Just two sub-$20K new cars remaining

The age of genuinely affordable new vehicles is coming to an end in Australia, where the number of models available for less than $20,000 (before on-road costs) shrinks to just two after the axing of the long-running Kia Rio nameplate.

And it’s clear to see how rapidly prices are rising when you consider that pair comprises a micro car and a light car. There are no small cars or SUVs remaining in sight of the $20K mark, which was starting price benchmark for popular models like the Mazda3 and Toyota Corolla not that long ago.

Shockwaves were felt across the local auto industry earlier this month when carsales revealed that order books for the aging Kia Rio had been closed months in advance of its official discontinuation Down Under, because consumer demand exceeds supply and its new-generation replacement won’t be produced in right-hand drive for Australia.

But the lovable Rio is just the latest in a growing list of high-profile affordable nameplates to have left Aussie shores in recent years, including the Ford Fiesta, Holden Barina, Honda Jazz and City, Hyundai Accent, Mitsubishi Mirage and Suzuki Baleno.

At the same time there’s been the staunch push upmarket of the latest Toyota Yaris (now priced from $24,640), Skoda Fabia (available only in top-shelf Monte Carlo form for $38,590) and Hyundai i20, which is available only in N hot hatch guise for $34,990 plus ORCs.

Other compact models that long used to be priced from under $20,000 include the Mazda2 (now from $21,510), Suzuki Swift and Ignis (both now $20,490), Volkswagen Polo ($25,750) and Fiat 500, which broke the $20K barrier in July 2022 and will soon be replaced by an all-new electric model called the Fiat 500e, priced from above $52,000.

Over in the compact SUV market, the Hyundai Venue, Kia Stonic and Mazda CX-3 all launched with sub-$20K starting prices but all received price hikes this month, to $21,900, $22,290 and $23,510 respectively.

This mass exodus from the sub-$20,000 price bracket got us wondering exactly how many new models – and which ones – you can still buy for less than the price of an entry-level Corolla less than eight years ago.

Working from cheapest to dearest, here are the remaining three models – of which only the Kia Picanto comes with a (four-star) ANCAP safety rating; the MG3 is ‘unrated’.

1. Kia Picanto

The Kia Picanto is a stalwart of the budget motoring scene and rules the local micro car segment with an iron fist over the outgoing combustion-powered Fiat 500.

With a starting price of $16,290 in base S manual form, four of the five Picanto variants retail for less than $20,000 – only the flagship GT breaks this mould, at $20,790 plus on-roads.

Add an automatic transmission to the S’ equation and the price rises to $17,890, while the better equipped and sportier looking GT-Line goes for $17,740 (manual) and $19,340 (auto).

All four S and GT-Line variants are powered by a naturally-aspirated 1.2-litre four-cylinder engine developing 62kW/122Nm, with the transmissions offering five and four ratios respectively.

2. MG3

If the Picanto is micro king, the MG3 is undeniably its light car counterpart, and the Rio’s recent exit will probably help the 12-year-old Chinese hatch tighten its stranglehold as the segment’s best-selling model with a 41.9 per cent segment share last month.

The key to this success though is the MG3’s ultra-appealing entry price of $18,990 drive-away in Core automatic guise – and its seven-year warranty – but you also have the option of native satellite-navigation for an extra $500, meaning there are two MG3 variants available for less than $20K.

Both are powered by an 82kW/150Nm 1.5-litre four-cylinder petrol engine matched with a four-speed automatic transmission as standard.

Related: Where have all the cheap cars gone?

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