Buying your first car in Australia has become more challenging as prices rise, but there are still several new models under $25,000 that deliver strong value. From compact hatchbacks to budget-friendly SUVs, these cars focus on affordability, ease of driving and low running costs.
For first-time buyers, the decision often comes down to a balance between price, practicality and features. While hatchbacks like the Suzuki Swift and MG 3 prioritise efficiency and city usability, small SUVs such as the MG ZS and Hyundai Venue offer more space and a higher driving position.
Here are 10 of the best new cars under $25k in Australia and how they compare from a buyer’s perspective.
| Model | Starting Price(before on-road costs) |
| Suzuki Swift | $24,990 |
| Chery Tiggo 4 | $23,990 |
| MG 3 | $20,990 |
| GWM Haval Jolion | $23,990 |
| Kia Picanto | $22,140 |
| MG ZS | $25,888 |
| Hyundai Venue | $22,750 |
| BYD Atto 1 | $23,990 |
| GAC Emzoom | $25,590 |
| Mahindra XUV 3XO | $23,990 |
- Suzuki Swift
The Suzuki Swift remains one of the most well-rounded choices for first-time buyers who prioritise ease of driving and efficiency. In everyday use, it feels more refined and modern, with a lighter chassis that makes it particularly enjoyable in urban conditions. It doesn’t offer the outright space of SUVs like the MG ZS or Haval Jolion, but that trade-off results in better fuel economy and easier parking.
Where it stands out is its balance across key areas. It offers a more polished driving experience than the Kia Picanto and feels less budget-focused than the MG 3. However, it can feel slightly expensive for its size when placed alongside larger SUVs like the Chery Tiggo 4 or Mahindra XUV 3XO.
For buyers who value driving feel and efficiency over space, the Swift remains a benchmark in this price range.
| Specifications | Suzuki Swift |
| Engine | 1.2L mild-hybrid petrol |
| Power | 61 kW |
| Torque | 112 Nm |
| Transmission | 5-speed manual/ CVT automatic |
| Drivetrain | Front-wheel drive |
| Fuel consumption | 3.8-4.8 L/100 km |
- Chery Tiggo 4
The Chery Tiggo 4 shifts the focus toward SUV practicality at a price point typically dominated by hatchbacks. From a value perspective, it offers a more modern interior and stronger perceived value, though it still lacks the brand recognition of more established rivals.
Against the Hyundai Venue and GWM Haval Jolion, the Tiggo 4 sits as a budget-first option, offering similar space but at a lower entry price. Performance is adequate rather than exciting, and while it doesn’t match the refinement of the Swift or Venue, it compensates with features and cabin tech.
For first-time buyers who want SUV space without stretching beyond $25k, the Tiggo 4 presents a compelling alternative to smaller hatchbacks, even if long-term ownership perceptions may still be evolving.
| Specifications | Chery Tiggo 4 |
| Engine | 1.5L turbo-petrol-hybrid |
| Power | 108kW |
| Torque | 210Nm |
| Transmission | Continuously-variable automatic |
| Drivetrain | Front-wheel drive |
| Fuel consumption | 7.4L/100km |
- MG 3
The MG 3 continues to dominate as the most affordable new car in Australia, making it a natural entry point for first-time buyers. Compared to the Suzuki Swift and Kia Picanto, it offers more interior space, though it feels less refined and less engaging to drive.
Where the MG 3 stands out is value. It undercuts almost every rival here, including SUVs like the MG ZS, while still delivering essential features and low running costs. However, it doesn’t match the polish of the Swift or the tech focus of newer entrants like the Chery Tiggo 4.
For buyers willing to stretch their budget slightly, the newer MG 3 Hybrid+ offers significantly stronger performance and improved fuel efficiency, making it a more rounded option overall. That said, the standard petrol MG 3 remains the most accessible choice for those strictly sticking under the $25k mark.
| Specifications | MG 3 |
| Engine | 1.5L petrol |
| Power | 81kW |
| Torque | 142Nm |
| Transmission | Continuously-variable automatic |
| Drivetrain | Front-wheel drive |
| Fuel consumption | 6.0L/100km |
- GWM Haval Jolion
The GWM Haval Jolion offers a noticeable step up in size compared to hatchbacks like the Swift and MG 3, making it a strong option for buyers who want more space. It feels slightly more modern in design and offers a more substantial road presence, particularly alongside the more conservative MG ZS.
Against rivals like the Hyundai Venue and Chery Tiggo 4, the Jolion sits closer to the upper end of the segment, offering better interior space and a more comfortable ride. However, it may feel less intuitive in terms of infotainment and driver-assist systems.
For first-time buyers considering longer trips or shared use, the Jolion’s size and comfort give it an edge over smaller alternatives, even if it comes close to the $25k ceiling.
| Specifications | GWM Haval Jolion |
| Engine | 1.5L petrol-hybrid |
| Power | 140kW |
| Torque | 375Nm |
| Transmission | 2-speed automatic |
| Drivetrain | Front-wheel drive |
| Fuel consumption | 5.1L/100km |
- Kia Picanto
The Kia Picanto represents the most compact and city-focused option in this list. It is noticeably smaller than the MG 3 and Suzuki Swift, but that makes it easier to manoeuvre and park, especially for new drivers.
While it lacks the space of SUVs like the Venue or ZS, it offers a more polished and better-built interior than the MG 3. It also benefits from Kia’s strong warranty, which adds peace of mind for first-time buyers.
The key trade-off is practicality versus simplicity, The Kia Picanto is ideal for urban driving and short commutes, but buyers needing more passenger or boot space may find better value in larger hatchbacks or entry-level SUVs.
| Specifications | Kia Picanto |
| Engine | 1.2L Petrol |
| Power | 62kW |
| Torque | 122Nm |
| Transmission | 5-speed manual/4-speed automatic |
| Drivetrain | Front-wheel drive |
| Fuel consumption | 5.4-6.0L/100km |
- MG ZS
The MG ZS has become one of the most popular budget SUVs in Australia by offering space and affordability in equal measure. It feels simpler but more proven in the market, especially when lined up against newer rivals like the Chery Tiggo 4.
Against hatchbacks like the Swift and MG 3, the ZS offers significantly more cabin and boot space, making it more practical for small families. However, it sacrifices performance and fuel efficiency as a result.
While it doesn’t feel as modern as newer rivals like the Tiggo 4 or XUV 3XO, it remains one of the easiest SUVs to recommend for first-time buyers due to its straightforward nature and strong value proposition.
| Specification | MG ZS |
| Engine | 1.5L petrol/ 1.5L turbo petrol |
| Power | 81/125 kW |
| Torque | 140/275 Nm |
| Transmission | CVT automatic |
| Drivetrain | Front-wheel drive |
| Fuel consumption | 6.7-6.9L/100km |
- Hyundai Venue
The Hyundai Venue strikes a balance between compact hatchbacks and larger SUVs. It offers a higher driving position and more practicality, than the Kia Picanto and Suzuki Swift, while remaining easy to drive.
The Venue feels more refined and better engineered, than the MG ZS and Chery Tiggo 4, though it offers slightly less interior space. It also benefits from Hyundai’s strong reputation for reliability and aftersales support.
For first-time buyers who want SUV styling without stepping into larger, less efficient options like the Jolion, the Venue presents a well-rounded middle ground.
- BYD Atto 1
The BYD Atto 1 represents a new direction for budget buyers, bringing electric mobility into the sub-$25k conversation. Compared to petrol rivals like the MG 3 and Swift, it offers significantly lower running costs and a quieter driving experience.
However, it differs from SUVs like the MG ZS and Venue in that range and charging infrastructure become key considerations. While it may not suit all buyers, particularly those without home charging, it introduces a compelling alternative.
For first-time buyers open to EV ownership, the Atto 1 stands out as a forward-looking option. It may not yet replace traditional petrol cars entirely in this segment, but it signals where the market is heading.
| Specifications | BYD Atto 1 |
| Battery Capacity | 30/43.2kWh |
| Power | 65/115kW |
| Torque | 180/310Nm |
| Transmission | Single-speed automatic |
| Drivetrain | Front-wheel drive |
| Range (WLTP) | 220/322km |
- GAC Emzoom
The GAC Emzoom adds a more design-focused and slightly sportier option to this list. It offers a more distinctive look and stronger performance focus than SUVs like the MG ZS and Tiggo 4.
It feels more modern inside than the MG ZS and more premium than the XUV 3XO, though it may sit closer to the upper edge of the $25k bracket. Performance is stronger than most entry-level SUVs here, making it appealing for buyers who want more than just basic transport.
For first-time buyers who value styling and a more engaging drive, the Emzoom offers something different, even if it may not match the outright value of more established rivals.
| Specification | GAC Emzoom |
| Engine | 1.5L turbo-petrol |
| Power | 125kW |
| Torque | 270Nm |
| Transmission | 7-speed dual-clutch automatic |
| Drivetrain | Front-wheel drive |
| Fuel consumption | 6.6L/100km |
- Mahindra XUV 3XO
The Mahindra XUV 3XO positions itself as a feature-packed alternative in the budget SUV segment. It offers more technology than rivals like the Chery Tiggo 4 and MG ZS, including larger screens and advanced driver-assist features.
It feels more modern than the ZS and more tech-focused than the Venue, though it doesn’t quite match the overall refinement of Hyundai’s offering. Performance is competitive for the segment, making it suitable for both city and occasional highway driving.
For buyers who prioritise features and value over brand familiarity, the XUV 3XO stands out as one of the most well-equipped options under $25k.
| Specification | Mahindra XUV 3XO |
| Engine | 1.2L turbo-petrol |
| Power | 82kW |
| Torque | 200Nm |
| Transmission | 6-speed automatic |
| Drivetrain | Front-wheel drive |
| Fuel consumption | 6.5L/100km |
Final thoughts
The sub-$25k segment in Australia is largely split between compact hatchbacks and entry-level SUVs, each catering to different priorities. Models like the MG 3, Kia Picanto and Suzuki Swift prioritise affordability and efficiency, making them ideal for city-focused buyers.
Meanwhile, SUVs such as the MG ZS, Hyundai Venue and Haval Jolion offer greater practicality and a higher driving position, which may appeal to buyers planning longer trips or shared use.
Newer entrants like the BYD Atto 1 and Mahindra XUV 3XO highlight how the segment is evolving, with more focus on electrification and in-car technology.
Ultimately, the best choice depends on your priorities:
- Best for budget: MG 3
- Best all-round hatchback: Suzuki Swift
- Best small SUV balance: Hyundai Venue
- Best for space: GWM Haval Jolion
- Best future-focused option: BYD Atto 1
For first-time buyers, the good news is that even under $25k, there are still genuine choices that balance affordability with everyday usability.
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