The days of cars with a $13,990 pricetag, trumpeting “drive away, no more to pay”, are so far into the rear-vision mirror they are out of sight.
Right now, there is only one new car with a showroom sticker below $20,000, and most people swerve around the Kia Picanto because it is truly a teeny-tiny little city runabout. It’s ok if you only run from a city apartment to the shops, or inevitable doctor appointments, but never fun for a long country run. And, heavy forbid you were struck down by a giant American pick-up …
The days of juicy sub-$20,000 smart cars, from brands like Kia and Hyundai and even Toyota and Honda, are also gone. Even the space between $20,000 and $30,000 has become a bit of a wasteland – and a waste land – where cars are either stripped-down price leaders or Chinese imports.
What that means, in 2026, is that $40,000 is a realistic budget for a nice new car. It’s never going to bring you a Benz but life can be nice and, if you’re prepared to do the hard yards on research and test driving, there are also some lovely secondhand picks.
The sub-$40k starter brings all sorts of choices, with many providing the hybrid kick that so many people want as the fuel crisis bites and gets people thinking about their transport choices. It’s not enough for a decent electric car, although China brands are doing their best to entice buyers with sweet deals and ‘all the bells and whistles’, but none of the real certainty for a future in tough Aussie conditions.
So, where to go and what to consider if you’re looking for a decent new car? How about these:
Still the best thing in ‘first-and-last’ cars, for P-platers and retirees. The Swift has become what the Toyota Corolla has been for decades, before the price jumped, the size got too big, and waiting lists stretched for months.
Some people worry that the Suzuki failed the 5-Star safety test at ANCAP, but that’s mostly because installing the necessary ‘driver aids’ would add an extra $5000 to the bottom line.
What’s left is a solid and sensible little hatchback, in a world where hatchbacks have died or withered – the Ford Focus and Fiesta are gone, the Volkswagen Golf is only a high-priced hottie – and almost everyone wants (not needs) an SUV.
The Swift is claimed as a hybrid, but it’s a very basic one without the appeal of a Toyota or Honda, yet it is still super-frugal with one of the best long-term quality reputations in the car world.
Lots of starting-price people also go for the MG3, and the latest version is alright without being a stand-out. So second place, but well behind.
The smallest member of the South Korean brand’s SUV line-up is also affordable and a good place for youngsters.
The basic car only has a slowcoach 1-litre engine, but it can still be bought, on order, as a manual – remember those? – and the standard equipment is good for the price, including a smartphone charger pad.
It drives well, is easy to park, and is rock-solid value from a proven brand.
The best way to get a smart deal and spark some haggling is to head to a Kia showroom, where the Venue’s non-identical twin – the Stonic – is also available, but with a starting price of $28,180.
Small and medium SUVs are the hottest thing in Australia showrooms, with literally dozens of makes and models.
Trying to pick a winner is all about setting a budget, doing the online facts and figures, then heading to showrooms for a ’trial fit’ – bring the kids and golf clubs – to see how a car can really work for you.
Honda has done a lacklustre job of promoting itself and its cars over recent years, spending more time fighting with dealers, but the cars are still good.
In the case of the HR-V, it’s grown to become the sort of size most people expect for the CR-V – which can even be bought now as a 5+2 family contender.
What makes the HR-V good is the basic quality of the car and its materials. It’s not a jack-rabbit EV from the lights, but it drives well and is relaxing over any distance.
If nothing else, it’s the car to use as a benchmark before you sign up for a Chery or, heaven forbid, a Leapmotor.
The name is silly, but the Kamiq makes a lot of sense as a family SUV.
It’s all about the Volkswagen Tiguan, which provides the building blocks for this compact contender as part of the Volkswagen Group.
Any Skoda is a standout for design and finishing work, including the vastly under-appreciated Octavia wagon, and the driving experience is solid and enjoyable.
The base price only brings a 1-litre turbo engine and front-wheel drive, but that’s fine for most people.
It’s a hidden treat.
Remember the Toyota RAV4? Well, this is it.
The original RAV has grown so big it’s moved into an entirely different class, and family of family buyers, to leave space for the high-rider Corolla SUV. And it’s a hybrid, like every new Toyota arriving in Australia.
If you want something smaller there is also the Yaris Cross, which is bigger than you might expect, but the pumped-up Corolla has all the space for singles with hobbies and families with youngsters.
It’s easy to jump past the $40,000 level if you want all the frills, but – like just about every new car today – the Corolla Cross is fine from the starting level and the best value is the mid-sized model, if you have more to spend.
The Corolla Cross is also the car to test drive before you head to Hyundai or Kia, or any of the alphabet soup newbie brands flooding down under.