
Australia’s cheapest cars to run
In the market for a new car? Here are three new cars that we think will save you money in the long-run, taking fuel economy, insurance and servicing costs into consideration.

It's all good and well to strive for a car with crowd-drawing style, compelling driving qualities or some other standout feature, but what if you simply have to get from A to B for the absolute lowest possible cost? Well, you'll want a car that's not only cheap to buy but asks for the minimum on fuel, servicing, insurance, depreciation, and any other ongoing costs. So how do you find it?
The good news is you don't have to. Several of Australia's peak state motoring bodies already crunch this kind of data as part of annual running-costs surveys, giving buyers the information they need to pin down a new car that fits within their budget. If you really want to drive your motoring costs down, this trio of light hatches is the place to start.
1. MG MG3 Core hatch, from $18,990 drive-away (auto only)
This Chinese-built hatch is Australia's cheapest new car to buy if you must have an automatic transmission. And with the RACV, RACQ and RAC all rating its ownership costs the lowest on the market in their 2022 running-costs surveys, it can also currently be considered the cheapest to run.
The MG packs a lot for a small price. It's bigger and roomier than most rivals in this budget range and its engine is also bigger than the class norm (1.5 litres). You also get welcome features like a reversing camera and seven-year warranty for your modest spend. While it uses more fuel than smaller-engined alternatives and requires premium 95 petrol, its other ownership-cost positives ultimately balance the ledger.
2. Kia Picanto S, from $18,490 (manual) or $19,490 (auto) drive-away
If you’re happy to drive a manual, this little Kia is Australia's cheapest car. In fact, even the auto version slides under the all-important $20,000 barrier. It's also very inexpensive to run – the RACV, RACQ and RAC all rated it the second-cheapest car on the market in terms of total ownership expenses in their latest running-costs surveys, just behind the MG3.
The Picanto suffers a little in the showroom stakes next to the jumbo-sized MG3, being smaller on the outside, smaller on the inside and smaller of engine (1.2 litres). But it packs a surprising amount of space for such a diminutive package, uses less fuel and also accepts cheaper 91 unleaded. It matches the MG's seven-year warranty and reversing camera, while also including standard auto emergency braking, a feature that could save you more than just money.
3. Suzuki Swift GL Navigator, from $26,180 (manual) drive-away*
There's no disagreement between state motoring bodies about which car is Australia's third-cheapest to run in 2022 – Suzuki's Baleno GL. However, with that model discontinued in September, the Swift GL Navigator – rated fourth-cheapest to run by the RACV and fifth-cheapest by the RACQ and RAC – ultimately grabs the bronze.
This Suzuki isn't as cheap to buy as the old Baleno or its competitors here, is only covered by a five-year warranty and restricts auto emergency braking to costlier models in the range. But it's still one of the market's cheapest cars to run thanks to affordable servicing and a super-thrifty 1.2-litre engine that accepts 91 unleaded, helping it to a lower monthly fuel-cost figure than the MG3 and Picanto. It gets standard sat nav and reversing camera, is competitively spacious and has this group's most polished road manners.
Check your local state motoring body website for the latest running-cost survey information, which includes breakdowns of average monthly ownership expenses including fuel, registration and insurance, servicing and tyre costs.
* Thanks to distribution peculiarities, the Swift GL Navigator is now only available in Queensland. In other states, this model has been superseded by the updated Swift GL S, which loses the GL Navigator's sat nav but picks up a host of other features and retails for $25,990 driveaway (man) or $26,990 driveaway (auto). In Queensland, the GL S auto is marketed as the GL ($27,180 driveaway).
Disclaimer
Prices correct at time of publication.
Viva Energy Australia Pty Ltd (“Viva Energy”) has compiled the above article for your general information and to use as a general reference. Whilst all reasonable care has been taken by Viva Energy in compiling this article, Viva Energy does not warrant or represent that the information in the article is free from errors or omissions or is suitable for your intended use.
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