If the lack of a new car smell isn’t a deal-breaker, Australia’s booming used car market offers up some serious savings for those on the hunt for a more affordable set of wheels. The nation’s cost-conscious drivers would appear to agree – in 2025, more than 2.3 million used cars were traded in Australia,1 almost double the number of new cars sold in the same period.2
But while buying a second hand car can undoubtedly save you money, cheap doesn’t always mean good. Typically, the best second hand car to buy in Australia will be one that can go the distance, combine a reasonable purchase price with rock-solid reliability – and offer servicing that won’t break the bank.
The best second hand cars should also be able to hold their value if you decide to sell down the track, and should offer decent safety, even for their age.
But how do you sift through the hundreds of thousands of second hand cars for sale in Australia at any one time and pick one that future you will be glad you bought? In this article, we hear from an industry expert, look at the data and break down 10 second hand cars you’d be thrilled to drive.
And to give you a sense of what your car insurance costs might be, we’ve also linked each model to the relevant Youi Car insurance by make and model page.
Why buy a second hand car in Australia?
First and foremost, buying a second hand car can save you thousands of dollars, says Stephen Ottley, Australian motoring expert and Senior Contributor to CarsGuide, and here’s why:
“When you buy a new car, the second you drive out of the dealership you lose thousands of dollars,” says Ottley. “That’s just the reality of depreciation and the price you’ve paid to be able to pick the colour and features you want.
“But if you’re not overly fussed about being the first owner, you can potentially save a small fortune – and many new car factory warranties are so long now, you might still even be covered.”
What makes a car a good value second hand option?
While you might be drawn by badge, colour or even centre screen size when considering affordable second hand cars, make sure you also factor in safety, service history, warranty and depreciation, says Ottley.
Safety
Safety matters when comparing second hand models and that’s where the age of a vehicle can come into play as modern vehicles typically come with more standard safety features than older cars. Compared to a vehicle made in 2001, the risk of death or serious injury in an accident is 43% lower in a vehicle manufactured in 2023.3 But some cheap second hand cars are safer than others – and the Monash University Accident Research Centre’s (MUARC) 2025 Used Car Safety Ratings report is an excellent resource if you’re short-listing potential second hand cars.
Safety is especially important when buying a car for a first-time driver. Research shows that young drivers have a 30% higher chance of being in an accident in their own car – rather than a borrowed family vehicle – within their first 12 months with a licence.4
Service history
The connection is pretty clear: Regular servicing and maintenance by a qualified mechanic can make –potentially expensive – mechanical problems less likely. So, before buying a used car or signing on any dotted lines, ask to see a vehicle’s service history, and consider having the car inspected by an independent vehicle inspection service or trusted mechanic.5
“Mileage also matters, and the lower the odometer reading, generally the better,” adds Ottley. “But it’s more important that a car has been serviced at every interval recommended by the manufacturer.”
Warranty
If you purchase a second hand car from a licensed trader, you’re entitled to a statutory warranty,5 which stipulates the dealer who sold you the car must fix certain faults that arise during the warranty period.
However, as we noted earlier, factory warranties for new cars have been getting increasingly longer, so you might want to consider adding a still-active warranty to your used car criteria list. For context, in 2004, Mitsubishi Australia made headlines for offering what was then Australia’s longest new car warranty: five years/130,000 kilometres.6 Today, Mitsubishi offers a 10-year/200,000 kilometres warranty,7 along with MG (10 years/250,000 kilometres)7 and Nissan (10 years/300,000 kilometres).7
Many other brands, including Kia, Hyundai and Skoda, offer seven-year warranties,7 while Ford, Mazda and Toyota offer five years.7
“If you buy a second hand Mitsubishi built after October 2020, even if it’s already five years old, you’ve still got five years’ factory warranty remaining, which is pretty amazing,” says Ottley. “Just make sure you read the fine print as some are conditional on being serviced at a factory dealership. Also, the car you’re buying may have been sold before the manufacturer introduced the longer warranty. That’s definitely worth checking too.”
Resale value
Wondering which are the most reliable second hand cars? One indication that a used car is going to be reliable is how much of its value it’s retained, says Ottley.
“Second hand Toyotas tend to hold their value because they have a reputation for reliability,” he says. “They will keep holding their value pretty well years down the track.”
When it comes to second hand car values in Australia, Ottley says there are some traps for the unsuspecting.
“Some electric cars can be a bit ‘gnarly’ with depreciation,” says Ottley. “After five years they might be regarded like a used phone and only worth a fraction of their new price.
“I’d also be very careful choosing anything second hand from a newer EV brand unless it’s MG, BYD, GWM or Chery. It might have five years left of its 10-year warranty but that won’t be worth much if the brand exits Australia, which is a risk with a few of the newer Chinese manufacturers.”
When is a good time to buy a second hand car?
If you’re seeking to further optimise your savings, there are a handful of things to keep in mind when it comes to the best time to buy a second hand car, says Ottley.
Look for a model that was recently superseded
“You’ll get the best deals on models that have been replaced in the last couple of years,” says Ottley. “For example, I wouldn’t necessarily go straight for a Toyota RAV4 right now as the current model has been around since 2019 and a totally new one is about to come out. In the next year or two, that will put a lot of downward pressure on values of that 2019 to 2026 generation. Look for a car that’s already experiencing this.”
Go shopping after December and in June (if you can)
That’s if you’re looking for a used car from a dealer and considering second hand car value, says Ottley. “This is when dealers can be heavily stocked with recently traded-in cars after December sales, and end-of-financial-year sales.
“Also, just generally, shop on the last day or two of the month when the sales staff might be trying to hit a target – that might give you more leverage when negotiating.”
What are some great-value second hand family cars?
Here are some of the best second hand cars in Australia for school pick-ups and drop-offs or the weekly family run around. Ottley has recommended four good-value vehicles for established families – and you can click on the model link for an indication of how much each car might cost you to insure.
Kia Sorento
Launched in 2020, Kia’s fourth-generation Sorento SUV packs seven seats and initially was available as a 2.2-litre turbodiesel and 3.5-litre petrol V6.8 “The Sorento is such a good car,” says Ottley. “It’s handsome, drives well, has plenty of space inside, seven seats and lots of standard equipment. Kias come with a seven-year factory warranty as well, which means many will still have a few years of cover on them.”
Mazda CX-8
In 2025, Mazda ranked second of all brands in the JD Power 2025 US Vehicle Dependability Study,9 and while that applies to Mazda’s sold in the USA, it’s just as relevant here. And if you’re after the best second hand car to buy for a family, it’s hard to look past the Mazda CX-8, says Ottley.
“It’s a genuine seven-seater, really nice inside, especially if you can get a range-topping variant, and it’ll just do everything you ask of it,” he explains. “The CX-9 and CX-5 are also worth a look."
Toyota Kluger
Named Best Large SUV Under $80K at Drive Car of the Year three years running between 2022 and 2024,10 the current-generation Toyota Kluger launched in Australia in 2020 with a 3.5-litre V6 and hybrid four-cylinder engine.11
“Honestly, if all you want is a used car that’s never going to leave you in the lurch, just get a Toyota,” says Ottley. “The RAV4 is also great if the kids are still little. Go for the hybrid model of either, it offers excellent long-term value when you factor in ongoing fuel savings and strong resale value.”
Subaru Outback
In 2021, Subaru sold its 150,000th Outback in Australia12 – a lifted, wagon-style large crossover SUV with a trademark Boxer horizontally opposed engine and all-wheel-drive.13
“Used cars don’t get much more reliable than a Subaru,” says Ottley. “Subaru Australia was also one of the first brands to really prioritise making safety features standard, meaning older Subarus tend to be safer than their rivals.”
What are the best second hand first cars?
Choosing a first car for a young driver can be fraught, whether you’re the person picking up the keys or the parent picking up the tab. Here are three all-rounder great picks from Ottley to help you narrow the field.
Toyota Corolla
The humble Toyota Corolla hatchback was Australia’s third best-selling used vehicle in 2025,1 and for good reason. “It’s a bit of a predictable recommendation but there’s a reason Toyota has sold more than 50 million of them (Corollas) around the world,” says Ottley. “They’re incredibly reliable, easy and cheap to fix, economical to run, [and] nice enough to drive. Buy the latest one you can afford for maximum safety – even better if it’s a hybrid – the Corolla is one of Australia’s cheapest hybrid cars.”
Mazda 3
Ottley rates the reliability of Mazda’s evergreen Mazda3 hatchback – and it was one of just six vehicles – of 561 – to earn a perfect safety score in the MUARC’s 2025 Used Car Safety Ratings.14
Honda Civic
The very first Honda Civic went on sale in Australia in 197315 and is still going strong, the newest model having just won 2025-26 Wheels Car of the Year.16 “The Civic is a good pick if you’re after something a bit different without giving up anything in terms of reliability and running costs,” says Ottley. “The Jazz – one of Australia’s cheapest cars to insure – is also really good if you’re OK with something smaller and are just driving around the city or suburbs.”
What are the best second hand electric cars?
While comprising just 1.5% of the Australian second hand car market in 2025, used electric cars (EVs) are easily the fastest-growing category of preloved vehicles.1 Last year, sales of used EVs in Australia increased 64.3% year-on-year.1 These are three to short-list, according to Ottley.
Hyundai Ioniq 5
The Hyundai Ioniq 5 is a really good car, says Ottley. “It won plenty of awards when it first came out in late 2021,” he says. “The styling is funky, it looks like a hatchback but it’s as big as a medium SUV, with heaps of space inside. It drives well and is built on an 800-volt architecture, which means it can accept up to 350kW DC fast-charging. It’s a bit future-proofed in that sense. It came with an eight-year/160,000-kilometre battery warranty from new, meaning even the earliest 2022 cars still have four years’ coverage.”
Tesla Model 3
Much like the Mazda3 above, the Tesla Model 3 was one of six models that scored perfect marks for safety in the MUARC’s 2025 Used Car Safety Ratings.14 Tesla is easily Australia’s most popular brand for second hand EVs, with 10,949 changing hands in 2025.1 “A financial life hack if you’re looking at a second hand Tesla, or any EV, is if you are able to get the car through your work on a novated lease,” says Ottley.
“If it was sold after July 1, 2022, and is valued under the Luxury Car Tax threshold for EVs, it’s eligible for the Australian Government’s Fringe Benefits Tax exemption. Even with a new EV, this can save you a tonne on tax – but a near-new second hand one, if your lease provider and employer allows it, takes it to another level.”
MG4
The 2023 winner of carsales’ prestigious Car of the Year,17 the MG4 is a small, value-packed electric hatchback with 350 kilometres of driving range in the base 51kWh model.18 The MG4 is also one of the cheapest second hand electric cars on the used car market. “Some examples have nearly halved in value in just three years, which isn’t great for the person who bought it new, but it’s great for you if you’re looking at one second hand,” says Ottley. “It’s got good space inside for a small car and is easy to drive. Cars built after August 2024 get MG’s 10-year warranty, which means factory coverage until 2034, which is pretty radical. That’s worth paying a little extra for.”
If you’re considering insurance for the preloved cars that have made your short-list, Youi’s make and model pages are a helpful resource. When you’ve found your car, and if you’re looking for insurance cover, consider starting a quote with Youi.
1 Source: Australian Automotive Dealer Association – Annual 2025 Automotive Insights Report (AIR), January 2026
2 Source: Drive – Australian new-car sales in 2025: Annual record broken for third VFACTS year running, January 2026
3 Source: Monash University – 2025 Used Car Safety Ratings reveal safest second-hand vehicles and the first electric ‘Safer Pick’, November 2025
4 Source: University of NSW – ‘Don’t buy your kids a car’: young drivers with own cars in more crashes, March 2024
5 Source: Consumer Affairs Victoria – Service history and mechanical inspection, June 2025
6 Source: GoAuto – Mitsubishi: One-track minded, December 2004
7 Source: CarExpert – Which brands offer the best new car warranties in Australia?, January 2026
8 Source: GoAuto – Kia targets 400 monthly sales with new Sorento, September 2020
9 Source: JD Power – Vehicle dependability still suffering due to pandemic aftershocks, JD Power finds, February 2025
10 Source: Drive – Toyota Kluger wins Best Large SUV under $80K, February 2024
11 Source: GoAuto – New Toyota Kluger lands from $47,650 plus costs, April 2021
12 Source: WhichCar? – Subaru celebrates selling 150,000th Outback in Australia, September 2021
13 Source: GoAuto – Subaru teases new sixth-gen Outback, here March 2021, December 2020
14 Source: Monash University Accident Research Centre – Used Car Safety Ratings 2025 report
15 Source: Drive – Behind the wheel of the first-generation Honda Civic, July 2018
16 Source: WhichCar? – 2025-26 Wheels Car of the Year WINNER: Honda Civic E:HEV L, December 2025
17 Source: carsales – MG4: 2023 carsales Car of the Year, November 2023
18 Source: Drive – MG 4: 2023 carsales Car of the Year, November 2023
