As new car prices and sales in Australia cool down, there is good news for used car buyers as well - there are great deals and bargains to be had for used cars, SUVs and utes.
Motoring
The best used cars, SUVs and utes in Australia under $20,000
If you have a $20,000 budget and want to buy a car these days, you'll be shopping for something pre-loved. Here are the best used cars, SUVs and utes on sale in Australia for under $20K.
The price of new cars has escalated dramatically in recent times, due to a confluence of factors including inflation and supply shortages of critical parts.
Officially nowadays, the only new vehicle still on-sale in Australia under $20,000 is the Kia Picanto - and that’s before on-road costs. Clearly, a city micro-car is not going to suit everyone’s needs, so here is a guide to the best cars, SUVs and utes for a budget of $20,000.
Guidelines for shopping in the used car market
- Buy the newest car you can. It will usually have some factory warranty and a higher level of standard safety equipment such as autonomous emergency braking.
- While it’s always good to go for low kilometres, you can get a better deal if you buy a young car with higher kilometres. If you don’t plan to drive lots of distance yourself, it evens itself out over time.
- Make sure you check the service records of your potential purchase. Skipped services are a sign of early and potentially bad mechanical trouble.
- Check out the used car safety rating system published by the Monash University Accident Research Centre. This is real world data compiled over decades showing how vehicles perform in real world accidents.
More: How to buy a used car with confidence
Australia's best used cars, SUVs and utes under $20K
Best used mini car under $20,000
Mazda2
Shopping in the part of the market with the lowest new vehicle prices, it makes sense that you'll get a good used vehicle for your money, as is the case with the Mazda2. It ticks a lot of boxes.
Vehicles built in Japan generally have less issues than those rolling out of factories elsewhere. It’s not a perfect rule, but you can expect a degree of reliability if you buy a Mazda2. One reason is its mechanical simplicity. There are no turbochargers, dual clutch gearboxes or excessive reliance on electronics here.
Every third-generation Mazda2 – and it’s been around since 2014 – is powered by a 1.5-litre four-cylinder engine mated to either a six-speed manual or six-speed automatic gearbox driving the front wheels. It coalesces into a sparky, well-sorted ride and drive that adds to its appeal.
The Mazda2 also comes in just two body styles: five-door hatch or four-door sedan. Being so small it’s unsurprisingly tight in the back seat.
The Mazda2 also comes in multiple equipment grades from the modest to the premium. In the era of car you should be looking at – 2020 and beyond – autonomous emergency braking and Apple CarPlay are standard.
Also consider: Suzuki Swift
The Suzuki Swift is a solid and reliable small car that has remained true to its concept since first launched by the Japanese manufacturer in the 1980s. The Swift has always been pocket-sized and light weight, with small but enthusiastic powertrains that make it great for the urban runabout role.
More: 2024 Suzuki Swift Hybrid vs MG3 Hybrid comparison
The Mazda2 is the best used mini car under $20,000.
Best used small car under $20,000
Hyundai i30
With a $20,000 budget and our shopping criteria as guidance, it's harder to get a recently built version of popular small cars such as the Mazda3 and Toyota Corolla. So, we’ll make the short hop to South Korea and the Hyundai i30.
Although a major facelift has pushed the new i30 upmarket, there's still the five-door hatchback powered by a 2.0-litre engine that has been the mainstay of the local range.
This is a straightforward and generally well-built car, so the chances of something going seriously wrong are reduced. Based on current prices you should also be able to find an i30 still covered by Hyundai’s five-year warranty.
One of the neat things about this car is it has locally tuned ride and handling. That makes it a more pleasant drive on Aussie roads. Equipment is generally of a competitive level without being outstanding – no blind spot monitoring, digital radio or wireless phone charging in the base model for instance.
Rear seat space is pretty tight, making it less appealing for families than couples or singles. And note that autonomous emergency braking didn’t become standard across the entire range until late 2020.
Also consider: Kia Cerato
The Kia Cerato is a close relation of the i30, so much stated above applies here too. The Cerato even has a longer warranty at seven years.
The Kia Cerato is a great used small car under $20,000.
Best used small SUV under $20,000
Mazda CX-3
The Mazda CX-3 has been around since 2015 and has been available in a plethora of variants in that time, including front- and all-wheel drive and petrol and turbo-diesel powertrains. But what we're interested in here is the petrol 2.0-litre front-wheel drive with an automatic transmission.
The more affordable Neo Sport and Maxx Sport equipment grades fall into our pricing range, although they may be a little older than preferable. But like the Mazda2, the CX-3 comes with excellent Mazda build quality and enjoyable, zesty driving manners.
Its major drawback is limited rear-seat room and a small boot. This is very much a car for singles and couples or the runabout second vehicle for a family.
Also consider: Kia Stonic
It has a funny name, but the Kia Stonic is a decent car. As per all Kias, it benefits from a seven-year warranty.
The Mazda CX-3 comes with excellent build quality and enjoyable driving.
Best used medium SUV under $20,000
Kia Sportage
With SUVs getting bigger, only older vehicles will fit our budget, which puts our criteria under more stress as well.
In medium SUV – Australia’s No.1 sales segment - we’ve opted for the Kia Sportage. Not the current generation, introduced in 2021 with its distinctive boomerang driving lights, but its predecessor, which was a good vehicle in its own right.
The five-seat five-door fourth generation Sportage debuted in early 2016 with a choice of two petrol engines and a turbo-diesel, six-speed manual or automatic transmission and front- or all-wheel drive. The suspension was also locally fine-tuned, making it a better drive on Australian roads.
The Sportage backed that up with a decent interior space and a reasonable level of equipment for its price. Note: you want to be shopping for a Sportage post-2018 update because that’s when AEB became standard across the range.
The turbo-diesel was the pick of the bunch for its pulling power, but it was also the most expensive powertrain option and that makes it harder to find under $20,000.
Like all Kias, the Sportage comes with a seven-year transferrable warranty, which adds to its appeal.
Also consider: Nissan X-Trail
A very straightforward vehicle covered by a five-year warranty, the Nissan X-Trail has the added advantage of coming with the option of seven seats.
The Kia Sportage is a great medium SUV.
Best large SUV under $20,000
Kia Sorento
Our buying criteria gets very stressed as we move up into the large SUV segment. The Kia Sorento gets the gong because it’s a decent vehicle with a long warranty.
Even if you’re buying from 2018 stock, you will still gain some coverage. It’s a good year to shop in because there was an update that standardised AEB across the range. That added to Sorento equipment, including petrol V6 and turbo-diesel four-cylinder engines, six-speed automatic transmission, front- and all-wheel drive and multiple levels of trims. Every model had seven seats.
The Sorento also had local ride and handling tuning which helped its behaviour on rugged Aussie roads.
Also consider: Nissan Pathfinder
Big and spacious, the Nissan Pathfinder has a languorous manner that lends itself to comfortable family motoring. But in this price range you’re talking 2018 models, which are out of warranty.
Opt for a Kia Sorento if you're looking for a large SUV.
Best used ute under $20,000
Holden Colorado
If you want a $20,000 dual cab ute that’s not long in year or kilometres then pickings are slim.
The Holden Colorado is the pick precisely because Holden has departed and taken this model with it. It encourages resale values to plummet.
The final generation Colorado was based on the Chevrolet ute of the same name. It was made in Thailand and the best examples can be found after a 2016 overhaul. New vehicle sales finished up at the end of 2020 and you may find examples priced at $20,000 and under as recently as 2019 builds.
Colorados came with five- and even seven-year warranties, so you’re chances of finding one still under factory coverage is quite good. That warranty is these days managed in Australia by Holden’s parent General Motors.
The Colorado was a good example of the ute breed, with a simple and strong 2.8-litre turbo-diesel engine and 4x4 go-anywhere ability. It was also one of the first utes to pick up Apple CarPlay and Android. However, it does miss out on AEB, a safety feature that only started flowing into utes in more recent years.
Also consider: Mitsubishi Triton
The previous generation Mitsubishi Triton (replaced in 2024) was more affordable than many rivals when new and that flowed through to the used car market. However, it is also slightly smaller than some other utes, something noticeable in rear-seat space.
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.
