With so many brands now selling a car in Australia, there’s possibly never been a more bewildering time to be hunting for your next ride. In 2026, eight new car makers will enter the Australian market – a record for a single year – which means that by year’s end, car buyers will have 67 new vehicle brands to choose from locally.1 And that figure is expected to rise to 75 by 2031.1
On top of that, while you may have only had to pick between petrol and diesel before, now there are hybrid, mild hybrid, plug-in hybrid vehicles2 – and that’s before you’ve started opening the can of worms that is electric cars vs petrol ones.
Car shoppers may also have to think about running costs, car insurance and, most importantly, which colour to get.
The good news? If you’re searching for the best car to buy in Australia, there really is a vehicle out there for just about everyone nowadays, and the increased competition means there are lots of great deals to be found too.
To help you decide what vehicle might suit you best, we take a look at some of the best city cars, family SUVs, sports cars, used cars and the best hybrids and electric vehicles in 2026, according to a number of Australian car industry experts. We’ll also unpack how the car you choose may impact your insurance premium costs.
What is the best car to buy in Australia right now?
Any list of the best cars to buy in Australia will, of course, be subjective. What is perfect for one person might be unsuited to the next, depending on how you prioritise safety, running costs, warranty coverage, practicality, and how a car fits into your day-to-day life. To arrive at the expert picks below for our best cars in Australia rundown, we’ve looked at the most recent awards from Australia’s expert motoring media; examined the latest safety ratings from independent vehicle safety testing authority the Australasian New Car Assessment Program (ANCAP); and considered recent Australian sales to help identify the best-selling cars at the time of publishing.
3 of the best small cars for city driving
What is the best small car to buy in Australia? If your daily routine is less likely to involve squeezing two lanky teenagers into the back seat and more about squeezing into the last parking space on your street, one of these three small city cars might be for you.
Expert pick: Hyundai Kona
What the critics say: “Efficient, smooth hybrid system; good boot and second-row seat space; practical interior touches.”3
Who it may best suit: Families needing a versatile second car.
Why it’s on this list: Is this the best small car in Australia? Some car reviewers rank it up there. In 2026, the Kona was crowned Best Small SUV Under $60K for the third year in a row at Drive Car of the Year.4 Available in petrol, hybrid and pure electric powertrains, the Kona also comes with a sizeable 407-litre boot.5
Expert pick: Suzuki Swift
What the critics say: “Fun to drive, logical interior layout, impressive real-world efficiency.”6
Who it may best suit: P-platers, retirees.
Why it’s on this list: Money Magazine’s 2025 Best-Value Small Car,7 the Suzuki Swift first arrived in Australia in 19858 and is still available for sale more than 40 years later. Scoring highly for affordability with Money magazine,7 the Swift comes with a 1.2-litre “mild hybrid” three-cylinder engine, using as little fuel as 3.8L/100km.9
Expert pick: Volkswagen Polo
What the critics say: “Impresses with its upscale feel, peppy and efficient powertrain, and a high-quality interior”.10
Who it may best suit: Young professionals.
Why it’s on this list: According to CarExpert, the Polo is Australia’s top city car for 2026.10 Sitting below the larger Golf, three Polo models are available – the Life, Style and GTI.11 All come with petrol engines and automatic transmissions.11
3 of the best family SUVs for space and safety
There comes a time when you start skipping over the power output in the brochure in search of the boot capacity – generally when you have a mortgage, kids and a pooch (or two). If this is you, here are some expert picks for the best family cars in Australia.
Expert pick: Hyundai Santa Fe
What the critics say: “The six- or seven-seat large SUV is a phenomenal family car.”12
Who it may best suit: Large families who could use up to seven seats.
Why it’s on this list: It’s the 2026 CarsGuide Car of the Year.12 Both petrol and hybrid options are available, the latter with fuel efficiency of just 5.6L/100km.13 Front-drive and all-wheel-drive versions cater to either more urban or outdoorsy lifestyles.13 If you like luxury cars, be sure to check out the Calligraphy grade.
Expert pick: Honda CR-V
What the critics say: “Great value, lots of space and a joy to drive.”14
Who it may best suit: Small to mid-sized families who only need a five-seat SUV.
Why it’s on this list: It was Honda’s best-selling model in Australia in 202515 and CarExpert’s choice as best Affordable Mid-Size SUV for 2026.16 Another nameplate that’s been in Australia for a while – since 199717 – the CR-V today comes in both five- and seven-seat versions, hybrid and petrol, and front-drive or all-wheel-drive.18
Expert pick: Ford Everest
What the critics say: “The Everest meets the needs of the entire family”19
Who it may best suit: Families with outdoor lifestyles or grey nomads towing caravans.
Why it’s on this list: The Ford Everest was the second best-selling SUV in Australia in 2025, surpassed by only the evergreen Toyota RAV4.20 It was also the 2023 Wheels Car of the Year.21 The Everest is another five- or-seven-seater and, for those who have a caravan or boat, can tow up to 3,500kg braked thanks to its 3.0-litre turbodiesel V6.22
3 of the best sports cars for handling and precision
There’s a voice inside everyone that whispers, life’s short, skip the SUV and buy the sports car instead. And yes, you should probably listen to it – at least once in your life. Here are three sports cars that may be worth shortlisting.
Expert pick: Mazda MX-5 Roadster
What the critics say: “Unbeatable driving experience.”23
Who it may best suit: Anyone who enjoys a weekend drive.
Why it’s on this list: It’s the best-selling two-seat sports car worldwide.24 There’s a 2.0-litre four-cylinder engine producing a spirited 135kW, rear-wheel-drive, a manual cloth roof that folds down to reveal the sunshine, and the choice of either a six-speed manual or six-speed automatic transmission.25
Expert pick: Toyota GR86
What the critics say: “We’d buy one in a blink.”26
Who it may best suit: Younger drivers who aren’t necessarily after practicality.
Why it’s on this list: While the Toyota GR86 was pipped by the Mazda MX-5 above to be named CarExpert’s best Affordable Sports Car for 2026,27 it was still a finalist – and has a very full trophy cabinet stretching back to 2012 Wheels Car of the Year.28 The GR86 comes in both GT and GTS grades, both with a 2.4-litre four-cylinder engine producing 174kW and 250Nm.29 What’s the best car to buy in Australia if you love a more spirited drive? It could be the GR86.
Expert pick: Ford Mustang
What the critics say: “It’s still the definitive muscle car.”30
Who it may best suit: Lovers of sedans and coupes looking for a hit of nostalgia.
Why it’s on this list: It was Australia’s top-selling “sports car under $90,000” for 202520 – largely for its 5.0-litre V8 and power outputs of 345kW and 550Nm.31 There’s also the classic two-door styling harking back to the original Mustang from six decades ago.31
3 of the best used cars for value and reliability
Shopping the thriving second hand car market can be a savvy choice for cost-conscious motorists seeking more bang for their buck. Wondering what is the best used car to buy in Australia for you? These three models are among the best used cars to buy in Australia, according to expert reviews.
Expert pick: Toyota RAV4
What the critics say: “Offers typical superb Toyota reliability.”32
Who it may best suit: Anyone needing a “do-anything” mid-size SUV.
Why it’s on this list: Toyota dominates second hand car sales in Australia, having sold 360,300 pre-loved vehicles in 2025 alone – nearly twice that of the next car maker, Mazda.33 If you’re looking for a used SUV, the fifth-generation RAV4 – sold in Australia from 2019 – came with either a 2.0-litre or 2.5-litre petrol engine, and a 2.5-litre hybrid powertrain.32
Expert pick: Mazda CX-9
What the critics say: “Regarded as having excellent build quality and reliability.”34
Who it may best suit: Growing families in need of a seven-seater.
Why it’s on this list: In 2025, Mazda ranked second of all car brands in the mass market segment in the JD Power 2025 US Vehicle Dependability Study for the American market – and it’s just as relevant in Australia.35 Debuting in Australia in 2016, the CX-9 offered seven seats, a 2.5-litre turbocharged engine and either front-drive or all-wheel-drive.34
Expert pick: Subaru Forester
What the critics say: “Many other manufacturers would kill for a reliability record and reputation to match Subaru’s.”36
Who it may best suit: Families who enjoy an outdoorsy lifestyle.
Why it’s on this list: Of all the major car manufacturers in Australia, customer satisfaction rated highest for Subaru in a survey of 60,000 people for the 2025 Annual Roy Morgan Customer Satisfaction Awards.37 That’s because of vehicles such as the Forester SUV, the brand’s best-selling vehicle in Australia.36 The 2018-2025 Forester could be worth a look if you’re after a used SUV – all models came with four-cylinder engines and all-wheel-drive.36
3 of the best hybrids and EVs for low running costs and performance
If you’re one of the readers who have scrolled looking for this section, you’re in good company – choosing between hybrid cars vs electric cars is one of the hottest topics in the Australian new car market at present. So which car is best to buy in Australia if you’re looking for a hybrid or EV? Here are three models making waves in 2026.
Expert pick: Tesla Model Y
What the critics say: “An incredibly well-packaged and well-equipped, affordable family car.”38
Who it may best suit: Modern, tech-savvy Australian families.
Why it’s on this list: According to reviewers, it’s one of the best electric cars in Australia. The Tesla Model Y was 2026 Drive Car of the Year38 and the safest car tested by ANCAP for 2025.39 It’s also one of the best-selling vehicles in the country, petrol or electric – in May 2026, it was the No.1 best-selling vehicle in Australia.40 There’s electric-only range up to 600km, 250kW DC fast-charging41 and access to Tesla’s nationwide Supercharger network which now spans 1,000 plugs across the country.42
Expert pick: Honda Civic Hybrid
What the critics say: “High levels of quality, poised dynamics and excellent fuel economy.”43
Who it may best suit: Double-income, no kids or road-tripping empty-nesters.
Why it’s on this list: In its 2026 Choice awards, CarExpert named the Honda Civic the Best Luxury Small Car,43 ranking it as one of the best hybrid cars in Australia. While there might be more affordable hybrid models out there, the Civic eHEV comes with a 2.0-litre petrol engine and twin electric motors, for an economical fuel consumption of just 4.2L/100km.44
Expert pick: MG S5 EV
What the critics say: “Great to drive, stunning styling, excellent practicality.”45
Who it may best suit: Tech-native younger couples and families.
Why it’s on this list: The MGS5 EV was found to be the safest small SUV of 2025, in all of testing by independent safety authority ANCAP.39 There’s electric-only range up to 425km, a 360-degree surround view parking camera and 453-litre boot.46 You also get MG’s 10-year/250,000km new car factory warranty when serviced at an MG dealer – one of the longest warranties in Australia.47
Best cars Australia: How car choice can affect your insurance costs
When trying to shortlist the best car in Australia for you, it’s a good idea to keep in mind some key cost variations between models, such as fuel consumption, required fuel type, servicing costs and depreciation. But you may also wish to consider how your choice of car can help shape your insurance premium.
“Premiums are typically determined by a range of factors, including your age, where you live, where you normally park your car, and your driving and claims history,” says Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle. “The make, model and age of the car also come into play, as these things can help determine the overall risk an insurance company takes on when it covers your vehicle”.
“For example, expensive luxury vehicles can often cost more to repair or replace, potentially leading to higher comprehensive premiums.”
Other factors that may influence a search for cars with the best insurance options for your circumstances can include:
- Cars with strong safety features may sometimes be looked upon more favourably when it comes to car insurance costs.
- Any modifications or after-market accessories that you’ve added to the car can sometimes increase the cost of your premium too.
Youi’s car insurance by make and model page may provide a useful indication when comparing insurance costs.
From utes to sports cars to SUVs, whatever wheels end up wooing you, consider checking out Youi’s range of car insurance options to see if there’s a policy that suits your needs, or start a quote online.
Note: Information in this article is relevant as of July 2026 and by its nature will change over time. Check relevant vehicle manufacturer websites for price and specification updates if this information is important to you.
1 Source: Australian Automotive Dealer Association – Record Increase of Imported Car Brands Coming to Australia, January 2026
2 Source: Australian Government Green Vehicle Guide – Hybrid vehicles, n.d.
3 Source: Drive – 2026 Hyundai Kona Hybrid Premium N Line review, May 2026
4 Source: Drive – Hyundai Kona wins Best Small SUV Under $60K, February 2026
5 Source: Hyundai Australia – Kona specification sheet, n.d.
6 Source: CarExpert – 2026 Suzuki Swift review, January 2026
7 Source: Money magazine – Best of the Best 2025: Best-Value Small Car, December 2024
8 Source: CarsGuide – Suzuki Swift Australia, n.d.
9 Source: Suzuki Australia – Swift Hybrid, n.d.
10 Source: CarExpert – 2026 Best City Car. n.d.
11 Source: Volkswagen Australia – Polo specifications, January 2025
12 Source: CarsGuide – 2026 CarsGuide Car of the Year Awards, n.d.
13 Source: Hyundai Australia – 2026 Santa Fe specifications, n.d.
14 Source: Drive – 2026 Honda CR-V review: Australian first drive, April 2026
15 Source: GoAuto – Honda forecasts drastic hybrid sales increase, May 2026
16 Source: CarExpert – 2026 Best Affordable Mid-Size SUV, n.d.
17 Source: Honda Australia – Award-winning Honda CR-V Celebrates 30th Anniversary, October 2025
18 Source: Honda Australia – CR-V specifications, n.d.
19 Source: carsales – Ford Everest Active 2026 Review, May 2026
20 Source: CarExpert – VFACTS 2025: Another record year for new vehicle sales in Australia, but growth modest overall, January 2026
21 Source: WhichCar – 2023 Ford Everest: Wheels Car of the Year winner, March 2023
22 Source: Ford Australia – Everest, n.d.
23 Source: CarExpert – 2026 Mazda MX-5 GT RS review, April 2026
24 Source: Mazda UK – Mazda MX-5 – the world’s best-selling convertible, August 2025
25 Source: Mazda Australia – MX-5 brochure, n.d.
26 Source: GoAuto – Toyota’s GR86 sports coupe provides visceral levels of driver engagement, January 2026
27 Source: CarExpert – 2026 Best Affordable Sports Car, n.d.
28 Source: WhichCar – Wheels Car of the Year: Every winner since 1963, December 2025
29 Source: Toyota Australia – GR86, n.d.
30 Source: CarExpert – 2025 Ford Mustang review, September 2024
31 Source: Ford Australia – Mustang, n.d.
32 Source: ReDriven – Used Toyota RAV4 (5th-gen) review, July 2024
33 Source: Australian Automotive Dealer Association – Annual 2025 Automotive Insights Report, n.d.
34 Source: ReDriven – Used Mazda CX-9 review, February 2025
35 Source: JD Power – Vehicle Dependability Still Suffering Due to Pandemic Aftershocks, JD Power Finds, February 2025
36 Source: CarsGuide – Used Subaru Forester review: 2018-2025, April 2026
37 Source: Roy Morgan – Roy Morgan unveils Annual Customer Satisfaction Award winners across all categories, April 2026
38 Source: Drive – Tesla Model Y is the winner of 2026 Drive Car of the Year, February 2026
39 Source: ANCAP – ANCAP reveals outstanding safety performers for 2025, January 2026
40 Source: CarSales – VFACTS May: Tesla Model Y takes the crown, June 2026
41 Source: Tesla Australia – Model Y, n.d.
42 Source: The Driven – Tesla opens 1,000 superchargers in Australia, special design in Byron Bay, June 2026
43 Source: CarExpert – 2026 Best Luxury Small Car, n.d.
44 Source: CarsGuide – Honda Civic 2025 review: e:HEV L, March 2025
45 Source: CarsGuide – MGS5 EV 2025 review, June 2025
46 Source: MG Australia – MGS5 EV brochure, 2026
47 Source: MG Australia – MG Warranty, n.d.
