Best family cars in NZ: reliable options under $20,000

If you were to find out what five different Kiwis might call a ‘family car,’ you’d most likely end up with five very different answers. For some of us, it could be a rugged hauler for camping trips in the Coromandel, but for others, it may be the urban fortress for carrying out school runs. However, the market is clearly shifting toward SUVs for their practicality and aesthetics.

Buying a family vehicle is a serious decision – with a budget of $20,000, the market is packed with options, but separating the gems from the lemons can be a genuine challenge. This segment is currently the primary battleground for value-conscious buyers seeking the perfect balance of utility and safety.

Safety, practicality, and reliability: What really matters

With your most precious cargo in the back (when they’re not being too noisy), the ‘cool factor’ really just needs to be at least second on the list. While heated seats and sunroofs are nice to have, they aren’t a top priority every time. The three main aspects of your next car should be safety, practicality, and reliability.

• Safety is everything. Modern cars may have their share of tech, but it’s essential that the safety features work as intended. Keep in mind that prior accidents can reduce a vehicle’s rigidity and functionality.
• Practicality rules the daily routine. Can your entire family fit comfortably inside? Does the stroller and the weekly supermarket run fit in the boot together? Always worth thinking about.
• Reliability saves sanity. Parents have enough worries without a breakdown on the State Highway. The car must start every time you need it and avoid unexpected issues.

5 best family cars to buy used in New Zealand

We have analysed the market to find vehicles that hit the sweet spot for New Zealand conditions. These top picks were selected based on a range of metrics: safety ratings, boot space, mechanical reliability, and performance in our unique topography.

Toyota RAV4 (2013-2018)

As an investment, few vehicles come close to the fourth-generation Toyota RAV4, widely regarded as the ‘gold standard’ in its class. It holds its value incredibly well, so higher upfront costs (often referred to as the ‘Toyota Tax’) pay off later as the RAV4 depreciates slowly.

Not only is this RAV4 safe and roomy, but it’s also one of the most reliable vehicles on the market. Feel free to choose any engine you like, but the 2.5L petrol engine appears to offer the best performance-to-price ratio as it avoids the complexity of diesel engines and offers better towing capability than the smaller 2.0L CVT models.

• Boot space: Generous at 506 Litres (seats up), though be aware of a slight ‘hump‘ in the floor with the seats folded.
• Safety: Great standard safety features, but higher trims also offer Blind Spot Monitoring and other neat amenities.
• Verdict: The lowest-risk option for buyers who want an unbreakable daily driver.

Subaru Outback (2015-2019)

The Subaru Outback is often considered an SUV, but it’s really a station wagon pushing the limit. It’s got an impressive 213mm of ground clearance, making it ideal for driving on both gravel driveways and unsealed tracks.

Diesel options are available, but petrol variants are recommended. The 2.5L petrol engine is the volume seller and fits a 'rugged family' profile perfectly. A major bonus for this generation (BS model) is the inclusion of EyeSight technology on most NZ models, which adds valuable safety tech such as Adaptive Cruise Control and Pre-Collision Braking.

• Boot space: A massive 512 litres with seats up, expanding to 1,801 litres. The long load floor is perfect for camping gear.
• Safety: Excellent active safety via the EyeSight stereo-camera system.
• Verdict: The 'Swiss Army Knife' for the Kiwi lifestyle.

Lexus RX450h (2010-2015)

As the premium arm of Toyota, Lexus offers familiar solid reliability but with a significantly higher level of comfort and noise insulation.

In fact, the RX450h is the wildcard entry here, as a $100,000 engineering masterpiece you can now buy for under $20k. It pairs a powerful 3.5L V6 with electric motors, delivering performance like a V8 with the fuel economy of a 4-cylinder sedan (approx. 8.0L/100km).

• Boot space: 446 Litres. The floor is high to accommodate batteries, so slightly less practical than the RAV4 despite being a larger car.
• Safety: Brilliant occupant protection, surrounded by ten airbags.
• Verdict: A 'smart money' buy, provided you budget around $1,300–$2,500 for a potential hybrid battery refurbishment in the future.

Skoda Octavia Wagon (2012-2019)

The Octavia challenges the high-riding SUV trend, offering excellent boot space combined with superior fuel economy and handling that feels two generations ahead of some competitors.

Available as a spacious wagon, it’s an attractive entry into European refinement. Earlier TSI petrol engines had timing chain issues, but the 2.0L Diesel (TDI) is a legendary workhorse capable of 1000km+ per tank. Just ensure the car has been properly serviced.

• Boot space: The class leader with 610 litres (seats up), it can handle gear that would leave many SUVs struggling.
• Safety: Solid European safety cell that feels stable and planted on the open road.
• Verdict: The massive space efficiency leader for families who prioritise cargo capacity.

Mazda CX-5 (2012-2017)

The CX-5 is a staple on New Zealand roads for good reason: it is stylish, practical, and widely regarded as the 'driver's car' of the segment.

Although Mazda engines had issues in the past, the Skyactiv-G petrol engines (2.0L and 2.5L ) are reliable and punchy. The facelifted models are particularly desirable for their modernised interior.

• Boot space: Approx 403 Litres. Smaller than the Octavia or RAV4, requiring a bit of Tetris work for big trips.
• Safety: Excellent visibility and handling, with solid SUV rigidity.
• Verdict: Perfect for families with older kids who need less stroller space and want a better driving experience.

There’s more to it than choosing the correct model

Deciding on the make and model is the fun part of car shopping. When it comes to actually finding a specific vehicle that hasn't been abused, the challenge grows. There are always listings out there which may seem too good to be true, and it’s important to uncover exactly what you’re getting into before making a potentially risky purchase.

Always check the vehicle’s history with carVertical

A car's current reliability is mostly dictated by its past. Understanding a car's history helps you assess whether a 'clean' looking SUV may have been clocked or even been in a crash.

carVertical history reports contain a wealth of data associated with a car, and often include a useful photo section. Seeing historical photos of a vehicle can reveal past damage that has been cosmetically repaired but remains structurally compromised.

Mileage is one of the best indicators of a vehicle's remaining life, but it is also the easiest to manipulate.

Mileage rollbacks are common, especially with imported vehicles. Cars with lower apparent mileage can be priced higher, due to their increased perceived value. Our Mileage section helps you identify discrepancies, ensuring you aren't overpaying for a car that has travelled further than the odometer suggests.

carVertical reports also include registration dates, original specifications at sale, and important details about any natural disasters the car was exposed to. Obtaining a report is a straightforward yet crucial step to give you peace of mind before signing any paperwork. Simply visit the carVertical website, enter the VIN, and click 'Get Report' to get the full picture.

Properly check the overall vehicle’s condition

While a history report reveals the past, a professional inspection reveals the 'now.' We strongly recommend taking your shortlisted candidate, along with any report data, for a pre-purchase inspection to verify its mechanical condition.

When doing your initial walk around the car, keep an eye out for these red flags:

• Corrosion spots: NZ's maritime climate is harsh. Check for rust around wheel wells, windows, and crucially, the spare wheel well (a common moisture trap).
• Flood damage indicators: Look for silt or mud behind the fuse box or under the dash – recent weather events have flooded the market with water-damaged cars.
• Unusual sounds: Listen for a 'death rattle' in engines or whining differentials.
• Rough shifting: In CVTs (Subaru/Toyota), a shudder on hill starts suggests transmission issues. In DSGs (Skoda), jerky reverse engagement is a warning sign.
• Uneven tyre wear: This can indicate poor alignment or suspension issues, like weeping shock absorbers.
• Badly worn interior: If the steering wheel and pedals are worn smooth but the odometer says 'low kms,' walk away.

Consider future running costs

Remember that the purchase price is just the entry fee. Maintenance, insurance, fuel, and tyres add up quickly, even for the best SUVs NZ has to offer.

Currently, petrol cars pay tax at the pump, but the government plans to move all vehicles to a universal Road User Charge (RUC) system (approx. $76 per 1000km) by around 2027. This means the traditional 'efficiency advantage' of small petrol engines will erode. A thirsty Outback and a frugal Octavia will soon pay the same tax per kilometre.

Projected annualcCosts (Fuel + RUC):

• Lexus RX450h: ~$2,800 currently (rising to ~$3,584 under universal RUC).
• Skoda Octavia 1.4: ~$2,275 currently (rising to ~$3,339 under universal RUC).
• Toyota RAV4 2.5: ~$3,325 currently.