Can't afford the cheapest new Toyota? Aussie VP has the solution for those that want a Toyota alternative to the cut-price Kia Picanto, Suzuki Swift hybrid, MG ZS, Hyundai Venue, Mitsubishi ASX and more

Toyota Australia has reiterated that it does not intend to return to selling new cars under $25,000.

Leaving behind the bottom end of the market it abandoned in 2020 after the release of the current-generation Yaris hatchback. This means it offers no answer against models such as the Kia's Picanto and Stonic, the MG 3 and ZS, Hyundai Venue, Mazda2 and even the Suzuki Swift Hybrid.

At the time of publishing, the cheapest Toyota remains the Yaris, but in Ascent Sport hybrid guise painted in Glacier White or Ebony Black it is price from $28,500 before on-road costs, or from $32,674 drive-away in Melbourne.

This is a far cry from the $15,390 before on-road costs the brand charged for the preceding model a little more than four years ago.

However, according to Toyota Motor Company Australia (TMCA) Vice President Sales, Marketing and Franchise Operations, Sean Hanley, the solution for consumers is purchasing a used Toyota vehicle, but only from a Toyota dealer that is participating in a particular scheme.

“Yeah, [it is] unlikely [Toyota will introduce a sub-Yaris priced new car],” he told CarsGuide.

“That gap, for Toyota in Australia at least, will be filled by Certified Pre-Owned Toyota (CPOT) used vehicles. This is where we see that.”

2025 Toyota Yaris Ascent Sport Hybrid

It is not often that you hear a senior car company executive suggesting buying second-hand, Hanley reckons TMCA has invested much to ensure that the used vehicles in the CPOT scheme meet brand standards and expectations.

“That's [competing] against ourselves, [but] it's [a] pretty good [deal],” he went on.

“It's growing. We see that as the greatest opportunity for that sub-$25,000 market going forward, for Toyota. And if we can offer a really nice, quality, Toyota-certified pre-owned, giving the necessary warranties, securities and confidence, then we feel that that for us is a better option [than importing a cheaper new model].”

Restricted to Toyota-only models, CPOT is in its 13^th year in Australia. A typical example is a current-shape 2021 Yaris Ascent Sport petrol (not hybrid) with 81,000km on the odometer for $21,888, excluding government charges.

2025 Toyota AC200 Yaris Cross

The website states that eligible vehicles “can come with the following: No older than 10 years old; travelled less than 160,000kms; a full service history and two sets of keys; an independent background check; one-year additional Toyota-backed warranty (post January 1, 2022 only); a 90-point comprehensive quality inspection completed by Toyota Technicians; one-year free Toyota Roadside Assist; reconditioned to strict Toyota standards by Toyota Technicians; Toyota finance and insurance options available; Get a Guaranteed Future Value with a Toyota Access car loan.”

Hanley said that after an uncertain start, the scheme is gaining traction.

"It's taking a little while to mature," he admitted. "That business is going well... it's growing year on year. [We've] had a record month in used cars."

Ultimately, he believes CPOT will engender loyalty in the brand, much the same way that the past entry-level models did, from the Corolla when it was manufactured in Australia from 1967 to 1999, to the Starlet, Echo and previous-shape Yaris up until 2020.

“It keeps people in the Toyota ecosystem, and then it enables them, at a point in time, potentially, to buy a new Toyota,” Hanley hopes.

2025 Toyota Starlet Cross

That all said, CPOT is irrelevant for consumers who demand new, forcing them into rival products. And the Yaris’ march upmarket has been spectacular.

While Toyota can rightfully argue that a 2024 Yaris is demonstrably superior in almost every way than its far-cheaper pre-2020 predecessor – particularly in areas of safety, refinement, equipment and tech, and that’s not even taking into consideration the Ascent Sport’s standard hybrid powertrain and automatic transmission – this does not change the fact that it now costs over 85 per cent more to buy a new Toyota now than it did a little over four years ago.

However, TMCA seems to have no alternative at this point of time.

A CPOT used Toyota probably makes more sense now than importing ‘new’ models that may not meet Australian Design Rule regulations for safety, let alone Australian consumer standards for features, refinement and style.

2025 Toyota Vios

This is why models including the Suzuki Baleno-based Glanza/Starlet from India and Daihatsu-developed family consisting of the Yaris Ativ hatch, Yaris Cross (not the same car, confusingly) and Vios sedan produced mainly for Asian, African and Latin American markets, have been ruled out for Australia.

Similarly, the stylish Aygo X city car/crossover made in Czechia (the former Czech Republic) for Europe is both too small and too expensive to source for our market.

About the only remaining sub-Yaris contender in Australia could be the Starlet Cross, which is essentially the coming Suzuki Fronx from India, but it seems unlikely that Toyota could land that here at under $30,000.

In the meantime, then, if you want a Toyota for new Kia Picanto money, your only option is buy used. Just as Hanley suggests.