Buying used cars under $40,000 in Australia opens up one of the strongest value segments in the market. At this price point, buyers can access newer vehicles with modern safety technology, lower kilometres, and a wider choice of body styles compared to lower budgets. Many cars in this range are near-new or ex-lease models, offering excellent value without the steep depreciation of buying brand new.
Compared to used cars under $30,000, a $40,000 budget provides noticeably better comfort, stronger performance, and more advanced driver assistance features. This makes the segment especially appealing for families, long-distance drivers, and buyers looking for a reliable daily vehicle that will hold its value over time.
In this guide, we list the best used cars under $40,000 in Australia, breaking them down by SUVs and sedans. Each vehicle is reviewed individually with pricing expectations, safety ratings, real-world pros and cons, and overall value scores to help you compare options confidently and choose the right car for your needs.
Buyers who are slightly flexible on budget may also want to compare options in our guide to used cars under $30,000 in Australia, which highlights strong value picks just below the $40k mark.
Toyota RAV4 (2019–2022) – Best All-Round Used SUV Under $40,000
The Toyota RAV4 is one of the strongest options among used cars under $40,000 in Australia, especially for buyers seeking a reliable, practical, and easy-to-own SUV. With this budget, it’s possible to find newer-generation RAV4 models that offer modern safety features, strong fuel efficiency, and excellent resale value.
This generation of the RAV4 delivers a comfortable driving experience with a well-designed cabin and generous interior space. It suits families, commuters, and long-distance drivers equally well, which explains why it remains one of the most in-demand used SUVs in Australia.
Typical used price: $32,000 – $39,500
Body type: Mid-size SUV
Seating: 5 passengers
Engine Options & Fuel Economy
Most used RAV4 models under $40,000 are powered by efficient petrol engines, with some hybrid variants also appearing in this price range depending on kilometres and trim level.
Fuel economy is competitive for a mid-size SUV, particularly in real-world driving, making the RAV4 suitable for both city use and highway travel.
Safety & ANCAP Rating
The Toyota RAV4 holds a 5-star ANCAP safety rating and commonly includes advanced safety features such as autonomous emergency braking, lane departure alert, adaptive cruise control, and blind-spot monitoring. These features make it one of the safest used SUVs under $40,000 in Australia.
Reliability & Ownership Costs
Toyota’s reputation for long-term reliability is a major reason the RAV4 performs so well in the used market. Servicing costs are reasonable, parts are widely available across Australia, and resale value remains strong even after several years of ownership.
Before committing to a purchase, it’s worth reviewing car reliability ratings in Australia to understand long-term ownership expectations and common issues across different models.
Pros
- Excellent reliability and durability
- Strong safety features across most trims
- Spacious interior and practical boot
- High resale value
Cons
- High demand can limit negotiation room
- Base models may feel less premium than some rivals
Overall Ratings
| Category | Rating |
|---|---|
| Reliability | 9.5 / 10 |
| Safety | 9.5 / 10 |
| Comfort | 8.5 / 10 |
| Fuel Efficiency | 8.5 / 10 |
| Value for Money | 9 / 10 |
If affordability is a priority, there are still plenty of dependable choices available in our breakdown of used cars under $20,000, particularly for buyers focused on lower running costs.
Mazda CX-5 (2019–2022) – Best Mid-Size Used SUV Under $40,000
The Mazda CX-5 stands out as one of the best mid-size SUVs among used cars under $40,000 in Australia. It combines a premium feel with enjoyable driving dynamics, making it a favourite for buyers who want something more refined than the typical family SUV. With responsive steering, a comfortable cabin, and excellent safety ratings, the CX-5 appeals to both daily commuters and long-distance travellers.
Used examples in this budget often come well equipped, with features such as leather-accented trim, infotainment screens, advanced safety systems, and efficient Skyactiv engines. The ride quality is poised and comfortable, while handling remains confident, giving the CX-5 an edge over many rivals in its class.
Typical used price: $30,000 – $39,500
Body type: Mid-size SUV
Seating: 5 passengers
Engine Options & Fuel Economy
Most Mazda CX-5 models in this price range are equipped with efficient 2.0 L or 2.5 L petrol engines that balance performance and economy well. Diesel options may appear in some regional markets depending on availability. Fuel economy is competitive, especially on highway cruising, which enhances long-distance comfort and reduces running costs.
Safety & ANCAP Rating
The Mazda CX-5 carries a 5-star ANCAP safety rating and typically includes advanced safety technologies such as autonomous emergency braking, blind-spot monitoring, lane-keep assist, and adaptive cruise control. These features make it one of the safest used SUVs available under $40,000 in Australia.
Reliability & Ownership Costs
The CX-5 is known for its long-term reliability when well maintained. Running costs are reasonable, and parts are widely available across Australia. Servicing a CX-5 tends to be predictable, and strong resale values help protect your investment if you decide to upgrade later.
Pros
- Premium interior quality
- Excellent handling and driving dynamics
- Strong safety and reliability reputation
- Well equipped even in mid-range trims
Cons
- Slightly firmer ride than some rivals
- Popularity can make clean examples sell quickly
Overall Ratings
| Category | Rating |
|---|---|
| Reliability | 9 / 10 |
| Safety | 9.5 / 10 |
| Comfort | 9 / 10 |
| Fuel Efficiency | 8.5 / 10 |
| Value for Money | 8.5 / 10 |
Hyundai Tucson (2020–2022) – Best Value Used SUV Under $40,000
The Hyundai Tucson stands out as one of the best value used SUVs under $40,000 in Australia, offering a compelling mix of features, comfort, and practicality. With this budget, buyers can access newer model years that come well equipped with technology, safety, and convenience features that rival more expensive competitors.
The Tucson’s cabin is thoughtfully designed, with intuitive controls, a comfortable seating position, and quality materials throughout. Its ride quality is composed, making it suitable for both city commutes and longer highway journeys. With a choice of powertrains and trim levels, the Tucson appeals to a wide range of buyers, from families to couples seeking versatility without a high price tag.
Typical used price: $28,000 – $38,500
Body type: Mid-size SUV
Seating: 5 passengers
Engine Options & Fuel Economy
Most used Hyundai Tucsons under $40,000 are powered by efficient 2.0 L or 2.4 L petrol engines, paired with smooth automatic transmissions. Some models may also offer mild-hybrid assistance, depending on market availability and trim. Fuel economy is competitive within the class, particularly when driven with a balanced mix of city and highway travel.
Safety & ANCAP Rating
The Hyundai Tucson holds a 5-star ANCAP safety rating, with many models offering advanced safety features such as autonomous emergency braking, lane-keep assist, blind-spot monitoring, and rear cross-traffic alert. These features make the Tucson a sensible choice for families and safety-conscious drivers shopping the used market.
Reliability & Ownership Costs
Hyundai’s warranty reputation and widespread service network provide confidence for used owners. Routine maintenance costs for the Tucson are generally affordable, and parts availability across Australia is strong. Reliability is solid when service history is up to date.
Pros
- Very strong value for equipment level
- Comfortable ride quality
- Excellent safety features
- Affordable servicing and running costs
Cons
- Fuel economy isn’t class-leading
- Less engaging to drive than sportier rivals
Overall Ratings
| Category | Rating |
|---|---|
| Reliability | 8.5 / 10 |
| Safety | 9.5 / 10 |
| Comfort | 9 / 10 |
| Fuel Efficiency | 8 / 10 |
| Value for Money | 9 / 10 |
For buyers working with a tighter budget, our list of used cars under $15,000 in Australia covers proven models that balance reliability and ownership value.
Kia Sorento (2019–2021) – Best Large Used SUV Under $40,000
The Kia Sorento is one of the most compelling large SUVs available in the used cars under $40,000 in Australia segment. For buyers needing extra passenger space, towing capability, or more family-friendly features, the Sorento delivers strong value with generous seating and a well-equipped cabin. Its combination of size, comfort, and modern technology makes it a standout in the large SUV category.
Used examples within this budget often come with features such as heated seats, panoramic sunroofs, advanced infotainment systems, and driver assistance technology. The interior feels spacious and practical, with a flexible seating arrangement that suits both families and adventure-oriented buyers. Despite its larger size, the Sorento is still comfortable on long drives and highway cruising.
Typical used price: $30,000 – $39,000
Body type: Large SUV
Seating: 5–7 passengers (depending on configuration)
Engine Options & Fuel Economy
Most used Kia Sorentos under $40,000 are powered by either a 2.4 L petrol engine or a 3.3 L V6 petrol engine, paired with smooth automatic transmissions and optional all-wheel drive. Fuel economy is reasonable for a vehicle of this size, particularly in petrol-only configurations, and towing capability adds to its versatile appeal.
Safety & ANCAP Rating
The Kia Sorento holds a 5-star ANCAP safety rating and typically includes a suite of driver assistance features such as autonomous emergency braking, lane-keeping assist, blind-spot detection, and rear-cross traffic alert. These technologies help reinforce the Sorento’s position as a large family SUV that doesn’t compromise on safety.
Reliability & Ownership Costs
Kia’s extended warranty reputation often persists into the used market when transfer conditions are met, providing extra peace of mind. Servicing and maintenance costs are reasonable, and parts are widely available throughout Australia. A Sorento with a full service history and regular maintenance will often remain dependable for many years of use.
Pros
- Excellent space for passengers and cargo
- Well equipped even in mid-range trims
- Strong safety features
- Available with AWD and towing capability
Cons
- Bigger size means slightly higher fuel consumption
- Less agile in tight urban environments
Overall Ratings
| Category | Rating |
|---|---|
| Reliability | 8.5 / 10 |
| Safety | 9.5 / 10 |
| Comfort | 9 / 10 |
| Fuel Efficiency | 7.5 / 10 |
| Value for Money | 9 / 10 |
Toyota Camry Hybrid (2019–2022) – Most Efficient Sedan Under $40,000
The Toyota Camry Hybrid is one of the most attractive sedan options in the used cars under $40,000 in Australia category, especially for buyers prioritising fuel efficiency, comfort, and long-term reliability. With this budget, you can find well-maintained hybrid models that combine smooth performance with excellent economy — ideal for both family use and commuter duties.
Hybrid drivetrain benefits are especially pronounced in city driving, where electric-assist technology reduces fuel consumption and smooths acceleration. The Camry Hybrid’s cabin is spacious and refined, featuring quality materials, good noise insulation, and a practical layout that enhances the overall ownership experience.
Typical used price: $30,000 – $39,500
Body type: Mid-size Sedan
Seating: 5 passengers
Engine & Fuel Efficiency
The Camry Hybrid combines a petrol engine with an electric motor to deliver strong real-world fuel efficiency without sacrificing comfort or power. This makes it one of the most economical sedans among used cars under $40,000 in Australia, with average fuel consumption figures that significantly outperform conventional petrol-only midsize sedans.
Safety & ANCAP Rating
The Toyota Camry Hybrid carries a 5-star ANCAP safety rating and often includes advanced safety technology such as autonomous emergency braking, lane departure alert, adaptive cruise control, and other driver assistance systems. These features help make it a reassuring choice for families and long-distance drivers.
Reliability & Ownership Costs
Toyota’s hybrid systems have a strong reliability reputation when maintained correctly, and parts and servicing are widely available throughout Australia. While hybrid vehicles may have slightly higher servicing costs compared to non-hybrid versions, the long-term fuel savings and strong resale value often outweigh these costs.
Pros
- Excellent fuel economy
- Smooth and refined ride quality
- Strong safety features
- Good resale value
Cons
- Slightly higher servicing costs than non-hybrid alternatives
- Not as sporty to drive as some rivals
Overall Ratings
| Category | Rating |
|---|---|
| Reliability | 9.5 / 10 |
| Safety | 9.5 / 10 |
| Comfort | 9 / 10 |
| Fuel Efficiency | 9.5 / 10 |
| Value for Money | 9 / 10 |
Mazda 6 (2019–2021) – Best Comfort Sedan Under $40,000
The Mazda 6 is a standout sedan among used cars under $40,000 in Australia, offering a blend of premium interior comfort, engaging handling, and a refined driving experience. It’s a great choice for those who spend a lot of time on the road, appreciate a well-designed cabin, and want a sedan that feels more upscale without the high new-car price tag.
In the used cars under $40,000 category, the Mazda 6 often competes directly with larger Japanese sedans, but its crisp handling, stylish design, and strong safety ratings give it an edge for buyers who want substance as well as form. Many examples in this price range include advanced infotainment and driver assistance features, making it a compelling option for families and professionals alike.
Typical used price: $32,000 – $39,500
Body type: Mid-size Sedan
Seating: 5 passengers
Engine & Fuel Economy
Most Mazda 6 models in this budget come with efficient Skyactiv petrol engines — typically the 2.5 L four-cylinder — paired with smooth automatic transmissions. Fuel economy is competitive for the class, providing balanced performance and reasonable running costs for city and highway driving.
Safety & ANCAP Rating
The Mazda 6 has a 5-star ANCAP safety rating, and many used examples feature standard safety equipment such as autonomous emergency braking, lane-keep assist, adaptive cruise control, and blind-spot monitoring. These systems contribute to an overall high safety score and provide confidence for family travel.
Reliability & Ownership Costs
Mazda’s reliability reputation is strong when servicing is up to date, and parts are widely available across Australia. Maintenance and servicing costs remain predictable, while the Mazda 6’s interior quality means it holds condition well over time. Resale values are robust among well-kept examples, particularly for sedans with full service histories.
Pros
- Refined, comfortable interior
- Engaging yet composed driving dynamics
- Strong safety features and ratings
- Excellent value for a premium feel
Cons
- Slightly higher running costs than smaller sedans
- Older infotainment systems relative to newest models
Overall Ratings
| Category | Rating |
|---|---|
| Reliability | 9 / 10 |
| Safety | 9 / 10 |
| Comfort | 9.5 / 10 |
| Fuel Efficiency | 8.5 / 10 |
| Value for Money | 9 / 10 |
Honda Accord (2019–2021) – Best Long-Distance Sedan Under $40,000
The Honda Accord is a strong choice among used cars under $40,000 in Australia for buyers who want a comfortable, spacious sedan that performs well on long highway journeys and daily commuting alike. Known for its refined handling and dependable engines, the Accord delivers a smooth ride, generous interior space, and excellent overall comfort, making it ideal for families or those who spend a lot of time on the road.
Accords in this price range frequently come with advanced infotainment and safety technologies, and their naturally aspirated engines provide a good balance of performance and economy. In real-world use, the Accord is particularly appealing to buyers who prioritise a relaxed driving experience, quiet cabin, and durable build quality.
Typical used price: $30,000 – $39,000
Body type: Mid-size Sedan
Seating: 5 passengers
Engine & Fuel Economy
Most used Accords under $40,000 in Australia are powered by efficient 1.5 L turbo petrol engines or optional 2.0 L variants. These engines deliver smooth acceleration and confident highway performance without compromising fuel economy. The Accord’s transmission — typically a CVT — is refined and well suited to everyday driving.
Safety & ANCAP Rating
The Honda Accord carries a 5-star ANCAP safety rating and commonly features a suite of advanced safety technologies such as autonomous emergency braking, lane assist, adaptive cruise control, and blind-spot monitoring. These features help make the Accord a reassuring choice for long trips and family use.
Reliability & Ownership Costs
Honda’s long reputation for reliability carries through the Accord lineup, and provided routine servicing has been maintained, these vehicles are known to be durable and trouble-free. Servicing and parts availability are strong across Australia, and resale values tend to hold up well for well-maintained examples.
Pros
- Smooth and comfortable ride
- Excellent highway cruising manners
- Spacious cabin and boot
- Strong reliability reputation
Cons
- Infotainment systems can feel dated
- CVT transmission isn’t to everyone’s taste
Overall Ratings
| Category | Rating |
|---|---|
| Reliability | 9 / 10 |
| Safety | 9.5 / 10 |
| Comfort | 9 / 10 |
| Fuel Efficiency | 8.5 / 10 |
| Value for Money | 8.5 / 10 |
Near-New & Ex-Lease Cars Under $40,000 in Australia
For many buyers, one of the biggest advantages of the used cars under $40,000 segment is access to near-new and ex-lease vehicles. These cars often offer the latest technology, modern safety equipment, and low kilometres, all without the significant depreciation that comes with buying brand new.
Near-new cars in this price range are typically only a few years old and may feature many convenience and driver assistance technologies that weren’t available on earlier models. Ex-lease cars, in particular, are often well maintained with regular servicing and comprehensive history, making them a very attractive used-vehicle option.
This category appeals especially to buyers who want:
- Modern safety features (e.g., autonomous emergency braking, lane-keep assist, adaptive cruise control)
- Low kilometres
- Impressive ownership experience without a new-car price tag
- Better value retention over time
Because these cars are newer, they typically have:
- More refined cabins
- Up-to-date infotainment systems
- Higher safety ratings than older used cars in the same budget
Examples of Near-New / Ex-Lease Vehicles in This Budget
Below are some of the types of vehicles you may find:
- Toyota RAV4 (ex-lease with low km) — modern safety and hybrid options
- Mazda CX-5 (near-new, well-equipped trim) — premium feel with advanced features
- Hyundai Tucson (low-km near-new) — strong value with recent tech
- Toyota Camry Hybrid (ex-lease) — excellent fuel economy
- Honda Accord (low-km) — refined highway cruiser
It’s important to evaluate:
- Service history
- Warranty transferability
- Tyre and brake condition
- Remaining new-car warranty
These factors are often more relevant for near-new and ex-lease cars than for older used vehicles.
Why This Is One of the Best Subsegments
Near-new and ex-lease cars under $40,000 in Australia offer a sweet spot between new and used:
- They retain modern technology and safety
- They avoid steep depreciation
- They often come from corporate fleets with good maintenance records
- They require less immediate maintenance
Most importantly, they help bridge the gap between mainstream used vehicles and truly new cars — providing a premium experience at a sensible price.
Overall Ratings for This Subsegment
| Category | Rating |
|---|---|
| Safety Features | 9.5 / 10 |
| Technology & Comfort | 9 / 10 |
| Fuel Economy (Hybrid / Modern Engines) | 9 / 10 |
| Value for Money | 9.5 / 10 |
| Long-Term Ownership | 9 / 10 |
Buyers looking for well-maintained ex-government vehicles can also explore VicFleet services, where the Victorian Government auctions used fleet vehicles through approved auction houses, offering transparent histories and regular inspection opportunities.
Family Cars Under $40,000 in Australia
Finding a car that suits family needs doesn’t have to mean stretching beyond a sensible budget. Within the used cars under $40,000 in Australia segment, there are a number of SUVs and sedans that combine safety, space, comfort, and technology — all essential for family life. Whether you’re ferrying kids to school, heading out on weekend trips, or simply doing daily errands, the models in this range offer practical solutions without compromising on modern features.
Family cars under $40,000 also tend to come with strong safety technology and good passenger space, reducing stress for drivers and passengers alike. This section highlights key vehicles that excel in comfort, safety, and overall everyday usability for families.
What Makes a Great Family Car in This Budget
Before we list specific models, here are the core traits buyers should consider in family cars under $40,000:
- 5-Star ANCAP safety ratings — essential for peace of mind
- Spacious rear seating — for child seats and growing families
- Easy-to-use technology — infotainment and driver aids
- Good boot capacity — for groceries, strollers, luggage
- Affordable running costs — realistic servicing and fuel economy
These factors help ensure that any family car in this budget works well day-to-day and retains value over time.
Top Family Pick: Toyota RAV4 (2019–2022)
The Toyota RAV4 continues to be one of the most family-friendly SUVs in the used cars under $40,000 category. Its combination of space, safety technology, and well-balanced ride quality make it ideal for family life.
- 5-Star ANCAP safety rating
- Excellent boot space and rear leg room
- Available hybrid variants for lower running costs
- Strong reliability and resale value
Parents appreciate the RAV4’s comfortable ride, easy access for child seats, and generous cargo area for weekend gear.
Family Comfort Option: Mazda CX-5 (2019–2022)
The Mazda CX-5 impresses with its refined interior and strong safety credentials, making it an excellent choice for families who want slightly more comfort and style.
- Spacious cabin with supportive seats
- Advanced safety features in higher trims
- Smooth ride quality on highways and city roads
- Good mix of performance and practicality
Its interior layout and ergonomics are often praised by family buyers who want a slightly more premium feel in the used segment.
Large Family SUV: Kia Sorento (2019–2021)
For larger families or those needing extra flexibility, the Kia Sorento is one of the best large SUVs in the used cars under $40,000 in Australia category.
- Available 7-seat configurations
- Strong safety and driver assist features
- Large boot capacity with seats folded
- Comfortable ride for long trips
The Sorento suits families who regularly carry passengers or need the flexibility to transport gear as well as people.
Practical Family Sedan: Toyota Camry Hybrid
While SUVs are often the go-to for families, the Toyota Camry Hybrid stands out among sedans for those who prefer a smooth ride, excellent fuel economy, and strong safety features.
- Spacious rear seating and good boot space
- Excellent fuel efficiency for daily driving
- Strong safety ratings and tech
- Comfortable ride on longer journeys
This makes it a good alternative for families who prioritise economy and comfort over raised ride height.
Family Car Ratings Summary
Below is a quick comparison of family-centric models featured on this page:
| Model | Safety | Space | Comfort | Family Suitability |
|---|---|---|---|---|
| Toyota RAV4 | 9.5 | 9 | 8.5 | 9.5 |
| Mazda CX-5 | 9.5 | 8.5 | 9 | 9 |
| Kia Sorento | 9.5 | 9.5 | 9 | 9.5 |
| Toyota Camry Hybrid | 9.5 | 8 | 9 | 8.5 |
What to Check Before Buying Used Cars Under $40,000 in Australia
Even with a higher budget, careful inspection and due diligence are essential when buying used cars under $40,000 in Australia. At this price point, vehicles are often newer, better equipped, and more sophisticated — which means there’s more technology to verify and more systems that can be costly to fix if overlooked.
This section breaks down the key areas you should check before you commit to a purchase, whether you are buying from a private seller or a dealership. Use this as your personal inspection roadmap.
1. Service History & Logbook
A complete service history is one of the strongest indicators of a well-maintained vehicle.
Check for:
- Regular servicing at recommended intervals
- Records from authorised or reputable workshops
- No large unexplained gaps in history
- Receipts or logbook stamps matching dates and kilometres
If a car has patchy or no service history, expect:
- Potential upcoming repair costs
- Uncertain maintenance practises
- Lower resale value
2. Ownership & PPSR Check
It’s vital to confirm the car’s legal status before purchase.
Do a PPSR (Personal Property Securities Register) search to verify:
- The car is not under finance
- It’s not stolen
- It hasn’t been written off previously
A PPSR report gives extra protection and peace of mind.
If the cost of the check is a concern, remember that avoiding a problematic car saves much more in the long run.
3. Mechanical Inspection (Engine & Transmission)
Even well-maintained cars can hide issues if you don’t inspect key mechanical systems.
Engine
- Check for oil leaks around the valve cover and sump
- Look for coolant leaks
- Listen for unusual noises on start-up or idle
Transmission
- Automatic: Smooth shifts with no slipping or jerking
- Manual: Crisp gear changes and no clutch shudder or high pedal effort
Signs to watch for:
- Smoke from exhaust on start-up
- Hesitation or rough shifts
- Loud rattles or ticking sounds
4. Suspension & Brakes
Older or frequently used vehicles may show wear in suspension and brake components.
Check for:
- Uneven tyre wear
- Clunks or bangs over bumps
- Brake pulsation or noise
Test drive on both smooth and rough surfaces — this reveals issues that casual inspection won’t.
5. Rust, Undercarriage & Body Panels
Rust can be a deal-breaker in Australian conditions, especially in coastal regions or areas with heavy rain.
Inspect:
- Wheel arches
- Sills
- Undercarriage
- Around doors and boot seams
Surface rust is common; deep rust near joints or suspension points requires caution.
6. Electronics & Comfort Features
Cars under $40,000 often include more tech — and tech can fail if neglected.
Check:
- Infotainment system operation
- Smartphone connectivity (Apple CarPlay / Android Auto)
- Air conditioning performance
- Power windows and mirrors
- All dashboard warning lights
Make sure every button and screen behaves as expected before buying.
7. Safety Features & Recall Status
Many used cars in this budget have advanced safety tech. Confirm:
- Airbags are working
- Autonomous emergency braking / lane assist systems operational
- Reversing camera / sensors functioning
Additionally, check for unresolved recalls on the vehicle via the manufacturer or state transport authority.
8. Tyres, Wheels & Alignment
Tyres affect ride quality, safety and cost:
- Ensure tyres have decent tread remaining
- Look for uneven wear (alignment issue indicator)
- Inspect wheels for curb damage or bends
Worn or mismatched tyres are an easy negotiation point.
9. Paperwork & Test Drive Checklist
Before you finalize the deal, verify:
- Current registration status
- Roadworthy certificates (if required for your state)
- Transfer of ownership requirements
- VIN matches the paperwork
During the test drive, pay attention to:
- Steering response
- Brake feel
- Acceleration smoothness
- Clutch and gearbox behaviour
Walk away if anything feels uncertain. Better options are almost always available in this price range.
10. Cost of Ownership Estimate
Used cars under $40,000 vary widely in running costs. Check:
- Insurance estimates before purchase
- Fuel economy in real-world terms
- Scheduled servicing intervals and costs
- Parts pricing for key wear items
Budget for servicing, tyres, brakes, and unexpected small repairs — even well-maintained cars benefit from proactive upkeep.
Quick Inspection Checklist (Copy & Use)
✔ Service history complete
✔ PPSR check done
✔ Engine leak free
✔ Smooth transmission
✔ Suspension quiet and stable
✔ No significant rust
✔ All electronics working
✔ Safety tech verified
✔ Tyres in good condition
✔ Documentation verified
✔ Test drive completed
✔ Ownership cost estimated
Negotiation Tips for Used Cars Under $40,000 in Australia
Negotiating the price of used cars under $40,000 in Australia requires a slightly different approach compared to lower-budget vehicles. Cars in this price range are often newer, better maintained, and in higher demand — but that doesn’t mean there’s no room to negotiate.
With the right strategy, buyers can still secure meaningful savings or added value without risking the deal.
Understanding pricing flexibility can make a big difference, so see our guide on how much you can negotiate on a used car in Australia before making an offer.
1. Know the Market Before You Inspect
Before contacting sellers, research:
- Average asking prices for the same model, year, and kilometres
- Differences between dealer and private pricing
- Optional features that add genuine value (not cosmetic extras)
Being informed prevents emotional decisions and gives you confidence during discussions.
2. Inspect First, Negotiate Second
Never negotiate before you inspect and test drive the vehicle.
After inspection, note:
- Tyre condition
- Brake wear
- Upcoming servicing needs
- Minor cosmetic issues
- Missing accessories (spare key, manuals, cargo covers)
Each issue strengthens your negotiating position — especially when framed as future ownership costs.
3. Use Wear Items as Leverage
Even well-presented cars can need attention soon.
Common negotiation points:
- Tyres near replacement
- Brake pads or discs nearing end of life
- Upcoming major service
- Expired warranty
Instead of demanding a large price drop, ask:
- For a price adjustment
- For repairs or servicing to be completed before delivery
- For registration or warranty extensions (dealer sales)
4. Be Strategic With Your Offer
Avoid extreme lowball offers — they often end negotiations early.
A strong opening offer is usually:
- 5–10% below asking price for private sellers
- Slightly lower for dealership vehicles due to fixed margins
Explain your offer calmly using facts, not emotion.
5. Timing Matters More Than You Think
Sellers are often more flexible:
- Near the end of the month
- Toward the end of the year
- When a car has been listed for several weeks
Dealers may also negotiate more readily to meet monthly sales targets.
6. Stay Willing to Walk Away
One of the most powerful negotiation tools is patience.
If the seller refuses to move:
- Thank them politely
- Leave your offer open
- Be prepared to walk away
Many sellers follow up once interest slows or they reassess expectations.
7. Don’t Focus Only on Price
Negotiation isn’t just about lowering the number.
Consider asking for:
- Extended warranty
- Fresh service before delivery
- New tyres
- Roadworthy certificate included
- Registration extension
These extras can represent significant value even if the price doesn’t change.
8. Avoid Emotional Attachment
Cars under $40,000 can feel premium, which makes emotional buying more likely.
If you feel pressured or rushed:
- Pause the discussion
- Review your checklist
- Compare alternative listings
There will always be another good option available.
9. Private Seller vs Dealer Strategy
Private Sellers
- Usually more flexible on price
- Expect faster transactions
- Limited after-sale protection
Dealers
- Less flexible on price
- More flexible on inclusions
- Added consumer protections
Adjust your negotiation style accordingly.
Quick Negotiation Checklist
✔ Research market prices
✔ Inspect thoroughly
✔ Identify future costs
✔ Make a reasonable first offer
✔ Negotiate with facts
✔ Stay patient
✔ Walk away if needed
✔ Focus on total value, not just price
Frequently Asked Questions – Used Cars Under $40,000 in Australia
What are the best used cars under $40,000 in Australia?
Some of the best used cars under $40,000 in Australia include popular SUVs like the Toyota RAV4, Mazda CX-5 and Hyundai Tucson, reliable sedans such as the Toyota Camry and Mazda 6, and practical family vehicles like the Kia Sorento and Subaru Outback. This budget allows buyers to choose from newer models with advanced safety features, good fuel efficiency and strong resale value.
Are used SUVs under $40,000 worth buying?
Yes, used SUVs under $40,000 offer excellent value. Many models in this price range are only a few years old and include modern safety technology, spacious interiors and improved fuel economy. Buyers can often find near-new or ex-lease SUVs that balance comfort, reliability and long-term ownership costs.
What is the most reliable car under $40,000?
Reliable options under $40,000 typically come from brands known for long-term durability such as Toyota, Mazda, Honda and Subaru. Models like the Toyota Camry, Toyota RAV4, Mazda CX-5 and Subaru Forester are widely regarded for reliability, lower maintenance costs and strong resale value in Australia.
Should I buy a near-new or older used car under $40,000?
Near-new and ex-lease cars are often the smarter choice if your budget allows. They usually come with lower kilometres, modern safety features and sometimes remaining manufacturer warranty. Older used cars may be cheaper upfront, but near-new vehicles often cost less to maintain over time.
Is $40,000 enough to buy a family car in Australia?
Yes, $40,000 is a strong budget for a family car in Australia. Buyers can choose from mid-size SUVs, large sedans and wagons with good safety ratings, spacious cabins and child-seat compatibility. Many family-friendly vehicles in this price range offer excellent comfort for long trips and daily driving.
What running costs should I expect for used cars under $40,000?
Running costs depend on the vehicle type, engine size and servicing history. In general, expect insurance, servicing and fuel costs to be lower for reliable Japanese and Korean brands. Hybrid vehicles in this budget can significantly reduce fuel expenses over time.
Conclusion – Is Buying a Used Car Under $40,000 Worth It?
Buying used cars under $40,000 in Australia offers one of the best value propositions in today’s market. This budget unlocks access to newer vehicles with modern safety technology, improved comfort and better fuel efficiency — without absorbing the steep depreciation of buying brand new.
Whether you’re looking for a practical family car, a reliable daily commuter, a comfortable SUV or a near-new ex-lease vehicle, the under-$40,000 segment provides a wide range of choices to suit different needs and lifestyles. By researching thoroughly, inspecting carefully and negotiating smartly, buyers can secure a vehicle that delivers strong long-term value and peace of mind.
At aus car sales, we focus on helping Australian buyers compare vehicles by budget, reliability and real-world ownership factors.
For anyone upgrading from a lower budget bracket or seeking a balance between affordability and premium features, used cars under $40,000 remain one of the smartest buying decisions in the Australian car market.
To explore current listings across all price ranges, you can browse available vehicles on our used cars for sale in Australia page and compare options in one place.