The price of cars in Australia has rocketed recently due to inflation and increased production costs, but there are still some great small cars to be had for under $20k.
However, if you want to buy a new car under $20k your only real option is the Kia Picanto, and that’s before taking into account on-road costs.
Let’s take a look at some of the best small cars in Australia for under $20,000 second hand:
Hyundai i30
In the 1990s it was Japanese cars which ruled the roost, but in 2025 the Korean’s are taking over – for good reasons.
The Hyundai i30 has become a favourite for Australian drivers, being a good mix of three things – reliability, comfort, and affordability.
Models from 2015 to 2020, particularly the Active X trim are a good spec to look for, with enough features to make you feel as if you’ve spent more money. Equipped with a 1.8-litre engine and six-speed automatic transmission, the Hyundai i30 provides a pretty smooth driving experience around Aussie urban sprawl.
The i30 has a surprisingly spacious interior and fuel efficiency which makes it feel as if it’s running on air.
If you’re looking for a small car under $20,000 in Australia then the Hyundai i30 is an excellent choice for city commutes and the occasional longer journey.
Hot tip: If you want a true Hyundai gem, then take a look at the slightly smaller but much quicker i20 N.
Oh, and if you buy a Hyundai, make sure you know how to pronounce it – Hyun-Day (not Hun-Day like the Americans say, or High-un-dye like the rest of the misinformed.
Mazda 2
Back to age-old Japanese reliability, the Mazda 2 is always a good option. It’s a stylish car, right?
Mazda 2 models from 2015 onwards are well within the $20,000 range and come with a 1.5-litre engine delivering peppy performance.
The interior of the Mazda 2 has clearly been considered. It’s comfortable and surprisingly Tardis-like considering the small size.
On the road you’ll find the Mazda 2 nimble, with enjoyable handling which effortlessly gets you pointing in the right direction. In fact, having recently driven a Mazda 2 it reminded me how much fun a small Japanese car can be (and I know what I’m talking about having grown up racing small Hondas).
If you’re in an urban environment like most Aussies these days, then the Mazda 2 is a great choice. It really does the job, and you won’t need to worry too much about build quality and longevity.
Kia Cerato
The Kia Cerato will suit you if you’re looking for a small car with a modern design and nice stack of features.
Models from 2018 and earlier can be found under $20,000, and as a bonus may still benefit from Kia’s extensive seven-year warranty. How’s that for peace of mind?
With a comfortable cabin, user-friendly infotainment system, and efficient engine options, the Kia Cerato is a decent mix of practicality without breaking the bank.
My personal opinion is the Hyundai is the better Korean option, but Kia’s will definitely attract you more on price per smile.
Suzuki Swift
The Suzuki Swift has earned a reputation for its reliability and spirited performance. “Chuckable” is the word which describes the Swift in my mind, because they’re fun to chuck around corners.
Just like the Suzuki Jimny, the Swift is definitely a fun car if you’re happy to compromise on luggage space.
For under $20k you can get a 2017 model with a 1.2-litre engine which is both responsive and economical.
Being a really small car compared to most on Aussie roads, you’ll be able to park the Suzuki Swift anywhere (although I advise not in motorbike parking bays).
Interior space isn’t ideal if you have a Great Dane, but it’s fine for daily use. It’s comfortable too – it really is.
If you want a nippy little hatchback with years of proven heritage, then the Suzuki Swift really is a fab choice.
Honda HR-V
If you’re looking for a small car under $20,000 which is more family friendly than the above Tonka toys then the Honda HR-V as a small SUV might be the car for you.
Honda’s have a legendary reliability, and a 1.8-litre engine is more than capable of tugging your shopping AND kids around.
The HR-V might even get you out bush on a camping weekend if you pack the car like a game of Tetris.
Models from 2015 to 2020, particularly the VTi-S trim, come with some great features – cameras, automatic wipers, and a more spacious interior than the cars mentioned above.
The 1.8-litre engine is a good balance of power and efficiency for most driving conditions. I’ve even seen one hooning through sand dunes north of Perth with little regard to impracticality (maybe it was a company car?)
The HR-V is also flexible, with multiple seat configurations and loads of cargo space.
If you’re looking for a practical car for under $20,000 then the Honda HR-V is a great option to consider.
Still can’t decide what small car to buy under $20,000?
If the above small cars didn’t fit the bill we’d love to know why – please say so in the comments below.
As these small car recommendations are from the used market make sure you verify service history, check any recall work has been completed, and if possible ask your mechanic mate Bill to have a look at the car before you buy it.
Due diligence will help you lock in a sub-$20k small car which should last you many years to come.
Oh, and if you need a good price on tyres make sure you read this guide.
