If you’re interested in electrified vehicles rather than fully electric, here's our pick of the best new hybrid and PHEV cars, SUVs, and utes on sale in Australia.
Budget
Australia’s best, affordable, new first cars for drivers in 2025
Buying your first new car can be daunting with the expense involved and so many brands competing for your attention. To help you choose, we’ve selected 12 hatchbacks, sedans and SUVs with petrol, hybrid or EV power that are safe, affordable, comfortable and economical.
Whether it’s your first car or a big step forward after driving second-hand cars up until now, buying a new vehicle is exciting but deserves careful consideration when you’re on a tight budget.
The fact that it’s a brand-new car will ensure it carries a full new vehicle warranty and should bring other advantages such as the latest in safety, technology and powertrain advancements. But that is not always the case at the cheapest end of the market, where carmakers can sometimes make sacrifices to keep their prices as low as possible.
With affordability and safety top of mind in our judging criteria, we’ve selected 12 of the best new first cars for drivers in 2025 spanning popular hatchback, small sedan and SUV segments across traditional petrol, hybrid and electric vehicle (EV) powertrains.
On this page
Australia’s best, affordable, new first cars
With the most affordable new cars in Australia, the best ones for beginner and experienced drivers alike are those that are safe, comfortable, economical, reliable and easy to maintain.
We’ve set a threshold of $35,000 driveaway in Victoria, based on pricing at the time of writing, and narrowed the field down with the requirement that they all have a current maximum five-star safety rating from the Australasian New Car Assessment Program (ANCAP).
That ruled out some otherwise excellent cars, including those with five-star ratings that expire at the end of 2024. We’ve included the date tested for each vehicle, with the most recent (2024) subjected to ANCAP’s latest protocols.
To help you keep costs down further, we’ve also placed a high emphasis on real-world economy and routine expenses such as servicing and maintenance, while at the same time valuing aspects of a new car that make the ownership experience rewarding – its standard features (safety, technology and creature comforts), cabin layout, practicality and overall driving performance.
As well as economy, our driving assessment covers areas such as ride quality, safe handling, comfortable acceleration, easy manoeuvrability and refinement. All the cars on our list meet the rules for probationary drivers in Victoria.
Warranties and resale values also come into the equation, providing extra reassurance for new car owners.
More: The cheapest hybrid and PHEV cars in Australia for 2025
Best new first cars under $35,000
The MG4 EV offers a compelling alternative to traditional petrol-engined hatchbacks.
MG4
Price: from $32,990 driveaway
Safety: ANCAP 5 stars (2022)
The 2025 MG4 hatchback is one of the price leaders in the fast-growing electric vehicle segment and among the cheapest new passenger cars available in Australia with a maximum five-star ANCAP safety rating.
As an EV, the MG4 benefits from longer service intervals, lower servicing costs and zero tailpipe emissions. On the downside, most EVs (including the MG4) don’t have a spare wheel.
As with all new MG cars, the MG4 carries a class-leading 10-year/250,000km new vehicle warranty, which includes the high-voltage battery. There is a generous amount of standard equipment on the car, and while higher versions offer stronger performance and a longer range, the base model remains a compelling proposition. The icing on the cake is that the MG4 is great fun to drive, too.
More: MG4 Excite 51 review
More: MG4 Essence 64 and Long Range 77 review
The Toyota Yaris has an economical hybrid powertrain at the heart of an excellent package all-round.
Toyota Yaris
Price: from $32,674 driveaway
Safety: ANCAP 5 stars (2020)
The 2025 Toyota Yaris compact hatch is a strong contender in this field. Not the cheapest, as with most cars from the market-leading Japanese brand, but worth the investment when considering the bigger picture.
We’re talking here about the Yaris’ excellent safety standing, economical hybrid powertrain, low ownership costs, high resale value and great driving dynamics. What the base model might lack in terms of the latest tech and creature comforts, it counters with a smart design, ergonomic dash layout, build quality and refinement.
The Yaris is backed by a five-year/unlimited-kilometre factory warranty. Owners are also given access to Toyota Connected Services, which thanks to Australian tech company Intelematics opens up a raft of safety and security features (automatic collision notification, SOS emergency call, stolen vehicle tracking), as well as multimedia functions and driving insights.
The VW Polo is another great all-rounder, offering safe handling and supple ride quality.
Volkswagen Polo
Price: from $31,990 driveaway
Safety: ANCAP 5 stars (2022)
As with the Yaris, the 2025 Volkswagen Polo is a premium city hatch that still shines brightly as a more traditional alternative to the new wave of compact electric cars. The Polo received a significant upgrade in 2022, bringing a higher specification and prompting a reassessment by ANCAP, which handed it an updated maximum five-star safety rating.
You will find cheaper alternatives in this segment, but not with a combination of that current ANCAP rating and general excellence for style, cabin quality, comfort and driving performance. The small three-cylinder turbo-petrol engine in the base 85TSI Life model is smooth, eager and economical and the Polo’s ride and handling characteristics are among the best in class.
Capped-price servicing costs are on the high side but resale values are solid. Volkswagen’s factory warranty runs for five years/unlimited kilometres.
More: Volkswagen Polo review
The BYD Dolphin EV hatch looks and feels like a more expensive car. Image: Toby Hagon
BYD Dolphin
Price: from $32,206.45 driveaway
Safety: ANCAP 5 stars (2023)
The 2025 BYD Dolphin is another EV hatchback that has loads of appeal compared to popular traditional small cars such as the Mazda3, Kia Cerato and Toyota Corolla, the latter not included in this guide due to its ANCAP rating expiring in December 2024.
The Dolphin looks smart, feels like a much more expensive car on the inside and is brimming with the latest tech, including Vehicle to Load (V2L) capability. At the entry level, the EV offers enough performance, driving comfort and an acceptable range for life in the city.
The vehicle warranty on the Dolphin is six years/150,000km, extending to eight years/160,000km (with at least 70 per cent of the original capacity) for the battery. However, a number of key components, including the multimedia system and suspension, have a reduced warranty period. BYD model pricing can also fluctuate, so watch out for special offers.
More: BYD Dolphin review
The Kia Cerato is available in both sedan and hatch body styles and is backed by a seven-year warranty.
Kia Cerato
Price: from $30,290 driveaway
Safety: ANCAP 5 stars (2019)
The 2025 Kia Cerato is one of the biggest-selling small cars in Australia, and for good reason. Despite being near the end of its current lifecycle, the Cerato still fits the bill with an appealing price tag, adequate features and honest-to-goodness performance.
Note that we’re talking here about lower-series Cerato hatch and sedan models that have the $1500 Safety Pack fitted. Without it, the Cerato misses out of vital life-saving equipment and loses its five-star ANCAP rating.
But with the pack added, there’s lots to like. Beyond the safety spec, there’s Kia’s attractive seven-year/unlimited-kilometre warranty, suspension tuned for Australian road conditions and, not least of all, real-world fuel economy that’s 10 per cent lower than the manufacturer’s claim, as found in the Australian Automobile Association’s Real-World Testing Program.
More: Kia Cerato review
The Mazda3 is one of the best-looking small cars on the road, with safety and quality on its side too.
Mazda3
Price: from $33,990 driveaway
Safety: ANCAP 5 stars (2019)
The Mazda3 has been a great all-rounder for a long period and still holds firm as a recommended choice for a first new car in 2025. Quality, safety, practicality, economy – these are elements that count here.
Available as a hatch or sedan, the Mazda3 is well specified across the board and a pleasure to drive, delivering useful performance and a finely honed ride and handling combination across the range. Connected services such as stolen vehicle tracking and SOS emergency call became available in 2024, while real-world fuel consumption in the base 2.0-litre engine is closely matched to Mazda’s claim.
Capped-price servicing and other costs of ownership similarly rate highly in the Mazda3, which is supported by a five-year/unlimited-kilometre factory warranty. Not least of all, this is still one of the best-looking small cars on the road.
More: Mazda3 review
Best new first SUVs under $35,000
The Kia Seltos boasts a long warranty and benefits from local suspension tuning.
Kia Seltos
Price: from $32,090 driveaway
Safety: ANCAP 5 stars (2019)
The 2025 Kia Seltos is a well-rounded small SUV, ticking the box in many key areas – affordability, safety, economy and driving performance, to name a few.
The cabin is more spacious than the exterior suggests and the comfort levels are high, with supportive front seats, practical storage solutions and a broad range of mod-cons fitted standard. The 2.0-litre engine has proven to be economical in real-world testing, while Australian-developed suspension tuning helps with Victoria’s poor road conditions.
Kia’s seven-year/unlimited-kilometre warranty also remains a drawcard, and ever-improving resale values have placed the Seltos among the best in class.
More: Kia Seltos review
The MG HS has just entered a new generation but continues to be one of the most affordable new medium SUVs.
MG HS
Price: from $34,990 driveaway
Safety: ANCAP 5 stars (2024)
The MG HS medium SUV has entered a new generation for 2025, bringing with it an appealing new design, a much roomier cabin, uprated performance and higher equipment levels across the board. Prices have risen slightly, too, but MG remains ultra-competitive in this area, to the point where the HS is a top-rated pick among the few family SUVs that start below $35,000.
This second-generation HS for Australia has achieved a maximum five-star ANCAP safety rating under the latest testing protocols, while the overall driving experience has improved over the previous model. It might not be an outright class leader, but as a complete package there is a lot to see here.
Don’t forget that all new MG models are now covered by a 10-year/250,000km warranty.
The stylish Nissan Juke has just benefited from a significant upgrade, making it better value than ever.
Nissan Juke
Price: from $32,732 driveaway
Safety: ANCAP 5 stars (2019)
We rated the Nissan Juke highly among our best ‘look at me’ SUVs earlier this year and Nissan has recently introduced a significant update across the model range – for no additional price.
The charming 2025 Nissan Juke arrives with extra safety systems at the entry level and a major interior overhaul including higher-grade materials, better storage facilities and a redesigned dashboard with upgraded infotainment.
Importantly, the Juke’s fun-to-drive character traits remain, thanks to a well-resolved chassis and peppy performance from the tiny 1.0-litre turbo-petrol engine. It’s backed by a five-year/unlimited-kilometre warranty and previous models have also held up well for reliability over the longer term.
More: Nissan Juke review
The Skoda Kamiq is a top pick among the most affordable European small SUVs.
Skoda Kamiq
Price: from $33,990 driveaway
Safety: ANCAP 5 stars (2019)
The 2025 Skoda Kamiq is another bang-for-your-buck entrant in this field, combining European flair and big-ticket items with an affordable price tag.
You’ll be encouraged to spend more but stick to the entry-level Kamiq at less than $34K and the overall package still holds up across the board. That goes for its all-round driving performance, too, with the vibrant and frugal 85TSI 1.0-litre turbo-petrol engine a highlight.
Competitive capped-price servicing also helps keep the running costs in check, while Skoda’s seven-year/unlimited-kilometre warranty adds an extra layer of reassurance.
More: Skoda Kamiq review
The Toyota Yaris Cross is a sensible choice in a sea of new small SUVs now available in Australia.
Toyota Yaris Cross
Price: from $35,175 driveaway
Safety: ANCAP 5 stars (2021)
We’ve crept over $35K to get the 2025 Toyota Yaris Cross into the mix, but at $35,175 driveaway this small and proficient hybrid SUV stands tall as a sensible choice in a fast-growing category.
Hybrid power remains a rarity at this end of the market, but the advantages are clear with official fuel economy for the base 2WD Yaris Cross rated at just 3.8L/100km. Low operating costs are found in other areas such as capped-price servicing, while the safety suite extends to Toyota Connected Services (including automatic collision notification).
Toyota’s standard factory warranty is five years/unlimited kilometres, with provisions to extend in some areas (engine/driveline and the hybrid’s traction battery) if you continue to service the Yaris Cross through the brand’s dealer network. Toyota’s reputation for quality and reliability is also reflected in strong resale values.
The GWM Haval Jolion's very low starting price and five-star safety rating make it worth a closer look.
GWM Haval Jolion
Price: from $23,990 driveaway
Safety: ANCAP 5 stars (2022)
The 2025 GWM Haval Jolion small SUV is worth a close look, not least because it’s one of the most affordable new vehicles in Australia at $23,990 driveaway and offers a high standard of safety under ANCAP testing.
Value for money lies at the heart of the Jolion package, not only with its abundant equipment but excellent interior space for this category. Low capped-pricing servicing helps keep running costs down, but the driving experience does not match the class leaders and the 1.5-litre turbo-petrol engine is thirstier than some rivals.
A more economical Jolion Hybrid is also available, still under our threshold, from $31,990 driveaway. Prospective owners will also appreciate GWM’s seven-year/unlimited-kilometre factory warranty.
The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
