Best Small Car Starting Under $50K announced!
By Chris Thompson · 06 Feb 2026
There can be only one winner in the CarsGuide Car of the Year – Best Small Car Starting Under $50K category.But luckily for a couple of models there’s also room for two runners-up on the podium.The category’s shortlist featured some strong competition, with the two runner-up models the result of some debate in the COTY War Room over a few front-runners.But unlike the other categories in the 2026 CarsGuide Car of the Year awards, the winner in this category was unanimous.Read on to find out which model impressed each judge more than the other nine entrants.Make no mistake, the MG S5 EV falling short of the category crown shouldn’t be seen as disappointing.MG’s cars have been handed mixed reviews by CarsGuide journalists since the brand relaunched in Australia a decade ago, and even recently some models have arguably leant on the low price as a selling point.But the MG S5 EV is changing opinions. A significant jump in quality, ergonomics and driving ability put the small electric SUV close to the front of the pack in terms of buying propositions – plus it’s a $40,490 drive-away ask.“The MG S5 EV gives everything such a run on the value front. It changed my mind about MG’s EVs in that segment,” said CarsGuide Deputy News Editor Tom White in the COTY War Room discussion.Our Deputy Editor James Cleary summed the S5 EV’s strengths up with an economical number of words: “Looks, dynamics, practicality, space, reasonable range and its warranty.” But while the S5 received near-universal praise in the War Room discussion, Senior Journalist Laura Berry mentioned its price as being a strong reason to consider the S5 EV, even if the winner in this category has it covered in all other areas. “Being $7000 less than the winner, it’s a really compelling argument. It’s fantastic value and a great car,” she said.Could the Qashqai be Nissan’s best current offering in terms of broad appeal? After a new generation was quickly followed by a design refresh, the small SUV now looks stunning, and its interior has been updated to feel properly modern. When judging took place at the end of last year, the $34,665 starting point for its entry petrol ST grade was the cheapest way into the model, though Nissan has since announced that the Qashqai is hybrid-only going forwards.But soon the e-Power hybrid will start from $45,640 before on-roads, but its quality and smooth on-road performance still impressed judges in the pricier e-Power hybrids.“Qashqai as a range has some of the widest appeal and most versatility,” said Deputy News Editor Tom White. “It won the comparo it was in for us, too.”That comparison was with the Qashqai ST-L, the Kia Seltos Sport+ 2.0 and the Subaru Crosstrek R back in 2023, and that was before the facelifted Qashqai arrived.While judges also praised its e-Power hybrid variants for their driving feel (“that e-Power system is amazing,” said Senior Journalist Laura Berry), there was another huge win when it comes to considering the Qashqai.Contributing Journalist Byron Mathioudakis pointed out that it “also has a very useful 10-year warranty”.The EV3’s place atop the podium isn’t a massive surprise to me, but to have each of the other judges call it their pick of the bunch was heartening.I’ve spent the most time in the EV3 compared to the rest of the panel, after its international launch in Seoul, its Australian launch through the Gold Coast hinterland and some more time living with the small electric SUV.CarsGuide Managing Editor Tim Nicholson praised the EV3’s combination of clever packaging and fun from behind the wheel. "There is not much the Kia EV3 gets wrong. It has an edgy, modern design and a visually appealing and surprisingly spacious interior,” he said. “And you also get punchy EV performance and excellent ride and handling. It's an exceptional overall package." A lot of thought has clearly gone into the EV3, and while it’s not as dynamically keen as the Kia EV6, its stablemate in the brand’s ‘EV’ range, it shines far brighter than the Kia EV5 in terms of its on-road manners.Contributing Journalist Byron Mathioudakis voted for the EV3 due to “all the reasons we’ve already said, plus the fact it’s got a bit of an ‘It Factor’”.“The design, its proportions, just the level of detail that thing has is outstanding,” he added.It’s one of the more expensive entrants in the category, with its entry Standard Range Air variant starting from $47,600 before on-roads, but News Editor Dom Tripolone’s experience with the EV3 puts any ‘too expensive’ arguments to rest in the eyes of the judges.“I was able to put two child seats in the second row with a pram in the back very easily,” he said.“It’s a small car, but it feels like I’m buying a car a size above on the inside. That changes the value proposition in my book.”You can spend up to $63,950 for a top-spec GT-Line, but sticking with the entry grade is not only the best value, it’s also not missing anything important for the EV3 to be a fabulous step into the EV space.