Best small cars
The small car segment used to be the top-selling vehicle class in Australia, but the Australian public’s shift to crossovers and SUVs means compact passenger vehicles are no longer selling in as large numbers as they did in years gone by.
It’s a shame, really, because there are some entirely compelling reasons to choose a hatchback over an SUV – they’re lower, feel more fun to drive, and often use less fuel, plus in most instances they cost thousands of dollars less than the equivalent SUV, too.
The Corolla remains the world’s best-selling nameplate hails from Toyota, and the current model is arguably the best iteration yet.
Toyota offers the Corolla in Australia in hatchback and sedan body styles, and while the brand also recently added the Corolla Cross compact SUV to the mix, it's not included in this consideration set.
We are, however, adding in the GR Corolla hot-hatch, an all-wheel drive performance car that is manual only and won’t be for everyone – but for those it is for, it’ll be a life-changing addition to their garage.
For the rest of us, the Corolla line-up will come down to a choice between the aforementioned sedan, which is definitely the more practical choice, or the very squeezy little hatchback, which is more of a singles or couples car than a family-friendly option.
Either way, buyers will have a choice of efficient petrol and petrol-electric hybrid powertrains, as well as a full suite of safety features across the line-up.
If real-world efficiency is what gets you going, then the hybrid will be a walk-up start - whether you’re just after a future-proof option, or use the car as a rideshare or taxi.
What’s also great about the Corolla is that in this generation, it drives better than ever before, thanks to being built on the impressive TNGA platform.
There’s a decent amount of tech inside, great storage and quality finishes, and it’s also one of the most affordable cars on the market when it comes to ongoing maintenance. There are clearly quite a few reasons the Corolla is one of the country’s most popular passenger cars.
The most affordable Corolla hatch and sedan models still come with a petrol engine, with pricing starting at $29,270 for the Corolla Ascent Sport sedan, and $29,610 for the Ascent Sport hatchback. The standard model range tops out at $40,260 for the recently added ZR hybrid sedan, while the ZR hybrid hatch is a $39,100 proposition.
The range-topping Gazoo Racing manual-only AWD hot-hatch is $64,190.
All Corolla models are covered by a five-year/unlimited-kilometre warranty, with capped price servicing for the first five years. If you service your Corolla on time it could be eligible for seven years of powertrain cover, and if you own a hybrid and have the powertrain checked annually per the brand’s guidelines, you will also get 10 years of battery warranty.
Super low running costs
Hatch has small boot
The Corolla remains the world’s best-selling nameplate hails from Toyota, and the current model is arguably the best iteration yet.
Toyota offers the Corolla in Australia in hatchback and sedan body styles, and while the brand also recently added the Corolla Cross compact SUV to the mix, it's not included in this consideration set.
We are, however, adding in the GR Corolla hot-hatch, an all-wheel drive performance car that is manual only and won’t be for everyone – but for those it is for, it’ll be a life-changing addition to their garage.
For the rest of us, the Corolla line-up will come down to a choice between the aforementioned sedan, which is definitely the more practical choice, or the very squeezy little hatchback, which is more of a singles or couples car than a family-friendly option.
Either way, buyers will have a choice of efficient petrol and petrol-electric hybrid powertrains, as well as a full suite of safety features across the line-up.
If real-world efficiency is what gets you going, then the hybrid will be a walk-up start - whether you’re just after a future-proof option, or use the car as a rideshare or taxi.
What’s also great about the Corolla is that in this generation, it drives better than ever before, thanks to being built on the impressive TNGA platform.
There’s a decent amount of tech inside, great storage and quality finishes, and it’s also one of the most affordable cars on the market when it comes to ongoing maintenance. There are clearly quite a few reasons the Corolla is one of the country’s most popular passenger cars.
The most affordable Corolla hatch and sedan models still come with a petrol engine, with pricing starting at $29,270 for the Corolla Ascent Sport sedan, and $29,610 for the Ascent Sport hatchback. The standard model range tops out at $40,260 for the recently added ZR hybrid sedan, while the ZR hybrid hatch is a $39,100 proposition.
The range-topping Gazoo Racing manual-only AWD hot-hatch is $64,190.
All Corolla models are covered by a five-year/unlimited-kilometre warranty, with capped price servicing for the first five years. If you service your Corolla on time it could be eligible for seven years of powertrain cover, and if you own a hybrid and have the powertrain checked annually per the brand’s guidelines, you will also get 10 years of battery warranty.
We used to label the Kia Cerato as a ‘humble’ small car, but with an extensive model range, practical hatchback and sedan body styles, and a sporty GT model – not to mention lower pricing than many rivals – it really is a hard-hitter in the small car segment.
For years now it has offered more cabin space than the likes of the Corolla and Mazda3, with both body styles giving customers who might have otherwise been looking at a midsize SUV a reason to pause and rethink their decision. Sedan and hatch versions of the Cerato have similar back-seat space and boot capacity as some medium SUVs.
Two engines are on offer. Most Cerato models are powered by a 2.0-litre petrol engine which is adequate for most needs, though not quite exciting… but there’s the zesty 1.6-litre turbo engine in the GT for thrill-seekers. It’s a strong engine, but the dual-clutch automatic transmission might not be to all tastes. The core models with the 2.0L engine have a six-speed auto.
Pricing starts at $26,290 before on-road costs for the base S and stretches to $36,090 before on-roads for the GT flagship, which – compared to most small cars on this list – is still very affordable.
Just keep in mind that if you choose a lower-grade version, you still get things like halogen headlights and hubcaps, and there is still an optional safety pack for lower models, too.
With a seven-year/unlimited kilometre warranty and seven years of capped-price servicing available, the Cerato stands out against the rivals on this list as one that may appeal more to buyers who plan to hang on to their car for a fair while.
Spacious interior
Asthmatic 2.0L motor is past its use-by date
We used to label the Kia Cerato as a ‘humble’ small car, but with an extensive model range, practical hatchback and sedan body styles, and a sporty GT model – not to mention lower pricing than many rivals – it really is a hard-hitter in the small car segment.
For years now it has offered more cabin space than the likes of the Corolla and Mazda3, with both body styles giving customers who might have otherwise been looking at a midsize SUV a reason to pause and rethink their decision. Sedan and hatch versions of the Cerato have similar back-seat space and boot capacity as some medium SUVs.
Two engines are on offer. Most Cerato models are powered by a 2.0-litre petrol engine which is adequate for most needs, though not quite exciting… but there’s the zesty 1.6-litre turbo engine in the GT for thrill-seekers. It’s a strong engine, but the dual-clutch automatic transmission might not be to all tastes. The core models with the 2.0L engine have a six-speed auto.
Pricing starts at $26,290 before on-road costs for the base S and stretches to $36,090 before on-roads for the GT flagship, which – compared to most small cars on this list – is still very affordable.
Just keep in mind that if you choose a lower-grade version, you still get things like halogen headlights and hubcaps, and there is still an optional safety pack for lower models, too.
With a seven-year/unlimited kilometre warranty and seven years of capped-price servicing available, the Cerato stands out against the rivals on this list as one that may appeal more to buyers who plan to hang on to their car for a fair while.
The electric evolution is here, and the MG4 is one of the most convincing choices for buyers who are after a small car that is a full EV.
With pricing starting from just under forty grand, the MG4 might push the budget for customers who are considering it against a base model petrol hatch, but the Chinese-made, British-branded model is a compelling choice, all the same.
There are several choices in the MG4 range. The base model Excite 51, which has a 51kWh battery pack and up to 350km WLTP driving range, costs $38,990 before on-roads.
The mid-range Excite 64 ($44,990) and Essence 64 models ($47,990) models come with a bigger battery pack, and the Essence adds a bit of extra equipment to the list, as well. The Excite 64 has a claimed range of 450km WLTP, while the Essence is rated to 425km WLTP.
The current top-spec model is the Long Range 77, with a big 77kWh pack capable of up to 530km WLTP driving range.
Power output varies across the range as well, but the big thing that makes the MG4 stand out from some other small EVs (and all the other cars on this list) is that it’s rear-wheel drive, which makes for a balanced, fun and involving drive experience.
It’s spacious inside, with a decent boot capacity as well, but those who don’t dig the minimalist look might find the interior to be a bit sparse.
The brand offers an accessory charging station for buyers who need to set up the infrastructure at home or work. MG offers a seven-year warranty, and the service intervals are every 24 months or 40,000km.
The electric evolution is here, and the MG4 is one of the most convincing choices for buyers who are after a small car that is a full EV.
With pricing starting from just under forty grand, the MG4 might push the budget for customers who are considering it against a base model petrol hatch, but the Chinese-made, British-branded model is a compelling choice, all the same.
There are several choices in the MG4 range. The base model Excite 51, which has a 51kWh battery pack and up to 350km WLTP driving range, costs $38,990 before on-roads.
The mid-range Excite 64 ($44,990) and Essence 64 models ($47,990) models come with a bigger battery pack, and the Essence adds a bit of extra equipment to the list, as well. The Excite 64 has a claimed range of 450km WLTP, while the Essence is rated to 425km WLTP.
The current top-spec model is the Long Range 77, with a big 77kWh pack capable of up to 530km WLTP driving range.
Power output varies across the range as well, but the big thing that makes the MG4 stand out from some other small EVs (and all the other cars on this list) is that it’s rear-wheel drive, which makes for a balanced, fun and involving drive experience.
It’s spacious inside, with a decent boot capacity as well, but those who don’t dig the minimalist look might find the interior to be a bit sparse.
The brand offers an accessory charging station for buyers who need to set up the infrastructure at home or work. MG offers a seven-year warranty, and the service intervals are every 24 months or 40,000km.
Australians have long had an affinity with the Mazda 3, and it continues to be one of the better small car choices you could make if you’re after a compact hatchback or sedan.
The two different body styles - as with the Corolla - are very different in their approaches and appearances, with the sedan offering a sleek, premium and sizeable profile with heaps of second-row occupant space and a big boot, while the smooth-edged hatchback is far more suitable for singles and couples, with limited back-seat space and a smaller-than-average boot.
There are a couple of powertrain choices - a 2.0-litre four-cylinder or a 2.5-litre four-cylinder - both of which come as standard with a six-speed automatic and front-wheel drive. The six-speed manual, which has been part of the range for years, has been axed, and the model range is a bit slimmer these days than it once was.
All versions of the Mazda 3 come well equipped, with LED headlights, alloy wheels and an 8.8-inch Mazda Connect infotainment system with satellite navigation and smartphone mirroring. Optional in the latest model range is a larger 10.25-inch screen, which is standard on the GT and Astina. There are also additional safety features optional in lower grade models, though the range does come with an impressive list of technology features, and a five-star ANCAP safety rating based on 2019 testing.
Customers who choose a Mazda 3 love the car’s high-end and plush feeling interior, the driving dynamics which are sportier than a lot of other models on this list, and the extensive model range (even if it has been pared back a bit in recent years).
Pricing starts at $30,230 before on-road costs for the entry-level G20 Pure, climbing to $42,490 plus on-roads for the flagship G25 Astina at $42,320. The pricing is identical for both hatch and sedan model lines.
The X20 Astina – featuring Mazda’s lean-burning compression-ignition petrol engine with mild-hybrid technology – was axed in 2023.
Mazda covers its line-up with a five-year/unlimited-kilometre warranty, and there’s a five-year capped-price servicing plan on offer, too.
Loads of style
Pricey to buy and service
Australians have long had an affinity with the Mazda 3, and it continues to be one of the better small car choices you could make if you’re after a compact hatchback or sedan.
The two different body styles - as with the Corolla - are very different in their approaches and appearances, with the sedan offering a sleek, premium and sizeable profile with heaps of second-row occupant space and a big boot, while the smooth-edged hatchback is far more suitable for singles and couples, with limited back-seat space and a smaller-than-average boot.
There are a couple of powertrain choices - a 2.0-litre four-cylinder or a 2.5-litre four-cylinder - both of which come as standard with a six-speed automatic and front-wheel drive. The six-speed manual, which has been part of the range for years, has been axed, and the model range is a bit slimmer these days than it once was.
All versions of the Mazda 3 come well equipped, with LED headlights, alloy wheels and an 8.8-inch Mazda Connect infotainment system with satellite navigation and smartphone mirroring. Optional in the latest model range is a larger 10.25-inch screen, which is standard on the GT and Astina. There are also additional safety features optional in lower grade models, though the range does come with an impressive list of technology features, and a five-star ANCAP safety rating based on 2019 testing.
Customers who choose a Mazda 3 love the car’s high-end and plush feeling interior, the driving dynamics which are sportier than a lot of other models on this list, and the extensive model range (even if it has been pared back a bit in recent years).
Pricing starts at $30,230 before on-road costs for the entry-level G20 Pure, climbing to $42,490 plus on-roads for the flagship G25 Astina at $42,320. The pricing is identical for both hatch and sedan model lines.
The X20 Astina – featuring Mazda’s lean-burning compression-ignition petrol engine with mild-hybrid technology – was axed in 2023.
Mazda covers its line-up with a five-year/unlimited-kilometre warranty, and there’s a five-year capped-price servicing plan on offer, too.
The eighth-generation Volkswagen Golf is the most premium of these mainstream models, with a more upmarket vibe inside and out, and a higher price tag to reflect that.
In fact, the base model version of this popular hatchback has been axed, and now the Golf starts much closer to forty grand than thirty, which puts it in the same zone as similarly sized EVs, despite being petrol-powered and not offering any hybrid models in Australia.
Indeed, the Volkswagen Golf line-up has also seen the axe applied to the practical wagon bodystyle, but there are still a number of variants on offer, from the 1.4-litre turbo Life model ($38,590 MSRP) or the sportier-looking R-Line version with the same engine ($41,690), though both of those variants run an eight-speed automatic rather than a DSG dual-clutch that has been the standard in generations past.
Up from there is the 2.0L turbo front-wheel drive GTI hatch ($55,990) and the flagship all-wheel drive powerhouse R model, at $68,990.
This model has seen criticism since its launch for issues with software and technology, but it remains a compelling choice for those who want superb driving performance, a roomy cabin, and practical boot space. All grades come handsomely equipped, too, with LED lighting, alloy wheels, smartphone mirroring tech and lots of safety features as standard.
All Volkswagen models are backed by a five-year/unlimited-kilometre warranty, and the brand offers a choice of pay-as-you-go capped-price servicing, or a three- or five-year prepaid service plan, both of which save you hundreds of dollars over the alternative.
Modern-looking interior
Screens are flashier than they are functional
The eighth-generation Volkswagen Golf is the most premium of these mainstream models, with a more upmarket vibe inside and out, and a higher price tag to reflect that.
In fact, the base model version of this popular hatchback has been axed, and now the Golf starts much closer to forty grand than thirty, which puts it in the same zone as similarly sized EVs, despite being petrol-powered and not offering any hybrid models in Australia.
Indeed, the Volkswagen Golf line-up has also seen the axe applied to the practical wagon bodystyle, but there are still a number of variants on offer, from the 1.4-litre turbo Life model ($38,590 MSRP) or the sportier-looking R-Line version with the same engine ($41,690), though both of those variants run an eight-speed automatic rather than a DSG dual-clutch that has been the standard in generations past.
Up from there is the 2.0L turbo front-wheel drive GTI hatch ($55,990) and the flagship all-wheel drive powerhouse R model, at $68,990.
This model has seen criticism since its launch for issues with software and technology, but it remains a compelling choice for those who want superb driving performance, a roomy cabin, and practical boot space. All grades come handsomely equipped, too, with LED lighting, alloy wheels, smartphone mirroring tech and lots of safety features as standard.
All Volkswagen models are backed by a five-year/unlimited-kilometre warranty, and the brand offers a choice of pay-as-you-go capped-price servicing, or a three- or five-year prepaid service plan, both of which save you hundreds of dollars over the alternative.
You may not have known this, but Skoda has one of the best hatchbacks on the market as part of its product line-up.
The Scala hatch was launched in the midst of COVID shutdowns, so it didn’t really hit the ground at full pace, but in the time since then the range has seen some changes, albeit not all for the better.
The entry-level Ambition ($33,490 drive-away) now comes with a three-cylinder turbo-petrol engine and seven-speed dual-clutch (DSG) auto, while the high-grade Signature ($41,490 d/a) has the better 1.5-litre four-cylinder turbo, which is the engine that originally featured in the base model. That’s a ‘newer’ engine than what you find in the Golf, too.
Indeed, there have been a number of spec changes with features being cut from the base model car, but either way the Scala is a pretty nicely specified model for the money being asked. The Scala is built on the MQB A0 platform, which is shared with the smaller Volkswagen Polo, but the Scala is actually a touch bigger than the VW Golf.
It is also a great size, with relatively compact dimensions belying the fact there is SUV-like levels of space in the second-row and a big, luggage-friendly boot space that, at 467 litres, is better than many models in this segment, and the one above.
All Skoda models are covered by a compelling seven-year/unlimited-kilometre warranty, and buyers have the choice of pay-as-you-go servicing, or prepaid service plans for either five- or seven-year durations, both offer big discounts.
You may not have known this, but Skoda has one of the best hatchbacks on the market as part of its product line-up.
The Scala hatch was launched in the midst of COVID shutdowns, so it didn’t really hit the ground at full pace, but in the time since then the range has seen some changes, albeit not all for the better.
The entry-level Ambition ($33,490 drive-away) now comes with a three-cylinder turbo-petrol engine and seven-speed dual-clutch (DSG) auto, while the high-grade Signature ($41,490 d/a) has the better 1.5-litre four-cylinder turbo, which is the engine that originally featured in the base model. That’s a ‘newer’ engine than what you find in the Golf, too.
Indeed, there have been a number of spec changes with features being cut from the base model car, but either way the Scala is a pretty nicely specified model for the money being asked. The Scala is built on the MQB A0 platform, which is shared with the smaller Volkswagen Polo, but the Scala is actually a touch bigger than the VW Golf.
It is also a great size, with relatively compact dimensions belying the fact there is SUV-like levels of space in the second-row and a big, luggage-friendly boot space that, at 467 litres, is better than many models in this segment, and the one above.
All Skoda models are covered by a compelling seven-year/unlimited-kilometre warranty, and buyers have the choice of pay-as-you-go servicing, or prepaid service plans for either five- or seven-year durations, both offer big discounts.
If you want a cheap small sedan that looks good and has a long warranty, this could be a great choice for you.
The recently launched MG 5 sedan doesn’t tick the boxes if you want the latest and greatest safety technology, but it does come at a significant price advantage over other small cars that do have all the active safety nannies on board.
The model line-up consists of two variants - the entry-level Vibe, which has a 1.5-litre non-turbo engine with a CVT auto, while the top-spec Essence model has a 1.5-litre turbo-petrol engine with a seven-speed dual-clutch auto gearbox.
The four-grand step up from Vibe ($24,990 drive-away) to Essence ($28,990 drive-away) also nets you a few more features including a sunroof, though both grades come with LED lights, alloy wheels, a touchscreen media system and digital instruments.
The interior of the MG5 is spacious, with a good amount of occupant accommodation in the second-row, and a sizeable boot space making this a potential choice for young families.
MG offers a seven-year/unlimited kilometre warranty plan, with capped-price servicing for the same period, too.
If you want a cheap small sedan that looks good and has a long warranty, this could be a great choice for you.
The recently launched MG 5 sedan doesn’t tick the boxes if you want the latest and greatest safety technology, but it does come at a significant price advantage over other small cars that do have all the active safety nannies on board.
The model line-up consists of two variants - the entry-level Vibe, which has a 1.5-litre non-turbo engine with a CVT auto, while the top-spec Essence model has a 1.5-litre turbo-petrol engine with a seven-speed dual-clutch auto gearbox.
The four-grand step up from Vibe ($24,990 drive-away) to Essence ($28,990 drive-away) also nets you a few more features including a sunroof, though both grades come with LED lights, alloy wheels, a touchscreen media system and digital instruments.
The interior of the MG5 is spacious, with a good amount of occupant accommodation in the second-row, and a sizeable boot space making this a potential choice for young families.
MG offers a seven-year/unlimited kilometre warranty plan, with capped-price servicing for the same period, too.