Australia's Cheapest New Car Is This $13,000 MG Hatchback, And It's Far From A Stripper

Chinese cars have been beating down on long established performance and luxury car brands for a while now, all while costing a fraction of the price. From jumping over potholes to setting top speed records to beating Land Cruisers in off-road tests and even having emergency water travel capabilities, there are some mighty impressive pieces of kit across the Chinese car industry. What I'm most interested in, though, are the ultra-cheap economy cars that sell for the price of a used shitbox, and that's exactly what the MG3 offers to Australian car buyers. It's a compact hatchback with the face of a plecostomus, which isn't especially exciting, but its $13,020 USD price sure is.

It's no stripper, either. That bargain price includes features like Apple CarPlay and Android Auto, steering wheel controls, air conditioning, a digital driver's display, an auto-hold function, automatic power window switches, and adaptive cruise control with lane centering. It even has a standard feature that the new Toyota RAV4 doesn't even offer on its most expensive trim level that happens to be four times the price of the MG3: padded front and rear armrests. OK, so the MG3's actual MSRP in Australia is $13,890.85 USD at current exchange rates, but the fact that a dealer was even willing to discount it further is remarkable, too.

As you can see from CarSauce's review, the MG3 is woefully slow. Its 1.5-liter four-cylinder engine sends just 109 horsepower and 105 pound-feet of torque to the front wheels via a continuously variable transmission, which results in a leisurely 0-to-62 mph time of 12.57 seconds. It ain't quick, but it gets the job done, and again, it's a $13,000 car. The last car sold in the United States that was near the $13,000 mark was the diminutive Chevrolet Spark, which ran the 0-to-60 sprint in 10.8 seconds in Car and Driver's testing, so the MG3 isn't too far off that pace. Plus, looking beyond straight-line speed (or lack thereof), the reviewer even says it rides great and handles respectably, which are not always the case with bargain-basement cars.

Sadly the MG3's weak engine doesn't equate to exceptional fuel efficiency, with the presenter's real-world economy equating to about 36 mpg on the highway and more like 26 mpg around town. Those aren't abysmal numbers, just perhaps not as good as one might hope from such a weak engine in a tiny car.

Beyond the lower-than-low base price, the MG3's value proposition really comes into focus when you take into account its 10-year manufacturer warranty. For those who say, "why spend $13,000 on the cheapest new car available when you can buy a bigger, better used car for the same price?" Consider the idea of spending $13,000 on a car with a 10-year-long warranty versus spending that same amount on a used car with no warranty. The new car comes with an entire decade of mechanical coverage so the buyer doesn't have to worry about unexpected repair costs for those 10 years, whereas the used car could end up requiring costly repairs within the first year of ownership.

There are some quality concerns noted in the video, including infotainment software glitches and some apparent inconsistencies in the operation of those fancy automatic windows, but considering the price and that stellar warranty, I'd say the pros outweigh the cons in this case. For those who view their cars as another appliance, or those who simply want the financial security of not worrying about repair costs for a whole decade, the MG3 must be a pretty tempting option. Provided you live in Australia, of course — or Mexico, Europe, the Middle East, or other parts of the world where it's pretty damn cheap, too.