Best small cars in New Zealand for 2026 – top picks by type

Taking a look at what’s driving around on the roads lately, you may well be thinking that hatchbacks could be on their way out. The global obsession with SUVs has certainly changed the landscape, but here in New Zealand, the small car still represents a large part of our national fleet. And for good reason!

As government subsidies for electric vehicles are taken away, it’s causing many of us to reconsider where the best savings might lie. With living costs also squeezing everyone’s wallets, thinking about downsizing the car can be a sensible way to keep finances in check. Smaller vehicles can offer lower initial purchase prices, greatly reduced tyre and maintenance costs, cheaper insurance premiums, and fuel efficiency that larger vehicles simply can't match.

Best compact cars to choose today

Defining a "small car" in 2026 is a bit more complex than it used to be. The market is a mix of traditional hatchbacks, city-focused EVs, and "hatchbacks on stilts" (or, small SUVs basically). To help you understand this mess of powertrain choices and safety ratings, we’ve broken down the best small cars in New Zealand into some clear categories.

Below, you can take a look at some specific models that handle our roads, from the stop-and-go traffic of Auckland to the winding paths of the Rimutaka Hill Road.

As petrol prices can change as often as the weather here, hybrid technology is really a sensible choice for motoring anywhere these days! However, there is some debate on the best small hybrid cars in New Zealand. You have distinct choices between Toyota's series-parallel systems, Honda's focus on electric drive, and Suzuki's “mild-hybrid” approach.

Not sold on having to use public charging stations? Even a keen interest in reducing your petrol costs is reason enough to check out the pros and cons of hybrid cars to help understand what these top picks might offer you.

Toyota Yaris Cross Hybrid

The Yaris Cross GX and GXL Hybrid models are a pretty sweet crossover of what Kiwis want: a small car footprint and the higher, comfortable seating position of an SUV.

Why it’s a winner: Reliability and efficiency are the headlines here! Toyota’s 1.5-litre, 3-cylinder hybrid system is brilliant at using minimal fuel, and during road testing, it often gets between 3.6L and 4.1L/100km. It can easily handle the urban grind with no issues and uses the electric motor for heavy lifting in traffic.

The downsides: It isn't the most thrilling drive. Owners point out that the steering feels a bit vague and disconnected. There is also a specific quirk regarding the 12-volt auxiliary battery that, if you leave the car sitting idle for too long (like a holiday for three weeks), it can discharge. You need to remember to run the car in "Ready Mode" occasionally to keep it topped up.

Honda Jazz e:HEV

Honda has taken a different engineering path with the Jazz (or Fit), using their i-MMD system. In this setup, the petrol engine mostly acts as a generator to power the electric motor, which in turn drives the wheels.

Why it’s a winner: Because the electric motor drives the wheels most of the time, you get instant torque (253Nm) right from a standstill. This makes the Jazz brilliant for hill starts in places like Wellington or Dunedin. It’s a bit like driving an EV without the range anxiety! Plus, it retains the famous "Magic Seats," giving it cargo versatility that rivals cars a size larger.

The downsides: It’s pricey. With the RS trim starting around $36,700, you are paying a premium for that advanced engineering compared to the entry-level Suzukis.

Suzuki Swift Hybrid

The 2025 Suzuki Swift uses a "Mild Hybrid" system. Unlike the Toyota or Honda, it cannot drive on electric power alone. Instead, a small integrated starter generator helps the engine during takeoffs, saving fuel.

Why it’s a winner: It is the rational economic choice, starting at under $29,000, it goes a long way to undercut the competition. Comparatively speaking, for city drivers who don’t do many miles, the fuel savings of a more expensive hybrid might take a decade to pay off the difference in purchase price. It’s light, nimble, and arguably the best value option on the list.

The downsides: Some critics label it a "compliance hybrid" because it can’t run on electricity alone. Also, you may see that the 2025 model holds a 3-star safety rating because it doesn’t have a centre airbag, which affects pedestrian protection scores rather than structural problems.

Best small EVs

The small EV market is splitting into two: budget-friendly Chinese innovators and premium European lifestyle options. If you are looking to ditch the pump entirely, this is where the smart money is headed.

Nissan Leaf

The Leaf is the veteran of the segment, but it is facing some headwinds in 2026.

Why it’s a winner: It remains a comfortable, familiar, and widely available option. It's a known quantity for mechanics and insurers alike. You’ve seen them everywhere for good reason!

The downsides: The Leaf is falling behind. Its biggest issue in New Zealand is the CHAdeMO charging port. Most of the country's charging infrastructure is rapidly shifting to the CCS2 standard, meaning Leaf owners may find fewer fast-charging options over time. Additionally, its ANCAP safety rating expired at the end of 2024, leaving new models technically "unrated".

BYD Dolphin

The Dolphin is shaking up the market by offering specifications normally found at much higher price points at a much more appealing price tag.

Why it’s a winner: It uses BYD’s "Blade Battery" (LFP chemistry), which is incredibly durable and safer regarding fire risks than older lithium technologies. It also comes with a valid 5-star safety rating and charging speeds that outpace the Leaf.

The downsides: The driving dynamics are tuned for comfort to a point where the suspension feels bouncy, and the brake pedal feel has been described as "mushy". Owners also frequently complain that ADAS (driver assistance) systems are overly intrusive or "naggy" on New Zealand roads.

Mini Electric (Mini Cooper SE)

The J01 generation Mini Cooper Electric is for those who view their car as a fashion statement as much as a means of transport. Its pedigree, combined with modern technology, is what helps this model rank across multiple lists.

Why it’s a winner: It’s a blast to drive and looks fantastic. Crucially, you want to look at the "SE" model, which offers a WLTP range of over 400km, making travelling between cities actually worth it. The cheaper "E" model has a 300km range that might be tight for New Zealand's highway gaps.

The downsides: It had a hiccup in safety testing regarding child seats. Specifically, the ISOFIX anchor points were hard to access, which penalised its score. It's something to keep in mind if you have young children, but not necessarily a dealbreaker.

Best small SUVs

Sometimes you need a little more ground clearance and a higher point of view when getting around, without the bulk of a massive wagon. This selection from the best small SUVs in NZ offers versatility and practicality.

Mazda CX-3

Despite being on an older platform, the CX-3 still accounts for a huge chunk of Mazda’s sales here in NZ. The sleek exterior design is often mimicked by a range of other makers, and the technology that powers it is industry-leading.

Why it’s a winner: It feels premium. If you opt for the SP20 trim, you get an interior with suede and gloss accents that feels a class above a standard Yaris or Vitara. It’s a pleasant place to sit.

The downsides: It shows its age mechanically. It lacks a hybrid option, meaning fuel economy (around 6.3L/100km) is poor compared to modern rivals. It’s also known for letting quite a bit of road noise into the cabin on our coarse seal roads.

Hyundai Kona

The new generation Kona has grown up, fixing the tight rear legroom issues of the previous model. Although Hyundai cars weren’t always the best of breed, they’ve come a long way over the years.

Why it’s a winner: It’s a "multi-energy" platform, meaning it was designed as an EV first. This results in a modern layout and great tech. The hybrid variant is a sweet spot, offering 4.3L/100km efficiency without the range anxiety of the full EV version.

The downsides: Safety ratings are getting stricter. The Kona holds a 4-star ANCAP rating (from 2024) because its pedestrian detection systems were rated "adequate" rather than "good". Occupant protection is still high, but it still might not be the safest small car NZ has to offer.

Suzuki Vitara

The Vitara is the rugged outlier in a segment of "soft-roaders." With Suzuki famous across Japan for their budget models, the technology they’ve developed is helping them stake a niche in NZ’s market.

Why it’s a winner: It is one of the only small SUVs to offer a genuine AWD system (AllGrip). If you need to get up a gravel driveway, a wet boat ramp, or an access road to a ski field, this may be the only sub-compact that can handle it!

The downsides: The interior is full of hard plastics and feels a generation behind the Mazda or Hyundai.

Overall best small cars

These picks stand out for overall great value, performance, and reliability. If you’re looking for the best small cars that NZ has to offer right now, these may be exactly what’s in order.

Toyota Corolla

The Corolla Hatch is the default choice for a reason, and for 2025, it is exclusively hybrid. Toyota’s production line advancements continue to keep its fleets at the top of global reliability scorecards, and the Corolla is a testament to its shrewd pricing strategy.

Why it’s a winner: The 1.8-litre powertrain is more refined than the smaller engines in the Yaris or Swift. It doesn't make that "thrashing" noise when you try to merge onto a motorway or climb the Bombay Hills. Notably, it also offers superior seat comfort and stability for open-road touring.

The downsides: Bureaucracy. Its 5-star ANCAP rating expired in December 2024, so new models are technically "Unrated". This doesn't mean the car is unsafe; it has the same physical architecture, but it can be a headache for fleet buyers with strict 5-star mandates.

Mazda 2

If you enjoy driving, this is the sub-$30k benchmark that car companies aspire to. Mazda 2 sales are consistent globally, and its combination of a sporty appearance and decent mileage has captured significant market share.

Why it’s a winner: It uses a proper 6-speed automatic transmission rather than the CVT found in most rivals, which feels much more natural. Combined with Mazda’s G-Vectoring Control, it feels planted and confident in corners.

The downsides: Like its big brother, the CX-3, it can be noisy at highway speeds. Reports indicate that some older models can be a bit sensitive to crosswinds. There is also a sense of limited cargo and rear passenger space.

Kia Picanto

With many brands abandoning the "micro-car" segment, the Picanto stands almost alone.

Why it’s a winner: It’s the ultimate city car – tiny, easy to park, and now sporting a very aggressive, modern look following its 2025 facelift. Kia often ranks in the top 10 small cars NZ has on the roads, and it’s the simplicity that drives its popularity.

The downsides: The Automated Manual Transmission (AMT) can be jerky if you don't know how to drive it (you often need to lift off the throttle slightly when it shifts). It’s also physically very small, which impacts its safety profile against the huge Utes on NZ roads.

If you’re buying a used car, first reveal its history with carVertical

While a professional mechanical inspection is a no-brainer when buying a used car, it generally only reveals the vehicle's current condition. It tells you what is broken now, but not necessarily how it got into that state.

A history report can reveal old, common used car problems that can cause unexpected expenses and even safety issues down the line. This is particularly vital in New Zealand, where a large share of our small-car fleet consists of used imports from Japan.

One of the most critical things to check is mileage. Knowing what mileage can tell you about a car is essential, as it is the main indicator of wear and tear, and why scammers tamper with it to artificially increase a vehicle’s value. A car might look shiny in the dealer’s yard, but if it has done 200,000km as a taxi in Tokyo before being clocked back to 50,000km, you are buying a potential time bomb.

A carVertical report also helps you verify original specifications (crucial for insurance), see historical photos (to check for previous accident damage), and view registration dates. Getting a report is simple: just enter the VIN on the carVertical site, and you'll get a comprehensive view of the car's past life before you commit to its future.

Tips to keep your car running for years to come

Since cars are generally a depreciating asset, the smartest financial move you can make is to buy a good one and keep it running for as long as possible. Here are a few tips to save money in the long run.

Keep up with the regular maintenance

It sounds obvious, but following the manufacturer’s service schedule is the only way to avoid massive repair bills. This includes oil changes, filter replacements, tyre rotations, and fluid checks.

Oil changes are probably the single most important maintenance task. Engine oil degrades over time and loses its lubricating ability. Every skipped oil change or use of low-quality oil accelerates engine wear significantly. For hybrids, this is just as important, even if the engine isn't running 100% of the time.

Address corrosion as soon as you notice it

New Zealand’s geography is ruthless against steel. With no location more than 120km from the sea, our entire fleet is subject to high atmospheric salinity. This accelerates the oxidation process.

"Surface rust" in chip marks is common, but "scale rust" (flaking metal) is a structural failure. Used imports often lack the underbody sealants applied to "NZ New" vehicles, so if you own an import, you need to be vigilant. Treat surface rust early, and check out our guide on how to prevent rust for tips and techniques to protect your investment.

Adjust your driving habits

How you drive matters as much as what you drive! Smooth acceleration, gentle braking, and avoiding over-revving the engine can drastically reduce stress on your vehicle’s components and improve fuel economy. In a hilly country like ours, anticipating the gradient and carrying momentum is better for your car than stomping on the gas halfway up the hill.