Small cars are dying. Slowly, quietly, and mostly by committee.
The latest victim? Skoda Australia. The brand has axed the Scala. It’s a sad ending for a car that deserved better, especially since it was widely regarded as an overlooked gem in its final years. The Scala isn’t just leaving on its own. It’s being swept out the back door along with the Ford Focus, Holden Astra, Toyota Lancer (yes, that’s a car too), and Renault Megane.
If you’re still looking for a sensible, compact vehicle under $40,00 before on-road charges (ORCs), the options are shifting.
Sales of traditional hatchbacks are plummeting across Australia as buyers migrate to SUVs. These crossovers are mostly just lifted hatchbacks with plastic cladding. But there is movement in the segment. Chinese manufacturers like MG and BYD have been pushing fresh entries into the mix, shaking things up.
I asked the CarExpert team. Who would they actually spend $40 grand on right now?
The results were mixed. Surprisingly consistent, actually.
Here is what they said.
Kia K4: The New Benchmark?
Marton Pettendy, Managing Editor, doesn’t mince words.
“If I had $40K to spend… it would have to be the Kia K4.”
The K4 won the 2026 Choice Award for Best Affordable Small Car for a reason. It is one of the new kids on the block, yet the pricing is aggressive. Base price sits at $32,090. That covers both hatch and sedan.
You get three more variants below $40k. Only the top-tier GT-Line breaks the bank, jumping to $43,799 ORCs.
The difference between trims? Power. The GT-Line has a punchy 1.6-liter turbo-petrol. The rest run a standard 2.0-liter four-cylinder. It’s not as spicy, sure. But every K4 offers solid build quality, modern safety tech, and that legendary seven-year warranty. Most rivals can’t even touch that coverage period.
Sure, you could buy a Mazda 3 or a Hyundai i30. They’re good cars. But only the i30 comes close to matching the K4’s value proposition right now.
Want more details? Check out the Kia K4.
Mazda 3 Sedan: Style Without the Flee
James Wong, Marketplace Editor, isn’t interested in hybrids right now. To him, the Toyota Corolla and Hyundai i30 Sedan lack personality. He calls them “fleet-spec Uber vibes.”
His pick? The Mazda 3 G20 Evolution Sedan.
Add the Vision Technology Package ($2,000). Suddenly you’re sitting just under the $40,000 drive-away threshold. Why does it matter?
Because inside and out, it doesn’t feel like a cheap commuter car. It feels upmarket. The driving dynamics are playful. The 2.0-liter engine likes to rev. And opting for the sedan gives you a proper trunk instead of a cramped hatch.
James also acknowledges other players in the ring.
The MG 4 is a serious contender if you want to dip a toe in electric vehicle ownership. It’s cheap to run and the tech has improved. Then there’s the Volkswagen Golf. The 110 TSI Life comes in around $37,999 drive-away. It feels premium. James just doesn’t gel with the Australian-spec 1.4-liter turbo and its eight-speed slushbox automatic.
Looking for more Mazda 3 specs? Go here.
The “Almost” Cars: i30 Premium or MG 4 EV
William Stopford, News Editor, lives in the “almost” department.
He wishes the AWD 2.5-liter Mazda 3 sold in Australia. He wishes the i30 Hybrid came in a well-equipped trim. He wishes the Kia K4 GT-Line wasn’t overpriced.
Since that last wish hasn’t come true, William looks at the Hyundai i30 Sedan Premium or the MG 4.
The i30 Premium trim with the 2.0-liter non-turbo engine lands at $39,500 ORCs. Yes, a new generation is coming, and yes, the interior is plain compared to the Kia or Mazda. But it is stuffed with kit.
William is also eyeing the MG 4. The original EV had flaws, sure. A dated interior. Basic tech. MG fixed the biggest issue in the recent update. You can now buy the rear-wheel-drive MG 4 for better dynamics than the cheaper front-drive versions. It starts around $39,999 drive-away if you hunt for the right deal. It’s poised. It’s ready for prime time.
See the Hyundai i30 range or check out the updated MG 4 lineup.
Mazda 3 G25: The Enthusiast’s Compromise
Ben Zachariah, Road Test Editor, says the right choice depends on your mood. Or your sock color.
He is honest about it. His shortlist is solid. Corolla, Golf, i30, Mazda 3. But today? Today it’s the Mazda 3 G225 Evolve Sport Premium.
Why the jump in price from the G20? The engine. The 2.5-liter delivers 139 kW and 252 Nm of torque. That power band matters. It beats the Hyundai and Toyota on driveability. It makes the car feel sportier without sacrificing too much daily comfort.
Ben also loves that Mazda still sells the sedan. Most rivals are forcing hatchbacks only. The sedan shape gives the G25 a distinct road presence. Add Jet Black Mica paint. Throw on some chrome trim. It looks expensive. He only regrets it doesn’t have a manual gearbox.
Still, for sheer driving satisfaction, few rivals match it.
More on the Mazda 3 history and models? Start here.
Hatchbacks Are Alive, Too
Damion Smy, Deputy News Editor, refuses to choose a sedan.
“I’d buy a Mazda 3 Evolution SP hatch.”
Design-wise, the current generation hasn’t aged well in the way a vintage leather jacket does. It looks sharp. The cabin is smart, not cluttered with screens. The 2.2.5-liter engine (again) is characterful. It punches above its weight in chassis dynamics. It balances style with the practicality of a hatchback boot.
Reliability is key. You can beat the Mazda for raw power elsewhere. But rarely for that specific blend of engagement and daily usability.
Explore the Mazda 3 showroom options here.
The Safe All-Rounder: K4 Sport+
Josh Nevett, Deputy Marketplace Editor, prefers safety in numbers. Or rather, safety in being good at everything.
The Kia K4 Sport+ Hatch ticks all the boxes for the average buyer. It’s fuel-efficient. The ride is composed. It holds its value better than some European alternatives. The seven-year capped-price service schedule is a no-brainer for long-term ownership costs.
Pricing for the Sport+ hatch starts at $39,080 ORCs. Just under the limit. If you want that peace of mind and a car that simply doesn’t annoy you, this is it.
Read the full Kia K4 buyer’s guide.
Old School Reliability: Why We Love Aged Mazda
Sean Lander, Head of Video, had the Mazda 3 in the office recently.
It’s old. That’s the first thing you notice. The infotainment screen doesn’t react like a smartphone. There’s no flashy touchscreen interface. Zero electrification.
And he loved it.
“It was just a car, not a science test with a name nobody could pronounce.”
Sure, the engine feels underpowered if you step hard. The gearing feels sluggish off the line. The interior is dark, even for a dark-haired driver. It might feel expensive for what you get. But it doesn’t frustrate you. Paul Maric can technically fit in the back if he folds his legs.
Mazda still has the dealer network. The warranty is decent. The cars rarely break down. Sean just wishes they’d give us a touchscreen already. That rotary controller is pure 2018.
Check the latest Mazda 3 video review here.
The One To Beat? The Mazda 3 G2 GT Hatch
Max Davies, Marketplace Journalist, starts with disappointment. He mourns the Scala’s exit. Less choice in the market hurts everyone eventually.
But then he lists what matters: The Mazda 3.
As new cars fill interiors with giant iPad screens, the Mazda looks classier. Less screen-heavy means more tactile controls. More premium feel. It feels sporty from the driver’s seat but remains practical.
Which version to buy?
Skip the 2-liter G20 if you can help it. Max calls it “wheezy.” It lacks the daily punch needed for overtaking and highway merging. Go straight for the 2.2.5 G25. It hits that sweet spot.
The Evolve SP G25 slips just under $40,0. But if your budget allows, aim for the GT. It comes in at $4410 ORCs before you hit the on-roads. Is it worth the extra cost? Max thinks so. Better badges. More kit. A nicer interior finish.
You pay more upfront, but you drive a better car.
See all the Mazda 3 configurations online.
