In 2025, the demand for small cars is booming. More than ever, Australians are choosing vehicles that are not only stylish and compact, but also reliable, cheap to run, and easy to maintain. Whether you’re looking for the best small car for inner-city travel, a mini SUV for light adventures, or a small hybrid that reduces fuel costs, there’s a perfect fit for every type of driver.

Modern small cars tick all the right boxes:

• Affordable to buy and keep on the road
• Excellent fuel efficiency and rising EV options
• Great resale value compared to larger vehicles
• Easier parking and lower insurance costs
• Loaded with tech, comfort, and safety features

Thanks to automakers like Toyota, Mazda, Hyundai, and Kia, the best compact cars and small SUVs offer premium experiences at an accessible price point. Whether you’re searching for a reliable used small car or the best small car for 2025, we’ll cover the top picks backed by real-world reviews and performance data.

If you’re ready to browse now, explore Australia’s top deals on used small cars for sale or connect with trusted car dealers.

Top Compact Cars for Urban Commuters in 2025

1. Toyota Corolla Hatchback

One of the world’s best small cars for decades, the Toyota Corolla Hatchback remains a top choice for Australian city drivers in 2025.

Pros:

• Outstanding reliability and easy maintenance
• Hybrid option offers extremely cheap running costs
• Smooth, quiet ride perfect for city traffic
• Top resale value in the compact category

Cons:

• Smaller boot space compared to rivals (217L)
• Rear seats can feel cramped for taller passengers

Real Reviews Insight:
Owners praise the Corolla for its bulletproof reliability, cheap insurance, and fuel savings — a true “set and forget” car ideal for busy lifestyles.
Looking to find deals on a reliable used Corolla? Check our Used Cars for Sale.

2. Mazda 3 Hatchback

Another strong contender for best small car in 2025, the Mazda3 blends premium cabin quality with sporty handling.

Pros:

• Premium interior feel, comparable to luxury brands
• Superb ride comfort for a small car
• Excellent safety tech even on base models

Cons:

• Higher starting price than Corolla
• Slightly firm ride on larger wheels

Real Reviews Insight:
Australian owners often note the Mazda3’s “grown-up driving feel,” calling it a mini luxury car without the luxury price tag.
Check our guide on How to Find the Best Used Car Deals if you want a used Mazda3 bargain.

Quick Comparison Table: Toyota Corolla vs Mazda3

Summary:
If you prioritize reliability, lower maintenance, and fuel economy, the Toyota Corolla is still king.
If you want a more premium small car with a touch of sportiness, the Mazda3 is worth the stretch.

3. Hyundai i30 Hatchback

Pros:

• Affordable to buy and run
• Good reliability track record in Australia
• Spacious interior for a compact car
• User-friendly infotainment

Cons:

• Ride can feel firm over rough city roads
• Basic interior compared to Mazda3

Real Reviews Insight:
Owners love its “value for money” and “low maintenance costs,” making it a solid pick for budget-focused commuters.
Explore more budget options in our Best Cars Under $10,000 in Australia guide.

4. Kia Cerato Hatch

Pros:

• Australia’s longest warranty
• Great resale value thanks to brand reputation
• Larger boot space (428L) than most small hatchbacks
• Smooth driving dynamics

Cons:

• Higher fuel consumption than Toyota and Hyundai rivals
• No hybrid variant available yet

Real Reviews Insight:
Australian drivers call it “the best small car for those who want low costs and maximum peace of mind.”
Looking to sell your old car first? Learn How to Sell Your Car Online Safely.

5. Volkswagen Golf

Pros:

• Premium interior fit and finish
• Outstanding road handling
• Strong resale value among European small cars
• Plenty of safety tech as standard

Cons:

• Higher purchase price compared to Japanese rivals
• Maintenance costs slightly higher long-term

Real Reviews Insight:
Many reviews call the Golf “the best small car for driving enthusiasts” — offering near-luxury experience for compact car buyers.

Related Link:
Discover why comfort matters too — visit Most Comfortable Cars in Australia.

Quick Small Car Comparison: Top 5 Compact Cars for 2025

Small Car Features Comparison Table: Top 5 Compact Cars for 2025]

Top Small SUVs in Australia for 2025 – Comfort, Versatility, and Style

If you’re searching for the best small car that blends high seating position, urban maneuverability, and family-ready features, small SUVs are leading the market in 2025. These compact vehicles offer ample cargo space, fuel efficiency, and advanced safety features, making them a popular choice for Australian drivers.

Below are the top-rated small SUVs that deserve a spot on your shortlist this year:

1. Toyota Yaris Cross

• Price Range: $30,000 – $36,000 AUD
• ANCAP Rating: 5 stars
• Fuel Efficiency: 3.8 L/100km (Hybrid)
• Pros: Excellent fuel economy, hybrid option, strong resale value
• Cons: Rear legroom is limited
• Why it’s a top pick: Toyota’s legendary reliability combined with the benefits of a compact SUV make the Yaris Cross a best small car contender for city drivers.

Learn more: best fuel-efficient cars under 10K or how to choose the right car for your budget.

2. Mazda CX-3

• Price Range: $26,800 – $38,800 AUD
• ANCAP Rating: 5 stars
• Fuel Efficiency: 6.3 L/100km
• Pros: Stylish design, intuitive infotainment, fun to drive
• Cons: Less boot space than some rivals
• Why it’s great: Mazda CX-3 is often praised as one of the best small cars for first-time SUV buyers seeking a balance of performance and practicality.

You can find deals for models like this in our used cars for sale in Australia listings.

3. Hyundai Kona

• Price Range: $32,000 – $45,000 AUD
• ANCAP Rating: 5 stars
• Fuel Efficiency: 6.2 L/100km
• Pros: Tech-loaded, reliable, sharp looks
• Cons: Slightly firmer ride
• Verdict: With its hybrid and electric variants, the Kona is a forward-looking option in the best small car segment.

4. Kia Seltos

• Price Range: $30,000 – $42,000 AUD
• ANCAP Rating: 5 stars
• Fuel Efficiency: 6.9 L/100km
• Pros: Spacious cabin, smooth ride, excellent infotainment
• Cons: Base models lack advanced features
• Why it stands out: A rising star in the compact SUV segment, the Seltos earns its place as one of the best small cars for Australian families.

See how it stacks up to similar models in our guide to long-distance travel cars.

5. Subaru Crosstrek (previously XV)

• Price Range: $34,000 – $44,000 AUD
• ANCAP Rating: 5 stars
• Fuel Efficiency: 6.5 L/100km
• Pros: AWD standard, excellent ground clearance, great for weekend trips
• Cons: Slightly outdated infotainment interface
• Why it’s a solid option: For those seeking versatility in a best small car, the Crosstrek delivers on rugged appeal and everyday usability.

Comparison Table: Best Small Cars to Buy in 2025 (SUV Category)

Best Small Electric Cars for 2025 – Efficient, Quiet, and Future-Ready

Electric vehicles (EVs) are rapidly gaining popularity, especially in the compact category. If you’re searching for the best small car that’s both eco-friendly and perfect for city life, these small electric cars for 2025 stand out for their performance, practicality, and value.

1. MG4 Electric

• Battery Range: Up to 530 km
• Charging Time: 80% in 30 minutes (DC fast charging)
• Starting Price: $38,990 (AUD)
• ANCAP Rating: 5 Stars
• Pros: Budget-friendly, long range, spacious for its size
• Cons: Some cabin materials feel basic
• Internal Link: See full used cars for sale in Australia

2. Hyundai Kona Electric

• Battery Range: Up to 484 km
• Charging Time: 10–80% in 47 minutes (DC)
• Starting Price: $54,500 (AUD)
• ANCAP Rating: 5 Stars
• Pros: Proven track record, excellent tech
• Cons: High entry price
• Find a deal on cars for sale

3. BYD Dolphin

• Battery Range: Up to 427 km
• Charging Time: Approx. 30 min (fast charge)
• Starting Price: $38,890 (AUD)
• ANCAP Rating: Pending (Expected 5 Stars)
• Pros: Extremely affordable, high-tech features
• Cons: Brand still building reputation in Australia
• See top deals on used cars

4. Mini Electric Hatch (Cooper SE)

• Battery Range: Up to 233 km
• Charging Time: 80% in ~36 minutes (DC)
• Starting Price: $55,650 (AUD)
• ANCAP Rating: 4 Stars
• Pros: Fun to drive, stylish, iconic brand
• Cons: Shorter range compared to rivals

5. Nissan Leaf

• Battery Range: 270 km
• Charging Time: 80% in 40 minutes
• Starting Price: $50,990 (AUD)
• ANCAP Rating: 5 Stars
• Pros: Long-standing EV reputation, smooth ride
• Cons: Design starting to feel outdated
• Learn more in our electric car reviews

Small Electric Cars Comparison – 2025 Models

All of these options qualify as a best small car in the electric category and cater to a range of budgets, offering an environmentally friendly alternative to petrol and diesel vehicles. You can explore more used electric small cars for sale in Australia here.

If you’re planning your next move towards an EV, it’s smart to explore the latest insights into Australia’s EV market to make an informed decision.

Best Small SUVs for Seniors in 2025 – Comfortable, Safe, and Easy to Drive

If you’re a senior driver or helping someone choose a car later in life, the best small car needs to go beyond fuel efficiency—it must offer comfort, safety, easy access, good resale value, and user-friendly features. In 2025, several compact SUVs and mini SUVs meet these criteria.

Here are the top small SUVs for seniors in Australia:

1. Toyota Corolla Cross

• Why seniors love it: Low step-in height, wide-opening doors, great visibility
• Key features: Toyota Safety Sense, adaptive cruise, digital instrument cluster
• Price Range: From $36,000–$45,000 (AUD)
• ANCAP Safety Rating: 5 stars
• Resale value: Excellent
• Smooth drive, easy entry, excellent after-sales support
• Check out our review of the Toyota Corolla Cross

2. Subaru XV (Crosstrek 2025)

• Why seniors love it: AWD for stability, comfortable suspension
• Key features: EyeSight driver assist, high seating, excellent ride height
• Price Range: From $34,990 (AUD)
• ANCAP Safety Rating: 5 stars
• Resale value: Strong in regional Australia
• All-wheel drive, simple infotainment, high build quality

3. Mazda CX-3

• Why seniors love it: Compact size, easy controls, top-tier reliability
• Key features: Mazda Connect, heads-up display, blind-spot monitoring
• Price Range: From $26,800–$37,000 (AUD)
• ANCAP Safety Rating: 5 stars
• Resale value: Very strong
• Excellent for downsizing from a sedan, comfortable seats, great for city driving

4. Honda HR-V

• Why seniors love it: Flexible “Magic Seat” system, soft ride, wide windows
• Key features: Honda Sensing, large digital display, roomy interior
• Price Range: From $36,700 (AUD)
• ANCAP Safety Rating: 5 stars
• Resale value: Stable
• Spacious and flexible, great for errands, easy touchscreen layout

5. Kia Seltos

• Why seniors love it: Taller stance, easy ingress, solid visibility
• Key features: Rear cross-traffic alert, Apple CarPlay/Android Auto
• Price Range: From $32,000–$42,000 (AUD)
• ANCAP Safety Rating: 5 stars
• Resale value: High demand in used market
• Wide door openings, plenty of tech, strong safety profile

For more options on the best small cars with easy handling, resale value, and driver-friendly features, explore our full range of cars for sale or get insights from our best cars for long-distance travel in Australia.

Best Small SUVs Comparison for Seniors

These models are all excellent picks if you’re looking for the best small car that balances size, safety, and senior-friendly features. All are also known for good resale value and reliability, making them top choices in Australia’s compact SUV segment.

Best Small Cars Under $20,000 in Australia 2025 – Affordable Picks That Impress

Finding the best small car that is both affordable and reliable can feel like searching for a needle in a haystack. Fortunately, there are fantastic small cars under $20,000 available for Aussie buyers, offering a great balance of price, features, safety, and resale value.

Here are the top affordable small cars to consider:

1. Suzuki Swift

• Price: From $18,490 AUD (new)
• Engine: 1.2L petrol
• Features: Apple CarPlay, autonomous emergency braking
• Pros: Excellent fuel economy, fun to drive, reliable
• Cons: Rear seat space is tight
• ANCAP Rating: 5 stars

2. Kia Picanto

• Price: From $17,890 AUD (new)
• Engine: 1.25L petrol
• Features: Rear parking sensors, touchscreen infotainment
• Pros: Cheap running costs, nimble for city use
• Cons: Limited highway performance
• ANCAP Rating: 4 stars

3. MG3 Hatch

• Price: From $19,490 AUD (new)
• Engine: 1.5L petrol
• Features: 8-inch touchscreen, Bluetooth, reversing camera
• Pros: Low upfront cost, sporty styling
• Cons: No active safety tech
• ANCAP Rating: 3 stars

4. Hyundai i20 (Used)

• Price: From $16,000–$19,500 AUD (used market)
• Engine: 1.4L petrol
• Features: Cruise control, touchscreen
• Pros: Proven reliability, easy parts availability
• Cons: Basic interior in older models
• ANCAP Rating: 5 stars (recent models)

5. Mazda 2 (Used)

• Price: From $15,000–$19,800 AUD (used market)
• Engine: 1.5L petrol
• Features: Smart City Brake Support, reverse camera
• Pros: Excellent resale value, great fuel efficiency
• Cons: Compact rear seat
• ANCAP Rating: 5 stars

Comparison Table: Best Small Cars Under $20K in Australia

Buying a best small car under $20,000 doesn’t mean you have to compromise on safety, performance, or resale potential. Explore more affordable small cars and compact vehicles through our extensive cars for sale listings.

Also, if you want to understand how much negotiation room you have on used models, read our complete guide on how much can you negotiate on a used car in Australia.

Best Compact Luxury Cars to Buy in 2025 – Style, Comfort, and Performance Combined

When looking for the best small car that offers premium features, sleek design, and top safety, compact luxury cars are the perfect choice. These vehicles deliver the elegance of larger luxury models but in a more manageable and fuel-efficient size, making them ideal for both city and highway driving in Australia.

Here are the top compact luxury cars in 2025:

1. Mercedes-Benz A-Class Hatchback

• Price: From $63,000 AUD
• Engine: 2.0L Turbocharged Petrol
• Features: MBUX infotainment, digital cockpit, ambient lighting
• Pros: Class-leading tech, sporty handling, premium interior
• Cons: Higher servicing costs
• ANCAP Rating: 5 stars

2. Audi A3 Sportback

• Price: From $55,400 AUD
• Engine: 2.0L Petrol
• Features: Virtual cockpit, adaptive cruise control
• Pros: High build quality, comfortable ride
• Cons: Smallish boot
• ANCAP Rating: 5 stars

3. BMW 1 Series

• Price: From $58,900 AUD
• Engine: 2.0L Turbocharged Petrol
• Features: iDrive system, sport seats, wireless Apple CarPlay
• Pros: Engaging drive, great resale value
• Cons: Rear seat space a bit tight
• ANCAP Rating: 5 stars

4. Lexus UX200

• Price: From $49,495 AUD
• Engine: 2.0L Petrol
• Features: Lexus Safety System+, adaptive cruise, premium sound
• Pros: Strong reliability, impressive interior quality
• Cons: Limited rear cargo space
• ANCAP Rating: 5 stars

5. Volvo XC40

• Price: From $55,990 AUD
• Engine: 2.0L Turbocharged Petrol
• Features: Pilot Assist, panoramic roof, 360-degree camera
• Pros: Safety leader, Scandinavian design
• Cons: Pricier options
• ANCAP Rating: 5 stars

Comparison Table: Best Compact Luxury Cars 202

If you’re considering a best small car that doesn’t sacrifice luxury, these compact models offer unbeatable quality, high ANCAP ratings, and excellent resale value. Explore more luxury options on our full used cars for sale inventory page at AusCarSales.

You can also check out our expert guide to selling your car online in Australia if you plan to upgrade to one of these new luxury rides.

Most Reliable Small Cars 2025: Long-Lasting and Worry-Free Picks

If you’re searching for the best small car to buy in 2025, you’re in luck — the market offers a wide range of compact, economical, and stylish vehicles for every kind of driver. Whether you’re looking for a small car that delivers top fuel efficiency, strong reliability, great resale value, or just something perfect for city driving, there are outstanding options to consider. For buyers aiming to find reliable used cars in Australia, focusing on the best small cars can ensure affordability without sacrificing quality.

Top Picks for the Most Reliable Small Cars in 2025

1. Toyota Corolla

• Price: From $29,270 AUD
• Engine: 2.0L Petrol or Hybrid
• Key Features: Toyota Safety Sense, 5-Year Unlimited KM Warranty
• Pros: Legendary reliability, affordable servicing, strong resale value
• Cons: Smaller rear seat space compared to rivals
• ANCAP Rating: 5 stars

The Toyota Corolla remains a top contender for those wanting the best small car with a proven track record. Learn why it’s also one of the best cars for first-time buyers.

2. Mazda 3

• Price: From $30,470 AUD
• Engine: 2.0L Petrol
• Key Features: G-Vectoring Control, Mazda Connect Infotainment
• Pros: Premium interior for the price, strong reliability
• Cons: Firm ride quality on bigger wheels
• ANCAP Rating: 5 stars

For drivers who want a best small car that’s fun and reliable, the Mazda 3 delivers excellent handling with low maintenance costs.

3. Honda Civic

• Price: From $34,900 AUD
• Engine: 1.5L Turbocharged Petrol
• Key Features: Honda Sensing Safety Suite, Digital Display
• Pros: Strong engine reliability, sporty design
• Cons: Higher entry price
• ANCAP Rating: 5 stars

The Honda Civic continues to be a smart choice for those seeking a sporty small car with a solid reliable reputation.

4. Hyundai i30

• Price: From $25,990 AUD
• Engine: 2.0L Petrol
• Key Features: SmartSense Safety, 5-Year Unlimited KM Warranty
• Pros: Affordable ownership, low servicing costs
• Cons: Basic interior on lower trims
• ANCAP Rating: 5 stars

If you’re looking for an economical best small car, the Hyundai i30 blends affordability with a strong reliability record.

5. Subaru Impreza

• Price: From $31,490 AUD
• Engine: 2.0L Boxer Petrol AWD
• Key Features: Symmetrical AWD, EyeSight Driver Assist
• Pros: Standard AWD, solid build quality
• Cons: Average fuel economy
• ANCAP Rating: 5 stars

Thanks to its all-wheel-drive system and rugged build, the Subaru Impreza is another best small car pick for buyers who want year-round reliability.

Comparison Table: Most Reliable Small Cars 202

If you’re also considering used options, browse through our carefully selected used cars for sale to find reliable small models at great prices.

And if you want to get the best price when selling your car, read our expert guide on how to sell your car locally in Australia.

Best Small Hybrid Cars for 2025

As demand for greener driving continues to rise, the best small car options in 2025 now heavily include hybrids. A small hybrid car gives you the perfect balance between fuel efficiency, lower emissions, and affordable ownership costs. These vehicles are ideal if you’re looking for an economical, practical, and future-proof small car without stepping into full-electric territory.

Here’s a detailed look at the best small hybrid cars you can buy in 2025:

1. Toyota Yaris Cross Hybrid

Why It’s a Top Pick:
The Toyota Yaris Cross Hybrid blends SUV practicality with the nimble handling of a best small car. Its fuel efficiency is outstanding at 4.3L/100km, making it perfect for city and suburban life. Toyota’s bulletproof reliability also means great resale value when you decide to upgrade.

Pros:

• Excellent fuel economy
• High driving position like an SUV
• Superb Toyota build quality

Cons:

• Slightly tight rear seat space
• Higher entry price than standard small hatchbacks

Looking for more reliable options? Check out our guide on the best used cars in Australia.

2. Honda HR-V e:HEV

Why It’s a Top Pick:
The Honda HR-V e:HEV offers premium materials inside and legendary Honda dependability. It’s a smart choice if you want a best small car that feels upscale and drives smoothly.

Pros:

• Stylish and practical
• Strong hybrid performance
• Excellent cabin comfort

Cons:

• Premium pricing
• Small boot compared to rivals

For families seeking a small car with great comfort for long journeys, explore our best cars for long-distance travel in Australia.

3. Kia Niro Hybrid

Why It’s a Top Pick:
Kia’s Niro Hybrid stands out in the best small hybrid car category thanks to its feature-packed design, tech-loaded interior, and great value ownership. With 4.7L/100km economy, it’s a real money saver.

Pros:

• Advanced safety features
• Spacious for a small crossover
• 7-year warranty peace of mind

Cons:

• Higher price tag than smaller hatch hybrids
• Average driving dynamics

If you are upgrading to a hybrid, selling your older car is easier with AUS CarSales’ guide to selling your car online.

4. Hyundai Kona Hybrid

Why It’s a Top Pick:
The Hyundai Kona Hybrid brings a sporty design combined with efficient hybrid tech. For drivers wanting a best small car that’s fun and practical, the Kona Hybrid is hard to overlook.

Pros:

• Engaging handling for a hybrid
• Sharp, modern styling
• Comprehensive safety suite

Cons:

• Rear seat headroom could be better
• Boot space smaller than some rivals

Explore used Konas and other hybrids through our cars for sale listings.

5. Toyota Corolla Hybrid

Why It’s a Top Pick:
A legend among small cars, the Toyota Corolla Hybrid continues to dominate thanks to its unmatched reliability, low running costs, and impressive hybrid efficiency.

Pros:

• Proven durability
• Excellent resale value
• Smooth hybrid performance

Cons:

• Rear visibility isn’t great
• No AWD option

Want to sell your older petrol car easily before switching to a hybrid? Learn how in our step-by-step guide to selling privately.

Summary: Each of these models provides an outstanding mix of economy, reliability, comfort, and strong resale value — essential qualities when choosing the best small car. Whether you prioritize maximum fuel savings, a stylish interior, or strong warranty coverage, there’s a small hybrid car on this list for you in 2025.

Frequently Asked Questions About Best Small Cars 2025

Conclusion: Choosing Your Best Small Car for 2025

Choosing the best small car in 2025 means balancing fuel economy, safety, comfort, and resale value. Whether you’re considering a reliable hybrid like the Toyota Corolla, a stylish mini SUV like the Yaris Cross, or a futuristic electric option like the MG4 EV, today’s small car market offers something for every lifestyle and budget.

For city dwellers, compact hatchbacks and hybrids deliver low running costs and easy maneuverability. For families and seniors, compact SUVs blend accessibility with cargo space and comfort. And if you’re thinking about switching to electric, a growing range of affordable small EVs are making that easier than ever.

Before making your final decision, don’t forget to explore AUS CarSales’ car listings to find the perfect small car at the right price — and if you’re selling your current vehicle, our car selling guides offer everything you need for a hassle-free experience.

With so many outstanding options in 2025, there’s never been a better time to upgrade to the best small car that matches your needs, style, and budget!

Safety is a top priority when choosing the best small car, especially for families and seniors. To make an informed decision, always check the ANCAP safety rating of any vehicle you’re considering. ANCAP (Australasian New Car Assessment Program) independently tests and rates cars sold in Australia for crash safety and protection. You can view the latest safety ratings and detailed test results directly on the official ANCAP website.