10 great used first cars priced under $20,000

$20,000 seems a sizeable budget when buying a used car, especially if it is also your first car, but quality comes at a cost, life is precious, and driving around in something risky isn’t worth the money you think you might be saving.

Scanning our array of $10,000-$20,000 possibilities it is obvious that conventional family sedans that were prominent just a decade ago are virtually extinct. Just one fitting the description is included, and it happens to be the only Hybrid.

The style most in demand today are high-riding station wagons, some with all-wheel drive, but many without. Nevertheless, they still carry the generic tag of ‘SUV’ or Sport Utility Vehicle.

Amongst the people who may be buying a vehicle for the first time are new drivers, so welcome to you. Also, there are those who have recently started a family or may have lost access to a work vehicle or one owned by their parents.

Others might have moved from inner city locations where the bus, tram or Uber was just outside to places where a vehicle to call their own is vital.

Newcomers to Australia will be taking their first steps in an uncertain motor vehicle market. The shapes of the vehicles they see here might be familiar, but engine types and equipment levels can be quite different.

For a list of first-time buys at this price point, the selection criteria can be notoriously broad, with many models available, before the buyer focuses more closely on what's truly important to them.

All cars on this list share uncompromising requirements for primary and secondary safety, with five-star results in local ANCAP testing and Electronic Stability Control. Most will also have rear-facing cameras and other features to help drivers avoid collisions.

In this price bracket, vehicles are still covered by the manufacturer’s warranty which transfers to the new owner. If the car is being retailed by a dealership that sells that brand of car new, the buyer may be offered ongoing access to fixed-price servicing as well.??

Even with the newer models, make sure any vehicle that passes an initial assessment is then sent for professional inspection with a written report so any faults are documented before the purchase becomes final.

Check the service books for recurrent problems and use the VIN to ensure recall repairs have been completed. Better still, purchase a CarFacts history report and book a RedBook Inspect pre-purchase inspection.

Whether it is your first car as a P-plater, your first car purchase ever or your first car purchase living in Australia, here's our list of 10 great cars for sale on carsales under $20,000 that are worth considering.

Ford’s Escape SUV really stays under the radar with buyers who may be considering a car of its kind. Mazda, Hyundai and Kia all have similar contenders but can’t match the Escape for diversity.

Under our $20,000 price cap, you can find two types of turbo-petrol engine and a turbo-diesel. There are four trim levels as well, plus the choice of front- or all-wheel drive. We chose the AWD Ambiente variant for its combination of versatility and value, with 134kW from the 1.5-litre petrol motor, and features including climate control and heated folding mirrors.

Turbo-diesels offer superior fuel economy but do drive through the trouble-prone PowerShift transmission. Local versions of the Escape Ambiente have a conventional six-speed automatic and cars with fewer than 100,000 kilometres on the clock will provide longevity and value.

Find your own Ford Escape Ambiente 4WD here on carsales

Related: Buying a used Ford Escape (2016-2020)

It's not the most obvious Honda in this price segment to select, but the HR-V is spacious and oozes quality engineering.

The 1.8-litre engine is typically Honda, high revving but still compatible with the constantly variable transmission. These engines do require servicing on time, with recommended lubricants to maintain efficient valvetrain operation.

Despite looking compact, the HR-V is as spacious as SUVs of its size come. Adults have sufficient legroom for comfort in the back, and behind them is a class-leading 437 litres of cargo space.

In VTi-S form, the HR-V offers useful additions including multiple exterior cameras, sensor and height-adjustable headlights, automatic wipers and remote operation for the front windows.

Find your own Honda HR-V VTi-S here on carsales

Hyundai’s i30 was a huge seller in Australia for years, but private buyers were in the minority of owners. Choose the Active X variant with its better equipment level and you minimise the possibility of choosing an ex-fleet rattle trap. Also important to note, pick up a low-kilometre car that has been with the same private owner its entire life.

The i30 Active X was first seen here in 2015 with a spirited 107kW 1.8-litre engine and either six-speed manual or automatic transmission. Standard features include leather seat facings, a reversing camera, fog lights and electric folding mirrors.

Standard 16-inch alloy wheels with 205-section tyres looked undersized for a car of the Hyundai’s bulk, and some owners have upgraded to larger rims and rubber. The boot is a spacious 378 litres, and the permitted towing capacity (braked) is a respectable 1300kg.

Find your own Hyundai i30 Active X here on carsales

Related: Buying a used Hyundai i30 (2012-2016)

As tourist numbers grow, plenty of people arrive in Australia with multiple family members who need transporting to far-flung destinations. If you’re here for longer than a few weeks, buying a spacious and economical vehicle like the 2.2-litre turbo-diesel Carnival does make sense.

Various trim levels are available, but the one to grab is the Carnival Platinum. These are more common with the 3.3-litre petrol V6, but they do come with a comprehensive suite of safety devices including multiple cameras, park sensors and blind spot warnings.

If you do snare a diesel version and your driving takes you across highways and regional roads, the little oiler will squeeze up to 1200 kilometres from a full 80-litre tank. The diesel can be noisy at start-up, but don’t be alarmed unless the rattling persists with a warm engine.

Find your own Kia Carnival here on carsales

To date, our annual lists of great first-time buys have avoided hybrids, but the time has come to recognise their growing presence. Also, Toyota has been in the hybrid car game for many years and knows its stuff very well.

Also, the cost of replacing battery packs and other components has stabilised and can be readily factored into long-term running costs for owners on a budget.

Combined output from the petrol and 650-volt electric motors is 100kW, with fuel consumption claimed to average 4.5L/100km. If you choose a car already with its storage battery replaced, the fuel efficiency benefits are all yours.

The CT200H is a roomy car that still looks smart despite more than 15 years in the market. Interior trim and fittings are durable, and the Lexus features dual-zone air-conditioning.

Find your own Lexus CT200H here on carsales

There were so many contenders from various brands to be the Light Car representative in this year’s top 10, but Mazda’s 2 came out on top. In fact, the Mazda2 has been at the top of its game for more than 15 years and it just never looks – or feels – old.

At this point on the price ladder, first-time buyers can step into a five to eight-year-old Mazda2 that has travelled a minimal distance and comes with all its service documents. The engine is a 1.5-litre petrol four-cylinder, producing 81kW, plus either a six-speed manual or automatic transmission, and economy in the region of 7L/100km.

The Mazda2 is common in the used market, so look around and buy the best-equipped car you can afford. The mid-specification Mazda2 Genki is our choice; it includes blind spot and park distance sensors, automatic headlights and rain-sensitive wipers.

Find your own Mazda2 here on carsales

Related: Buying a Used Mazda2 DJ/DL Series (2014-19)

If you’re newly arrived from Europe you will likely recognise the Skoda brand and understand why VW’s central European offshoot has been so successful with its Octavia RS.

Octavias are available in many forms but the one we like as a first-time buy is the 2.0-litre turbo-petrol wagon, with manual or a six-speed Direct Shift dual-clutch transmission. Later versions of this transmission are more reliable than earlier ones, but to avoid any possibility of problems track down a manual.

RS versions develop 162kW and weigh 1400kg but still deliver fuel economy of 9.9L/100km in general use. The Octavia RS 162TSi also comes as a hatchback, but most in the used market are attractive and spacious station wagons with 1718 litres of load area, classy leather-trimmed seats, park distance sensors and a driver fatigue alert.

Find your own Skoda Octavia RS 162TSI here on carsales

Subaru’s versatile XV has been with us for over a decade and remains one of the models that keeps Subaru viable in this country. Sales climbed from 7645 in 2016 to more than 12,000 annually during 2018, so there are plenty of choices for first-time car buyers.

Unlike most small SUVs, the XV comes only with all-wheel drive and a ‘flat four’ 110kW naturally-aspirated engine.

While in no sense a serious four-wheel drive like the bigger Forester, an XV can, with caution, negotiate unsealed surfaces with a degree of confidence.

Later versions of the XV 2.0i-S can be found in good condition for under $20,000 and will offer heated, power-adjustable seats and a powered sunroof. Some XVs are manual but most in this price bracket will have eight-speed Lineartronic automatic transmission.

Find your own Subaru XV here on carsales

Related: Buying a used Subaru XV (2012-2017)

Having a sporty coupe as their first car is Dreamland for many people, but certainly not beyond possibility when considering the Toyota 86 or its Subaru BRZ clone.

Years ago the car to greet lucky offspring at graduation might have been an MG or a Celica. Now, for less than $20K, it can be a feisty little Toyota with looks to match its performance.

The engine shared by the 86 and BRZ versions comes from Subaru, with 147kW at 7000rpm. Maximum torque arrives at 6600rpm, and with a competition-spec 12.5:1 compression ratio, you need to feed the 86 on costly 98RON Premium fuel.

Most are manual but automatic transmission is also available. The front seats have high sides and grip occupants very well, however, the back seats are best treated as a luggage platform.

Find your own Toyota 86 here on carsales

Related: Buying a used Toyota 86/Subaru BRZ (2012-2017)

Calling its car a Tiguan, in case you care to know, is Volkswagen’s way of saying that this compact SUV embodies the heart of a tiger with the terrain traversing ability of an iguana (a large lizard).

Local Tiguans come with a range of petrol or turbo-diesel engines, our preference being the 130kW/380Nm 130TDI which was sold here from 2014-16.

Diesel versions of the Tiguan all feature 4Motion all-wheel drive and use seven-speed versions of Volkswagen’s DSG dual-clutch transmission. These had their problems but are now delivering decent service after a series of ‘fixes’ were developed.

With adequate clearance and supple suspension to help maintain traction, Tiguans deal competently with packed sand and decent dirt trails. Just don’t try following a Jeep up the side of a mountain.

Find your own Volkswagen Tiguan 130TDI here on carsales

Related: Buying a used Volkswagen Tiguan (2012-2020)

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