I think that a Kia Rio would be an excellent choice as a first car. Especially since a Rio built in the time frame you’re looking at will still have a big chunk of its factory warranty left to run. The Kia seven-year/unlimited kilometre warranty is the best around, really, and provided the car you buy has a complete service record, that warranty will be real peace of mind.

Also, the Rio is known to be a good, solid car that has a good reputation for reliability and durability. The Skoda Fabia, meantime, suffers from the poor reputation of is dual-clutch transmission. The Fabia is also a bit of an orphan in Australia, meaning that it’s largely overlooked by buyers. That means it will potentially be more difficult to unload when you daughter looks to upgrade her car in a few years.

It needs investigation, and because it is still under warranty I would urge you take it to a Kia dealer. It could be that the fluid needs to be changed, although it shouldn’t at such low kilometres, so perhaps it’s something to do with the driveline computer.

Unfortunately you’ve kept the Corolla too long, and have had to spend money to keep it going. Keep that in mind for the next one you buy.

You’re constrained by your $20,000 budget, but I would suggest you look at a Kia Rio, Mazda2, Mitsubishi Lancer, or Suzuki Swift. All should fall within your budget and all will give you a good run. If you were prepared to buy a used car that is one or two years old, you could consider a Toyota Corolla, or a Mazda3.