*Running costs per week include rego, insurance, membership, fuel costs and maintenance. These figures are based on covering 15,000km per year, from RACV. ▵No longer available new
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Best small cars in Australia
Small cars are still fairly popular with car buyers, even though SUVs are all the rage. There are a staggering 26 different small car models on sale in Australia as of late 2021. 13 start under $40,000 and 13 are over $40,000. With each model typically having at least two trim options that means there are dozens of different specs to decide upon.
The Mazda3 has a modern, minimal interior (though the rear seats and boot are a little snug) and lots of modern active driving safety assists. The pricing is pretty keen too, with a G20 Pure entry-grade model costing $30,030 national drive-away. For the money, you get a reverse camera, a highly-appraised infotainment system with smartphone connectivity, A/C, 16-inch alloy wheels, cruise control and push-button starting.
Standard driving assists include:
Dynamic stability control
Electronic brake-force distribution
Emergency brake assist
Emergency stop signal
Hill launch assist
Rear parking sensors
Smart city brake support
Traction control system
If you splash out for the top-spec X20 Astina, Mazda swaps out the standard 2.0-litre petrol engine for a hybrid 2.0-litre block. The X20 Astina models have larger 18-inch alloy wheels, LED automatic head and taillights, a sunroof, rain-sensing wipers, dual-zone climate control, Mazda Radar Cruise Control (MRCC), heated front seats (and steering wheel), leather upholstery, keyless entry, a 12-speaker Bose® sound system, blind-spot monitoring, driver attention alert, electric parking brake, lane departure warning with lane keep assist, sat nav and traffic sign recognition. This model costs $46,560 according to Mazda's website.
In short, the Mazda3 has a few foibles, like the cosy rear seats and slightly impeded rear vision (thanks to large c-pillars), but it's a great all-rounder that delivers solid value, a comfortable drive and a great interior. No wonder it's the most highly praised hatchback in Australia.
Consistently one of Australia's bestselling passenger cars is the Toyota Corolla. Car reviewers love the edgy, clean and modern styling of the Corolla, with its superb safety features and sharp handling.
Price-wise, the base model Corolla, known as the Ascent Sport, is cheaper than the Mazda3. You'll only have to hand over $28,974 for this small car. At that price, you get a 2.0-litre petrol engine with an automatic CVT transmission. Toyota also builds a hybrid version, with a 1.8-litre engine. 16-inch alloy wheels are standard, like the Mazda3, as is a reversing camera. The Corolla has a smaller infotainment touchscreen than its rival, at eight inches compared to the Mazda's 8.8-inch.
Like the Mazda, you also receive a suite of smart driving assists, such as:
Active Cruise Control
Pre-collision safety system that detects pedestrians (during both day and night) and cyclists (day only)
Lane Departure Alert
Automatic high beams and road sign assists
The Corolla has lane tracing assistant
Toyota equips the base model Corolla with a full-size spare alloy wheel. Other models have a temporary spare wheel, while the top-spec ZR Hybrid has a tyre repair kit.
If you want a bit more luxury and convenience, you could purchase a ZR Corolla. It'll cost more, at $36,493. For the additional outlay, Toyota includes a selection of styling extras like 18-inch alloys. The interior has a premium fit-out, with leather upholstery and heated front sports seats. You also get a heads-up display that shows your current speed, compass heading and navigation directions. The audio system is upgraded with an eight-speaker JBL® set-up that has DAB.
It's not the cheapest small car you can buy, but Toyota has a reputation for building solid and reliable cars. The 2021 model is attractively styled and it's also nice to have the option of a hybrid engine. A negative point the automotive media picked up on was the average amount of space available for rear passengers.
Hyundai's i30 is another hatch that regularly features in the top 3 sellers, but it has also won numerous awards internationally. Owners leaving comments online seem very happy with their i30s including one Hyundai technician who was so taken with the i30 that they rushed out to buy one.
There are 12 variants in the i30 range, from the wallet-friendly standard i30 trim to the hot hatch i30 N. An i30 base model starts from $25,490. Buyers have the choice of a 2.0-litre petrol or a 1.6-litre petrol. To bring the drive-away price down, Hyundai ditches some of the extras higher-up models have, like rain-sensing wipers and a smart key with push-button start. The seats are covered in cloth. Like the Toyota Corolla, you get an eight-inch infotainment touchscreen. The i30 has Apple CarPlay and Android Auto by default. Hyundai outfits i30 models with LED daytime running lights and there's also a tyre pressure monitoring system. The budget model has a keyless entry function and a six-speaker sound system. Exterior mirrors are heated and electrically adjustable.
Like the Corolla and Mazda3, there's cruise control and steering-wheel-mounted controls for your phone and audio.
Responding to its nearest rivals, the Hyundai i30 also features a number of safety assists:
Brake assist system
Electronic brake-force distribution
Hill-start assist control
Traction control system
Vehicle stability management
Emergency stop signals
Rear-view camera with dynamic guidelines
Tyre pressure monitoring system
Buyers of the i30 also get Hyundai SmartSense suite which brings driver attention warning and forward collision-avoidance assist (city/urban/interurban/pedestrian & cyclist functions). SmartSense as standard also has Lane Following Assist (LFA) and Lane Keeping Assist - Line (LKA-L). Higher grade i30s have additional advanced safety systems.
If you're willing to spend more, you can go for the top-of-the-range N-Line Premium model. This i30 has a 1.6-litre turbocharged petrol engine that turns out a solid 150kW of power. Hyundai bolts on a set of 18- inch alloy wheels wrapped with Michelin Pilot Sport tyres. The model has sat nav, QI wireless smartphone charging, a leather interior and the Hyundai SmartSense safety suite with a seven-speed automatic gearbox. The seats are clad in leather and the front seats are heated or ventilated. There are front and rear parking sensors, as well as a panoramic sunroof. For this particular spec, with a manual transmission, Hyundai charges $38,059.46.
For driving purists, who want something a bit lively, there's the i30 N. This model features tech inspired by Hyundai's WRC rally car and has an impressive 206kW and 392Nm. This model starts from $48,673.46.
The i30 has a large model range and reviewers commended Hyundai for the excellent value package.
The Kia Cerato is closely related to the Hyundai Elantra, both in its intended target market and components. That's because Hyundai has a large share in Kia, so both cars run on the same platform.
The Cerato is an excellent value car. Entry-grade S models cost $29,081 drive-away, but at the moment (December 2021), Kia is running an offer that slashes the price to $25,990.
What do you get for your money with the Cerato S? An 8-inch infotainment touch display, with wireless Android Auto and Apple CarPlay.
Kia also equips the base model Cerato with a party of smart driving assists including:
Cruise control with steering wheel function buttons
The wheels are 16-inch in diameter and made from steel. There are electric windows in the front and rear, as well as a manual air-conditioning system. On top of Apple CarPlay and Android Auto, the infotainment system has 6 speakers, an iPod-compatible USB input and Bluetooth connectivity. There are controls for the audio integrated into the steering wheel. For the money, it has a lot of features.
If you wish to spend more, there are several different grade Ceratos for sale. The top-of-the-range GT model swaps the 2.0-litre petrol engine from the rest of the range and instead uses a sporty 1.6-litre turbocharged engine. On the GT, Kia swaps out the six-speed automatic box from other trims and drops in a seven-speed dual-clutch auto.
The Cerato GT has 18-inch alloy wheels, shod with Michelin Pilot Sport 4 tyres. As a sporty model, it also has a GT body kit. In addition to the safety features of the base model, you'll also get things like an auto-dimming rear-view mirror, blind-spot detection, rear cross-traffic alerts and autonomous emergency braking that detects cyclists. The headlights are now energy-efficient, bright LED types. Cloth upholstery becomes sports trim leather and the driver's seat can be adjusted electrically in eight ways.
Cerato GTs boast an uprated eight-speaker sound system from JBL. You'll also receive sat nav with traffic information and dual-zone climate control. Front seats can keep occupants more thermally comfortable, thanks to heating and cooling elements. This sporty Cerato will set you back $39,211.44, but is on offer at the moment for $36,990.
The automotive media loved the Cerato's keen pricing, practicality and seven-year warranty. Quibbles they had with the car were mainly limited to resale value and the steering wheel responsiveness.
The VW Golf is often regarded as the benchmark for small cars. It's an icon that has earned itself a reputation for being well made, having precise handling and lasting a long time. Unfortunately, once something makes a name for itself, prices can often begin to rise as a result.
The VW Golf range starts from $38,919 drive-away and that's quite a lot more than the other bestselling small cars. What do you get for your money?
A 110kW, 1.4-litre, petrol-engined Life Golf. The entry model has an eight-speed automatic gearbox, six speakers, a 10-inch navigation screen and digital driver's cockpit, 17-inch alloys (again many rivals install steel wheels to their lowest cost trim or atleast smaller wheels), Apple CarPlay and Android Auto, an auto-dimming rear-view mirror (only included on higher-spec competitors), adaptive cruise control, parking assist, rain-sensing wipers, a rear-view camera (with multi-angle views and dynamic guides) and a selection of smart driving assists like:
Driver fatigue detection system
Front assist with pedestrian and cyclist monitoring
The base-spec European-styled (and built) Golf would sit very high up if it were part of one of its rivals' line-up, both in terms of price and features. If you want a Golf that's a little more sporty, you could look into the Golf R-Line, which has a drive-away price of $42,115. This premium model has an 8-speed automatic transmission, a leather sports steering wheel, 18-inch alloys, extended electronic differential lock (XDL), sport cloth and microfleece combination upholstery, plus travel and lane assist.
VW also sells fully-fledged hot hatch versions. There's the GTI, or the Golf R coming soon, which has 19-inch lightweight alloy wheels, black Nappa leather upholstery and a spicy engine.
Why would you pick a Golf? Car reviewers wax lyrical about its excellent handling, infotainment system, interior space and general build quality. They weren't so keen on the pricing of higher-end models, though.
The small car category is competitive, in fact, there are literally dozens of different makes to choose from. Here are a few more small cars you should look at:
Honda Civic
The Honda Civic is a striking small car. It has a similar, if not slightly higher, spec sheet to the VW Golf, with wireless Apple CarPlay, Android Auto, sat nav, a 12-speaker sound system from Bose®, LED DRLs and dual-zone climate control. That's on a base VTi LX spec Civic, costing $47,200 drive-away.
Critics praised the Civic's steering response, level-headed styling and gutsy turbo engine. They felt it suffered from a lack of lumbar adjustment for the driver and they also disliked the way the automatic transmission simulated gear shifts.
The Holden Astra is another small car you could check out. Reviewers found this car handled well and was built to a decent standard. The Astra could be specced out with a 1.4-litre turbocharged petrol engine, or a larger displacement 1.6-litre power plant. Drive-away pricing kicked off from $21,990 for a 2018 plate model. Unfortunately, since Holden ceased operations, you can no longer buy a new Astra hatchback.
The Ford Focus has a number of different body styles, with prices starting from $34,839. The small Ford is available as a typical hatchback in the ST-Line or a high-riding "Active" variant. This cross-country model has 30mm extra ground clearance and tough plastic body protectors/cladding.
Car reviewers rate the Ford Focus highly, which in their eyes has one of the best infotainment systems on the market. It also boasts active safety equipment, a comfortable ride and solid after-sales. It was knocked down a little for lacking some of the variations that European models receive and the cabin plastics were said to be hard in places.
The Suzuki Swift is widely thought of as one of the most fun small cars to drive, with the Swift often likened to the original Mini. The Swift is cheap, starting at $22,490 for a 3-door GL Navigator 5-speed manual. For the money, you get a 7-inch infotainment system with a sat nav, reversing camera and smartphone connectivity.
It also has cruise control, privacy glass and 16" alloys. That makes the Swift one of the best value propositions in our guide. Compared with other small cars, this one is pretty small and is classified as a light car. If you plan on using your car mostly for driving around town and don't need to carry a lot of stuff, this is a great little car to own.
Research shows in the small car segment, price is the key deciding factor for purchasing a vehicle. With so many different models to choose from that's fair enough. There are no total lemon models out there, but remember some are better than others. For example, one car might be extremely fuel-efficient, but not have so much space in the rear for passengers. For another, the reverse could be true.
Generally, small cars are pretty cost-effective and because there are so many, there's often a dealer somewhere doing an offer on a model, meaning you can grab a bargain.
Running costs and fuel usage
Generally speaking, small cars are light, possessing lower displacement engines that should, due to their size, return favourable fuel economy. Opting for a model with eco-technologies like Volkswagen's Bluemotion will help you save even more fuel at the pumps.
According to the RACV, the Kia Cerato S hatch with a 2.0-litre engine will lighten your wallet the least over five years of ownership. This car also had the cheapest running costs per km in cents at only $0.64.
For the most economical fuel sipper, look to the Hyundai IONIQ PHEV or MHEV with the 1.6-litre petrol. This model could cost as low as 4 cents per km in fuel. The fastest depreciating model is Toyota's Prius, which sheds on average $90.40 per week in value when covering 15,000kms per year.
According to the RACV, generally, the more expensive a model you go for - the more you'll experience depreciation. The cars with the highest rates of value loss were the most expensive, with the Hyundai IONIQ hybrid and plug-in hybrid, as well as the Nissan Leaf, depreciating on average more than $100 per week.
The cars with the lowest depreciation on average were some of the most affordable to buy - with the MG 3 Core and the Kia Cerato S having the lowest levels of average depreciation (based on estimates from RACV).
Also, another thing to note, generally, the higher-spec you go, the more a car weighs. That can result in a lower fuel economy for the top-spec models, though this isn't always the case.
Smart driving assists
Cars are getting smarter with each model and successive model. The latest technology allows cars to monitor your attention levels, assist you in braking, mitigate or lessen the severity of accidents, help to keep you in your lane and even maintain a safe distance to the car in front while using cruise control. These nifty features can help reduce fatigue on longer journeys and make your car that little bit safer.
In-car comforts
Once upon a time, you were set for in-car entertainment if you had a tape player. Then it became a CD player. Nowadays, you can get infotainment systems that sync with apps from your smartphone, playing music via Bluetooth®, all on a large tablet-like screen. A few even have wireless charging for compatible smartphones.
Car seats have also progressed, with integrated heating and cooling, plus if you travel with your children often, some models have rear A/C vents and privacy glass.
Because there are so many models on the market, you can be quite discerning and hold out for cars that have well-designed and well-equipped interiors to suit your needs.
Sporting variant
Some carmakers in our guide build sports and performance versions of their small cars. So if you'd like that bit extra oomph, sharp exterior styling and a contoured, purposeful interior, have a look at a performance model. This way, you'll have an ideal daily driver for commuting and shopping, but at the weekend you have a car you can take to a track day or just go for a blip down a winding coastal road.
Hybrid or electric
If you want to lessen your impact on the environment, a hybrid or electric car might appeal to you.
Some of the small cars in our guide also sell as hybrid versions. Cars like the Mazda3, Hyundai IONIQ and the Toyota Corolla have hybrid versions available.
Then, some of the small cars are also electric models. These allow you to drive entirely on battery power alone.
Practicality
Just because a car is small, doesn't mean it can't be practical. If you need to carry more, the majority of car makers offer a variety of body styles. There's the ubiquitous hatch, perfect for city dwellers and jam-packed multi-storey car parks, or you could go for a sedan or wagon if you need to lug around more stuff.
In some of these cars, carrying five adult passengers may be a tall order, so viewing them as a four-seater with an occasional spare seat will go a long way. Something else to bear in mind is many motoring journalists found the rear c-pillars on modern hatches can be quite chunky and affect rearward vision.
Not sure how to pick the best car loan for your situation? Read our comprehensive guide to comparing car loans to learn about your different options as well as features and factors to look at while evaluating each product.
Insurance is another big decision when it comes to purchasing a new car, so it is important to know the different options available to you. You can learn how to compare car insurance with our complete guide which runs you through the various types of insurance available and helps you evaluate which is most suitable for your needs.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Ben Gribbin is an automotive writer at Finder. He is a life-long car enthusiast, bringing many years of experience working with and writing about cars. During his time, Ben has been a freelance writer, editor and reviewer for a number of leading publications across the UK. He was voted the Guild of Motoring Writers Breakthrough Blogger in 2015.
We got behind the wheel of the Mazda CX-5 GT, which sits at the pointy end of the range in the current stable – between the Touring and the Akera – to see why 30.34% of Mazdas sold are CX-5s.
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