,990 Drive-Away

• Body Style: Hatchback

• Engine: 1.5L petrol

• Transmission: 4-speed automatic

• Fuel Economy: 6.7L/100km

Why It Stands Out:
Still one of Australia’s cheapest automatic hatchbacks, the MG3 delivers surprising interior space, modern styling and an 8-inch infotainment screen. It may lack advanced safety gear like AEB, but for sheer value, it’s unbeatable for a new car.

Ideal For: First-time buyers, urban use, budget-conscious shoppers.

2. Kia Picanto S – From $20,690 Drive-Away

• Body Style: Hatchback

• Engine: 1.0L or 1.25L petrol

• Transmission: Manual or auto

• Fuel Economy: 5.0–5.8L/100km

Why It Stands Out:
Fun to drive, compact enough to park anywhere, and loaded with personality, the Picanto is a favorite among city drivers. Even the base model includes an 8.0-inch touchscreen, Apple CarPlay/Android Auto, and reversing camera.

3. Hyundai i20 – From $22,290 Plus On-Road Costs

• Body Style: Hatchback

• Engine: 1.4L petrol

• Transmission: 6-speed manual / 4-speed auto

• Fuel Economy: 5.9L/100km

Why It Stands Out:
The i20 is a well-built, European-designed hatch offering excellent road manners, a modern cabin, and safety features like AEB, lane keeping assist, and driver attention warning in base trims.

4. Suzuki Swift GL – From $23,490 Drive-Away

• Body Style: Hatchback

• Engine: 1.2L petrol

• Transmission: CVT

• Fuel Economy: 4.8L/100km

Why It Stands Out:
Swift remains one of the most loved hatchbacks for good reason. Excellent fuel economy, great handling, solid resale value, and standard safety tech like AEB make it a smart all-rounder.

5. Mazda2 Pure – From $24,990 Drive-Away

• Body Style: Hatchback or sedan

• Engine: 1.5L petrol

• Transmission: 6-speed auto

• Fuel Economy: 5.0L/100km

Why It Stands Out:
Mazda2 feels a class above with premium design and materials. It’s refined, safe (AEB, rear sensors, lane departure warning), and surprisingly well-equipped in the base version.

6. Toyota Yaris Ascent Sport – From $23,990 Drive-Away

• Body Style: Hatchback

• Engine: 1.5L petrol

• Transmission: CVT

• Fuel Economy: 4.9L/100km

Why It Stands Out:
A proven nameplate with bulletproof reliability, Yaris packs in smart features like adaptive cruise, AEB with pedestrian detection, and a 7.0-inch touchscreen. Backed by Toyota’s strong aftersales network.

7. Mitsubishi Mirage ES – From $18,990 Drive-Away

• Body Style: Hatchback

• Engine: 1.2L petrol

• Transmission: CVT

• Fuel Economy: 4.7L/100km

Why It Stands Out:
One of Australia’s cheapest cars, the Mirage is simple and reliable. Great for A-to-B driving, it includes essentials like AEB and reverse camera, though interior and ride feel basic.

8. Honda City VTi – From $24,990 Drive-Away

• Body Style: Sedan

• Engine: 1.5L petrol

• Transmission: CVT

• Fuel Economy: 5.4L/100km

Why It Stands Out:
A spacious and efficient small sedan with sedan-sized boot practicality. It gets Apple CarPlay/Android Auto, cruise control, and Honda’s legendary build quality.

9. Suzuki Baleno – From $22,990 Drive-Away

• Body Style: Hatchback

• Engine: 1.4L petrol

• Transmission: Auto

• Fuel Economy: 5.4L/100km

Why It Stands Out:
Discontinued globally but still available in Australia (at time of writing), the Baleno delivers huge cabin space, smooth ride, and exceptional value.

10. Hyundai Venue (Base) – From $24,990 Drive-Away

• Body Style: Compact SUV

• Engine: 1.6L petrol

• Transmission: Auto

• Fuel Economy: 7.2L/100km

Why It Stands Out:
It’s rare to find an SUV under $25K, but the Venue squeezes in. It includes an 8.0-inch screen, wireless smartphone mirroring, lane-keeping assist and Hyundai’s 5-year warranty.

🔧 Honorable Mentions (Just Under or Near the $25K Mark)

• MG ZS Core SUV – From $25,490

• Kia Rio S Hatch – From $25,590

• Citroen C3 You – From $25,000

• Skoda Fabia – From $25,490

• Fiat 500 Lounge – From $25,000

With on-road costs and dealer offers, these may dip just below $25K in some regions.

🔍 What to Consider When Buying a Budget Car

1. Safety Ratings

Look for cars with ANCAP 5-star safety rating and features like AEB, lane keeping assist, and multiple airbags.

2. Warranty & Servicing

Consider cars that offer long warranties and capped price servicing. MG, Kia, Hyundai, and Mitsubishi often lead in this area.

3. Resale Value

Brands like Toyota, Mazda, and Honda hold value better in the long run, which may save you money when you trade up.

4. Ownership Costs

Factor in insurance, fuel consumption, and service intervals. Even a cheap car with high running costs can become expensive over time.

💡 Used Cars: Even More Value

If you’re open to a used car, $25K can get you a lightly-used:

• Toyota Corolla (2022–2023)

• Hyundai i30 (2021–2022)

• Kia Cerato (2021–2023)

• Mazda3 or Mazda CX-3

• Honda Civic (2020–2022)

Make sure to get a full service history and an inspection before buying used.

🏁 Final Thoughts: Which Budget Car Is Right for You?

Choosing the right car under $25K in Australia comes down to your priorities:

• For value: MG3, Kia Picanto, or Mirage

• For safety & resale: Toyota Yaris, Mazda2

• For space: Hyundai Venue, Honda City

• For city driving: Suzuki Swift, Hyundai i20

With increasing competition in this segment, 2025 is a fantastic year to grab a capable and affordable new car without compromising on features.