The 10 Cheapest Cars to Run in Australia (2026)

The sticker price is only the beginning. Fuel, insurance, servicing, tyres, registration, and depreciation can add $5,000-15,000 per year to your car costs. We calculated the true 5-year ownership cost for every car in our database and found the 10 cheapest.

What We Measured

For each car, we calculated annual costs across six categories:

• Fuel/Electricity. based on 15,000km/yr, $1.90/L petrol, $1.85/L diesel, $0.30/kWh electricity
• Insurance. average comprehensive quote for a 35-year-old in metro Australia
• Servicing. manufacturer scheduled servicing costs averaged over 5 years
• Tyres. replacement cost averaged over expected tyre life
• Registration. average across Australian states
• Depreciation. projected value loss over 5 years based on segment averages

The Top 10

1. MG MG3. ~$5,800/year total

The MG3 wins on sheer purchase price. From ~$19,000 driveaway, depreciation in dollar terms is the lowest in the market. Fuel cost is modest at 6.4L/100km, and servicing is capped at $199/service.

2. Suzuki Swift. ~$6,100/year

The Swift is the fuel economy champion of petrol cars at 4.6L/100km. It's tiny, but if you're a single commuter or student, the running costs are hard to beat. Insurance is cheap due to the low value and good safety rating.

3. Toyota Yaris. ~$6,200/year

Toyota reliability means servicing costs are predictable and resale is strong. The Yaris loses less to depreciation than almost any small car. The hybrid version drops fuel to 3.3L/100km.

4. Kia Picanto. ~$6,300/year

The smallest and cheapest new car in Australia. Kia's 7-year warranty means no surprise service bills for nearly a decade. Fuel is 5.3L/100km. The catch: it's very small and only has a 4-star ANCAP rating.

5. Toyota Yaris Cross Hybrid. ~$6,500/year

Here's where it gets interesting. an SUV that costs less to run than most hatchbacks. The hybrid system returns 3.8L/100km, annual fuel is under $1,100, and Toyota resale means depreciation is minimal. This is the sweet spot for many buyers.

6. Suzuki Vitara. ~$6,800/year

A proper small SUV with ground clearance and available AWD, yet running costs rival city hatchbacks. The 1.5L mild hybrid returns 5.8L/100km. Suzuki servicing is among the cheapest in Australia.

7. Hyundai Venue. ~$6,900/year

Hyundai's smallest SUV hits a value sweet spot. under $30k with 5-star ANCAP, Apple CarPlay, and 6.5L/100km. The 5-year warranty covers most of the ownership period.

8. MG MG4 (Electric). ~$7,000/year

The cheapest EV in Australia at ~$34,000. Electricity costs are only ~$700/year (vs $2,000+ for a petrol equivalent). Zero servicing costs for oil, filters, and brakes. The catch: higher insurance and uncertain long-term depreciation.

9. Toyota Corolla Hybrid. ~$7,100/year

The Corolla Hybrid is the most popular car in Australia for a reason. 4.2L/100km, bulletproof reliability, and depreciation that makes accountants smile. It's not exciting, but it's arguably the smartest car purchase you can make.

10. Honda HR-V. ~$7,200/year

Honda's Magic Seat system gives the HR-V the most versatile interior in the small SUV class. Running costs are kept low by Honda's efficient 1.5L engine and strong resale values.

Calculate Your Own Costs

These numbers assume average driving patterns. Your costs will differ based on how much you drive, where you live, and your driving style. Use our fuel efficiency filter to find the most efficient cars, or compare any cars to see a full ownership cost breakdown.

Our Fuel Cost Calculator on every comparison page lets you adjust your weekly driving distance and fuel price to see real numbers for your situation.

Methodology

Costs calculated using manufacturer specs, average insurance quotes from comparison sites, capped/scheduled servicing prices where available, and industry depreciation curves. All figures are estimates for a typical 5-year ownership period. Not financial advice. See our full methodology.