Buying a new car in Australia in 2026 isn’t just about the price sticker it's about understanding how much you will really pay for the vehicle and how prices vary by brand and model.
With Australia recording over 1.24 million new car sales in 2025, the third consecutive year of growth, buyers now have more choice and more factors to consider than ever before.
This guide digs into the average new car price in Australia in 2026 for the top five brands and includes detailed pricing tables for every major model from each brand. It also explains how prices are influenced by market trends, vehicle types, and the shift toward SUVs, utes, hybrids, and EVs, all of which shape what you’ll pay.
According to VFACTS data, the top five brands in Australia by sales volume are:
We’ll use this ranking as the foundation for our analysis.
Before we look at the numbers, it’s important to understand how car prices are represented in this article:
Prices shown are typical manufacturer-recommended retail prices (MSRP) before on-road costs such as registration, dealer delivery, and taxes.
We cover entry-level, midrange, and top trim prices so you can see how price increases within a model line change your budgeting.
A brand average price is calculated based on the model price bands and typical sales mix; for example, a brand with strong SUV and ute sales will have a higher average.
Real purchase prices can vary by dealer, options selected, finance, and local incentives.
Before diving into specific brands, it’s worth noting the broader trends shaping car prices in 2026:
SUVs and utes once again dominate sales, with models like the Ford Ranger and Toyota RAV4 among Australia’s most popular vehicles.
Compact car sales have slowed as customers shift toward larger vehicles.
Hybrid and electrified vehicles are increasing in number but still make up a smaller share of total sales relative to petrol and diesel models.
These trends affect price averages because larger SUVs and utes typically sell for more than smaller passenger cars.
Toyota continues to be Australia’s best-selling brand by a wide margin, with nearly 240,000 vehicles sold in 2025. Its lineup includes a broad range of body types from city cars to large SUVs and utes, meaning Toyota’s average price reflects this diversity.
Toyota Model | Entry Price | Mid-Range Price | Top Trim Price |
Toyota Corolla (Hatch/Sedan) | $34,972 | $40,500 | $44,066 |
Toyota Corolla Cross | $40,302 | $48,000 | $57,312 |
Toyota RAV4 (incl. Hybrid) | $45,990 | $55,000 | $66,340 |
Toyota HiLux (Ute) | $37,610 | $55,000 | $79,757+ |
Toyota Land Cruiser Prado | $78,109 | $90,000 | $111,352+ |
Toyota average new car price (2026): $55,000
Toyota’s wide product range, from affordable Corolla models to premium SUVs and rugged utes, means its brand average is high but balanced between mainstream and higher-priced vehicles.
Ford is strongly associated with utes and SUVs in Australia. The Ford Ranger remains one of the nation’s best-selling vehicles.
Ford Model | Entry Price | Mid-Range Price | Top Trim Price |
Ford Ranger (Ute) | $40,000 | $60,000 | $75,000+ |
Ford Ranger Super Duty | $75,000 | $85,000 | $95,000+ |
Ford Everest (SUV) | $45,000 | $60,000 | $75,000+ |
Ford Escape (SUV) | $40,000 | $48,000 | $55,000+ |
Ford Mustang (Performance) | $75,000 | $90,000 | $105,000+ |
Ford average new car price (2026): $62,000
Ford’s average price is quite high because of the popularity of its utes and SUVs, many of which are priced above the compact car segment.
Mazda’s strategy focuses on mainstream cars and mid-sized SUVs known for stylish design and driving dynamics.
Mazda Model | Entry Price | Mid-Range Price | Top Trim Price |
Mazda3 (Hatch/Sedan) | $31,310 | $38,000 | $45,000+ |
Mazda CX-30 (SUV) | $35,000 | $42,000 | $50,000+ |
Mazda CX-5 (SUV) | $45,000 | $52,000 | $60,000+ |
Mazda CX-60 (SUV) | $60,000 | $70,000 | $80,000+ |
Mazda MX-5 (Roadster) | $40,000 | $47,000 | $55,000+ |
Mazda average new car price (2026): $47,000
Mazda’s average sits in the mid-range because its lineup skews toward passenger cars and mid-sized SUVs rather than heavy utes.
Kia’s pricing strategy focuses on strong value for entry- and mid-range buyers. It also includes electrified models that add diversity to the range.
Kia Model | Entry Price | Mid-Range Price | Top Trim Price |
Kia Picanto | $19,000 | $21,000 | $24,000+ |
Kia Rio (Small Car) | $20,000 | $24,000 | $27,000+ |
Kia Seltos (SUV) | $28,000 | $35,000 | $40,000+ |
Kia Sportage (SUV) | $35,000 | $42,000 | $50,000+ |
Kia EV3 (Electric SUV) | $47,600 | $55,000 | $63,950+ |
Kia average new car price (2026): $41,000
With some of the cheapest new car prices in Australia, Kia’s average is lower than the other mainstream brands, making it attractive for budget buyers.
Hyundai offers a wide range from value small cars to larger SUVs and has strengthened its offering with electrified versions in several segments.
Hyundai Model | Entry Price | Mid-Range Price | Top Trim Price |
Hyundai i30 (Hatch) | $29,250 | $33,000 | $39,000+ |
Hyundai Venue (SUV) | $29,000 | $34,000 | $39,000+ |
Hyundai Kona (SUV) | $32,000 | $38,000 | $45,000+ |
Hyundai Tucson (SUV) | $38,000 | $46,000 | $55,000+ |
Hyundai Palisade (SUV) | $55,000 | $62,000 | $70,000+ |
Hyundai average new car price (2026): $44,000
Hyundai’s range spans accessible everyday cars and larger SUVs, keeping its average price competitive.
Brand | Average New Car Price 2026 |
Ford | $62,000 |
Toyota | $55,000 |
Mazda | $47,000 |
Hyundai | $44,000 |
Kia | $41,000 |
Ford sits at the top because its portfolio includes high-value utes and large SUVs.
Toyota’s strong SUV and ute lineup boosts its average, despite having lower-priced hatch cars.
Mazda’s mid-range focus keeps it squarely in the middle.
Hyundai and Kia cater to value buyers with competitive pricing in entry and mid segments.
Remember that these are brand averages; your actual price will depend on the specific model, trim level, extras, and dealer offerings you choose.
Understanding brand averages and model price ranges helps you narrow your car budget before visiting dealerships. Here’s how you can use this data:
Entry-level buyers should focus on brands with lower starting prices like Kia and Hyundai.
SUV and family buyers might find better value from Mazda and Toyota, which combine volume pricing with strong resale values.
Work and heavy-use buyers looking at utes may see Ford and Toyota as obvious options but should factor in higher average costs.
The price you pay for a new car is just part of the ownership story. Typical ongoing costs such as fuel, insurance, registration, servicing, and maintenance add up over time.
Recent surveys estimate households spend a significant portion of their weekly budget on car running costs, including fuel, insurance, and maintenance.
A representative weekly breakdown might look like this:
Category | Estimated Weekly Cost | Estimated Annual Cost |
Car loan repayments | $212 | $11,028 |
Fuel | $91 | $4,757 |
Registration/CTP | $33 | $1,700 |
Insurance | $46 | $2,410 |
Servicing & tyres | $36 | $1,859 |
Tolls & parking | $7 | $380 |
Total annual cost (excluding depreciation) | $22,140+ |
This table highlights that while the purchase price is front of mind, the largest ongoing cost over time often comes from finance and fuel.
Multiple forces in the Australian market are driving higher new car prices:
SUV and ute demand: Larger vehicles often cost more than small cars.
Advanced technology: New safety and infotainment systems increase base prices.
Hybrid/electric adoption: Electrified models often cost more up front than petrol equivalents.
Market experts have noted that average new car prices in Australia climbed above the mid-forties in recent years and continue to rise as buyers choose more equipment and technology.
Here are key tips to make smarter decisions when shopping for a new car:
Start with a budget ceiling: Use brand averages to set a realistic target before comparing models.
Compare drive-away prices: MSRP is a starting point, but ask for full drive-away quotes.
Consider total ownership cost: Depreciation, insurance, servicing, and fuel matter as much as purchase price.
Check upcoming releases: 2026 will see new SUVs and hybrid options that may offer better value or new technology.
In 2026 the average new car price in Australia varies significantly by brand, reflecting the types of vehicles most in demand and how brands position themselves in the market.
Ford leads with the highest average price due to utes and larger SUVs.
Toyota sits in a strong middle ground with broad appeal across segments.
Mazda, Hyundai, and Kia provide value-oriented choices across small cars and SUVs.
Buying a car in Australia isn’t just about the purchase price running costs can make a much bigger difference over time. Fuel prices, servicing costs, reliability, and depreciation all play a role in how much a car really costs to own.
Many Australian buyers focus on the sticker price, but the smarter question is:
Which cars are actually cheapest to run in Australia in 2026?
In this guide, we’ll compare petrol, hybrid, and electric vehicles using real Australian driving costs, practical examples, and long term ownership insights to help you choose a car that saves money every year.
Whether you’re commuting in Melbourne, driving in Sydney traffic, or doing longer trips across regional Australia, this guide will help you understand which vehicles keep costs low.
What Makes a Car Cheap to Run in Australia?
A “cheap to run” car usually has four important qualities:
Excellent fuel efficiency or low electricity usage
Low servicing costs
Strong reliability
Affordable insurance and parts
In Australia, the biggest running cost difference usually comes from fuel consumption, which is why small petrol cars, hybrids, and electric vehicles dominate this category.
For comparison, we’ll use a realistic driving scenario:
Annual driving: 15,000 km
Petrol price: $1.90 per litre
Electricity: $0.30 per kWh
Cost Comparison by Vehicle Type
Before looking at specific models, let’s compare average running costs by vehicle type.
Electric vehicles are the cheapest to run, but hybrids often offer the best balance between purchase price and running cost.
Cheapest Petrol Cars to Run in Australia
Petrol vehicles can still be very economical if they are small, lightweight, and efficient.
These models remain popular across used cars Australia listings because of their low ownership costs.
Suzuki Swift
The Suzuki Swift is one of the most affordable cars to run in Australia.
Typical fuel economy: 5.5L/100km
Annual fuel cost: $1,567
Why it’s cheap to run:
Lightweight design
Simple engine
Low servicing cost
Affordable tyres and parts
Toyota Corolla (Petrol)
The Corolla is known for reliability and low maintenance costs.
Fuel economy: 6.0–6.5L/100km
Annual fuel cost: $1,710–$1,850
It’s slightly more expensive than the Swift to fuel, but long term reliability keeps ownership costs low.
Kia Picanto
For city drivers, the Kia Picanto is one of the cheapest petrol cars to own.
Fuel economy: 5.0L/100km
Annual fuel cost: $1,425
This makes it ideal for:
First time buyers
Students
Short distance commuters
Cheapest Hybrid Cars to Run in Australia
Hybrid vehicles are becoming extremely popular in Australia because they deliver excellent fuel economy without requiring charging infrastructure.
They perform especially well in city driving conditions.
Toyota Corolla Hybrid
One of the most efficient vehicles available in Australia.
Fuel economy: 4.2L/100km
Annual fuel cost: $1,197
Why it’s popular:
Proven hybrid system
High resale value
Extremely reliable
This is often considered one of the cheapest cars to run in Australia overall.
Toyota Camry Hybrid
The Camry Hybrid is larger but still very efficient.
Fuel economy: 4.5L/100km
Annual fuel cost: $1,282
It’s a strong choice for families wanting low fuel cost without moving to a smaller vehicle.
Toyota RAV4 Hybrid
SUV buyers in Australia increasingly choose hybrid models.
Fuel economy: 4.8L/100km
Annual fuel cost: $1,368
For an SUV, this is extremely economical.
Cheapest Electric Cars to Run in Australia
Electric vehicles have the lowest running cost because electricity is cheaper than petrol and maintenance requirements are lower.
MG4 Electric
Energy consumption: 14–15kWh/100km
Annual charging cost: $675
This makes the MG4 one of the cheapest cars to run in Australia today.
BYD Atto 3
Energy consumption: 15kWh/100km
Annual charging cost: $675
It combines SUV practicality with extremely low running costs.
Tesla Model 3
Energy consumption: 13–15kWh/100km
Annual charging cost: $600–$700
Even though the purchase price is higher, the long term running cost is very low.
Comparison Table: Cheapest Cars to Run in Australia
This shows why hybrids and EVs are becoming more attractive in Australia.
Maintenance Cost Differences
Maintenance is another major factor in running costs.
Petrol cars require:
Oil changes
Engine servicing
Transmission servicing
Exhaust maintenance
Hybrid vehicles reduce engine wear and brake usage. Electric vehicles require the least maintenance because they have fewer moving parts.
Typical maintenance cost comparison over time:
Real 5-Year Running Cost Comparison
Let’s compare total running cost over five years.
This is why EV ownership is growing in Australia.
City Driving vs Highway Driving
Driving conditions in Australia can change which car is cheapest to run.
City driving:
Hybrid vehicles perform best
Regenerative braking saves fuel
Stop-start traffic improves efficiency
Highway driving:
Petrol and hybrid efficiency becomes similar
EVs remain cheapest per kilometre
Why Hybrids Are Booming in Australia
Hybrids are growing quickly because they offer:
Low fuel cost
No charging requirement
Proven reliability
Strong resale value
For many Australian buyers, hybrids are currently the most practical cheap to run option.
Buyer Advice: Choosing the Cheapest Car to Run
Here’s a simple way to decide.
Choose a small petrol car if:
You drive occasionally
Budget is limited
You want the lowest purchase price
Choose a hybrid if:
You drive daily
You want strong fuel savings
You want reliability
Choose an electric car if:
You can charge at home
You plan long term ownership
You want the lowest running cost
Conclusion
The cheapest cars to run in Australia in 2026 are no longer just small petrol cars. Hybrid and electric vehicles now offer significantly lower running costs, especially for drivers covering regular distances. Petrol cars remain affordable to buy, but hybrids and EVs deliver the biggest long term savings.
For many Australians today:
Small petrol cars are the cheapest short term option
Hybrid cars offer the best balance
Electric cars are the cheapest long term choice
Choosing the right vehicle depends on your driving habits, budget, and access to charging.
A used car usually wins on upfront cost and immediate depreciation, while a new car can make sense if you value peace of mind, warranty cover, lower early maintenance and specific incentives (especially for EVs). Which is cheaper depends on how long you keep the car, your driving pattern, insurance profile and whether you buy electric or petrol. Below I break the numbers and the real life trade offs down so you can make a clear, Aussie specific decision.
1: The biggest cost: Depreciation (new cars lose value fast)
Depreciation is the single largest cost difference between new and used cars.
Typical pattern: new cars can lose 10–15% of value the moment you drive them off the lot, and another 10–15% during the first year, then steady decline afterwards. This front loaded loss is what makes used cars so attractive from a pure cost standpoint.
Practical takeaway: If you buy new and keep the car 8–10+ years, the annualised depreciation may become reasonable; if you keep it 1–3 years, depreciation dominates your total cost of ownership.
2: Upfront purchase price vs what you can buy used
Upfront: New car list prices in Australia remain high compared to a few years ago (supply issues, inflation, and OEM pricing pressure). Industry forecasts show the market is still large but pricing pressures persist into 2025–26.
Used market: After the pandemic-driven used-car boom softened, used listings and demand have eased (late-2025 into 2026), which can mean better deals for used car buyers if you shop carefully.
Practical numbers (example): A well kept 2–3 year old version of a popular midsize car that costs $40,000 new might be available for $26,000 to $32,000, depending on the model, mileage, and area. That money saved up front quickly makes up for a lot of ongoing costs.
3: Running costs: Fuel, servicing and insurance (the ongoing expenses)
Fuel prices in Australia have been volatile. National weekly averages in early 2026 are around $1.79 per litre for petrol (approx.) with strong local variation metro areas like Brisbane or parts of NSW can be notably higher. Use local price apps (FuelCheck, PetrolSpy) to time fills.
Used Petrol car: Ongoing petrol bills are probably your largest running cost after depreciation and insurance.New petrol car / hybrid: improved fuel economy can lower this, but the saving vs a used petrol car depends on real-world km and hybrid efficiency.
EV: Energy cost per km is often lower than petrol equivalents, but charging costs vary (home vs public fast chargers) and the upfront EV price is still generally higher. For many Australians, EVs are starting to make sense on running cost alone particularly city drivers but it depends on your usage and local electricity rates.
Servicing & Repairs
New car: Warranty cover often reduces servicing costs in early years, plus lower likelihood of sudden repairs.
Used car: Older cars can be more expensive if big items (timing belt, clutch, brakes, battery) are due but a pre-purchase inspection and a known service history mitigates this risk.
Insurance
The average cost of car insurance depends on the type of car and where it is located. The national average for a comprehensive insurance is around $900 to $1,400 a year, but this varies by state, coverage level, and type of driver. Recently, premiums have been going up. Older cars usually cost less to cover, but not always. Some older models that need a lot of work can cost more to insure.
4: Incentives, taxes and government rules (Big for EVs and depreciation)
EV incentives: Several states (and sometimes federal schemes) offer rebates, registration discounts or other incentives for electric vehicles. For eligible cars these can be thousands of dollars (some states have $3,000-style rebates or duty concessions tied to price caps). That can materially change the new vs used calculation if you’re choosing an EV.
ATO thresholds depreciation rules: If you are buying for business use, tax rules and car limit thresholds affect the net cost (e.g., ATO car limit thresholds and cents per km claims). Check the ATO pages or your accountant for the precise year specific limits.
5: A realistic 5 year ownership model (worked example)
Below is a simplified, illustrative scenario (replace with exact model prices for your case).
Assumptions (Example):
New car price: $40,000
Equivalent 3-year used: $30,000
Ownership: 5 years, 15,000 km/year
Fuel: Petrol $1.80/L (avg) or EV home charge cost est. (varies)
Insurance: $1,000/year (avg)
Servicing & repairs: new = $500/year early, used = $900/year later
Depreciation: new loses 40% in 5 years, used loses 25% in next 5 years
Rough 5 year tallies (rounded)
New car total cost (price + depreciation + fuel + insurance + servicing): maybe $40k + $16k depreciation + $13k fuel + $5k insurance + $2.5k servicing ≈ $76.5k
Used car total cost (price + depreciation + fuel + insurance + servicing): maybe $30k + $7.5k depreciation + $13.5k fuel + $5k insurance + $4.5k servicing ≈ $60.5k
In this contrived example the used car is $16k cheaper over 5 years. Your numbers will differ by model, fuel type, and driving pattern but this demonstrates how front loaded depreciation and higher servicing risk push used cars into a clear cost advantage for many buyers.
6: When a new car can be cheaper (or better value)
There are scenarios where buying new is smarter:
You keep cars a long time (8–10+ years) the front-loaded depreciation evens out.
You prioritise warranty/low maintenance: New cars often have multi year warranties and lower early repair risk.
You want the latest safety/efficiency tech: Improved fuel economy, safety systems and emissions can save money and reduce risk.
EV with incentives: State/federal rebates plus lower running costs can tip the balance for city driver but check local incentives and price caps carefully.
7: Non financial factors you must weigh
Reliability & stress: A new car gives peace of mind; a used car may require more time dealing with servicing.
Financing: used cars can have higher finance rates; new car finance deals (promotional rates) sometimes make monthly payments comparable.
Insurance excess & history: Used cars with clean service history command lower friction in transfers and may be easier to insure.
Resale market & region: Regional demand affects used car prices some markets (e.g., smaller towns, particular body styles) hold value differently. Recent reports show the used market softened in late-2025 which can be an opportunity to negotiate.
8: Practical guide: How to choose (Step by Step checklist)
Decide your horizon: How long will you keep the car? (3 yrs → favour used; 8+ yrs → new becomes reasonable).
Calculate total cost of ownership (TCO): price + expected depreciation + fuel + insurance + servicing + registration (use local numbers).
Check incentives: If considering EV, check state/federal rebates and any stamp duty concessions.
Get a PPI (Pre Purchase Inspection) for used cars it saves large surprises.
Compare finance offers (new vs used often have different rates).
Factor in non monetary value: Safety tech, reliability, dealer network, towing/roadside assistance.
Shop local prices: Petrol and insurance vary by state use local data (FuelCheck, insurer quotes).
9 Quick regional notes for Australians (2026)
Petrol price volatility: Expect strong local variation metropolitan nodes like Brisbane saw some of the highest average prices in recent reporting. Shop local or time your fill.
Used market: Softer demand into late 2025 / early 2026 suggests negotiating power for buyers in many regions but some models still hold value strongly.
Insurance: Premiums have been rising always obtain multiple quotes and consider switching annually for savings (Canstar research suggests substantial savings are available by shopping around).
10) Bottom line: Decision framework
If you want lowest total cost in the short medium term (1–5 years) → used car is typically cheaper.
If you want low effort, warranty cover, latest safety, and you keep cars many years → new car becomes more attractive.
If you are considering an EV and local incentives + charging options work for you, an EV (new or low km used) can beat petrol in running cost but check rebates, price caps and your electricity pricing.
11: Summary Table: Quick Comparison
Conclusion
In 2026 Australia, buying a used car especially one that's 2–3 years old is generally the cheaper option when you look at the full cost of ownership. That said, the gap is narrowing as new EV incentives and financing improvements make new cars more accessible. Your choice ultimately depends on your priorities: cost savings versus convenience, customization, and long term ownership comfort.
February 13, 2026
