Advice

Why are MG cars so cheap? Obviously if you asked someone at MG they’d answer with “they’re not cheap, they’re affordable, and amazing value”, but the most obvious answer is - because they’re made in China.This may come as a shock to many readers, who might assume MG is still the same storied old brand from England that used to make sexy, sporty little roadsters and not much else (it was founded in Oxford, UK, in 1924).MG is the same 'brand', in a literal sense, and you’ll often see Union Jacks and words like 'heritage' associated with its vehicles, but the fact is it’s very much a Chinese concern these days.Back in 2005, Chinese manufacturer Nanjing Automobile Group bought the rights to the MG badge, along with the rest of MG Rover Group (Rover was another UK marque that did not survive and if you'd driven its cars, you'd be grateful), and then, in 2007, Nanjing was swallowed whole by SAIC Motor - a Shanghai-based car manufacturer that is, in turn, owned by the Chinese state, and which owns MG to this day.Just pause on that for a moment. Imagine if the Australian government was in charge of building cars locally, if it had bought Ford and Holden for example. Motor vehicles built by committee, car companies run by governments that can change their priorities - between EV and burning oil for example - every few years. Just, wow.Fortunately, China’s communist government does not change and the almost limitless financial backing the Chinese state can give to the companies it owns and runs - often with the stated goal of competing with and beating the western world - is a significant advantage for a brand like MG/SAIC.To be clear, when the Chinese bought MG it wasn’t exactly a going concern, but they obviously saw value in the badge, as opposed to selling cars called things like “Yangwang” or “Build Your Dreams”.In 2011, the first new MG model in more than 15 years was launched; the MG 6, and it was notionally built, or partly built, in the UK at MG’s Longbridge plant, but also partly in China.This allowed the brand to continue proclaiming its British-ness but in 2016 the company shut down its operation in England and all MGs since then have been designed and built in China.Cars built in China are cheaper partly due to the effect of economies of scale and SAIC is quite huge; indeed it is the largest single-marque exporter in China.In 2024, it sold 707,000 vehicles in total. For comparison, the entire new car market in Australia in a typical year is around 1.2 million.It’s also a lot cheaper to build cars in China because the wages for the people that do it are amongst the lowest in the world (although not as low as Mexico and India).Workers in an SAIC factory are reportedly paid as little as $3.60 to $6.60 an hour, which means the labour costs of building an MG are going to be far, far lower than those going into a vehicle built in the US, Europe or Japan.When it comes to EVs, which MG, like most Chinese car companies, has a heavy focus on, Chinese manufacturers also have a huge price advantage because China controls so much of the global EV battery market (and batteries are the most expensive part of an EV), so it can access them at lower rates.According to the International Energy Agency, China is projected to hold more than half of the global EV battery market by 2030. More than 70 per cent of all the EV batteries that have ever been made were produced in China.It should thus come as no surprise that China dominates the global EV market in general, with a 62 per cent market share.According to Nikkei Asia, China also holds a significant share in the production of key battery components, such as cathodes, anodes, electrolytes and separators.In Australia, MG has taken advantage of its ability to produce and import cars that are cheaper, in a wholesale sense, than competitors from established brands in this country by adopting an aggressive pricing strategy.It has promoted a lot of 'dynamic pricing' or drive-away pricing and you will often see or hear advertising suggesting it is offering the cheapest vehicle in a particular segment.At the time of publishing, the cheapest new MG car you can buy is an MG ZST 1.5 CVT Vibe, with a drive-away price of just $23,888.MG offers sharply-priced vehicles across many segments from hatches to small and mid-sized SUVs, and even a new electric roadster, the $115,000 Cyberster, which is clearly designed to bring to mind the MG sports cars of old. It’s also clearly not a cheap MG car.MG also offers hybrid and EV power plants. According to Compare the Market, “MG cars in Australia generally have a lower resale value compared to more established brands like Toyota or Mazda”.This is an important factor to keep in mind when considering how cheap they might seem in terms of upfront costs.In terms of safety, MG is not an entirely maximum five-star rated brand. The MG HS (petrol) and MG 4 Electric have five-star ANCAP ratings, but the MG ZS hybrid only gets four stars, the MG 3 has three stars and the MG 5 has zero stars (safety system upgrades are expected “early in 2025”).So, in summary, MG cars are cheap because they are made in China, one of the cheapest places to build cars, and EVs in particular, in the world, and they are thus able to be aggressively priced in Australia.

It’s often said that if you’re a smart car buyer, you’ll be shopping second hand. That’s because the shine and new car smell of a brand-new car can be fleeting. Especially once you take depreciation into account.

What is the cheapest car to insure? Putting aside the hundreds of factors your insurance company will consider before giving you a price, the cheapest car to insure in Australia is the compact city car, the Kia Picanto. Overall, for cheap insurance, Kia seems to be the brand with the most offerings.Other cheap new cars to insure in Australia, according to financial comparison site Canstar, include the Fiat 500, Suzuki Ignis, Toyota Yaris, Mazda 2 and another Kia, the Rio.If you think that list means you can make a direct correlation between the cost of the car and the cost of insuring it, give yourself a gold star, because that is certainly one of the most important factors - how much it will cost to replace your new vehicle if it’s stolen or written off.The less expensive the car, the less it costs the insurer to replace, and thus the lower your premiums.Other contenders for the cars with the cheapest insurance include the similarly small, and affordable, Toyota Corolla, Kia Stonic and Suzuki Swift, as well as the small city SUV Hyundai Venue.When it comes to working out what the cheapest cars on insurance are it’s worth keeping in mind there are many, many factors an insurer will assess before deciding on the premium it is willing to offer to you.The average cost of car insurance in Australia is $929 per policy, according to financial services regulator, APRA. This is based on 18.13 million "active risks" covered and $16.8 billion in gross written premiums from September 2023 to September 2024.While we can talk about average insurance prices, they will vary wildly depending on these factors, which are used to determine the risk of insuring a particular car, and its particular owner.These include the cost of repairs and replacement; and not just the obvious one, like the sticker price of the car, but how hard or easy it is to get parts for that vehicle, and how much those parts will cost. Cars with higher repair costs will have higher insurance premiums.How likely it is that a particular car will be stolen is another important fact, and insurers have lists of data and statistics on this, going right down to the granular detail of which coloured cars are most stolen.Yes, even the colour of paint you choose can effect our insurance premium, based on past data about the behaviour of car thieves. White and yellow coloured cars can attract lower premiums than black or darker coloured ones because they are less prone to being stolen.As a bonus, brighter coloured cars are also less likely to be involved in accidents, because they’re easier to see, adding another factor to the colour of money when it comes to car insurance.Where you live will also effect your premiums, for obvious reasons. If you’re in a crime-prone suburb the danger of your vehicle being stolen is higher. Similarly, where you park the car will effect your premiums; if it’s kept in a locked garage it’s going to be harder to steal, and thus cheaper to insure.As anyone who has a teenager on P plates can tell you, the age and experience of the person who will be driving the car can have an enormous effect on insurance costs, doubling or even tripling them in some cases if you want to insure a car for a young, inexperience driver, also known as “an accident waiting to happen”.Even if you are older and more experienced, car companies will look at your insurance history when considering your quote, and the size of your excess. The longer you have gone with no accidents or claims of any kind, the cheaper your insurance will be.Sadly, even the gender of the nominated driver or drivers is also a factor. Actuaries and insurance companies deal in raw numbers and those numbers show that men are more likely to be involved in car accidents than women. Young men in particular.The people you list on your policy are going to effect the price.Speaking of accidents, the safety rating of your car is also a factor, according to Canstar. If it’s fixed with the modern systems that might help you avoid having a crash, that can lower your premiums, too.According to Canstar, these were the Top 10 cheapest new cars to insure in 2024 in Australia (they sourced their figures from Youi Insurance’s own make/model/insurance data).

Everyone loves a good joke and car enthusiasts are no different because they all love funny car jokes.You name it and chances are there’s a car joke about it: driving jokes, car jokes for kids, car dad jokes, car jokes for adults, electric car jokes, car mechanic jokes, race car jokes, as well as car insurance jokes and car salesman jokes.So, here’s our exhaustive (exhausting?) line-up of jokes about cars.Q: Why was the car always tired?A: It never took any brakes.Q: What kind of car does Yoda drive?A: A Toy-yoda.Q: Why should you always carry peanut butter in your car?A: In case there’s a traffic jam.Q: Why did the man throw his spare tyre into the woods when he got lost?A: Where there’s a wheel, there’s a way.Q: What did you do with all those old car batteries?A: I gave them away, free of charge.Q: Why does it cost so much to put air in a tyre?A: Inflation.A jumper cable walks into a bar and the bartender says, “I’ll serve you but you’d better not start anything.”My wife asked me if I could go wash the car with our son. I told her a hose and sponge would be more efficient.Q: What did the car say to the stop light?A: You’ve changed, man!My wife gave birth to our son in the car on our way to the hospital. We named him Carson.I just got nine out of 10 on my driver’s test. The last guy was able to get out of the way.Q: What do you need to be able to drive in the outback?A: You need to show koala-fications.The worst thing about reverse parking is witnesses.Q: What kind of cars do people in Norway drive?A: Fjords.Q: What’s the difference between a Land Rover and a golf ball?A: You can drive a golf ball more than 100 metres.New Teslas don’t have that familiar new car smell – they have an Elon Musk.So, 95 per cent of the EVs sold in Australia are still on the road today. The rest were able to be driven home.Do people in EVs listen to AC/DC or something current?I walked into an EV dealership and asked them how much they charge.Q: Did you hear about the new EV from Germany?A: It’s a Volts-wagen.“Who won the 1975 Formula 1 World Championship?“Lauda.”“WHO WON THE 1975 WORLD CHAMPIONSHIP?!”Q: What do strippers and the best F1 drivers have in common?A: They start in pole position.Q: How do you make a million dollars racing at Bathurst?A: Start with two million dollars!Q: What do drivers wear under their fire-retardant race suits?A: Speedos.If you can’t fix something on your race car with a hammer, then it’s an electrical problem.Anyone want to buy Doc Brown’s DeLorean? He only drives it from time to time.I went to my local car dealership and was looking at a potential buy when a salesman approached me.I was interested in if the interior was roomy enough to fit my family, dog and camping gear.I said: “Cargo space?”He said: “No, car go on road.”I visited a car dealership last week to check out the Toyota LandCruiser 300 Series Sahara. I'm now just waiting to be paid…. so I can catch an Uber and go look at it again.What happened to the car dealership when it ran out of Kias?It sells Nokias now.A man walks into a Lada dealership and says "I'd like a hubcap for my Lada”.The dealer says: “That sounds like a fair swap.”I was in a lot of pain after I injured my neck in a car accident last year.Now I can look back and laugh.When I wrecked my last car, I solved the mystery of whether or not a Mercedes bends.When I regained consciousness after a car crash, the doctors tried to tell me I was actually a Swedish guy who had amnesia.I said: “Ha! I’m not falling for that one – I wasn't Bjorn yesterday!”Q: Did you hear about the car crash in Moscow?A: It turns out the guy was Russian to work.Q: What do you call it when a dinosaur gets into a car crash?A: Tyrannosaurus wrecks.A lot of mechanics reckon the best way to fix any car is to sort out the loose nut on the driver’s seat.Q: Did you hear about the mechanic who was addicted to drinking brake fluid?A: She said she could stop any time she wanted to.A mechanic mate of mine reckons a good way to get rid of annoying customers is tell them to go to the nearest Supercheap Auto or Autobarn and ask for a long wait.Q: What did the disgruntled customer say to the mechanic?A: “You auto know better!”Mechanic: “When were your tyres last rotated?”Me: “On the way here, mate.”Q: What do hospital gowns and car insurance policies have in common?A: You’re usually not as covered as you think you are.Q: What’s the difference between a new puppy and a car insurance company when you make a claim?A: The puppy stops whining after a week or two.A bloke was talking to a police officer after a car accident and explaining why he didn’t have car insurance.“There are worse things in life than pranging your car,” the bloke said.“Oh, yeah – what?” the police officer said.To which the bloke replied: “Talking to an insurance company sales rep.”A drunk bloke stumbles into a hotel where a car insurance convention is being held and yells, "All insurance agents are crooks, and if anyone doesn’t like it, come up and do something about it."A man immediately runs up to the drunk and says, "You take that back!"The drunk replies, "Why, are you an agent?""No," the man says, “I'm a crook.”A car insurance sales rep dad was teaching his daughter to drive when the car’s brakes suddenly failed while going down a steep hill.The daughter screamed: “I can’t stop!" What should I do?"The car insurance sales rep dad said: “Try to hit something cheap!”

There are some states where the very existence of unmarked police cars seems almost as illogical as it is cruel, while in others, like Victoria, it’s a surprise that every second vehicle isn’t a cop car in disguise.

Who owns Polestar?The answer isn’t quite as straightforward as you may think. While Polestar began as a Volvo subsidiary the brand is actually part of the Geely automotive empire, alongside the likes of Volvo, Lotus and Zeekr. If it feels like Polestar started in a flash, that’s because it did - both metaphorically and literally.Polestar is a performance electric brand that first came to prominence as Volvo’s performance and racing division, but is now solely focused on building the most sustainable automobiles possible.But who owns Polestar? Who makes Polestar cars? Where are Polestar cars manufactured? We’ll answer all those questions and more in this deep dive into the brand’s past, present and future.Originally the company was a joint-venture between Volvo and Geely, but the Swedish brand decided to divest the majority of its stake in the operation, making Geely the primary Polestar parent company. Geely founder Li Shufu owns a significant stake in the brand via his personal company, PSD Investment.So, how did Polestar begin in a flash? Well, the brand’s origins trace all the way back to 1996 and a Swedish touring car racing team called Flash Engineering. The name came from team owner Jan ‘Flash’ Nilsson, who had a history racing Volvos.In 2005 he sold his team to businessman Christian Dahl, who renamed the team to Polestar Racing and began forging deeper ties with Volvo. In 2010, Geely took over Volvo from the Ford Motor Company as part of its first steps towards international expansion.Then in 2013 the first Polestar Performance road car project was launched with the S60 Polestar. This was an Australian initiative originally, designed to coincide with a Volvo/Polestar entry into the V8 Supercars championship.The road car project went global in 2014 and by 2015 Volvo had decided to buy Polestar Performance and establish it as its own in-house brand.In 2017 Geely and Volvo made the dramatic shift away from performance and instead reinvented Polestar as an electric vehicle brand, launching the Polestar 1 coupe in October that year (a model that was never offered in Australia).By 2019 the Polestar 2 small sedan/hatchback had arrived as a rival to the Tesla Model 3 and then in 2024 the brand added the Polestar 3 mid-size SUV and Polestar 4 SUV ‘coupe’ to the line-up.While the brand likes to highlight its Swedish heritage it has taken a more global approach to production. Polestar’s headquarters is in Gothenburg, Sweden, which is where it designs all of its cars. Production takes advantage of Geely’s Chinese manufacturing base, as well as the brand’s other industry connections to keep costs and emissions during production down.Because of that the Polestar 2 is built in China, the Polestar 3 is made in China and the USA and the Polestar 4 is produced at factories in China and South Korea.Polestar currently offers three models for sale - the Polestar 2, Polestar 3 and Polestar 4.The Polestar 2 is a mid-size sedan/hatchback that rivals the likes of the BMW i4, BYD Seal and Tesla Model 3.The Polestar 3 is a mid-size SUV based on the same underpinnings as Volvo’s EX90 and has been designed to sit above the sportier Polestar 4 coupe-style SUV.While similar in size, the 4 is built on different underpinnings, the so-called 'Sustainable Experience Architecture' that is the basis for Volvo EM90 and Zeekr 001, amongst others.The brand has already confirmed three more models , scheduled to arrive by the end of the decade. The first will be the Polestar 5 (you may have a feel for the brand’s naming protocol by now) which will be based on the Premacy concept, due by the end of 2025.It is reportedly a mid-size sedan to challenge the likes of the Porsche Taycan and Audi e-tron GT.The Polestar 6 will be a sports car, based on the O2 concept, was meant to arrive in 2026 but development of this hero model has been delayed to prioritise the Polestar 7, which is expected to be a compact SUV to sit underneath the Polestar 3. 

Like many things to do with car ownership, a car’s brakes are more than just a crucial safety issue, they can also make up a significant part of monthly running costs. So, how much to replace brake pads on your car?

Trying to pin down the cost of a Tesla in Australia is a bit like swatting a fly - just when you think you’ve got it locked in it suddenly changes.

Buying a car outright - a new car, no less - has long sat just below the increasingly Everest-like peak of Australian aspiration; home ownership. Indeed, for most of us it is the second-largest financial decision of our lives.The key difference is that when you own a home, you return each night to a warm bed and the comforting reassurance that the roof over your head is appreciating in value.Cars, on the other hand, have a nasty habit of greeting you each morning as a rapidly depreciating lump parked on the driveway.Leasing (whether novated, finance, or operating) offers a compelling alternative to outright ownership, provided you know exactly what you’re signing up for.Essentially, leasing a car equates to renting one – usually for a set period between two to five years, with fixed monthly payments.When the lease concludes, rather than having to face the cost of depreciation you face when buying a car outright (unless it’s a rare Ferrari or similar), you can simply hand the keys back and move on – ideally straight into another shiny new lease.Before discussing how to lease a car, however, it’s important to understand the different options available.The most popular is what’s called a novated lease, which is an arrangement where your employer helps manage your lease payments directly from your pre-tax salary (a state of payroll martyrdom called salary sacrificing, which sounds a lot more bloody and alarming than it actually is).This reduces your taxable income and subsequent income tax bill, potentially freeing up more disposable cash for life’s little pleasures, or the big ones, like paying off your house.How does a novated lease work? Running costs like registration, insurance, fuel, and servicing are likely to be bundled into your monthly payments.It will also involve Fringe Benefits Tax, which is calculated based on the vehicle’s value and annual kilometres travelled.At the end of your lease, you’ll face a balloon payment (think of it as a large sack filled with money rather than air) that will have been agreed in advance.You can pay that figure to take ownership of the vehicle outright (if, say, you’ve fallen hopelessly in love with it) refinance the residual through another lease or loan, or sell or trade in the car to pay it off.If the car’s market value exceeds the residual, you’ll pocket the savings. If not, you’ll have to cover the shortfall.Finance leases take a more bread-and-butter approach for those who intend to eventually own their leased vehicle.It’s a direct agreement between you and a finance provider, where you make regular monthly payments and agree upfront on a residual value – a lump sum to purchase the vehicle outright at the lease's conclusion.It's important to consider this residual value carefully, otherwise you might end up owing more than the vehicle's market worth.Lastly, there are operating leases – which are popular among businesses and people who don’t like to be tied down. They tend to be more of a short-term arrangement than other leasing options and usually include maintenance costs.You use the car, make fixed payments, and simply return it when the term ends – leaving you free to switch vehicles as you please.But every financial arrangement has its thorns, and so too, car leasing comes with both advantages and drawbacks, compared to buying.Leasing typically requires less upfront capital and offers lower monthly repayments compared to traditional car loans.Additionally, maintenance and running expenses can be bundled in to your payments, so you’re less likely to be blindsided at service time.The flipside is you won't own the vehicle unless you settle the residual, which may leave an aspirational itch unscratched for some. Plus, leases usually impose strict kilometre limits and expectations regarding vehicle condition, meaning rough treatment might incur additional costs when you return it.Comparing leasing to buying ultimately depends on your attachment to vehicle ownership and your overall financial goals.Leasing provides flexibility and can offer tax advantages, which can be particularly appealing to individuals or businesses looking for predictable costs and minimal initial outlay.On the other hand, buying outright offers complete ownership freedom paired with depreciating vehicle value.So, how do you lease a car in Australia? Firstly, put your thinking cap on and decide which lease type best fits your needs. Shop around for providers, compare deals, and pore over the fine print, repayment schedules, and residual amounts.After all that due diligence, you’ll hopefully drive off knowing exactly what you're responsible for.Like most major decisions in life, the best leasing option hinges on your personal and financial situation (and it might be worth consulting your accountant, or a taxation professional, before making your decision).Novated leases suit employees looking to leverage tax benefits through salary packaging. Finance leases appeal to businesses and individuals aiming to ultimately own the car without the initial cash outlay. Operating leases are a sound choice for those who want flexibility and an easy exit.You should, of course, be mindful of potential pitfalls across all leasing options. Changing circumstances, such as a job switch, could leave you liable for ongoing novated lease payments.Administration fees and potentially higher interest rates compared to traditional loans should also be factored into your decision making.Ultimately, leasing isn't inherently better or worse than buying – it's another financial tool available to help you drive the car you want, sooner.Whether leasing is right for you depends entirely on your specific circumstances, financial position, and a knack for understanding fine print.This material has been prepared for information purposes only. It should not be taken as constituting professional advice and you should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.

Here’s a question we hear quite a bit at CarsGuide: Is E10 bad for your car and does E10 fuel damage engines?