Hard to believe, but $40,000 doesn’t buy you much on the new car front in 2025.
You’ll not be able to drive away from a dealer in a VW Golf or Honda Civic and any Nissan Qashqai, Subaru Crosstrek or Mazda CX-30 you snare for under $40k will be of the poverty-spec variety.
But in EV world things look different.
Be it a slight cooling in the market’s electric car interest or an EV model which simply hasn’t clicked with buyers, there are numerous models at or under $40k that look solid value.
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For those mulling taking a punt on their first EV, price parity with similar ICE models could tip things in battery power’s favour.
Not least when “Prices Slashed!” are found in the headlines.
Last year, Peugeot’s e-2008 SUV (now discontinued) dropped to $39,990 for a time, a haircut of around $25,000.
That made it Australia’s cheapest electric SUV, with that torch now passed to the e-2008’s twin-under-the-skin Jeep Avenger. The slow-selling Jeep EV’s also now a $40,000 on-the-road effort, trumping the new MGS5 EV and its $40,990 promotion.
The MG4 hatchbackn is yours for $37,990 drive-away, although last September the entry-level Excite 51kWh briefly fell to $30,990 on the road.
If you’ve got $40k to spend and are open to an EV, here’s a list of some of the best new electric cars on sale. Then, just for fun, we’ve included a few alternatives from the pre-loved department too.
1. Jeep Avenger Longitude – $40,000 drive-away
Roughly $16,000 has been shaved from the Avenger’s original price, showing Jeep’s first EV was way too much at launch.
At $40k on the road this city SUV has a stronger case. Attractive Jeep styling sits atop a 115kW/260Nm front-mount motor with 51kWh battery, and range is close to 400km.
It won’t do “proper” Jeep things, but bests many small EVs by having drive modes for different terrain and 100kW DC charging.
Jeep’s barely shifted any Avengers, and some dealers have “ex-demos” with only delivery kilometres showing from only $35,000 drive-away.
2. MG4 Excite 51 – $37,990 drive-away
MG’s made some stinkers, but the MG4 – its first car built on a dedicated EV platform – isn’t one.
Spacious inside and zippy to drive, its 125kW/250Nm through the rear wheels delivers a surprisingly fun experience. Range is claimed at 405km with the 51kWh battery, although we found this optimistic.
DC charging’s at up to 88kW, and a real selling point is MG’s long seven-year warranty.
But don’t pay too much. On the Carsales website numerous dealers are trying to move 2024 MG4 Excite 51s with zero on the odometer for under $35k on the road.
3. BYD Dolphin Essential – around $32,000 drive-away
Officially Australia’s cheapest EV, these bare bones Dolphin Essentials are only $29,990 before charges.
Very much a city-only car, its 44.9kWh battery powers a front-mount 70kW/180Nm motor and gives 340km WLTP driving range.
For about $6000 extra you can buy the Dolphin Premium with larger 60kWh battery, 427km range and healthier 150kW/310Nm performance through the front wheels.
The Essential charges only up to 60kW DC, but the Premium handles 80kW.
If you want something brand new at the lowest possible price, the Dolphin is calling.
4. Fiat 500e – $38,990 drive-away
Not the first Italian car that wins on looks but little else. The electric Bambino was shockingly priced at almost $60,000 on the road when first launched, but it’s now in the realms of acceptability at under $40k drive-away.
A handful of ex-demos with a few thousand kms showing are in the classifieds for $37,000.
Another city-specialist, the 500e’s 42kWh battery with 85kW DC charging offers 311km WLTP range, although real world use shows that’s optimistic. But the front-mount 87kW/220Nm motor is feisty, and you will have fun in this car… if you can handle the cramped cabin.
A daftly stingy three-year warranty doesn’t help Fiat’s cause. Oh, and if you want to up the fun and reduce electric range, 2023 Abarth 500e Scorpionissima versions with peanuts on the clock can also be had for under $40k from dealers looking to clear.
5. GWM Ora Lux – $35,990 drive-away
No looker in the company of that Fiat 500e, but this Thailand-built Ora’s cheap and has reasonable inclusions in 2026MY guise, including faux leather power seats.
There’s now a 57.7kWh battery offering WLTP range up to 400km, which powers a front-mount 126kW/250Nm motor.
Surprisingly spacious, well equipped and with a seven-year warranty, but it’s one of the less satisfying EVs to drive.
Ex-demo 2024 and 2025 Oras with minimal mileage can be had from dealers for under $30k drive-away.
6. Ex-demo Hyundai Inster – around $38,000 drive-away
Hyundai’s cutesy Inster city EV isn’t flying off the shelves, so while the cheapest Standard Range model is around $42,500 drive-away if ordered new, there are numerous ex-demos on sale at $37,000 on the road. All have travelled less than 3000km.
Its 42kWh battery gives a reliable 327km range, and feeds a 71.1kW/147Nm front motor.
It’s incredibly cheap to run, drives with polish and a splash of good fun, charges up to 120kW and the cabin’s incredibly spacious considering the car’s exterior dimensions.
While it’s got personality-packed looks and driving talent, this SUV’s pricier than larger EV rivals, but bests most for outright drive quality. Seven-year warranty’s a big bonus too.
7. Ex-demo 2023 Mazda MX-30 E35 – around $39,990 drive-away
These things arrived in 2021 with a frankly bonkers $70k+ drive-away price. Crappy electric range of 200km and not-practical rear suicide doors were its main undoing.
Otherwise, the electric MX-30 small SUVs look superb, drive well and are wonderfully high-spec.
Travelling in the leathery Vintage Brown seats gives an air of class absent in every other car on our list, matched to a zippy city drive and lovely smooth ride. Not quick with 107kW/271Nm front motor, the battery’s a titchy 35.5kWh and charges at a pedestrian 50kW.
Occasionally, delivery-km ones pop up for under $40k, and ex-demos likewise. And seriously, you can haggle your way down on one of these cobweb-gatherers.
8. 2019-2023 Tesla Model 3 – from $25,000
We bought lots of them, so there are hundreds in the classifieds, making it a buyer’s market.
There are dozens under $30k on Carsales, and sellers will likely drop dollars to move theirs on. You’re buying the benchmark EV sedan with range around 500km depending on grade; rapid performance and a tech-lover’s cabin.
Mad Performance models offering supercar acceleration are now from around $33,000, but as with all, favour ones in warranty, check the battery health, and prioritise those that haven’t endured life as a ride share special.
9. 2019-22 Hyundai Kona Electric – from $23,000
A range hero with a reliable 449km, the Kona’s a perky small SUV with a chunky 150kW/395Nm sent through its front wheels.
Fun, spacious and passable as a family SUV, find a Highlander or Launch Edition and they’re chockers with luxe too.
There are plenty of Kona Electrics out there with sensible kilometres showing, still with a tad of Hyundai’s five-year warranty and costing under $30k before haggling. Solid buying.
10. 2021-2023 Peugeot e-2008 – from $23,000
Good-looking, delicious cabin style and enjoyable to punt around, there’s plenty going for the e-2008 if we ignore its sink-like-a-stone resale.
There’s a 100kW/260Nm front motor, 328km range from its 50kWh battery, and 100kW maximum charging. The ride quality and handling are lovely for around town, and it does the French comfort bit rather well.
Private ones can be had for not much over $20k, while we found a dealer selling a 2023 top-spec GT with a few thousand on the clock for a smidge over $30k…half price compared to its original list.
11. 2022+ Polestar 2 Long Range Dual Motor – from $39,000
You can get cheaper single motor front-wheel-drive Polestar 2s, but there’s a lot of very quick all-paw EV on offer in the Long Range Dual Motor. In a couple of years, these things have shed almost half their value, especially if the original buyer ticked some options.
The brace of electric motors combine for a thumping 300kW and 660Nm, meaning a sub-five seconds 0-100kmh time. There’s a 78kWh battery good for 487km range, and its charge rate is up to 155kW.
A premium-feeling and looking EV, it’s ideal for those seeking serious performance and class and don’t want to be a Tesla sheep.
A used twin-motor Polestar 2 for the price of a new MG4 feels like good business.
