New car prices in Australia continue to climb, with the average cost now starting around $35,000 (According to Find My Car). Recent data from Cox Automotive suggests that the average price of a new car in 2025 could be as high as $47,462. Even used cars often sit between $10,000 and $25,000.
Despite record-breaking car sales in 2024, rising interest rates and ongoing cost-of-living pressures are making it harder for Aussies to pay upfront. That’s why more buyers are turning to car loans to bridge the gap. With over 2.5 million Australians already using car loans and vehicle finance, it’s clear that borrowing has become a necessary step to get behind the wheel.
While the market may feel limited if your budget is less and you’re set on buying brand new, there are still plenty of inexpensive options available that don’t sacrifice that new-car smell.
If you’re looking for your dream car that won’t break the bank, we’ve done the hard work for you with our list of top cars under $25,000 that are safe, efficient and tech-packed.
The Kia Picanto retains its crown as Australia’s most affordable new car in 2025. It delivers great value for everyday driving, offering essential features like wireless Apple CarPlay, Android Auto, and a seven-year unlimited-kilometre warranty. Combining affordability, fuel efficiency, advanced safety, and modern features, the Kia Picanto stands out as a top choice for budget-conscious drivers.
*Price is based on the Manufacturer's Suggested Retail Price for the lowest-priced 2025 variant. The price excludes costs such as stamp duty and other government charges and options. Figures based on CarsGuide.
The Toyota Corolla has earned global recognition as an affordable, well-rounded vehicle that excels in safety, efficiency, and long-term value. Durability and reliability are the Corolla’s bread and butter, while its low running costs come down to minimal maintenance needs and Toyota’s reputation for build quality. With its sleek, sporty design and refined driving experience, it offers excellent value for money. The Corolla is also a standout for fuel efficiency, making it a smart choice for both daily commutes and longer road trips. Standard safety features include pre-collision warning with pedestrian detection, lane departure alert, and adaptive cruise control—providing peace of mind on every journey. Plus, Toyota Australia backs it with capped-price servicing, helping drivers stay on budget without compromising on quality.
*Price is based on the Manufacturer's Suggested Retail Price for the lowest-priced 2025 variant. The price excludes costs such as stamp duty and other government charges and options. Figures based on Toyota Australia.
Suzuki Ignis is a small SUV-esque hatch that has been giving drivers the elevated ride height and bold looks of an SUV—without the bulky size or price tag. You’ll be able to reap the benefits of excellent fuel economy, 7-inch multimedia touchscreen with Apple CarPlay and Android Auto, compact size for easy maneuvering on urban roads and a reasonable amount of cargo space. Under the bonnet, a frugal 1.2-litre engine delivers excellent fuel economy—consuming as little as 4.7L/100km, making it ideal for budget-conscious drivers. On top of all of that, you could drive away with a 5-year, unlimited warranty and capped prized servicing.
*Price is based on the Manufacturer's Suggested Retail Price for the lowest-priced 2025 variant. The price excludes costs such as stamp duty and other government charges and options. Figures based on Cars Guide.
The Mazda 2 has been well-known to rule the roads as an affordable, fuel-efficient car and has a long-standing reputation for its reliability. Powered by a 1.5-litre engine and offering 250L of boot space, it's equally suited to daily city driving or spontaneous weekend getaways. Don’t let its compact size fool you—this car is packed with modern safety and tech features, including Smart City Brake Support, a touchscreen infotainment system with Apple CarPlay and Android Auto, blind-spot monitoring, rear cross-traffic alert, and six airbags for added peace of mind.
*Price is based on the Manufacturer's Suggested Retail Price for the lowest-priced 2025 variant. The price excludes costs such as stamp duty and other government charges and options. Figures based on Cars Guide.
The MG 3 Excite is worthy of consideration if you’re shopping for an affordable daily commuter to get from A to B. It is a budget-friendly hatchback that’s easy to drive and packed with everyday essentials. It’s compact size and light steering make it perfect for city driving, while features such as a reversing camera, rear parking sensors, and a fuel consumption rate of around 6.7L/100kmmakes it efficient for urban commutes and short trips. It’s also backed by MG’s 7-year unlimited-kilometre warranty and capped-price servicing. The MG3 Excite is a great option for first-time buyers, students, or anyone looking for no-fuss transport that simply gets the job done.
*Price is based on the Manufacturer's Suggested Retail Price for the lowest-priced 2025 variant. The price excludes costs such as stamp duty and other government charges and options. Figures based on MG.
If you're leaning toward an SUV, the Chery Tiggo 4 Urban is well worth a test drive. This rising brand stands out in the SUV market for offering impressive value at an affordable price. The Tiggo 4 Urban combines a sleek, modern interior with advanced safety features and intuitive tech, making it a compelling option for everyday drivers. It features a 1.5L turbo engine, wireless Apple CarPlay and Android Auto, dual 10.25-inch screens, and a spacious, comfortable interior. With safety tech like autonomous emergency braking, blind-spot monitoring, and adaptive cruise control, it offers peace of mind on the road. Backed by a 7-year unlimited-kilometre warranty and capped-price servicing, the Tiggo 4 Urban delivers serious value for budget-conscious SUV buyers.
*Price is based on the Manufacturer's Suggested Retail Price for the lowest-priced 2025 variant. The price excludes costs such as stamp duty and other government charges and options. Figures based on Drive.
The Suzuki Swift remains a standout in the under $25,000 category, offering an appealing mix of convenience, fuel efficiency, and everyday reliability. Widely praised for its fun-to-drive nature and sharp handling, this light hatchback is perfectly suited to urban environments thanks to its compact size and easy manoeuvrability. Standard features include autonomous emergency braking, Apple CarPlay, Android Auto, and a user-friendly touchscreen infotainment system. On top of that, the Swift comes with five years of complimentary roadside assistance and a five-year capped-price servicing plan, making it a value-packed choice for drivers seeking peace of mind and low running costs.
*Price is based on the Manufacturer's Suggested Retail Price for the lowest-priced 2024 variant. The price excludes costs such as stamp duty and other government charges and options. Figures based on Car Expert.
And there you have it folks, our list of top new cars under $25,000 in Australia. As you can see there is still a market for cars without the hefty price tag that deliver safety, comfort and modern technology. You can definitely still drive away feeling like you’ve scored a great deal.
While the average Australian spends almost $48,000 on a new car, there are still plenty of excellent models available for well under $25,000. And that’s just for brand-new, driveaway deals. Exploring the used car market could unlock even more value and help you find the perfect match for your needs.
If you’re looking for help financing your next car, Jacaranda Finance is here to assist. We offer fast, online Car Loans of up to $25,000 with flexible loan terms up to 48 months.
You can apply online or through our Better Credit app, and in many cases, receive same-day pre-approval*—so you can hit the road faster and on your terms. Use our loan repayment calculator below to get an idea of your repayments, or check your eligibility without affecting your credit score.
Before you apply for a loan, we think it's important to review your budget and be certain that you can comfortably repay it.
Once you know what you can afford in your budget, use our three-step loan repayment calculator to estimate your repayments before you apply.
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