The best affordable cars in Australia for 2024

After so many consecutive interest rate rises in Australia last year, is there any more important metric for the new-car buyers of today than price? 

Some purists may disagree – but it’s certainly true the hip pocket nerve has taken increased precedence over other priorities. 

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Thankfully, as our 2024 Drive Car of the Year judges learned, being on a budget doesn’t mean you have to sacrifice an excellent ownership experience. Nor does it pigeonhole you into a particular type of car. 

While 'affordable' is in the eye of the beholder, it used to be that buyers on a budget could only opt for small cars and not much else. 

This year, our affordable winners include an EV, a hybrid and a ute – all offering a range of standard equipment, proper safety credentials, and a cabin fancy enough to convince your passengers you spent top dollar.

Properly affordable cars are a dying breed, which makes the Volkswagen Polo – our Best Urban Car Under $30,000 winner – an endangered species.

Despite its pint-sized footprint and manageable price point, Drive judges felt the Polo delivered a more premium package than its competitors, which included the Toyota Yaris Cross and Hyundai i30.

The Polo’s 2022 update might have raised its price, but it also added standard equipment to sweeten the deal and enhance the driving experience, including wireless charging, front and rear parking sensors, a new digital instrument cluster and automatic LED headlights. 

Judges also felt the Polo delivered a surprisingly spacious cabin for its segment, with a serviceable boot and temporary spare wheel for emergencies.

However, the real highlight of the Polo is Volkswagen’s characteristic on-road polish – delivered via a perky 85kW/200Nm 1.0-litre, three-cylinder turbo petrol engine and slick seven-speed dual-clutch automatic transmission.

Now in its eighth generation, the Volkswagen Golf is by no means a fresh face in the Drive Car of the Year race – it won Best Small Car in 2022 and 2023. 

Even by increasingly strict 2024 standards, the Golf is still an impressive little car, enabling it to win our Best Urban Car Under $50,000 category this year. 

While it may have one of the most efficient petrol powertrains in its category – managing a low 5.4L/100km in real-world testing – the Golf doesn’t skimp on the on-road enjoyment factor.

Judges felt the Golf offered the perfect package for city living with its compact turning circle, light steering feel, well-proportioned back seat and generous boot. 

A comfortable ride paired with confident handling and a cabin that feels more upmarket than it costs mean, ultimately, the Golf is the car urban dwellers both need and want. 

Previously, a $50,000 price point proved prohibitive for anyone looking to electrify their car collection – with most EVs clocking in over, not under, the $50K ceiling. 

The MG 4 is one of a handful of new electric arrivals for budget buyers, but managed to edge ahead of finalists like the BYD Atto 3 and GWM Ora to claim Drive’s Best Electric Vehicle Under $50,000 award. 

With not one, not two, but three variants slotting in under $50,000, the MG 4 gives EV shoppers options – something that’s been properly lacking in the EV space until recently. 

The MG 4 isn’t just affordable to buy – it’s affordable to own. A seven-year, unlimited-kilometre warranty has you covered, while servicing only needs to be carried out every two years or 40,000km – costing a total of just $1499 over the first six years of ownership. 

The futuristic interior is airy and well suited to taller drivers, while the exterior styling is eye-catching enough to impress, but subtle enough to slide under the radar.

Of course, newcomers to the electric car world will also be impressed by the MG 4’s energetic acceleration, which serves as a fun party trick – particularly on the freeway. 

The new-generation Hyundai Kona landed in June 2023, with the hybrid added in December, just in time for our Drive Car of the Year testing.

This ultra-modern take on the small SUV staple quickly won our judges over, claiming the Best Small SUV Under $50,000 category.

The Kona nameplate has something for every buyer – boasting petrol, electric and hybrid variants, all of which are astonishingly well equipped even in their most affordable iterations.

On the road, judges felt the Kona’s cabin refinement was one of the best in its class, with the Kona offering an ample amount of power for city driving. 

Meanwhile, a substantial boot with practical storage features and a roomy second row will up the convenience factor for families. 

Mod-cons like over-the-air updates and Hyundai’s full SmartSense active safety suite mean the Kona feels like a car of the future – but at today’s prices. 

The long-awaited Honda CR-V packs a punch as a seriously practical family car with class-leading ownership costs and options galore for the modern family.

With the average sale price of new cars in Australia a smidge over $50,000, the brand-new CR-V is slightly cheaper than your average medium SUV and, of the seven CR-V variants, three of them slide in under $50,000. 

There’s even a seven-seat option for budget buyers in the VTi X7, which is priced under $50,000 drive-away. 

Bigger exterior dimensions in the new-generation model have translated to even more interior room, with a 589-litre boot and a seriously spacious second row. 

A whopping 11 airbags will give drivers – and particularly parents – plenty of peace of mind, not to mention the fact Honda’s suite of active safety technology is offered across the range. 

On the road, a smooth CVT and well-cushioned ride provide comfort in spades, while a 1.5-litre, four-cylinder petrol engine manages 7.1L/100km of claim fuel economy, and the more expensive hybrid option cuts down on fuel use even further. 

The big call-out for thrifty car shoppers is Honda’s hard-to-beat servicing costs, totalling just $995 over five years for the CR-V. 

There’s something for everyone on our list of affordable cars – even ute buyers! 

The SsangYong Musso won our Best Dual-Cab Ute Under $50,000 category for 2024 and makes for a seriously good value workhorse. 

Well-mannered on the road, with a 2.2-litre, four-cylinder turbo-diesel engine, a 3.5-tonne braked towing capacity and part-time four-wheel drive with an automatic rear differential lock, the Musso is both eminently capable and deceptively premium for its price point. 

The Korean car maker’s dual-cab is also a half-step bigger than some of its key rivals, meaning greater cabin space and plenty of head room. 

Ssangyong quotes servicing costs totalling $1875 over five years or 75,000km, and Ssangyong’s standard warranty provides coverage for seven years and an unlimited number of kilometres – even for commercial vehicles.

In a world where dual-cab utes can routinely approach six figures, the Musso might be an underdog in the sales race, but it represents a no-brainer for budget buyers.