Your questions answered: Where have all the cheap cars under $20,000 gone?

It’s all about value this week as buyers look to drive their dollar further in the hunt for a new or used car.

Tesla’s recent price drops look to have reignited interest in the brand, prompting some of our reader questions, while the MG3 has lost its mantle as the cheapest new car in Australia as it enters a new generation, leaving very few options under $20,000.

Mid-size SUVs are a hot topic for discussion too, with one reader studying new Hyundai and Nissan hybrids that can tow a camper trailer, and another looking at second-hand turbo-petrol Hyundai and Haval models for similar duties.

Ready to go deeper off-road, we also have a reader wanting to transfer his Trayon camper from a Land Rover Defender dual-cab to the new INEOS Grenadier Quartermaster cab-chassis.

Question: I’m getting ready to buy my first new car and was hoping to spend no more than $20,000. One of my options was the MG3, but I see the new one is now a lot more expensive. Will there be more cheap cars coming? I really can’t afford anything more. – Gail

Answer: Cheap cars are a dying breed – and they have been for years. The cheapest Toyota Yaris is now about $32,000 drive-away! Sure, it comes standard with a hybrid system (something we’ll see more of in future from rival brands) and is decently kitted out, but it’s also a big ask.

In repositioning the Yaris years ago, Toyota ramped up its focus on used cars and suggested anyone on a budget should shop second-hand. Not ideal if, like you, you’re yearning for a new car and the benefits that come with it.

The Mazda2, Volkswagen Polo and Suzuki Swift are others that are all no longer cheap cars. And don’t expect a whole lot to change.

Manufacturers are increasingly keen to put all the latest safety features in their vehicles – for many they’re chasing a five-star ANCAP rating – and Aussies increasingly love the low price but typically choose a car with more gear when it comes time to sign on the dotted line.

The main hope for cheaper new cars are some of the newcomer Chinese brands planning an Aussie assault soon, but most of those are focussing on EV, something unlikely to yield bargain-basement prices.

So, it could be off to the second-hand market for you. Happily, there are some decent deals out there! Or you could check out a Kia Picanto, which is great value around the $20K mark. The now-superseded 2023 MG3 is also still available while stocks last, from $18,990 drive-away.

Question: I’m in the market for a car after being told by my mechanic that it’s time I change over my 17-year-old Mazda CX-7. I live in regional south-west Victoria (but no solar) and don’t currently do major km daily.

I am looking at a mid-sized SUV for cartage space and driving elderly parents around and am likely to hang onto the car for at least four years. I am seriously considering an EV and this week test drove the Tesla Y in Melbourne – particularly attractive given the recent price drop.

They are offering the 2023 model with Hardware 3 for $54,500 or the newer 2024 model with Hardware 4 for $57,700. I appreciate that the upgrade provides far superior camera resolution, faster processing, less RAM/storage than HW3 and black wheel covers and a folding parcel shelf as standard.

The newer model drops the ultrasonic sensors, and it seems clear that upgrading from HW3 to HW4 in the future will not be an option. I’m not interested in Full Self-Driving and would not be paying for those extras.

Do you have any thoughts on which model to purchase? – Georgie

Answer: Any of the screens on recent Teslas are clear and quick to respond to inputs, so I wouldn’t be basing my decision around that. Yes, the new cameras may be better, but the old ones are still well above average.

The biggest change is the lack of parking sensors, with hardware four instead switching to camera-based parking assistance.

As someone who’s used both, the traditional parking sensors tend to be more accurate, although in true Tesla style that’s something that could change with a future software update. But I prefer the black wheel covers of the older car.

If you’re not fussed about that then the circa-$3000 saving is decent, so probably makes most sense. Either way, you’ll notice a massive step up in tech and space over your CX-7. You should also spend a lot less keeping it running!

Question: I’m considering a second-hand medium SUV with a budget of approximately $35K to $38K. I have no kids but have two dogs and would like to be able to do road trips and also tow a jetski.

Would love your comments on two cars I like the look of and would appreciate your thoughts: 1. Hyundai Tucson Elite N-Line 1.6T petrol; 2. Haval H6 GT Ultra 2.0T petrol. Or is there anything else I could be looking at? – Greg

Answer: You’ll get more for your money in the Haval H6 in terms of features. The GT gets things that plenty of cars double that price don’t: a head-up display, panoramic sunroof, heated and cooled front seats and more.

But the Hyundai fights back with driving substance. It has a better transmission and much better suspension that makes it a more convincing car to drive and easier to live with.

Also have a look at the Kia Sportage and Nissan X-TRAIL, each of which performs strongly in the mid-size SUV category. With the X-TRAIL, make sure you’re buying the latest-generation car, which is a huge step up on its predecessor.

See our Best Mid-Size SUV mega-test for more details on the top models in this class.

Question:

Answer: Tesla is the only EV manufacturer that doesn’t quote battery capacity for its electric cars (it used to, but these days just focuses on range). But on the Rear-Wheel Drive models (E6LRB being the Rear-Wheel Drive version of the Model 3), the capacity is about 60kWh.

But… that’s not how much you’ll need to charge it because there are energy losses along the way that means not all the electricity that leaves the charger makes it into the battery.

As with your phone or laptop, the charger and/or battery can warm up when charging, indicating energy losses. As a general rule, assume 10-15 per cent energy losses when charging via an AC outlet.

That means you’d need something like 70kWh to fully charge a Model 3 Rear-Wheel Drive. Still close to your $20, especially once you consider it’s highly unlikely you’ll plug it in when absolutely empty.

You’ll need slightly fewer kilowatt-hours from a faster DC charger. That’s because batteries store DC electricity, so the current goes straight from the charger to the battery pack, whereas with AC charging it needs to pass through the onboard charger of the car to convert it to DC electricity, a process that has minor energy losses.

Also, if you’re charging from the grid, check online for EV-specific plans. Many energy retailers now offer much cheaper rates at certain times of the day, typically in the middle of the day (when there’s excess solar in the grid) and in the middle of the night (when demand is very low).

Question: Can you please let me know what you think about the Nissan X-TRAIL e-POWER Ti or the Hyundai Tucson Hybrid? Would you have a preference? I’m looking at buying one of them to replace a 2013 Mazda CX-5 diesel. I will be towing a small camper trailer. – Stephen

Answer: We haven’t driven the Tucson hybrid yet, which is still not available in Australia and isn’t part of the launch line-up for the upgraded series due soon. (There’s only a mild-hybrid option.)

But we have driven the petrol-electric drivetrain in the Kia Sportage (the two share the same underpinnings), and it’s a solid hybrid that comes in a nicely presented package. It’s also been certified to tow up to 1900kg, which is a win for your towing duties.

The Nissan X-TRAIL e-POWER can also tow, but it’s limited to 1650kg.

As you may know, the X-TRAIL hybrid system is very different from other hybrids. Rather than the parallel hybrid system popularised by Toyota – whereby the engine and electric motor/s can power the wheels at the same time – the Nissan system runs a series set-up. So the only thing driving the wheels is the electric motors, with the engine simply producing electricity.

It’s a neat system and one that gives it driving benefits over other hybrids, including with torque vectoring and initial responses to throttle applications. Throw in the Nissan’s spacious cabin and it mounts a solid case.

Neither is as economical as the sales-leading Toyota RAV4 Hybrid. But both are fresher vehicles and have advantages elsewhere, including interior presentation and value.

Question:

Answer: We touched based with INEOS and were told that Australian Design Rule 43/04 allows for a rear overhang not exceeding 60 per cent of the wheelbase. The Quartermaster wheelbase is 3227mm, so you’d theoretically be allowed to have 1936mm hanging out beyond the rear axle.

The length of the standard tub is 1564mm and rear overhang is listed as 1328mm. That suggests about 236mm of the load area is ahead of the rear axle.

So combining those figures – 236mm of space ahead of the rear axle and 1936mm of allowable overhang – suggests it’d be able to accommodate 2172mm of whatever it is you want to fit to the cab-chassis version.

That obviously falls just short of what your Defender is fitted with. That said, it looks like there are Trayon campers that are shorter than that.

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