Searching for the best small car in Australia? Explore our complete guide to the best small cars, compact SUVs, and hybrid small SUVs—from affordable hatchbacks to luxury compact cars. Compare good small cars, top rated small SUVs, sporty compact SUVs, best small electric cars, and reliable small vehicles with prices, ratings, features, pros and cons from 2015 to 2025. Find the best small car to buy for families, city driving, or long-distance travel—whether you want a cool little car, a compact SUV AWD, or the safest small SUV on the market.
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.
Best Compact Hatchback Cars in Australia for Urban Commuters.
1. Toyota Corolla Small Hatchback : One Of The Best Compact Cars.
One of the world’s best small cars for decades, the Toyota Corolla Hatchback remains a top choice for Australian city drivers in 2025.
| Feature | Details |
|---|---|
| Price Range | From $29,000 AUD |
| Fuel Economy | 5.9L/100km (petrol) |
| ANCAP Rating | 5-Star (2024 model) |
| Resale Value | Very High (retains ~70% value after 3 years) |
| Powertrain Options | Petrol & Hybrid |
| Warranty | 5 years unlimited km |
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.
2. Mazda 3 One of the Best Small Hatchbacks Cars.
Another strong contender for best small car in 2025, the Mazda3 blends premium cabin quality with sporty handling.
| Feature | Details |
|---|---|
| Price Range | From $32,500 AUD |
| Fuel Economy | 6.3L/100km |
| ANCAP Rating | 5-Star (2023 update) |
| Resale Value | High (~68% retained after 3 years) |
| Powertrain Options | Petrol, Mild Hybrid |
| Warranty | 5 years unlimited km |
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
| Feature | Toyota Corolla Hatchback | Mazda3 Hatchback |
|---|---|---|
| Starting Price (AUD) | $29,000 | $32,500 |
| Fuel Economy | 5.9L/100km | 6.3L/100km |
| Resale Value (3 yrs) | ~70% | ~68% |
| ANCAP Safety Rating | 5-Star | 5-Star |
| Boot Space | 217L | 295L |
| Interior Quality | Good | Excellent |
| Hybrid Option | Yes | Mild Hybrid only |
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 One of the Best Small Hatchback Cars in Australia.
| Feature | Details |
|---|---|
| Price Range | From $28,500 AUD |
| Fuel Economy | 6.8L/100km |
| ANCAP Rating | 5-Star (2024 model) |
| Resale Value | Good (~65% retained after 3 years) |
| Powertrain Options | Petrol, Mild Hybrid (N Line) |
| Warranty | 5 years unlimited km |
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 Hatchback: A Nice Compact Car.
| Feature | Details |
|---|---|
| Price Range | From $27,800 AUD |
| Fuel Economy | 7.0L/100km |
| ANCAP Rating | 5-Star (2023 model) |
| Resale Value | Good (~63% retained after 3 years) |
| Powertrain Options | Petrol |
| Warranty | 7 years unlimited km (best in class) |
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 Sell Your Car Online Safely on Aus Carsales.
5. Volkswagen Golf is a Cool Small Car.
| Feature | Details |
|---|---|
| Price Range | From $38,990 AUD |
| Fuel Economy | 6.2L/100km |
| ANCAP Rating | 5-Star (2023 model) |
| Resale Value | Strong (~69% retained after 3 years) |
| Powertrain Options | Petrol, Mild Hybrid |
| Warranty | 5 years unlimited km |
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 Compact Cars Comparison: Top 5 Compact Cars for 2025
| Model | Starting Price (AUD) | Fuel Economy (L/100km) | Resale Value (3 yrs) | ANCAP Rating |
|---|---|---|---|---|
| Toyota Corolla Hatchback | $29,000 | 5.9 | ~70% | 5-Star |
| Mazda3 Hatchback | $32,500 | 6.3 | ~68% | 5-Star |
| Hyundai i30 Hatchback | $28,500 | 6.8 | ~65% | 5-Star |
| Kia Cerato Hatch | $27,800 | 7.0 | ~63% | 5-Star |
| Volkswagen Golf | $38,990 | 6.2 | ~69% | 5-Star |
Small Car Features Comparison Table: Top 5 Compact Cars for 2025
| Feature | Toyota Corolla Hatchback | Mazda3 Hatchback | Hyundai i30 Hatchback | Kia Cerato Hatch | Volkswagen Golf |
|---|---|---|---|---|---|
| Starting Price (AUD) | From $29,000 | From $32,500 | From $28,500 | From $27,800 | From $38,990 |
| Fuel Economy (Combined) | 5.9L/100km | 6.3L/100km | 6.8L/100km | 7.0L/100km | 6.2L/100km |
| ANCAP Safety Rating | 5-Star (2024) | 5-Star (2023) | 5-Star (2024) | 5-Star (2023) | 5-Star (2023) |
| Resale Value (After 3 Years) | ~70% | ~68% | ~65% | ~63% | ~69% |
| Powertrain Options | Petrol, Hybrid | Petrol | Petrol, Mild Hybrid | Petrol | Petrol, Mild Hybrid |
| Transmission | CVT Auto | 6-Speed Auto | 6-Speed Auto / DCT | 6-Speed Auto | 8-Speed Auto / DSG |
| Boot Space | 217L | 295L | 395L | 428L | 381L |
| Warranty | 5 Years / Unlimited km | 5 Years / Unlimited km | 5 Years / Unlimited km | 7 Years / Unlimited km | 5 Years / Unlimited km |
| Infotainment | 8″ Display with Apple CarPlay / Android Auto | 8.8″ Display, Wireless CarPlay | 10.25″ Display, Wireless Apple CarPlay | 8″ Display, Wired CarPlay | 10″ Digital Cockpit, Wireless CarPlay |
| Top Safety Features | AEB, Lane Keep Assist, Adaptive Cruise | AEB, Lane Departure, Traffic Sign Assist | AEB, Lane Following Assist | AEB, Blind Spot Detection, Rear Cross-Traffic Alert | AEB, IQ.Drive Safety Suite |
| Comfort Rating | 8.5/10 | 9/10 | 8/10 | 8/10 | 9/10 |
| Driving Experience | Balanced and Easy | Sporty and Smooth | Practical and Comfortable | Soft and Relaxed | Sharp and Engaging |
| Known For | Reliability and Efficiency | Driving Dynamics | Value for Money | Best Warranty | Premium Feel in Small Package |
| Best For | Budget Buyers, Reliable Daily Use | Enthusiasts, Style Seekers | Practical Buyers | Peace of Mind Owners | Those Wanting Affordable Luxury |
| Downsides | Tight Boot, Expensive Servicing | Higher Price, Small Back Seats | Basic Interior, Ride Quality | No Hybrid Variant | Higher Initial Cost, Costly Maintenance |
Best Small Cars by Year (2015–2025)
2015 – Honda Civic & Mazda 3
- Reliability Rating: 4.6/5
- Starting Price (used market): from $8,500
- Features: Efficient 4-cylinder engines, strong resale value, simple infotainment.
- Pros: Excellent reliability, low ownership cost, fuel efficiency.
- Cons: Conservative design, base trims lacked tech.
2016 – Toyota Corolla
- Reliability Rating: 4.5/5
- Starting Price (used market): from $9,000
- Features: Standard safety features, roomy interior, practical design.
- Pros: Legendary reliability, affordable parts, great daily driver.
- Cons: Not exciting to drive, average cabin materials.
2017 – Hyundai Elantra
- Reliability Rating: 4.4/5
- Starting Price (used market): from $10,200
- Features: Strong warranty, modern design, improved infotainment.
- Pros: Excellent value for money, comfortable ride, tech-packed trims.
- Cons: Base engines felt underpowered, depreciation higher than rivals.
2018 – Mazda 3
- Reliability Rating: 4.6/5
- Starting Price (used market): from $11,000
- Features: Sporty chassis, premium-like cabin, advanced safety options.
- Pros: Fun to drive, stylish interior, solid build quality.
- Cons: Rear seats less spacious, ride a little firm.
2019 – Honda Civic
- Reliability Rating: 4.7/5
- Starting Price (used market): from $13,000
- Features: Turbo engine options, Honda Sensing safety suite, hatchback version available.
- Pros: Excellent mix of power and efficiency, high resale value.
- Cons: Road noise at highway speeds, infotainment quirks.
2020 – Toyota Corolla Hybrid
- Reliability Rating: 4.8/5
- Starting Price (new at launch): from $23,000
- Features: Hybrid powertrain, standard Toyota Safety Sense, modern design.
- Pros: Outstanding fuel economy, strong safety scores, reliable hybrid system.
- Cons: Small boot space in hybrid model, less sporty drive.
2021 – Hyundai i30 (Elantra Sedan Overseas)
- Reliability Rating: 4.5/5
- Starting Price (new at launch): from $24,000
- Features: Digital cockpit, roomy cabin, long warranty.
- Pros: Great technology for price, comfortable highway drive.
- Cons: Not as refined as Japanese rivals, resale lower.
If you’re weighing up between small cars and larger four-doors, our in-depth guide to the best sedans in Australia covers the most reliable and affordable cars.
2022 – Mazda 3 Hatch
- Reliability Rating: 4.7/5
- Starting Price (new at launch): from $25,000
- Features: Premium-like interior, available AWD, responsive SkyActiv engines.
- Pros: Upscale feel, fun driving dynamics, strong reliability.
- Cons: Higher price than rivals, rear headroom tight.
2023 – Honda Civic
- Reliability Rating: 4.8/5
- Starting Price (new at launch): from $26,500
- Features: Refined cabin, full Honda Sensing suite, powerful turbo engine option.
- Pros: Best-in-class refinement, excellent fuel economy, resale leader.
- Cons: Top trims can be pricey, firm suspension on sporty models.
2024 – Toyota Prius
- Reliability Rating: 4.8/5
- Starting Price (new at launch): from $28,000
- Features: Sleek new design, hybrid efficiency up to 55 MPG, advanced safety.
- Pros: Incredible efficiency, futuristic interior, proven hybrid durability.
- Cons: Styling may not suit all tastes, acceleration modest.
2025 – Honda Civic & Hyundai Elantra Hybrid
- Reliability Rating: Civic 4.7/5 | Elantra Hybrid 4.6/5
- Starting Price (new at launch): Civic from $25,400 | Elantra Hybrid from $26,000
- Features: Latest infotainment tech, hybrid and petrol options, comprehensive driver-assist systems.
- Pros: Civic remains a balanced all-rounder, Elantra Hybrid excels in efficiency, both are low-maintenance choices.
- Cons: Civic higher trims can be costly, Elantra Hybrid lacks sporty feel.
From 2015 to 2025, the small car market has been dominated by Japanese and Korean brands. The Honda Civic, Toyota Corolla, and Mazda 3 consistently scored high in reliability and resale value. In recent years, hybrids like the Corolla Hybrid, Prius, and Elantra Hybrid have become the smart picks for buyers prioritising fuel savings. Overall, these models combine low ownership costs, everyday practicality, and long-term dependability, making them the best small cars of the decade.
Browse trusted listings on carsales Australia
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: 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)
| Model | Fuel Type | Transmission | Fuel Economy (L/100km) | ANCAP Rating | Starting Price (AUD) | Resale Value (5-Yr) | Pros | Cons |
|---|---|---|---|---|---|---|---|---|
| Toyota Corolla Cross | Hybrid / Petrol | Auto | 4.3 (Hybrid) | 5 Stars | $33,980 | High | Excellent fuel efficiency, resale, safety | Rear visibility can be limited |
| Mazda CX-30 | Petrol | Auto | 6.5 | 5 Stars | $31,390 | High | Premium interior, great handling | Smaller boot space than rivals |
| Hyundai Kona | Petrol / EV | Auto | 6.2 (Petrol) / 14.7 (EV) | 5 Stars | $32,000 | Medium | Feature-rich, available in EV | Rear seat space is tight |
| Kia Seltos | Petrol | Auto | 6.9 | 5 Stars | $30,290 | Medium-High | Spacious cabin, great value | Engine can feel underpowered |
| Honda HR-V | Hybrid / Petrol | Auto | 4.9 (Hybrid) | 5 Stars | $36,700 | Medium | Reliable, magic seats offer storage flexibility | Higher price than competitors |
If you’re also considering larger options, check out our full guide on the best SUV in Australia for spacious and versatile picks.
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
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
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
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
| Model | Driving Range (WLTP) | Starting Price (AUD) | ANCAP Safety Rating | Key Features | Charging Time (0–80%) | Resale Value ★★★★☆ | Boot Space (L) |
|---|---|---|---|---|---|---|---|
| MG4 Electric | 435 km | $39,990 | 5-Star | RWD, 10.25” touchscreen, V2L | 35 minutes (DC) | High | 350 to 363 L, 1,117 to 1,165 L with seat area |
| Hyundai Kona Electric | 484 km | $54,500 | 5-Star | SmartSense tech, 64kWh battery, smooth ride | 47 minutes (DC) | Very High | 407 L, 1,241 L with seat area |
| BYD Dolphin | 427 km | $38,890 | 5-Star | Affordable, premium features, stylish interior | 30 minutes (DC) | Medium–High | 345 L, 1,310 L with seat area |
| Mini Electric Hatch | 233 km | $53,800 | 4-Star | Sporty feel, premium cabin, fast acceleration | 36 minutes (DC) | Medium | 211, 731 L with Seats Down. |
| Nissan Leaf | 270 | $50,990 | 5 Stars | Smooth ride, strong EV history, reliable and safe small electric car | 40 minutes (DC) | Medium | 405 L, 1,176 L with seat area |
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.
You can read detailed our guide on Best Honda Cars .
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
| Model | Ease of Entry/Exit | Ride Comfort ★★★★★ | ANCAP Safety Rating | Fuel Economy (L/100km) | Price Range (AUD) | Key Features |
|---|---|---|---|---|---|---|
| Toyota Corolla Cross | Excellent | 4.5/5 | 5-Star | 4.3 (Hybrid) | $33,980 – $49,050 | Hybrid option, large touchscreen, high seating position |
| Honda HR-V | Very Good | 4.7/5 | 5-Star | 5.8 | $31,300 – $40,000 | Magic seats, smooth ride, wide-opening doors |
| Subaru Crosstrek | Excellent | 4.6/5 | 5-Star | 6.5 | $34,990 – $45,090 | AWD standard, EyeSight safety tech, comfortable cabin |
| Kia Seltos | Very Good | 4.4/5 | 5-Star | 6.8 | $29,500 – $44,900 | Large display, soft suspension, good visibility |
| Mazda CX-30 | Good | 4.5/5 | 5-Star | 6.5 | $31,590 – $47,390 | Quiet ride, classy interior, radar cruise control |
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
| Model | Price (AUD) | Engine | Key Features | Pros | Cons | ANCAP Safety |
|---|---|---|---|---|---|---|
| Suzuki Swift | From $18,490 (new) | 1.2L Petrol | CarPlay, AEB | Economy, reliability | Small rear seats | 5 stars |
| Kia Picanto | From $17,890 (new) | 1.25L Petrol | Sensors, touchscreen | City nimbleness, affordability | Less suited to highways | 4 stars |
| MG3 Hatch | From $19,490 (new) | 1.5L Petrol | 8″ touchscreen, Bluetooth | Price, sporty looks | Missing active safety features | 3 stars |
| Hyundai i20 | $16,000–$19,500 (used) | 1.4L Petrol | Cruise control, touchscreen | Reliability, easy servicing | Older interiors | 5 stars |
| Mazda 2 | $15,000–$19,800 (used) | 1.5L Petrol | City Brake, camera | Top resale value, economy | Tight rear cabin | 5 stars |
Buying a best small car under $20,000 doesn’t mean you have to compromise on safety, performance, or resale potential.
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
| Model | Price (AUD) | Engine | Key Features | Pros | Cons | ANCAP Safety |
|---|---|---|---|---|---|---|
| Mercedes A-Class | From $63,000 | 2.0L Turbo Petrol | MBUX, ambient lighting | Tech, handling, cabin luxury | High service cost | 5 stars |
| Audi A3 Sportback | From $55,400 | 2.0L Petrol | Virtual cockpit, adaptive cruise | Build quality, comfort | Smaller boot | 5 stars |
| BMW 1 Series | From $58,900 | 2.0L Turbo Petrol | iDrive, wireless CarPlay | Sporty drive, resale value | Tight rear seats | 5 stars |
| Lexus UX200 | From $49,495 | 2.0L Petrol | Safety System+, premium audio | Reliability, plush cabin | Small boot | 5 stars |
| Volvo XC40 | From $55,990 | 2.0L Turbo Petrol | Pilot Assist, panoramic roof | Unmatched safety, stylish interior | Expensive options | 5 stars |
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.
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 Choices.
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.
Brand matters — and some stand out when it comes to reliability. Here’s how the most reliable car brands in Australia stack up in 2025.
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.
Drivers who want to save on running costs should explore our full guide to the best fuel efficient cars, showcasing models that deliver maximum economy without sacrificing comfort.
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.
Want to see how each brand stacks up? Dive into the full car reliability ratings in Australia and find out which names consistently hold up over time.
Comparison Table: Most Reliable Small Cars
| Model | Price (AUD) | Engine | Warranty | Key Features | Pros | Cons | ANCAP Safety |
|---|---|---|---|---|---|---|---|
| Toyota Corolla | From $29,270 | 2.0L Petrol/Hybrid | 5 Years / Unlimited KM | Safety Sense, proven reliability | Top reliability, resale value | Smaller rear seats | 5 stars |
| Mazda 3 | From $30,470 | 2.0L Petrol | 5 Years / Unlimited KM | G-Vectoring, stylish design | Fun drive, solid build | Firm ride | 5 stars |
| Honda Civic | From $34,900 | 1.5L Turbo Petrol | 5 Years / Unlimited KM | Honda Sensing, digital cockpit | Sporty yet reliable | Higher price | 5 stars |
| Hyundai i30 | From $25,990 | 2.0L Petrol | 5 Years / Unlimited KM | SmartSense, budget-friendly | Affordable, dependable | Basic base model interior | 5 stars |
| Subaru Impreza | From $31,490 | 2.0L AWD Petrol | 5 Years / Unlimited KM | AWD standard, EyeSight safety | AWD grip, durability | Lower fuel efficiency | 5 stars |
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:
| Model | Hybrid Type | Fuel Efficiency (L/100km) | ANCAP Safety Rating | Starting Price (AUD) | Key Advantages |
|---|---|---|---|---|---|
| Toyota Yaris Cross Hybrid | Full Hybrid (HEV) | 4.3 | 5 Stars | From $32,000 | Compact SUV styling, exceptional fuel economy |
| Honda HR-V e:HEV | Full Hybrid (HEV) | 4.9 | 5 Stars | From $39,000 | Stylish cabin, strong reliability record |
| Kia Niro Hybrid | Full Hybrid (HEV) | 4.7 | 5 Stars | From $41,000 | Great tech features, roomy interior |
| Hyundai Kona Hybrid | Full Hybrid (HEV) | 4.9 | 5 Stars | From $38,000 | Sporty drive feel, long warranty |
| Toyota Corolla Hybrid | Full Hybrid (HEV) | 4.2 | 5 Stars | From $34,000 | Excellent resale value, proven reliability |
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.
For long-term peace of mind and strong resale value, our detailed guide to the most reliable cars highlights the top models trusted by Australian drivers.
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
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
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
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
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.
Best Small Cars in Australia – 2018 to 2021 and Beyond
The Australian market has always loved compact, efficient, and stylish hatchbacks and sedans. From budget-friendly choices to premium compact models, small cars dominate city streets and suburban driveways alike. This guide covers everything from the best small car 2018 Australia through to the best small car 2021 Australia, plus today’s most affordable picks under $20K, $25K, and $30K.
Extremely Small Car Options in Australia
When drivers search for an extremely small car, they usually mean micro-hatchbacks that prioritise parking ease, fuel economy, and affordability. Perfect for inner-city life, these cars can slip into the tightest spots without compromising daily usability.
Top Picks
- Suzuki Swift – A cult favourite with sharp handling, affordable servicing, and funky design.
- Kia Picanto – One of the cheapest new cars in Australia, still highly desirable on the used market.
- Mitsubishi Mirage – No-frills, ultra-compact, and cheap to run.
Why Australians Choose Them:
These extremely small cars keep running costs down and are popular with students, retirees, and families needing a reliable second car. They may lack space, but they deliver unbeatable maneuverability.
Best Small Car 2018 Australia
The best small car 2018 Australia market saw brands like Toyota, Mazda, and Hyundai dominate thanks to strong safety ratings and tech upgrades.
Standout Models of 2018
- Toyota Corolla (2018) – Excellent resale value and bulletproof reliability.
- Mazda 3 (2018) – Sporty driving feel, premium cabin for its class.
- Hyundai i30 (2018) – Great mix of tech and affordability.
ANCAP Ratings: All three achieved 5-star safety scores, which boosted their appeal.
Resale Value:
- Corolla remains one of the top used buys in 2025.
- Mazda 3 has held its value thanks to sporty styling.
- i30 continues to attract younger buyers looking for tech and value.
Best Small Car 2021 Australia
By 2021, the small car category evolved with hybrid technology, sleeker designs, and more safety equipment as standard. Searches for the best small car 2021 Australia reflect buyers seeking modern features without paying the premium of brand-new 2025 models.
Best Small Cars 2021
- Toyota Corolla Hybrid – Unmatched efficiency and reliability.
- Hyundai i30 Hatch & Sedan – Affordable yet premium-feeling small car.
- Mazda 3 Hatch/Sedan – Sporty, safe, and a driver’s favourite.
- Kia Cerato – Spacious and backed by Kia’s long warranty.
Why These Cars Still Matter:
In 2025, these 2021 models sit in the “sweet spot” of the used market — affordable, modern, and highly reliable.
Best Small Car Australia Under $20,000
When it comes to affordability, many buyers want the best small car Australia under $20,000. Even though new cars have risen in price, the used market still offers excellent choices at this price point.
Best Picks Under $20K
- Toyota Yaris – Compact, efficient, and fun.
- Kia Rio – Affordable ownership and practical design.
- Hyundai Accent – Basic but highly reliable.
Search Variations to Capture SEO:
Whether you type best small car Australia under $20000 or best small car Australia under $20 000, these models consistently rank because of their low upfront cost and durability.
Compact Car Ratings – Safety, Reliability & Comfort
Australians often rely on compact car ratings before making a purchase decision. These ratings consider ANCAP safety scores, owner satisfaction, running costs, and long-term reliability.
High-Rated Compact Cars (2018–2021)
- Toyota Corolla – 5-star ANCAP, legendary reliability.
- Mazda 3 – Strong resale and stylish interior.
- Hyundai i30 – Excellent value and features for money.
Comfort Ratings:
Mazda 3 and Corolla consistently receive higher scores for ride comfort and cabin quietness, while the i30 scores well for infotainment and tech.
Many of the best small car 2021 Australia models feature heavily in the Most Reliable Cars in Australia list, showing they deliver excellent long-term value.
Stylish Small Cars in Australia
Not every buyer wants basic transport — many search for stylish small cars that blend design with performance.
Stylish Picks
- Mini Cooper Hatch – Retro-inspired design with premium feel.
- Mazda 2 – Sharp styling, compact size, and engaging to drive.
- Volkswagen Polo – European flair with a tech-packed interior.
Why They’re Popular:
Stylish small cars hold strong appeal for younger buyers who want individuality as well as practicality.
Best Small Cars Under $25K
The search for the best small cars under 25k has grown in popularity as Australians look for value-packed compact models with better features.
Top Cars Under $25K
- Honda Civic – Reliable, stylish, and fun to drive.
- Kia Cerato – Spacious interior, long warranty.
- Hyundai Elantra – A sedan alternative with premium comfort.
Small Cars Under $30K
The market for small cars under 30k is ideal for buyers who want something slightly more premium. In this range, cars often include better infotainment, advanced driver-assist features, and higher build quality.
Best Picks Under $30K
- Mazda 3 G20 Touring – Sporty, stylish, and feature-rich.
- Toyota Corolla ZR – Top-tier Corolla with all the extras.
- Kia Cerato GT – Turbocharged performance with affordability.
Why Small Cars Still Matter in 2025
Despite the rise of SUVs, small cars remain highly relevant in Australia. They’re cheaper to buy, easier to park, and cheaper to run. Whether you’re searching for an extremely small car, the best small car 2018 Australia, or the best small car 2021 Australia, these compact models still tick the boxes for affordability, style, and reliability.
Frequently Asked Questions About Best Small Cars 2025
1. What is the best compact car to buy in 2025?
The best compact cars to buy in 2025 depends on your needs, but top-rated models include the Toyota Yaris Cross Hybrid, Mazda CX-30, and Honda HR-V e:HEV. These cars stand out for their fuel efficiency, safety ratings, and resale value.
Which small cars have the best fuel economy ?
Small hybrid models like the Toyota Corolla Hybrid (4.2L/100km) and Kia Niro Hybrid (4.7L/100km) offer outstanding fuel efficiency. For drivers seeking a petrol-only option, the Mazda 2 Hatch and Hyundai i20 are also highly economical choices.
What are the most reliable small cars for 2025?
According to the latest owner satisfaction surveys, the Toyota Corolla, Honda Civic, and Mazda 3 remain among the most reliable small cars for 2025, with consistently low maintenance costs and excellent longevity.
Are small cars safe to drive in Australia?
Yes, many small cars now score 5 stars under ANCAP safety ratings. Models like the Hyundai Kona, Toyota Yaris Cross, and Subaru Crosstrek have been recognized for strong crash protection, driver assist technology, and pedestrian safety features.
What is the best small electric car for 2025?
The BYD Dolphin, MG4 EV, and Mini Electric are leading the small electric car category for 2025. They offer great driving ranges (up to 450km), stylish design, and improved affordability compared to earlier EVs.
What small cars have the highest resale value?
Toyota models dominate resale charts. The Yaris Cross Hybrid, Corolla Hybrid, and Mazda CX-5 compact SUV consistently retain their value better than most competitors after 3–5 years, making them strong best small car investments.
Which small SUV is best for seniors in 2025?
The Subaru Crosstrek, Honda HR-V, and Toyota C-HR stand out for seniors thanks to their easy entry and exit, excellent visibility, and user-friendly safety tech.
Are hybrid small cars cheaper to maintain?
Generally, yes. Modern hybrid systems are extremely reliable and have fewer issues than older-generation hybrids. Many models come with battery warranties of up to 8 years, reducing long-term repair risks.
Is it better to buy a used small car or a new one ?
If you want to maximize value, buying a lightly used small car that’s still under warranty can save you thousands. Explore used small cars for sale in Australia to find great options.
What is the best small hybrid car for 2025?
The Toyota Corolla Hybrid remains one of the best small cars for hybrid buyers in 2025, offering unbeatable reliability, low fuel consumption, and excellent ownership value.
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.