Cheapest cars by class

There’s more to the cost of a car than the purchase price. We examine the 5-year overall costs of the cheapest popular car in each class to see which is the most cost-effective.*

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With the huge range of passenger vehicles available today, it can be hard to find the one that’s right for you while also fitting your budget. If you're looking to use a loan to buy a new car, you should always be aware of the true cost of ownership, which goes far beyond the price you pay at the dealer. From fuel costs to maintenance, registration and insurance, there are many costs associated with owning a car beyond the initial purchase price.

In this guide, we take a look at the cheapest popular vehicle in each car class according to RACQ’s latest guide to see how each class measures up. Each vehicle is assumed to have been purchased using a car loan to cover the on-road cost of the car and loan repayments are factored into the weekly and 5-year running costs.

*All figures are taken from RACQ’s "Private vehicle expenses 2018". Costs are calculated based on privately owned vehicles in Queensland at an average distance travelled of 15,000km per year, over five years. The on-road price of each vehicle is assumed to have been financed on a secured, 5-year RACQ loan at a rate of 6.17%p.a. Total costs also include depreciation, registration, insurance, licence, RACQ membership and other related costs and will vary depending on where you are in Australia.

Car classes defined

The car classes featured in this guide follow the definitions of the Federal Chamber of Automotive Industries segmentation criteria, which measures the footprint of the vehicle, defined as length x width. Sports utility vehicles (SUVs) are defined as a two- or four-door wagon with elevated ride height.

ClassSize classificationTypesExamples
Micro<6,300mmHatch, sedan, wagonMitsubishi Mirage ES 1.2L, Fiat 500 Pop, Kia Picanto S 1.2L
Light6,301-7,500mmHatch, sedan, wagonSuzuki Swift GL 1.2L, Toyota Yaris Ascent 1.3L, Holden Barina LS 1.6L
Small7,501-8,300mmHatch, sedan, wagonKia Cerrato S 2.0L, Toyota Corolla Ascent 1.8L, Mazda3 Neo Sport 2.0L
Medium8,301-9,000mmHatch, sedan, wagonSkoda Octavia 110 TSI Sport 1.4L, Hyundai i40 Active 1.7L, Toyota Camry Ascent Sport 2.5L
Large9,001-9,500mmHatch, sedan, wagonHolden Commodore RS 3.6L V6, Toyota Camry SL 3.5L V6, Kia Stinger 200S 2.0L Turbo
People moverSeats more than 5 peopleWagonHonda Odyssey VTI 2.4L, Kia Carnival S 3.3L V6, Toyota Tarago GLI 2.4L
Sports carNoneCar, coupe, convertible, roadsterMazda MX-5 Roadster ND 1.5L, Ford Mustang Fastback GT 5.0L V8, Subaru WRX (AWD) 2.0L
Small SUV<8,100mmSUV onlySuzuki Vitara RT-S 1.5L, Mazda CX-3 Maxx, Holden Trax LS 1.4L
Medium SUV8,100-8,800mmSUV onlyHaval H6 Premium 2.0L, Nissan X-Trail TS Ser. 2 2.0L, Toyota RAV4 GX 2.5L
Large SUV8,801-9,800mmSUV onlySubaru Outback 2.0D 2.0L, Holden Capitva 7 LT 3.0L V6, Kia Sorrento Si 2.2L
ElectricNoneAnyMitsubishi Outlander LS Phev (Hybrid) 2.0L, Tesla Model S 75, BMW i3 94Ah

Micro

Mitsubishi Mirage ES 1.2L

List price: $12,250

Estimated on road price: $15,706

Average weekly running cost: $112.14

5-year running cost: $29,157.24


Light

Suzuki Swift GL 1.2L

List price: $17,990

Estimated on road price: $17,990

Average weekly running cost: $115.30

5-year running cost: $29,977.45


Small

Kia Cerrato S 2.0L

List price: $19,990

Estimated on road price: $22,290

Average weekly running cost: $128.55

5-year running cost: $33,423.81


Medium

Skoda Octavia 110 TSI Sport 1.4L

List price: $29,990

Estimated on road price: $33,647

Average weekly running cost: $188.43

5-year running cost: $48,992.84


Large

Holden Commodore RS 2.0L

List price: $37,290

Estimated on road price: $40,286

Average weekly running cost: $223.91

5-year running cost: $58,215.99


People Mover

Honda Odyssey VTi 2.4L

List price: $37,990

Estimated on road price: $41,490

Average weekly running cost: $218.75

5-year running cost: $56,874.12


Sports Car

Mazda MX-5 Roadster ND 1.5L

List price: $33,990

Estimated on road price: $37,667

Average weekly running cost: $194.96

5-year running cost: $50,690.20


Small SUV

Suzuki Vitara RT-S 1.5L

List price: $23,990

Estimated on road price: $24,990

Average weekly running cost: $149.68

5-year running cost: $38,918.04


Medium SUV

Haval H6 Premium 2.0L

List price: $29,990

Estimated on road price: $29,990

Average weekly running cost: $190.50

5-year running cost: $49,529.57


Large SUV

Subaru Outback 2.0D 2.0L

List price: $38,740

Estimated on road price: $41,660

Average weekly running cost: $209.04

5-year running cost: $54,349.98


Electric

Mitsubishi Outlander LS PHEV (Hybrid) 2.0L

List price: $50,490

Estimated on road price: $54,589

Average weekly running cost: $259.16

5-year running cost: $67,380.68


Summary

When looking at these figures, it is important to note that the 5-year cost includes monthly repayments on a loan used to finance the initial on-road price of each car. This means the overall 5-year cost is an estimate of what you would pay if you decided to get a loan on the car and used it for the next five years.

Perhaps unsurprisingly, the smaller the car, the smaller the overall running costs over the first five years.

However, while the micro-class car is clearly the cheapest in terms of purchase price and overall running costs, it has the worst cost ratio between the two. Despite a significantly lower list price, the Mirage only just comes out ahead of the Swift and Cerrato when it comes to five-year costs. Those thinking they would be making significant savings by opting for a micro-class car may find that the benefits of light- and small-class cars may be worth the slight increase in overall cost.

These figures also suggest that a lot of car-related costs come from day-to-day use and not the initial purchase price. While you may think you're leaving the dealership with a bargain, you should always keep in mind the other costs of car ownership.

It is still worth noting that the five-year costs of larger vehicles are nearly double that of the smallest classes. For those on a budget, micro- and light-class cars still represent the cheapest ownership options in simple terms.

In terms of bigger vehicles, the large SUV has the best cost ratio between list price and five-year running costs, making it arguably the most cost effective option over that time frame. While you will still be paying significantly more for the Outback than the micro-class Mirage over five years, the difference between list price and five-year costs on the Subaru Outback is $15,609.98, slightly less than that of the Mirage at $16,907.24.

This highlights that different vehicles have different overall costs and even the cheapest cars can prove expensive once the ongoing cost of ownership is factored in. Again, the initial list price only tells part of the story when it comes to the cost of buying and running a car.

Average weekly running costs by class

Points to consider

Smaller car classes have significantly lower running costs on average than the larger classes. The average cost difference between a micro-class car and a medium-class car is $81.54 per week, or $4,240.08 per year.

The average running cost of a large car dwarfs those of people movers, sports cars and even large SUVs, due mainly to increased depreciation and lower fuel efficiency.

People movers and large SUVs come out around the same average weekly running cost, although you could make a decent saving by considering a medium-class car or medium SUV. Electric cars remain considerably more expensive than any other car class.

If you're after a certain type of car, use the table below to help find the class that may best suit your needs. Regardless of the type of vehicle you're after, if you're looking at buying a new car you should always factor in all the costs of ownership before making the decision that is right for you.

I'm looking forWhat to consider
A family carPeople movers and large SUVs will set you back similar amounts over five years, but you could make a decent saving by considering a medium-class car or medium SUV.
A large carThe large car class is the most expensive to run (after electric), so if you need space, you may get better value with a large SUV or people mover.
The cheapest carIf you don't care about size or class, the micro- and light-class cars are clearly the cheapest options and will cost you roughly half as much as a large car or people mover over five years.
Something niceThe average running cost of a sports car will set you back about the same as a people mover or large car. However, the more expensive sports cars will generally have much higher running costs, so make sure the model you want is within your budget before making a decision.
An electric carElectric cars far outpace regular car classes in overall running costs and may not represent value for money at this stage of development.

Car loans comparison

$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Monthly Repayment View Details CTA
Loans.com.au - New and Dealer Used Car Loan
From
4.67%
(fixed)
5.22%
You'll receive a fixed rate from 4.67% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Settle the loan before 30 November 2021 and enter the draw to win a $1,000 fuel gift voucher. T&Cs apply.
You'll receive a fixed rate from 4.67% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Settle the loan before 30 November 2021 and enter the draw to win a $1,000 fuel gift voucher. T&Cs apply.
Plenti Car Loan
From
4.89%
(fixed)
5.44%
You'll receive a fixed rate from 4.89% p.a.
Borrow up to $100,000 with a Plenti Car Loan and benefit from no early repayment or exit fees.
You'll receive a fixed rate from 4.89% p.a.
Borrow up to $100,000 with a Plenti Car Loan and benefit from no early repayment or exit fees.
Wisr Secured Car Loan
From
4.74%
(fixed)
5.01%
You'll receive a personalised interest rate from 4.74% p.a. to 16.01% p.a. based on your risk profile
A flexible car loan from $5,000 - $63,000 with personalised rates and rewards for strong credit customers.

⭐Special Offer: Wisr's standard establishment fee $605 will be reduced to $195 for applications submitted through Finder. T&Cs apply.
You'll receive a personalised interest rate from 4.74% p.a. to 16.01% p.a. based on your risk profile
A flexible car loan from $5,000 - $63,000 with personalised rates and rewards for strong credit customers.

⭐Special Offer: Wisr's standard establishment fee $605 will be reduced to $195 for applications submitted through Finder. T&Cs apply.
Credit Concierge Car Loan
From
3.35%
(fixed)
4.41%
You'll receive a fixed rate of 3.35% p.a. with a comparison rate of 4.41% p.a.
Get access to over 20 providers to fund a new or used car.
You'll receive a fixed rate of 3.35% p.a. with a comparison rate of 4.41% p.a.
Get access to over 20 providers to fund a new or used car.
Stratton Finance New Car Loan
From
3.85%
(fixed)
4.05%
You'll receive a fixed rate from 3.85% p.a. depending on the lender you are approved with
Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
You'll receive a fixed rate from 3.85% p.a. depending on the lender you are approved with
Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
IMB New Car Loan
4.99%
(fixed)
5.34%
You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.
You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.
RACV New Car Loans
From
4.99%
(fixed)
5.69%
You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
NRMA New Car Loan
From
4.99%
(fixed)
5.69%
You'll receive a fixed rate from 4.99% p.a.
Purchase a new or used car up to 3 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
You'll receive a fixed rate from 4.99% p.a.
Purchase a new or used car up to 3 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
CarClarity Car Loan
From
3.35%
(fixed)
4.95%
You'll receive a fixed rate from 3.35% p.a.
Get access to more than 30 lenders to finance a new or used car for personal or corporate use. Borrow up to $250,000 with terms from 1 to 7 years.
You'll receive a fixed rate from 3.35% p.a.
Get access to more than 30 lenders to finance a new or used car for personal or corporate use. Borrow up to $250,000 with terms from 1 to 7 years.
Heritage Bank Car Loan
4.89%
(fixed)
5.53%
You'll receive a fixed rate from 4.89% p.a.
Finance a new or used car up to 5 years old. Large maximum borrowing amount up to $100,000 and terms up to 7 years.
You'll receive a fixed rate from 4.89% p.a.
Finance a new or used car up to 5 years old. Large maximum borrowing amount up to $100,000 and terms up to 7 years.
NAB Personal Loan Unsecured Fixed
From
6.99%
(fixed)
7.91%
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
RACQ Bank Car Loan Special
5.49%
(fixed)
6.16%
You'll receive a fixed rate of 5.49% p.a.
Borrow up to $60,000 for a new or used car and get a range of membership benefits.
You'll receive a fixed rate of 5.49% p.a.
Borrow up to $60,000 for a new or used car and get a range of membership benefits.
OurMoneyMarket Car Loan
From
5.35%
(fixed)
5.65%
You'll receive a fixed interest rate from 5.35% p.a. to 14.99% p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 10 years.
You'll receive a fixed interest rate from 5.35% p.a. to 14.99% p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 10 years.
SocietyOne Car Loan
From
5.95%
(fixed)
5.95%
You'll receive a fixed rate between 5.95% p.a. and 17.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
You'll receive a fixed rate between 5.95% p.a. and 17.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
Driva Car Loan
From
2.85%
(fixed)
4.39%
You'll receive a fixed rate from 2.85% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
You'll receive a fixed rate from 2.85% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
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Compare car insurance side-by-side and get quotes

Name Product Roadside Assistance Accidental Damage Storm Choice of Repairer Agreed or Market Value
Coles Comprehensive
Optional
Agreed or Market
Finder's summary: With Coles comprehensive car insurance, you could earn double flybuys points at Coles supermarkets and you can get $10 off your Coles grocery bill every time you redeem 2,000 Flybuys points. Also, get up to $200 for damaged or stolen groceries.

⭐ Current offer: Get 10% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Coles customers and Flybuys collectors.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Australia Post car insurance offers comprehensive cover for things like theft, fire, new for old replacement and emergency accommodation and transport. Cover also extends to anyone who uses your car, not just you.

⭐ Current offer: Get $75 online discount + $100 gift card when you purchase by 11 July 2021. T&Cs apply.

Who it might be good for: If multiple people use the one car and you don’t want to worry about listing all drivers.
Virgin Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Finalists for the 2019 Finder Awards for Best Value Car Insurance, Virgin Comprehensive provides a good level of cover for a decent price.

⭐ Current offer: Get 15% off on your first year’s premium when you purchase a new eligible comprehensive car insurance online. T&Cs apply.

Who it might be good for: People who'd like to manage their policy online 24/7.
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Awarded the 2019 Finder Award for the Best Value Car Insurance, this policy offers solid coverage at a low cost. Budget Direct's claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

⭐ Current offer: Get 15% discount on first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: People who want a comprehensive policy without breaking the bank.
Bingle Comprehensive
Market
Finder's summary:Bingle consistently comes up as one of the cheaper insurers out there. It only covers the basics. You don't get to choose your own repairer, you're not covered for personal items in the car and unless you add it as an option, you won't get a hire car if your car is stolen. But this keeps its premiums low.

Who it might be good for: Someone who wants a low-cost option that covers them for the basics.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You'll be able to choose how comprehensive you want your cover to be with optional extras like choice of repairer and the option of agreed or market value.

⭐ Current offer: Earn Qantas Points for joining and paying your premium. Sign up today and earn up to 20,000 Qantas Points (points awarded will be based on your premium). T&Cs and eligibility apply.

Who it might be good for: People who'd like to earn Qantas Points.
Stella Comprehensive
Optional
Agreed or Market
Finder's summary: Stella’s a female-focused insurer. It'll cover you if your car is damaged as a result of domestic violence. It offers higher cover for baby gear than most, with up to $2,000 cover for prams, strollers and child seats.

⭐ Current offer: Get $50 cash back when you purchase online until 30 June 2021 using the code STELLA50. T&C apply.

Who it might be good for: Someone who wants a female-centred car insurance policy (it will cover men too).
Poncho Comprehensive
Agreed
Finder's summary: Poncho works like a monthly subscription – you pay monthly and can cancel and leave at any time. You can also list multiple cars and drivers under one policy, making it ideal for families and groups living together under one household.

Who it might be good for: People who want their car insurance month to month.
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Car Loan Offers

Important Information*
Logo for IMB New Car Loan
IMB New Car Loan

You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.

Logo for Beyond Bank Low Rate Car Loan "Special Offer"
Beyond Bank Low Rate Car Loan "Special Offer"

You'll receive a fixed rate of 4.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.

Logo for RACV New Car Loans
RACV New Car Loans

You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.

Logo for NRMA New Car Loan
NRMA New Car Loan

You'll receive a fixed rate of 4.99% p.a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.

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