Searching for the best SUV under $40K in Australia? Compare the most reliable new and used SUVs under $40,000 with safety ratings, fuel efficiency.
Best SUV Under $40K in Australia – Buyer’s Guide
Finding the best SUV under $40K in Australia is all about balance. At this price point, buyers can choose from a wide range of compact and mid-size SUVs that deliver strong reliability, modern safety features, good fuel efficiency, and practical space for daily driving or family use.
The $40,000 budget sits in a sweet spot of the market. It allows access to:
- Well-equipped new SUVs with factory warranty and modern technology
- Used SUVs from higher segments that offer better space, comfort, and long-term value
- Proven models with strong resale value and lower ownership costs
This guide focuses on SUVs that make sense for Australian conditions, including city driving, long-distance travel, and family practicality. Every SUV included has been assessed based on reliability history, safety performance, fuel economy, comfort, maintenance costs, and overall value for money.
Whether you are upgrading from a small car, buying your first SUV, or looking for a reliable family vehicle, this list highlights the best SUVs under $40,000 that Australians consistently choose and trust.
Comparison Table – Best SUVs Under $40K in Australia
| SUV Model | New / Used | Typical Price Range | Fuel Type | Fuel Efficiency (Combined) | ANCAP Rating | Reliability Rating | Best For |
|---|---|---|---|---|---|---|---|
| Toyota Corolla Cross | New | Under $40K | Petrol / Hybrid | Excellent | 5-Star | Very High | Reliability & resale |
| Mazda CX-30 | New | Under $40K | Petrol | Very Good | 5-Star | High | Comfort & driving feel |
| Hyundai Kona | New | Under $40K | Petrol / Hybrid | Excellent | 5-Star | High | City & fuel efficiency |
| Kia Seltos | New | Under $40K | Petrol | Good | 5-Star | High | Value & space |
| Toyota RAV4 | Used | Under $40K | Petrol / Hybrid | Very Good | 5-Star | Very High | Family & long-term ownership |
| Mazda CX-5 | Used | Under $40K | Petrol / Diesel | Good | 5-Star | High | Comfort & reliability |
| Subaru Forester | Used | Under $40K | Petrol | Moderate | 5-Star | High | Safety & AWD |
| Mitsubishi Outlander | Used | Under $40K | Petrol / Hybrid | Good | 5-Star | High | Family practicality |
Long-term ownership costs matter just as much as purchase price, so it’s worth cross-checking our car reliability ratings in Australia before deciding.
1. Toyota Corolla Cross
Price in Australia: starts around $36,480 before on-road costs for the base hybrid model, rising through the range (GX, GXL, Atmos) with some variants exceeding $50k before on-road costs — so the entry variants under ~40k are the most relevant here.
Pros
- Excellent fuel efficiency thanks to hybrid powertrain, around ~4.3–6 L/100km in official testing.
- Comfortable and practical interior space for daily use and family tasks.
- Toyota reputation for dependability and low ownership costs.
- Five-star ANCAP safety and strong safety tech on most variants.
Cons
- Interior quality is functional rather than premium compared with rivals.
- Lower-grade variants come with basic equipment and halogen lighting.
- Hybrid pricing can push higher trims above the strict $40K budget.
- Some real-world fuel economy can be slightly higher than claimed.
Summary: A sensible, efficient small SUV that delivers strong value, but entry pricing varies by grade and cheapest versions offer simpler interiors.
Good for: value-oriented buyers who prioritise running costs and reliability.
If size and fuel efficiency matter more than cabin space, several models in our best small SUV in Australia guide also fall well under the $40K mark.
2. Mazda CX-30
Price in Australia: from around $33,140 for the base 2.0 L FWD Pure before on-road costs, up to around ~$44,840 for high-spec trims.
Pros
- Premium interior feel for its class, with a quality cabin and stylish design.
- Comfortable ride and refined driving experience.
- Good standard safety tech and five-star ANCAP rating.
- Broad model range lets buyers tailor features and budget.
Cons
- Fuel efficiency is not as strong as hybrid rivals.
- Rear headroom and visibility are a bit limited due to design.
- Can feel less spacious than some competitors in the same segment.
- Confusing variant lineup with cost creep toward higher-spec pricing.
Summary: A stylish and comfortable small SUV with a hint of premium feel, though not the most economical choice for fuel.
Good for: buyers who want a more refined interior and enjoyable everyday drive.
3. Hyundai Kona
Price in Australia: compact small-SUV pricing varies by trim and powertrain; mainstream petrol/hybrid models often start in the low-to-mid-$30k bracket before on-road costs.
Pros
- Competitive fuel economy especially in hybrid variants.
- Contemporary tech and safety features for the segment.
- Good balance of interior space and practicality.
Cons
- Petrol-only engines can feel underpowered on highway overtakes.
- Some rivals offer slightly more refined interiors at similar prices.
- Road feel and ride can be less engaging than Mazda or Toyota.
Summary: A strong all-rounder with good efficiency and features, especially in hybrid form.
Good for: buyers wanting technology focus and efficiency in urban/family use.
Rising fuel costs are pushing buyers toward electrified options, and some models from our top hybrid SUV comparison in Australia now sit close to the $40K range.
4. Kia Seltos
Price in Australia: typically from about $30,050–$45,470 before on-road costs depending on trim and drivetrain.
Pros
- Spacious cabin and boot for a small SUV.
- Broad trim range with generous warranty (7 years/unlimited km).
- Quiet and settled ride for daily commuting.
Cons
- Base cabin materials are a bit plain compared with some rivals.
- Entry-level variants may lack advanced driver assist features.
- Turbo engines or AWD can push prices toward the upper budget limit.
Summary: A very practical SUV that stretches the budget with space and warranty coverage.
Good for: families who prioritise room and long warranty coverage.
Quick Recap Table
| Model | Price Estimate (before on-road) | Key Strength | Notable Trade-off |
|---|---|---|---|
| Toyota Corolla Cross | ~36.5k+ | Fuel efficiency & reliability | Basic interior in lower trims |
| Mazda CX-30 | ~33.1k+ | Premium feel & comfort | Less efficient, variant complexity |
| Hyundai Kona | ~mid-30k+ | Technology & efficiency | Petrol power can feel light |
| Kia Seltos | ~30k+ | Space & warranty | Base interiors and features |
If you want a broader comparison beyond budget limits, our guide to the best SUV in Australia covers top-performing models across all price ranges.
Examples of Used SUVs Available Under $40K
The used SUV market in Australia is broad and competitive, with many popular mid-size and compact SUVs available well under $40,000, offering excellent value compared with new models. You’ll find choices from reliable Japanese and Korean brands to family-friendly options that balance space, comfort and running costs.
1. Toyota RAV4 (Used)
Price Range: Around $25,000 – $38,000 for good condition examples under 100,000 km (varies by year, km and condition) — recent dealer listings under $40k include mid-age models.
Pros
- Excellent reliability and resale value — Toyota SUVs are known to last with strong long-term durability.
- Spacious cabin and large boot make it ideal for families and load-carrying needs.
- Plenty of accessories and 4WD availability for weekend exploring.
Cons
- Older low-spec examples can lack modern safety & tech features.
- Some early petrol-only models are less fuel efficient than newer hybrid RAV4s.
- Finding low-km, well-maintained units often requires patience.
Best for: Buyers wanting a reliable, comfortable SUV with strong resale and family practicality.
2. Mazda CX-5 (Used)
Price Range: From around $19,000 – $35,000 for well-equipped mid-age models with reasonable kilometres, and up to near $38,000 for lower-km examples.
Pros
- Known for refined handling and a quiet, comfortable ride — often feels more premium than other used SUVs in the segment.
- Good safety features and build quality across many model years.
- Variety of model years and trims available under budget.
Cons
- Diesel/turbo variants can be more expensive to maintain if not properly serviced.
- Older models may show typical wear without a full service history.
- Some buyers find rear legroom slightly less generous than rivals.
Best for: Families who want a balanced SUV with good drive dynamics and comfort.
Buyers with flexibility above this price point may also want to compare options from our best SUV under $70K list.
3. Subaru Forester (Used)
Price Range: Commonly $25,000 – $35,000 for AWD examples with service history — some listings under $40k include relatively recent models.
Pros
- Standard all-wheel drive (AWD) is a major advantage for touring and rough roads.
- Good visibility and solid safety reputations.
- Practical cabin and generous headroom/backseat space.
Cons
- Fuel economy isn’t class-leading, especially compared to hybrids.
- Some models can be pricier to maintain if neglected.
- Tall ride height and engine noise can be noticeable on highway cruising.
Best for: Buyers who want AWD capability for mixed driving and family use.
4. Mitsubishi Outlander (Used)
Price Range: Around $20,000 – $38,000 for newer 5-seat and 7-seat variants with reasonable kms. Listings show modern Outlander SUVs under $40k.
Pros
- 7-seat option is rare at this price point — excellent for larger families.
- Comfortable ride and modern safety tech on many trims.
- Often good value compared to similarly sized rivals.
Cons
- Third-row is best for children or short trips.
- Mixed reliability reputation compared with Toyota/Honda.
- Fuel economy and running costs can be higher than smaller SUVs.
Best for: Buyers needing 7 seats and family flexibility on a budget.
Used Buyers’ Comparison
| Model | Typical Price Range | Notable Strength | Consideration |
|---|---|---|---|
| Toyota RAV4 | $25k–$38k | Reliability & resale | Tech/features vary with age |
| Mazda CX-5 | $19k–$35k+ | Comfort & refinement | Diesel costs on older units |
| Subaru Forester | $25k–$35k | AWD & space | Fuel economy |
| Mitsubishi Outlander | $20k–$38k | 7-seats family SUV | Third-row space & running costs |
Prices are approximate Australian dealer listing ranges and vary based on kilometres, condition, state and year.
Used SUV Buying Tips
- Prioritise a full service history — especially for AWD models like Forester.
- Verify ownership costs (tyres, brakes, servicing) before purchase.
- Look for safety features & ANCAP results on older SUVs to maximise safety.
If you’re ready to browse actual market options under your budget, see available vehicles in our used SUVs under $40,000 in Australia listings.
Most Reliable SUVs Under $40K in Australia
When choosing an SUV under $40K, reliability is one of the most important factors for Australian buyers — especially for long-term ownership, lower repair bills and strong resale value. The models below are known for durability, proven service records and long-term satisfaction in Australian conditions.
1. Toyota Corolla Cross
Reliability Highlights
- Toyota consistently ranks at the top of reliability surveys and owner satisfaction reports in Australia.
- The Corolla Cross benefits from Toyota’s long-established hybrid and petrol platforms, both known for longevity and fewer unexpected repairs.
- Owners report low warranty claims and minimal mechanical issues through the first 100,000–150,000 km.
Why This Matters Under $40K
Even entry-level Corolla Cross models deliver a reliability experience that rivals more expensive SUVs — meaning fewer maintenance surprises and higher resale when it’s time to sell.
Best For: Buyers who want peace of mind and a dependable SUV without costly repairs.
2. Mazda CX-30
Reliability Highlights
- Mazda’s reputation for reliability is very strong in Australia, supported by low fault rates in consumer reliability indexes.
- The CX-30’s engines and transmissions have shown good durability, with many vehicles reaching high mileage with regular servicing.
- Mazda also scores well in owner satisfaction surveys for build quality.
Why This Matters Under $40K
For a buyer focused on quality and long-term ownership, the CX-30 strikes a good balance between practicality and reliability — though owners should always check service history on used units.
Best For: Those seeking a reliable SUV with a more refined interior and driving feel.
3. Hyundai Kona
Reliability Highlights
- Hyundai’s newer generation models have improved significantly in reliability rankings over the past few years.
- Warranty data show lower than average unscheduled repair incidents in early ownership.
- Hybrid variants benefit from well-tested drivetrain components.
Why This Matters Under $40K
The Kona offers a solid reliability record in the context of its segment, making it competitive with Japanese rivals in real-world ownership.
Best For: Buyers who want efficiency and technology with dependable performance.
4. Kia Seltos
Reliability Highlights
- Kia has climbed reliability rankings globally and locally, with strong build quality and lower incident rates compared to many mainstream brands.
- The 7-year warranty backing also reflects confidence in long-term reliability.
- In independent reliability surveys, Seltos owners report few major mechanical issues.
Why This Matters Under $40K
With a long factory warranty and well-engineered design, the Seltos is a reassuring choice for drivers prioritising long-term reliability.
Best For: Buyers who want assurance and long warranty protection — particularly great for first-time SUV owners.
5. Toyota RAV4 (Used)
Reliability Highlights
- The RAV4’s reputation in Australia is stellar — particularly petrol-powered models from recent years.
- Used RAV4s frequently appear near the top of reliability indexes and reliability-focused used SUV lists.
- Owners often report very few major mechanical failures and long service life.
Why This Matters Under $40K
Even as a used SUV, the RAV4’s proven reliability record makes it one of the safest bets for long-term ownership with fewer maintenance headaches.
Best For: Buyers looking for a durable, trouble-free used SUV.
6. Mazda CX-5 (Used)
Reliability Highlights
- The CX-5 has a strong reputation in the compact SUV class for mechanical robustness.
- It consistently scores well in owner reviews and reliability surveys, especially for petrol and well-maintained units.
- Diesel versions can be reliable if properly serviced but require careful checks on maintenance history.
Why This Matters Under $40K
Among used SUVs, the CX-5 offers a balance of reliability, comfort and overall ownership satisfaction.
Best For: Families or individuals wanting dependability and refined driving dynamics.
7. Subaru Forester (Used)
Reliability Highlights
- Subaru’s AWD systems are robust, and the Forester has a long record of dependable service in Australia — particularly for regular commuting and touring.
- Many owners report good life from engines and drivetrains with regular servicing.
Why This Matters Under $40K
The AWD system adds flexibility for diverse road conditions while maintaining a reliable performance profile.
Best For: Drivers who need AWD capability without sacrificing day-to-day reliability.
8. Mitsubishi Outlander (Used)
Reliability Highlights
- The Outlander has gradually improved in reliability, and many later used examples perform well with routine maintenance.
- While not quite as bulletproof as Toyota or Mazda, a well-serviced unit can be dependable.
Why This Matters Under $40K
For buyers wanting seven seats and SUV practicality, the Outlander can deliver reliable service — especially when picking examples with good service history.
Best For: Buyers needing 7-seat flexibility with reasonable reliability.
Reliability Summary Table
| SUV Model | Reliability Strength | Key Reliability Notes |
|---|---|---|
| Toyota Corolla Cross | Excellent | Toyota’s hybrid/petrol platforms are proven and durable |
| Mazda CX-30 | Very Good | Well-made engines and low fault incidence |
| Hyundai Kona | Good | Improved reliability in recent cohorts |
| Kia Seltos | Good | Solid, backed by long warranty |
| Toyota RAV4 (Used) | Excellent | Strong long-term service records |
| Mazda CX-5 (Used) | Very Good | Depends on maintenance history |
| Subaru Forester (Used) | Good | AWD and drivetrain are robust |
| Mitsubishi Outlander (Used) | Fair-Good | Reliability varies by service record |
Choosing for Reliability
- Best overall reliability: Toyota Corolla Cross (new) and Toyota RAV4 (used)
- Strong all-round reliable SUV: Mazda CX-30 (new) and Mazda CX-5 (used)
- Good value reliability: Hyundai Kona and Kia Seltos
- AWD reliability: Subaru Forester (used)
Most Fuel-Efficient SUVs Under $40K in Australia
For buyers searching for the best SUV under $40K in Australia, fuel efficiency plays a major role in long-term ownership costs. With rising fuel prices, choosing a fuel-efficient SUV under $40,000 can save thousands of dollars over the life of the vehicle, especially for daily commuting and long-distance driving.
Many of the best SUVs under $40K now offer efficient petrol engines or hybrid powertrains that balance performance with low fuel consumption. Below are the most fuel-efficient options available in Australia that realistically fit within the SUV under $40K budget, either new or used.
1. Toyota Corolla Cross – One of the Best Fuel-Efficient SUVs Under $40K
The Toyota Corolla Cross is widely regarded as one of the best SUVs under $40K in Australia for fuel efficiency and low running costs.
Fuel efficiency:
- Hybrid variants: approximately 4.3–5.0 L/100km combined
- Petrol variants: still competitive for a compact SUV
Why it suits the $40K budget:
The hybrid Corolla Cross is one of the most fuel-efficient SUVs under $40K, particularly in city driving. Real-world ownership data shows strong consistency between claimed and actual fuel usage.
Best for:
Buyers looking for the best SUV under $40K with minimal fuel costs and proven reliability.
Urban drivers may also prefer compact options highlighted in our best small hybrid SUV guide.
2. Hyundai Kona – Fuel-Efficient SUV Under $40,000
The Hyundai Kona is another strong contender for the best SUV under $40K in Australia, especially in hybrid form.
Fuel efficiency:
- Hybrid models: around 4.7–5.5 L/100km combined
- Petrol models: efficient for non-hybrid SUVs under $40K
Why it works under $40K:
The Kona hybrid delivers excellent fuel economy without sacrificing everyday usability, making it a smart choice for buyers prioritising efficiency in an SUV under $40,000.
Best for:
Urban drivers wanting a fuel-efficient and modern SUV under $40K.
3. Mazda CX-30 – Efficient Petrol SUV Under $40K
For buyers who prefer petrol engines, the Mazda CX-30 remains a popular option when searching for the best SUV under $40K in Australia.
Fuel efficiency:
- Petrol variants: approximately 6.0–7.0 L/100km combined
Why it still qualifies:
While not as economical as hybrids, the CX-30 offers respectable fuel efficiency for a petrol SUV under $40K, combined with strong comfort and build quality.
Best for:
Drivers wanting a refined petrol SUV under $40K with balanced fuel consumption.
4. Kia Seltos – Practical and Efficient SUV Under $40K
The Kia Seltos is one of the most practical SUVs under $40K and offers competitive fuel economy for its size.
Fuel efficiency:
- Petrol variants: approximately 6.5–7.5 L/100km combined
Why it fits the category:
For buyers who want space without excessive fuel costs, the Seltos delivers good efficiency for a family-friendly SUV under $40,000.
Best for:
Families needing space while still targeting one of the best SUVs under $40K in Australia.
5. Mazda CX-5 (Used) – Larger SUV Under $40K With Reasonable Fuel Use
In the used market, the Mazda CX-5 is a popular option for buyers looking for a larger SUV under $40K.
Fuel efficiency:
- Petrol variants: around 7.0–8.0 L/100km combined
Why it remains relevant:
Despite being larger, a well-maintained CX-5 offers acceptable fuel efficiency for a mid-size SUV under $40K, especially compared to older rivals.
Best for:
Buyers wanting more space while still keeping fuel costs reasonable under the $40K mark.
6. Subaru Forester (Used) – AWD SUV Under $40K
The Subaru Forester includes standard all-wheel drive, which affects fuel economy but adds versatility.
Fuel efficiency:
- Around 7.5–8.5 L/100km combined
Why it still makes sense:
Considering its AWD system, the Forester remains a sensible choice for buyers wanting an SUV under $40K in Australia with year-round usability and acceptable fuel use.
Best for:
Drivers needing AWD capability in a used SUV under $40K.
7. Fuel-Efficient SUVs Under $40K – Summary
For fuel-conscious buyers searching for the best SUV under $40K in Australia:
- Best overall fuel efficiency: Toyota Corolla Cross Hybrid
- Best hybrid SUV under $40K: Hyundai Kona Hybrid
- Best petrol SUV under $40K: Mazda CX-30
- Best fuel-efficient family SUV under $40K: Kia Seltos
- Best larger used SUV under $40K: Mazda CX-5
Choosing a fuel-efficient SUV under $40,000 can significantly reduce ownership costs while still delivering comfort, safety, and practicality.
Tips for Better Economy in SUV Ownership
- Stay within city speed limits — hybrids shine in stop-start.
- Keep tyres at correct pressures and perform regular servicing.
- Consider test rides on mixed roads to assess real-world economy.
Cheapest SUVs to Own Under $40K in Australia
When looking for the best SUV under $40K in Australia, total ownership cost matters just as much as the purchase price. Cheap SUVs under $40,000 that are inexpensive to run, service and insure can make a huge difference over the years, especially if you drive frequently or have a family.
Below are some of the cheapest SUVs to own under $40K in Australia, based on real-world data for servicing, fuel costs, insurance estimates and reliability.
1. Toyota Corolla Cross – Cheap to Run and Own
Why it’s one of the cheapest SUVs under $40K:
The Toyota Corolla Cross consistently ranks as one of the best SUVs under $40K in Australia for low ongoing costs. Toyota’s reputation for reliability and low maintenance helps keep servicing bills and unexpected repairs to a minimum.
Ownership cost factors:
- Very strong fuel efficiency (especially hybrid variants) reduces petrol bills.
- Toyota parts availability helps keep servicing costs competitive.
- Excellent resale value means lower depreciation over time.
Best for: Buyers focusing on low total ownership cost without sacrificing reliability.
2. Hyundai Kona – Value-Focused SUV Under $40,000
Why it’s cheap to own:
The Hyundai Kona combines modern technology with strong warranty protection, making it one of the most cost-effective SUVs under $40,000. Hyundai’s 7-year warranty also means fewer out-of-pocket repairs in early ownership.
Ownership cost factors:
- Good fuel economy, especially hybrid versions.
- Strong warranty coverage reduces unexpected costs.
- Affordable parts and servicing network.
Best for: Buyers seeking one of the most budget-friendly SUVs under $40K with peace of mind.
3. Kia Seltos – Affordable to Maintain
Why it’s a cheap SUV under $40K:
The Kia Seltos offers low ownership costs thanks to its combination of solid reliability and long warranty coverage. It’s one of the best SUV under $40K in Australia for drivers wanting practicality without high upkeep.
Ownership cost factors:
- 7-year warranty covers many repair costs early.
- Simple and efficient engines reduce ongoing running costs.
- Good parts availability across Australia.
Best for: Cost-conscious buyers looking for low maintenance and strong warranty support.
4. Mazda CX-5 (Used) – Budget SUV Under $40,000 With Low Running Costs
Why it’s cheap to own as a used SUV under $40K:
The Mazda CX-5 may be larger than some compact SUVs, but its reputation for strong reliability and efficient engines often results in lower overall running costs for used buyers.
Ownership cost factors:
- Efficient petrol engines balance fuel cost and performance.
- Solid reliability history reduces unexpected repairs.
- Good parts availability across metropolitan and regional areas.
Best for: Buyers wanting a larger SUV that still remains affordable to run under the $40K mark.
5. Toyota RAV4 (Used) – Durable, Economical Ownership
Why it’s one of the cheapest SUVs to own under $40K:
The Toyota RAV4 has a longstanding reputation in Australia as a durable and trouble-free SUV, which often translates to lower servicing and repair bills over the lifespan of ownership.
Ownership cost factors:
- High reliability means fewer unexpected repair bills.
- Good resale values help reduce total depreciation cost.
- Widespread service network and parts availability.
Best for: Buyers who want one of the most dependable SUVs under $40,000 with low long-term ownership costs.
Cheapest SUV Under $40K – Ownership Cost Comparison
| SUV Model | Purchase Price Range (Approx) | Ownership Cost Strengths | Best For |
|---|---|---|---|
| Toyota Corolla Cross | ~$36,000+ | Low fuel & maintenance | Low overall costs |
| Hyundai Kona | ~$32,000+ | Warranty & efficiency | Value & peace of mind |
| Kia Seltos | ~$30,000+ | Warranty & parts | Budget maintenance |
| Mazda CX-5 (Used) | ~$20–35k | Efficiency & reliability | Larger SUV budget |
| Toyota RAV4 (Used) | ~$25–38k | Reliability & resale | Long-term ownership |
All prices are approximate Australian market values and vary by condition, location, kilometres and trim.
Tips to Keep Your SUV Ownership Costs Low
- Regular servicing at reputable workshops can prevent expensive future repairs.
- Compare insurance quotes — SUVs under $40K often have better premiums than high-performance cars.
- Maintain correct tyre pressure — proper tyres improve fuel economy.
- Choose higher-efficiency engines where possible — hybrids and smaller petrol engines often cost less to run.
New vs Used SUV Under $40K in Australia – Which Is Better?
Choosing between a new or used option is one of the biggest decisions when searching for the best SUV under $40K in Australia. Both paths have clear advantages, and the right choice depends on your priorities: warranty, features, depreciation, or overall value.
Below is a clear, practical breakdown to help you decide whether a new SUV under $40,000 or a used SUV under $40K makes more sense.
Buying a New SUV Under $40K in Australia
A new SUV under $40K is ideal for buyers who want predictability, warranty protection, and modern technology.
Advantages of a New SUV Under $40K
- Full factory warranty
New SUVs come with manufacturer warranty coverage, reducing repair risk and unexpected costs. - Latest safety technology
Modern driver-assist features such as autonomous emergency braking, lane assist and adaptive cruise control are often standard. - Lower maintenance in early years
Servicing costs are usually lower during the first few years of ownership. - Peace of mind
No prior usage, no hidden wear, and no uncertainty about previous servicing.
Disadvantages of a New SUV Under $40K
- Higher depreciation
New vehicles lose value fastest in the first few years. - Smaller size for the price
Under $40K, new SUVs are usually compact rather than mid-size. - Fewer premium features
Entry-level trims may feel basic compared to used higher-grade models.
Best suited for:
Buyers who want a stress-free ownership experience and plan to keep their SUV for several years.
Buying a Used SUV Under $40K in Australia
A used SUV under $40K often delivers more space, comfort, and performance for the same money.
Advantages of a Used SUV Under $40K
- Better value for money
You can often afford a larger or higher-spec SUV that was well above $40K when new. - Lower depreciation impact
Most depreciation has already occurred. - More space and versatility
Mid-size SUVs and even some 7-seat options become accessible. - Stronger engine options
Used models may offer more powerful engines than new budget SUVs.
Disadvantages of a Used SUV Under $40K
- Limited or no warranty (depending on age and dealer)
- Potential maintenance risk if service history is poor
- Older technology compared to brand-new models
Best suited for:
Buyers who want maximum space and comfort and are comfortable checking service history and condition.
New vs Used SUV Under $40K – Direct Comparison
| Factor | New SUV Under $40K | Used SUV Under $40K |
|---|---|---|
| Purchase Price | Higher for size | Better value |
| Warranty | Full factory | Limited / dealer |
| Depreciation | Higher | Lower |
| Technology | Latest | Depends on age |
| Space & Size | Usually compact | Often mid-size |
| Maintenance Risk | Very low | Medium (history dependent) |
Which Is the Best SUV Under $40K in Australia for You?
- Choose a new SUV under $40K if you want:
- Warranty protection
- Low stress ownership
- Modern safety features
- Choose a used SUV under $40K if you want:
- More space and comfort
- Better value for money
- A higher-segment SUV
There is no single “right” answer — both new and used options can qualify as the best SUV under $40K in Australia depending on your needs.
Quick Recommendation
- Best new SUV under $40K: Toyota Corolla Cross or Hyundai Kona
- Best used SUV under $40K: Toyota RAV4 or Mazda CX-5
Best Family SUVs Under $40K in Australia
When families are searching for the best SUV under $40K in Australia, comfort, safety, space and practicality become top priorities. Not all SUVs under $40,000 are equally suited to family life — some excel in passenger room, cargo space or child-friendly features that matter week-to-week.
Below are the stand-out family-friendly SUVs under $40K that balance space, safety, running costs and overall ownership satisfaction for Australian families.
1. Toyota RAV4 (Used) – Best All-Round Family SUV Under $40K
Why it’s great for families:
- Spacious interior and boot — excellent room for kids, strollers and luggage.
- Strong safety record — high safety ratings and reliable crash performance.
- Family-friendly practicality — good rear seat space and easy access.
Family features:
- Large cargo space for weekend trips
- Comfortable rear seats with ISOFIX child seat points
- Efficient petrol and hybrid engines help reduce fuel bills
Who it suits: Families who want a balanced, reliable SUV with room to grow and strong lifetime value.
2. Mazda CX-5 (Used) – Comfortable Family SUV Under $40,000
Why it’s family-friendly:
- Quiet and refined cabin — great for long drives with children.
- Solid safety suite — advanced driver assistance features are common across trims.
- Comfortable rear seating — plenty of legroom and headroom.
Family features:
- Spacious boot for prams and sports gear
- Strong safety ratings and tech features
- Smooth drive quality for highway and city use
Who it suits: Families who value a comfortable ride and well-built interior in an SUV under $40K.
If you are looking for best suv for frequent traveling read our guide : Best cars for long distance Traveling.
3. Subaru Forester (Used) – AWD Family SUV Under $40K
Why it stands out for families:
- Standard all-wheel drive offers better traction and confidence in wet or rural conditions.
- Good visibility and cabin space make it easy to manage kids and gear.
- Robust safety record with strong crash test results.
Family features:
- Habitual AWD for active families
- Rear seat comfort and practicality
- Good luggage space for family trips
Who it suits: Families who want all-weather capability and generous interior space without stretching budget.
4. Kia Seltos – New Family SUV Under $40,000
Why it’s a strong family choice:
- Roomy cabin and comfortable seats for drivers and passengers alike.
- User-friendly technology and safety features make daily driving easier.
- Good warranty cover — 7-year warranty lowers long-term ownership risk.
Family features:
- Practical boot space for everyday family needs
- Standard safety aids and connectivity
- Simple and intuitive interior layout
Who it suits: Families who want the best SUV under $40K in Australia with modern features, warranty coverage and space.
5. Toyota Corolla Cross – Compact Family SUV Under $40K
Why it’s family-use friendly:
- Fuel-efficient hybrid options keep running costs low.
- Solid safety features including autonomous braking and lane assist.
- Easy to park and manoeuvre in suburban areas.
Family features:
- Comfortable seating for smaller families
- Good fuel economy for school runs and errands
- Excellent long-term reliability
Who it suits: Smaller families prioritising efficiency, reliability and low maintenance.
Family SUV Under $40K – Quick Comparison
| SUV Model | Family Strengths | Practical Space | Safety Features | Best Family Use |
|---|---|---|---|---|
| Toyota RAV4 (Used) | Room & reliability | Large boot | Very good | Larger families/travel |
| Mazda CX-5 (Used) | Comfort & refinement | Good boot | Very good | Daily driving/family trips |
| Subaru Forester (Used) | AWD versatility | Practical space | Very good | All-weather needs |
| Kia Seltos | Modern tech & warranty | Good cabin | Good | Urban families |
| Toyota Corolla Cross | Efficiency & reliability | Moderate | Good | Smaller families |
All prices referenced are typical Australian market ranges for models under $40,000 before on-road costs.
Tips for Choosing a Family SUV Under $40K in Australia
- Check Boot and Rear Seat Space – Families need room for strollers, sports gear and luggage.
- Safety Technology – Look for adaptive cruise control, autonomous emergency braking and good ANCAP ratings.
- Running Costs – Fuel efficiency and warranty coverage help reduce household transport expenses.
- Child Seat Compatibility – ISOFIX points and easy rear seat access are important.
Family SUV Buying Recommendations
- Best overall family SUV under $40K: Toyota RAV4 (Used)
- Best for comfort and refinement under $40K: Mazda CX-5 (Used)
- Best AWD family SUV under $40K: Subaru Forester (Used)
- Best new family SUV under $40K: Kia Seltos
- Best fuel-efficient family SUV under $40K: Toyota Corolla Cross
What to Check Before Buying an SUV Under $40K in Australia
Before choosing the best SUV under $40K in Australia, it’s important to check a few critical factors that directly affect safety, reliability, and long-term ownership costs. Whether you’re buying a new SUV under $40,000 or a used SUV under $40K, these checks help avoid costly mistakes and ensure you get real value for money.
1. Safety Ratings and Features
Safety should always be non-negotiable when buying an SUV under $40K in Australia.
What to check:
- ANCAP safety rating (preferably 5-star)
- Autonomous Emergency Braking (AEB)
- Lane keep assist and blind-spot monitoring
- Rear parking sensors and reversing camera
Why it matters:
The best SUVs under $40K usually include modern safety technology, even in entry-level trims. This is especially important for families and daily commuters.
2. Service History (Used SUVs Under $40K)
If you’re buying a used SUV under $40K, the service history is one of the most important checks.
What to check:
- Full service records from authorised or reputable workshops
- Regular servicing intervals
- No gaps or missed services
Why it matters:
A well-maintained SUV under $40,000 can last many years, while a poorly serviced one can become expensive very quickly.
3. Warranty Coverage
Warranty protection can significantly reduce ownership risk when buying an SUV under $40K.
What to check:
- Remaining factory warranty on used vehicles
- Length and coverage of new-car warranties
- Dealer warranty inclusions (for used SUVs)
Why it matters:
The best SUV under $40K in Australia often comes with either a full factory warranty (new) or remaining coverage (used), helping control repair costs.
4. Running and Maintenance Costs
Purchase price is only one part of the cost equation.
What to check:
- Fuel consumption (petrol vs hybrid)
- Scheduled servicing costs
- Insurance premiums
- Tyre replacement costs
Why it matters:
Some SUVs under $40K are cheap to buy but expensive to run. Fuel-efficient and reliable SUVs usually offer the lowest total cost of ownership.
5. Space and Practicality
SUVs under $40K vary widely in size and usability.
What to check:
- Boot capacity with seats up
- Rear seat legroom and headroom
- Ease of fitting child seats
- Fold-flat rear seats for flexibility
Why it matters:
The best SUV under $40K for you should suit your lifestyle, whether it’s family use, commuting, or weekend trips.
6. Test Drive Experience
A test drive is essential before committing to any SUV under $40,000.
What to check:
- Ride comfort on rough roads
- Engine responsiveness
- Steering and braking feel
- Cabin noise at highway speeds
Why it matters:
Two SUVs under $40K can feel very different on the road. Comfort and ease of driving make a big difference in daily use.
7. Resale Value
Resale value affects the real cost of owning an SUV under $40K.
What to check:
- Brand reputation for resale
- Popularity of the model
- Market demand in Australia
Why it matters:
The best SUVs under $40K in Australia often come from brands like Toyota and Mazda, which traditionally hold their value better.
Quick Checklist Before Buying an SUV Under $40K
- 5-star ANCAP safety rating
- Full service history (used vehicles)
- Warranty coverage confirmed
- Acceptable fuel and servicing costs
- Suitable space for your needs
- Comfortable test drive experience
There is no single perfect choice for everyone, but the best SUV under $40K in Australia is the one that balances reliability, safety, running costs and practicality for your specific needs. Taking time to check these factors will help you buy confidently and avoid regret later.
Final Verdict – Best SUV Under $40K in Australia
Choosing the best SUV under $40K in Australia ultimately comes down to how you plan to use the vehicle and what matters most to you — reliability, family space, fuel efficiency, or long-term ownership costs. The good news is that the Australian market offers several strong SUVs under $40,000 that deliver real value without unnecessary compromises.
After comparing new and used options, ownership costs, fuel efficiency, safety and practicality, these are the standout choices.
Best Overall SUV Under $40K in Australia
Toyota RAV4 (Used)
The Toyota RAV4 remains one of the safest and most dependable choices when looking for the best SUV under $40K in Australia. It offers excellent space for families, strong reliability, good fuel efficiency (especially hybrid variants) and high resale value. For most buyers, it strikes the best balance of size, comfort and long-term value under the $40K budget.
Best New SUV Under $40K in Australia
Toyota Corolla Cross
If buying new is your priority, the Corolla Cross is one of the smartest SUVs under $40,000. It delivers excellent reliability, low running costs and strong safety features, making it ideal for buyers who want peace of mind and predictable ownership.
Best Family SUV Under $40K
Mazda CX-5 (Used)
For families seeking comfort and everyday usability, the Mazda CX-5 stands out as one of the best family SUVs under $40K in Australia. It offers a refined cabin, strong safety credentials and enough space for growing families without feeling bulky to drive.
Cheapest SUV to Own Under $40K
Hyundai Kona
The Hyundai Kona earns its place as one of the cheapest SUVs under $40K to own, thanks to good fuel efficiency, strong warranty coverage and relatively low servicing costs. It suits buyers looking to minimise ongoing expenses.
Most Fuel-Efficient SUV Under $40K
Toyota Corolla Cross Hybrid
For buyers prioritising low fuel costs, the Corolla Cross Hybrid is among the most fuel-efficient options and easily qualifies as one of the best SUVs under $40K in Australia for urban driving and daily commuting.
Best AWD SUV Under $40K
Subaru Forester (Used)
If all-wheel drive is important, the Subaru Forester offers strong safety, good interior space and dependable AWD capability, making it one of the better AWD SUVs under $40,000 available in the used market.
Final Recommendation
There is no single “one-size-fits-all” answer when choosing the best SUV under $40K in Australia, but:
- Choose new if you want warranty, modern safety tech and stress-free ownership
- Choose used if you want more space, higher trim levels and better value for money
By focusing on reliability, safety ratings, running costs and resale value, you can confidently choose an SUV under $40K that suits your lifestyle today and holds its value in the future.
Conclusion – Best SUV Under $40K in Australia
Finding the best SUV under $40K in Australia is about choosing a vehicle that delivers the right balance of reliability, safety, practicality and long-term value. The Australian market offers a wide range of SUVs under $40,000, making it possible to buy a dependable and comfortable SUV without stretching your budget.
For buyers who prefer peace of mind and modern safety features, a new SUV under $40K such as the Toyota Corolla Cross, Hyundai Kona or Kia Seltos makes sense due to warranty coverage and lower short-term maintenance costs. These SUVs under $40K are ideal for daily commuting, small families and buyers who want predictable ownership.
If space, comfort and value for money are higher priorities, a used SUV under $40K can often be the smarter choice. Models like the Toyota RAV4, Mazda CX-5 and Subaru Forester provide more interior room, stronger road presence and proven reliability while still fitting comfortably within the $40,000 budget.
Ultimately, the best SUV under $40K in Australia is the one that suits your lifestyle, whether that means family practicality, fuel efficiency, low running costs or long-term resale value. By focusing on safety ratings, service history, ownership costs and real-world usability, you can confidently choose an SUV under $40K that delivers strong value today and remains reliable for years to come.
FAQs – Best SUV Under $40K in Australia
What is the best SUV under $40K in Australia?
The best SUV under $40K in Australia depends on your needs. For reliability and low running costs, the Toyota Corolla Cross is a strong option. For space and family use, a used Toyota RAV4 or Mazda CX-5 is often considered one of the best SUVs under $40,000.
Can you buy a reliable SUV under $40,000 in Australia?
Yes, there are many reliable SUVs under $40,000 in Australia. Brands like Toyota, Mazda, Hyundai, Kia and Subaru consistently offer SUVs under $40K with proven reliability, good safety ratings and reasonable maintenance costs.
Is it better to buy a new or used SUV under $40K?
Both options can be good. A new SUV under $40K offers warranty coverage and modern safety features, while a used SUV under $40K often provides more space, higher trim levels and better value for money. The best SUV under $40K in Australia depends on whether you prioritise warranty or size and comfort.
What is the best family SUV under $40K in Australia?
For families, the best family SUV under $40K in Australia is often a used Toyota RAV4 or Mazda CX-5 due to their space, safety features and comfort. For smaller families wanting a new vehicle, the Kia Seltos and Toyota Corolla Cross are strong choices under $40,000.
Which SUV under $40K is cheapest to own?
Some of the cheapest SUVs under $40K to own include the Toyota Corolla Cross, Hyundai Kona and Kia Seltos. These SUVs under $40,000 are known for good fuel efficiency, low servicing costs and strong warranty support.
What is the most fuel-efficient SUV under $40K?
The Toyota Corolla Cross Hybrid is widely regarded as one of the most fuel-efficient SUVs under $40K in Australia. The Hyundai Kona Hybrid is another fuel-efficient SUV under $40,000 that performs well in city driving.
Are there 7-seat SUVs under $40K in Australia?
Yes, you can find 7-seat SUVs under $40K in the used market. Models such as the Mitsubishi Outlander and some Toyota Kluger variants may be available under $40,000 depending on age and condition.
Which SUV under $40K has the best resale value?
Toyota SUVs generally have the best resale value. A Toyota RAV4 or Toyota Corolla Cross is often considered among the best SUVs under $40K in Australia for retaining value over time.
Is an SUV under $40K good for long-distance driving?
Yes, many SUVs under $40K are suitable for long-distance driving. Models like the Mazda CX-5, Toyota RAV4 and Subaru Forester offer good ride comfort, safety features and fuel efficiency for highway use.
What should I avoid when buying an SUV under $40K?
When buying an SUV under $40K, avoid vehicles with poor service history, low safety ratings or unusually low prices that may indicate hidden issues. Always check fuel costs, insurance and maintenance to ensure the SUV under $40,000 fits your long-term budget.