Best Cars for Young Drivers in Australia | Safe & Affordable

Buying your first car is a milestone moment for young Australians. For many, it’s the first taste of independence, freedom, and responsibility on the road. But choosing the right car isn’t just about style—it’s about finding the perfect balance between affordability, safety, reliability, and running costs. For P-plate drivers and those new to car ownership, the market can feel overwhelming with so many options available in Australia.

This comprehensive guide explores the best cars for young drivers in Australia. We’ll cover what makes a car “P-plate friendly,” break down key considerations like insurance, maintenance, and safety ratings, and highlight the most popular models across hatchbacks, sedans, and compact SUVs that tick all the boxes for young Aussies.

Why Choosing the Right Car Matters for Young Drivers

For first-time drivers, the stakes are high. Unlike seasoned motorists, younger drivers are more likely to face higher insurance premiums and stricter driving restrictions, particularly with provisional licences. In addition, parents and families often worry most about safety and reliability.

The right car should:

• Be affordable to buy and run: Young drivers are often students or early in their careers, so upfront costs and ongoing expenses like fuel and servicing matter.

• Score high in safety ratings: Features like airbags, stability control, and advanced driver assistance systems (ADAS) can make a big difference in accident prevention.

• Be P-plate friendly: Some states restrict P-plate drivers from using high-powered vehicles, so choosing something within legal limits is essential.

• Offer low insurance premiums: Cars with smaller engines, lower repair costs, and strong safety records are cheaper to insure.

• Be practical: Compact size, easy manoeuvring, and good fuel efficiency are valuable in city driving and for daily commutes.

Key Factors Young Drivers Should Consider

Affordability and Budget

Price is the first barrier. Many young drivers shop in the $10,000–$25,000 range for used or entry-level new cars. Affordability doesn’t just mean the sticker price—it includes running costs, fuel economy, servicing, tyres, and unexpected repairs.

Safety Ratings

Australia’s ANCAP safety ratings are the benchmark. Cars with 4 or 5-star ratings are highly recommended. Safety tech such as autonomous emergency braking (AEB), lane-keep assist, and rear-view cameras are becoming standard, even in affordable models.

Fuel Efficiency

With petrol prices climbing, fuel economy plays a crucial role. Smaller hatchbacks typically deliver better mileage, but hybrids are gaining popularity for young eco-conscious drivers.

Insurance Costs

Insurance for young drivers can be expensive. Cars with lower power outputs, lower theft risk, and common availability of parts usually attract cheaper premiums.

P-Plate Restrictions

Each state has rules around power-to-weight ratios and high-performance vehicles. Young drivers should check their local state laws to ensure the car is legal to drive on P-plates.

Best Car Categories for Young Drivers

Hatchbacks

Compact, easy to drive, affordable, and cheap to maintain—hatchbacks are the go-to choice for young drivers. They also fit easily into tight parking spaces, making them perfect for urban lifestyles.

Small Sedans

Slightly larger than hatchbacks, sedans offer more boot space while still being affordable and efficient.

Compact SUVs

Young Aussies increasingly lean towards compact SUVs for their style and practicality. They offer higher driving positions, good safety ratings, and are often more fuel-efficient than larger SUVs.

Top Cars for Young Drivers in Australia

Toyota Corolla

The Toyota Corolla is a perennial favourite among young drivers and parents alike. Known for reliability, excellent resale value, and low running costs, it’s a safe bet. Most models score 5 stars in ANCAP testing, and newer models include advanced safety features as standard.

• Affordable insurance and servicing

• Fuel efficiency: 6–7L/100km

• Widely available parts and strong second-hand market

Mazda 3

The Mazda 3 combines stylish design with excellent handling. It’s fun to drive while being practical, fuel-efficient, and safe. With a reputation for durability, it appeals to young buyers who want something a little sportier without breaking the bank.

• Hatchback and sedan versions available

• 5-star ANCAP rating

• Strong resale and reputation for reliability

Hyundai i30

The Hyundai i30 has become a serious contender in Australia’s small car segment. Affordable, spacious, and well-equipped, it’s ideal for young drivers seeking value.

• Low running costs and capped-price servicing

• Modern infotainment and connectivity features

• Fuel-efficient with options for hybrid models

Kia Cerato

The Kia Cerato is a budget-friendly sedan/hatchback offering a long warranty (up to 7 years in Australia). It’s reliable, safe, and comes with modern features that young drivers love.

• Excellent warranty for peace of mind

• Affordable purchase price

• Good safety tech in newer models

Suzuki Swift

A classic first car in Australia, the Suzuki Swift is compact, zippy, and cheap to run. It’s ideal for city living and students on a budget.

• Great fuel efficiency (5–6L/100km)

• Easy manoeuvrability in tight spaces

• Popular with P-plate drivers

Honda Civic

The Honda Civic has a strong reputation for reliability and sporty looks. While slightly more expensive than a Swift or Corolla, it offers a blend of practicality and performance that appeals to younger drivers.

Ford Fiesta (Used)

While no longer sold new in Australia, the Ford Fiesta remains popular in the used market. Affordable and fun to drive, it’s still a strong option for budget-conscious young drivers.

Compact SUVs: Mazda CX-3 & Hyundai Venue

For those who prefer the higher driving position of an SUV, the Mazda CX-3 and Hyundai Venue are excellent options. Both are compact, stylish, and come packed with safety features while remaining affordable to run.

Electric and Hybrid Options for Young Drivers

Younger generations are more eco-conscious, and while EVs are still relatively expensive, hybrids and entry-level EVs are becoming more accessible.

• Toyota Yaris Hybrid: Combines fuel savings with compact practicality.

• MG ZS EV: One of the most affordable EVs in Australia, offering young drivers a chance to go electric on a budget.

• Hyundai Kona Electric (used market): A compact SUV that appeals to young, tech-savvy drivers.

Insurance and Finance Tips for Young Drivers

• Compare insurance quotes: Premiums vary widely. Always shop around.

• Consider excess options: A higher excess often reduces the premium but comes with risk.

• Think about comprehensive vs third-party: For older used cars, third-party may be enough. For new cars, comprehensive is a must.

• Look into financing carefully: Avoid overextending on a flashy car; financial discipline early on pays off later.

Maintenance and Running Costs

Owning a car isn’t just about the purchase—it’s about ongoing costs. Young drivers should look for:

• Capped-price servicing (many brands now offer this)

• Warranty coverage (Kia’s 7-year warranty, Toyota’s strong reputation)

• Tyre and part affordability (some European models may be pricier to maintain)

• Fuel economy (choosing a hybrid or small petrol engine pays off)

Safety Features Young Drivers Should Prioritise

• ABS and Stability Control – essential for maintaining control in emergencies.

• Autonomous Emergency Braking (AEB) – reduces rear-end collision risk.

• Blind-spot monitoring and lane assist – helps new drivers stay aware.

• Reversing cameras and parking sensors – ideal for city parking.

Conclusion: The Best First Cars in Australia

For young drivers in Australia, the best car is one that blends safety, affordability, and practicality. Hatchbacks like the Toyota Corolla, Hyundai i30, and Mazda 3 dominate for a reason—they’re affordable, safe, and reliable. Those looking for something compact and budget-friendly may love the Suzuki Swift, while small SUVs like the Mazda CX-3 offer style and a higher driving position without big costs.

Ultimately, the right choice depends on your budget, lifestyle, and driving needs. Whether you want something fun, eco-friendly, or purely practical, Australia’s car market in 2025 has a wealth of options for first-time drivers ready to hit the road with confidence.