You don’t need to spend an arm and a leg to get a new car, but the ten cheapest cars for sale in 2020 might be cheap for a reason.

We get it, cars are expensive. As vehicles get fitted with more safety tech and creature comforts, the asking price on new cars just seems to go up over the long term. As a consequence, the average age of vehicles on our roads, according to the Australian Bureau of Statistics, is pretty old at 10.1 years as car owners hold onto their cars for longer.

However, what you get for your money these days can be staggering, as technology advances rapidly. But what if you don’t want all the bells and whistles? We’ve looked at some of the cheapest cars you can buy new in Australia in 2020.

What are the cheapest cars in Australia in 2020?


About the cheapest SUV you’ll find in Australia, the Trax can be found new for around $20,000 drive-away, depending on your state’s on-road costs. With front wheel drive, and a 1.4L turbo petrol engine, it’s probably more at home on suburban streets rather than the dusty trails. Additionally, it demands premium 95-RON fuel.


You might not think a Volkswagen would make the list, but here it is. The base model ‘70TSI’ Polo comes in at just under $20,000 drive away. For that you’ll get a 3 cylinder 1.0L turbo petrol engine, matched to a five-speed manual gearbox - the auto is slightly more. Again, this car demands 95 fuel, however fuel consumption is just 4.8L/100km combined.


The Honda Jazz has been on Aussie roads for quite a while now, and in 2020 it’s more of what we know and love, just in an updated package. At around $19,300 drive-away, the cheapest model comes in manual form. The good news is that unlike other small hatchbacks, it only demands 91 fuel as it isn’t turbocharged. However, fuel economy suffers somewhat, consuming 6.5L/100km combined. Peak torque also doesn’t come on until 4,800rpm meaning you’ll likely need to rev the car more to get it moving.


If you’re getting sick of hatchbacks dominating the list, Great Wall has a work ute at less than $20,000 drive away. The ‘Steed’ comes in dual-cab, rear-wheel drive form, with a manual gearbox. Payload is just over a tonne, which is down compared to a Toyota Hilux’s 1,240kg. Towing capacity on the Steed is 2,000kg, compared to say the HIlux’s 3,500kg on turbo diesel 4x4 varieties. The Steed also demands premium 95 fuel.


The cheapest Fabia starts at less than $18,000. For that, the little hatchback comes with a 3 cylinder 1.0L engine, which will hardly set the world on fire, but could still be sufficient for city streets. The cheapest models also come in manual form, while the automatics are a little dearer. This car also demands premium 95-RON fuel, however it is frugal, consuming just 4.7L per 100km combined.


Cute and small, the Mazda 2 Neo breathes a touch of quality into the list and for a fairly modest asking price of less than $18,000 drive away. Once again, you’ll have to be willing to shift your own gears, as the auto gearbox is slightly more expensive. While demanding only E10/91 fuel, consumption is at 5.4L/100km combined. Mazdas are known for being fairly feature-packed for the price, but the base model Neo sacrifices some creature comforts such as dual-zone climate control and a larger infotainment screen found in other models.


While older models famously used to be one of the only cars delivered in hot pink, the newest Mirages have shed that colour from their palette. The cheapest models can be found for around $16,500 drive away. However, once again you’ll have to drive manual to find the cheaper prices. The engine size is a three cylinder, 1.2L non-turbo. Fuel consumption is just 4.7L/100km combined and demands only 91 fuel.


This list wouldn’t be complete without a cheap and cheerful Suzuki. The Baleno can be driven off the dealership lot for less than $17,000. For that you’ll surprisingly get a four cylinder 1.4L engine, and an automatic, albeit a four-speed auto. It demands 91 fuel and consumes 5.4L/100km combined.


The Picanto is among the cheapest on the list, at under $16,000 drive away. For shelling out 16 big ones you’ll get a four cylinder, 1.25L engine matched with a four speed auto. However, like with most Kias, you get the brand’s long 7 year/unlimited kilometre warranty. It can also take E10 fuel, and consumes 5.8L/100km combined.


At less than $16,000 drive away, the MG3 is among the cheapest on this list. For that you’ll get a four cylinder, 1.5L engine with a four speed auto. While MG is more famously known for its made-in-UK sporty roadsters in decades past, the MG3 is made in China. However, you’ll get a 7 year/unlimited kilometre warranty. It also demands 95 fuel and consumes 6.7L/100km combined.

If you’re dreaming of a new car but don’t want to break the budget, can save you money on your car loan by using our special brokerage network to find a good deal for you.