The cheapest cars on sale in Australia revealed

New and used car prices have risen sharply in the past few years. See list of the most affordable vehicles in every shape and size.

Used car prices have soared by 40 per cent in the past two years as a shortage of new cars pushed buyers to the second-hand market.

Prices are still inflated, which means you could be better off looking at a new car than paying above the odds for a used one.

While most car brands have ramped up their prices significantly recently, there are still some good buys out there.

Here are the cheapest new cars in every shape and size.

TINY HATCHBACKS

The Picanto S is the cheapest car on sale in Australia.

The Kia Picanto is the cheapest car on sale in Australia, priced at $18,490 drive-away in the most affordable S grade.

It comes with a seven-year/unlimited km warranty and mod-cons such as an eight-inch touchscreen with wireless Apple CarPlay and Android Auto.

There are compromises, though. You’ll need to shift your own gears and its interior fit out is fairly barren.

The MG3 is a close second.

The Chinese MG3 isn’t far off. The base Core variant is priced at $18,990 drive-away with an automatic transmission.

Again it’s fairly basic motoring and there is a question mark over its crash-test performance but the MG 3 is covered by a seven-year warranty and has hi-tech features not found in many used cars.

SMALL HATCHBACKS

Hatchbacks such as the Toyota Corolla used to be priced from about $20,000, but no more.

Hyundai’s i30 is the cheapest option at $25,990 drive-away for the manual, an automatic transmission adds $2000.

The Hyundai i30 undercuts its rivals, but you’ll need to change your own gears.

If you need an auto then the mechanically identical Kia Cerato S at $27,490 drive-away is cheaper and has a longer warranty.

Stretch the budget to about $30,000 and you can buy a base Mazda3 or Toyota Corolla.

MEDIUM AND LARGE CARS

Mid-size and large sedans are on the nose with Aussie buyers, but the good news is they are excellent value for money compared with SUVs.

If you are after a family four-door the Toyota Camry is the cheapest buy at $34,745 drive-away. You can add fuel-sipping hybrid power for $2500.

Large sedans are a dying breed, but the Toyota Camry is still the cheapest and most popular.

If you want something bigger that’ll remind you of the Aussie made Holden Commodore and Ford Falcon then look at the Kia Stinger priced at $55,490 drive-away.

The $56,990 Skoda Superb brings some Euro charm to the segment.

SPORTS CARS

Subaru’s BRZ offers cheap thrills.

If you’re after driving thrills then the Subaru BRZ is for you. Prices start at about $43,500 drive-away for the base version with a manual transmission.

The BRZ isn’t overly powerful or fast but its rear-wheel drive layout, low kerb weight and sharp steering make it a hoot at any speed. Unfortunately the manual has minimal safety tech.

PEOPLE MOVERS

Kia’s Carnival is the cheapest way to move a lot of people in comfort.

The Kia Carnival is the best bet for big families on the hunt for a vehicle with plenty of cargo space and at least seven seats.

It’s the best people mover on sale and also the cheapest at $51,690 drive-away.

CITY SUVS

The Suzuki Ignis is the cheapest little SUV on sale.

Pint-sized SUVs are often just high-riding versions of hatchbacks, but Aussie buyers love the higher seating position and older folks find them easier to climb into.

The Suzuki Ignis is the cheapest little SUV on the market at $23,490 drive-away for the manual GL version. Expect to pay an extra $1000 for the auto version.

Automatic versions of the Kia Stonic and Hyundai Venue cost $25,690 and $26,990 respectively.

SMALL SUVS

MG is one of the top 10 selling brands, and the ZS is its bestseller.

There are plenty of options for buyers in the small SUV market.

The MG ZS is the cheapest option at $22,990 drive-away.

It’s light on active safety gear and has an uninspiring 1.5-litre petrol engine matched to a four-speed auto but the price is right and the seven-year warranty is generous.

The Mitsubishi ASX is the cheapest of the more established brands.

The Mitsubishi ASX is available from $25,740 drive-away for the GS manual.

Adding an auto gearbox costs an extra $2250.

Mitsubishi is a brand known for reliability and offers a 10-year warranty if you sign up to service the car with a Mitsubishi dealer for the entire period.

Chinese brand Haval sells its Jolion Premium for $28,490 drive-away.

It is loaded with desirable items such as 17-inch alloy wheels, a big touchscreen and lots of active safety aids.

MEDIUM SUVS

The mid-size SUV segment is the most popular in the country, but not everyone can afford – or wait for – hot favourites such as the Toyota RAV4 Hybrid or Volkswagen Tiguan.

The Ssangyong Korando is cheaper than many small hatchbacks.

The Ssangyong Korando is the cheapest family-sized SUV on sale at $29,990 drive-away.

The base EX has a small turbo engine that makes 120kW and 280Nm and drinks a claimed 7.7L/100km.

It comes with a decent amount of safety equipment and some must-have tech features. It also scored a five stars in crash testing.

The MG HS comes with plenty of standard equipment for the price.

MG’s HS is the next best at $31,990 drive-away, while the Haval H6 will cost $33,990.

If you want an SUV from a more established brand such as Mazda, Kia or Mitsubishi you’ll need to spend about $40,000.

LARGE SUVS

The cheapest seven-seat SUV is from Chinese brand LDV. Its D90 is priced from $37,990. The D90 has lots of safety equipment, tough 4WD-like looks and plenty of equipment. A thirsty petrol engine lets it down, though.

The LDV D90 looks great on paper and for the price.

The next best option is the Mitsubishi Pajero Sport at $47,240. It only has five seats in standard guise, though. If you need seven it’ll cost you $5000 more.

Prices for the seven-seat Volkswagen Tiguan Allspace start at about $48,200, but the third row is best left to smaller children.

2WD UTES

If you are after a basic work ute then the Indian Mahindra S6+ Pik-up is the cheapest at $24,990 drive-away.

Surprisingly, the Toyota HiLux single cab chassis Workmate with a petrol engine is also one of the cheapest at about $31,000 drive-away.

DUAL-CAB UTES

Ssangyong Musso certainly looks the part.

Four-wheel drive dual-cab utes are big business in Australia, but popular options such as the Ford Ranger and Toyota HiLux are often priced at more than $60,000.

Mahindra’s PikUp is cheap in dual cab or single cab chassis guise.

If you want something on a budget check out fringe brands Mahindra and Ssangyong.

The Mahindra S10+ is priced at $32,990 drive-away and the Ssangyong Musso will set you back $35,790 for the base ELX.

If you are after a name brand then the circa-$48,000 Mitsubishi Triton or the $50,000 Nissan Navara SL are the cheapest.