Best Cars for Students in Australia | Cheap, Reliable & Practical

Owning a car as a student in Australia can be both a necessity and a challenge. Whether you’re commuting to university, working a casual job after class, or taking weekend trips with friends, a reliable vehicle makes life easier. But with tight budgets, rising fuel prices, and limited experience in the car market, students need to find vehicles that are not only affordable but also practical, safe, and easy to maintain.

This guide explores the best cars for students in Australia, focusing on affordable hatchbacks, budget sedans, compact SUVs, and reliable used cars. We’ll also touch on important considerations like running costs, insurance, and financing options, so students and parents can make informed decisions.

What Students Should Look for in a Car

Before diving into specific car recommendations, let’s outline the features that matter most to students in Australia:

• Affordability: Purchase price is often the top concern, with many students working part-time or relying on savings.
• Running Costs: Cars with good fuel efficiency, low servicing costs, and affordable parts are ideal.
• Reliability: Students don’t have the time or money to deal with frequent breakdowns.
• Safety: Strong safety ratings provide peace of mind for young, often inexperienced drivers.
• Size & Parking: Compact cars are easier to park on campus or in crowded urban areas.
• Insurance Costs: Cheaper, smaller cars generally mean lower insurance premiums.
• Resale Value: Choosing a car that holds value well can make upgrading later much easier.

With these factors in mind, let’s explore the best vehicle categories for Australian students.

Affordable Hatchbacks for Students

Hatchbacks remain the most popular choice among student drivers in Australia. They’re cheap to buy, fuel-efficient, and easy to maneuver in city traffic. Here are some of the top hatchbacks worth considering:

Toyota Yaris

The Toyota Yaris has long been a student favourite. Known for its bulletproof reliability and low running costs, the Yaris is easy to park and offers excellent fuel economy. While new models are pricier, used Yaris models are abundant and affordable in the second-hand market.

Why it’s good for students:

• Strong resale value
• Cheap to maintain
• High reliability reputation

Hyundai i30

The Hyundai i30 is one of Australia’s top-selling small cars, offering a balance of affordability and features. It’s slightly larger than a Yaris or Mazda2, making it great for students who carpool or need more boot space.

Why it’s good for students:

• Affordable servicing through capped-price programs
• Modern infotainment system with Apple CarPlay/Android Auto
• Spacious interior for a hatch

Mazda2

Compact, stylish, and reliable, the Mazda2 is perfect for students who mostly drive around town. While smaller inside, it shines in parking convenience and has one of the lowest fuel consumption rates in its class.

Why it’s good for students:

• Small, city-friendly footprint
• Fun to drive
• Excellent reputation for reliability

Budget Sedans for Students

While hatchbacks are the go-to choice, sedans offer more boot space and often better long-distance comfort. Students who travel between cities for uni or go home on weekends might prefer these options.

Toyota Corolla Sedan

The Corolla is legendary for reliability and is available in both hatch and sedan. The sedan version provides more luggage space and is equally fuel-efficient, making it one of the safest bets for students.

Kia Cerato

The Kia Cerato offers great value with a long factory warranty. Students benefit from modern tech features, roomy interiors, and affordable servicing.

Honda Civic (Used Models)

While new Civics are more premium, older models are an excellent buy for students. They offer sporty looks, reliable performance, and decent resale value.

Compact SUVs: A Growing Choice for Students

Though not as cheap as hatchbacks, compact SUVs are increasingly popular among younger drivers who want more versatility and a higher driving position.

Mazda CX-3

Stylish, safe, and compact, the Mazda CX-3 is perfect for urban students who still want the feel of an SUV. It’s pricier than a hatch, but used models fall into student budgets.

Hyundai Kona

The Kona stands out with bold design and technology features, appealing to style-conscious students. It’s practical enough for weekend trips yet small enough for city driving.

Best Used Cars for Students

For many students, buying new simply isn’t an option. The used car market offers affordable and reliable choices—often with better value.

Toyota Camry

Older Camry models are excellent for students needing more space at a bargain price. They’re known for durability and are widely available.

Holden Barina (Used)

Though Holden no longer sells new cars, the Barina remains a popular budget-friendly option in the used market.

Suzuki Swift

Fun, compact, and cheap to run, the Suzuki Swift is a popular student car that also holds value well.

Cheap Electric and Hybrid Options for Eco-Conscious Students

As EV adoption grows in Australia, students may consider going electric, especially if they live in cities with good charging infrastructure.

Nissan Leaf (Used)

One of the most affordable EVs in Australia’s second-hand market. Perfect for short commutes and eco-conscious students.

Toyota Prius (Used Hybrid)

Reliable, cheap to run, and eco-friendly, older Prius models can be an excellent choice for students who drive frequently.

Running Costs: What Students Must Budget For

Buying a car is just the start—students also need to consider ongoing costs. Typical running costs include:

• Fuel: Hatchbacks and hybrids are more fuel-efficient, saving money long-term.
• Insurance: First-time drivers face higher premiums, but smaller cars are cheaper to insure.
• Registration & Licensing: Compulsory yearly costs that vary by state.
• Maintenance & Repairs: Budget-friendly brands like Toyota, Hyundai, and Mazda shine here.
• Tyres & Other Wear Items: Should be factored into annual expenses.

Financing and Insurance Tips for Students

• Consider Used Over New: Depreciation hits new cars hardest in the first few years.
• Look Into Student-Friendly Car Loans: Some banks and credit unions offer low-rate loans for younger buyers.
• Compare Insurance Quotes: Shopping around can save hundreds per year.
• Third-Party vs Comprehensive Insurance: Students with cheaper cars may find third-party cover more cost-effective.

Safety Considerations for Student Cars

Safety shouldn’t be compromised, even on a budget. Look for cars with:

• ANCAP safety rating of 4 stars or above
• Airbags (front and side)
• ABS and stability control
• Newer used models with driver-assist features (lane keep, auto emergency braking)

Final Thoughts: Choosing the Best Student Car in Australia

For students, the best car is one that balances affordability, safety, and reliability. Hatchbacks like the Toyota Yaris, Hyundai i30, and Mazda2 remain top picks, while budget sedans like the Corolla and Cerato offer more space. For adventurous students, compact SUVs like the Mazda CX-3 are appealing, while eco-conscious drivers may find value in a used Nissan Leaf or Toyota Prius.

By considering running costs, insurance, and long-term value, students in Australia can make smart car-buying choices that fit their lifestyle and budget.