It’s that time of year again – when we take a look at the best sedans available in Australia in 2025, all under an impressive $40k budget. There are some regular faces on our list this year, with mainstay brands that continue to provide an excellent driving experience for the money. There’s also a newcomer in the form of the all-new Kia K4 – the first of its kind available in Australia.
Let’s take a look at the best sedans on offer in the upcoming year.
Toyota Corolla
Image courtesy Toyota
Estimated from $35,000
The Toyota Corolla is one of the most reliable cars you will ever own, hands down. These mechanically sound machines are renowned for their reliability, fuel efficiency, and exceptional value. While we don’t expect a huge change to the Corolla’s design in 2025, Toyota debuted the latest generation in 2020, and usually changes their designs every five to six years, so there is potential for a fresh look in 2025.
Regardless, the Corolla will always be a strong, affordable pick, being easy to drive and offering more room than the hatchback model. Plus, it uses next to no fuel when driving in prime conditions.
Mazda 6
Image courtesy Mazda
From $37,990
The Mazda 6 is another popular sedan choice year after year, with great looks to match its great performance. The G25 Sport is the current most affordable option, with brisk performance powered by a turbo engine and well equipped for its price tag. A new 2025 model – the Mazda EZ6 – was unveiled in August this year, and has a much sportier appearance than its predecessors, but we’re not yet sure if it will be coming to Australia due to the right-hand drive not yet being developed.
We expect the current Mazda 6 to be a strong contender for one of the best sedans under 40k.
MG5 Sedan
Image courtesy MG
$28,990 drive-away
The MG5 sedan is one of the most affordable options on this list – in fact, it’s the cheapest sedan in Australia at the moment, priced at $28,990 drive away. But just because it’s cheap doesn’t mean it’s not value-packed, and if you’re upgrading from a vehicle that’s 10 to 15 years old, you’ll really notice the upgrades, including 10-inch media display screens, sleek interior design elements, and a fuel consumption rating of 5.9 litres per 100km.
The only drawback? The MG5 has not been rated yet by the Australasian New Car Assessment Program (ANCAP). It still has standard safety features such as autonomous emergency braking, electronic stability control, six airbags, cruise control, reversing cameras and parking sensors. Just keep this in mind if you choose to go ahead and purchase this sedan!
Kia Cerato
Image courtesy Kia
From $28,790
Ranking high on our picks for the best sedans under 40k almost every year, the Kia Cerato is better than ever in 2025. The spacious sedan model features reinvigorated style, LED illumination, alloy wheels, and a GT body kit for a sleeker, more dynamic look. The interior is full of the latest tech, while under the hood you’re looking at a turbocharged performance. You will however have to fork out an additional fee for an improved safety pack at roughly $1,500. Still, without the pack the Kia Cerato earns itself a four-star ANCAP safety rating.
A solid choice for those on a budget, the Kia Cerato is also a fun car to drive, with the sporty and dynamic 1.6L turbo engine of the GT or enjoy the reliable and efficient 2.0L multi-point injection engine.
Mazda 2
Image courtesy Mazda
From $28,339
Another entry from Mazda, the 2 model is a reliable drive with a premium-looking exterior and impressive efficiency which makes it an attractive option for those looking for a new sedan under $40k. Base features include Smart City Brake Support with pedestrian detection, Lane-Keep Assist System (LAS), Apple CarPlay and Android Auto, while the vehicle itself is powered by a quick 1.5 litre in-line 4 cylinder petrol engine. If you were to opt for the next model up, you’d also experience front park sensors, adaptive cruise control, and a 360-degree camera system.
Best suited to singles and young couples due to its compact size, the Mazda 2 is a solid choice when it comes to sedans in Australia in 2025.
Kia K4
Image courtesy Kia
Estimated from $30,000
Set to arrive in Australia in the first quarter of 2025, the K4 is the Cerato’s successor and will come equipped with a choice of two familiar four-cylinder engines: a naturally aspirated 2.0-liter and a turbocharged 1.6-liter. These powertrains offer a balance of performance and efficiency, ensuring a smooth and enjoyable driving experience.
The K4 boasts a suite of enhanced safety features, including a more sophisticated autonomous emergency braking system and advanced traffic sign recognition with audible overspeed warnings. To further protect occupants, the number of airbags has been increased to six, offering added peace of mind on the road.
Hyundai i30
Image courtesy Hyundai
From $31,990
The i30 is always a winner when it comes to the best sedans under 40k. Sporty and progressive, you’ll experience next-gen tech and an enhanced driving experience in the latest model. Its driver-centric design will impress with its spacious interior, as well as additional safety features such as a blind-spot view monitor and surround view monitor to help keep you and your passengers safe. It’s also efficient, delivering a 6.1L/100km fuel consumption. Plus, it’s loaded with all the latest tech, including Apple CarPlay and Android Auto, wireless smartphone charging, and Bluelink connected car services that allow you to access vehicle status, remote locking, find my car and more (on Elite and Premium models).
If you’re looking to purchase any of these sedans – or any other car – get in touch with Buddii Finance. We’ll help broker a loan that best suits you, getting you on the road sooner!
