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Best SUVs under $40k

1.Hyundai Tucson

8.1

Hyundai Tucson
2 badges available

$38,350 - $59,850*MRLP

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What we love

  • -Smooth, powerful and efficient hybrid system
  • -Roomy interior with great technology, big boot
  • -N Line package adds worthwhile equipment to base model
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What we don't

  • -Servicing could be cheaper, with longer intervals
  • -Speed limit warning can be annoying, though it’s not hard to turn off
  • -Nexen tyres not particularly grippy
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Winner - Best Medium SUV Under $50K
Drive Car of the Year 2025
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Finalist - Best Medium SUV under $60k
Drive Car of the Year 2026
Finalist - Best Medium SUV under $60k
Drive Car of the Year 2026
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2.Kia Sportage

7.8

Kia Sportage
5 badges available

$38,490 - $60,370*MRLP

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What we love

  • -Spacious, well-appointed interior
  • -Perky hybrid tech, controlled ride
  • -Long list of safety and convenience features
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What we don't

  • -More expensive to buy than key rivals
  • -Fiddly touch-sensitive media and climate-control bar
  • -Interior storage not as generous as Tucson, new RAV4
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3.Hyundai Kona

7.7

Hyundai Kona
4 badges available

$32,950 - $71,000*MRLP

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What we love

  • -Fuel-sipping hybrid powertrain
  • -Head-turning looks
  • -Very practical for a small SUV
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What we don't

  • -Sporty looks at odds with unsporting dynamics
  • -Price puts it above some (smaller) electric cars
  • -Expensive to service
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Winner - Best Small SUV under $50k
Drive Car of the Year 2025
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Winner - Best Small SUV under $60k
Drive Car of the Year 2026
Winner - Best Small SUV under $60k
Drive Car of the Year 2026
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4.Nissan QASHQAI

7.7

Nissan QASHQAI
6 badges available

$34,665 - $54,365*MRLP

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What we love

  • -Vibrant Magnetic Blue paint
  • -Hybrid versions available for less money
  • -Good levels of spec as standard
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What we don't

  • -Space is tight
  • -No powered tailgate
  • -Ride can be busy
DcotyFinalistIcon
Finalist - Best Small SUV under $60k
Drive Car of the Year 2026
Finalist - Best Small SUV under $60k
Drive Car of the Year 2026
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5.GWM Haval H6

7.6

GWM Haval H6
2 badges available

$34,490 - $49,490*MRLP

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What we love

  • -Excellent EV driving range
  • -Features galore for the price tag
  • -Practical interior works for all passengers
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What we don't

  • -Lurchy powertrain at low speed
  • -Frustrating lane-keep assistance
  • -No volume dial
DcotyFinalistIcon
Finalist - Best Medium SUV under $60k
Drive Car of the Year 2026
Finalist - Best Medium SUV under $60k
Drive Car of the Year 2026
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6.Leapmotor B10

7.6

Leapmotor B10
2 badges available

$37,888 - $40,888*MRLP

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What we love

  • -Wonderfully balanced drive
  • -Great fit and finish inside and out
  • -Sizeable interior for a small SUV
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What we don't

  • -Safety assist systems are overbearing 
  • -Some infotainment screen lag
  • -Cheap tyres fitted from factory 
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7.BYD ATTO 2

7.5

BYD ATTO 2
2 badges available

$31,990 - $35,990*MRLP

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What we love

  • -A very attractive price
  • -Well-built interior 
  • -Incredibly easy to drive
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What we don't

  • -Lane-assist functions could use some work
  • -Very average infotainment screen in the Dynamic trim
  • -Lower-spec variant comes with horrendous tyres
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Winner - Best Electric Vehicle under $40k
Drive Car of the Year 2026
Winner - Best Electric Vehicle under $40k
Drive Car of the Year 2026
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8.Geely Starray EM-i

7.5

Geely Starray EM-i
2 badges available

$37,490 - $39,990*MRLP

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What we love

  • -Strong warranty/servicing offer
  • -Lots of space
  • -Incredibly quiet
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What we don't

  • -Lots of body roll in corners
  • -Nagging safety alerts
  • -Needs more buttons
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9.Honda ZR-V

7.5

Honda ZR-V
4 badges available

$37,900 - $54,900*MRLP

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What we love

  • -Great outward visibility for the driver
  • -Premium, high-quality interior feel
  • -Attractive entry-level pricing
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What we don't

  • -Clumsy adaptive cruise control
  • -Boot and back seat space are slightly compromised
  • -Four-star safety trails best in class
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10.Mitsubishi Outlander

7.5

Mitsubishi Outlander
5 badges available

$39,990 - $58,740*MRLP

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What we love

  • -Looks, feels and drives like a regular car
  • -Improved ride and handling
  • -Good space in second row and boot
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What we don't

  • -Driver attention monitor
  • -Third row is impractical to use
  • -Infotainment old-looking and limited
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Drive's Best Cars

Drive's team of experts reviews and rates hundreds of the latest models each year to help you find your next new car. Browse our Best Car lists to discover how different models rank against each other and what our team loves and doesn't love about these top-rating vehicles.

Best SUVsBest SUVs
Best Small SUVsBest Small SUVs
Best Medium SUVsBest Medium SUVs
Best Large SUVsBest Large SUVs
Best SUVs under $40kBest SUVs under $40k
Best SUVs under $50kBest SUVs under $50k
Best SUVs under $60kBest SUVs under $60k
Best SUVs under $80kBest SUVs under $80k
Best SUVs under $100kBest SUVs under $100k
Best Luxury SUVsBest Luxury SUVs
Best Small Luxury SUVsBest Small Luxury SUVs
Best Electric SUVsBest Electric SUVs
Best Electric SUVs under $80kBest Electric SUVs under $80k
Best Hybrid SUVsBest Hybrid SUVs
Best Hybrid SUVs under $70kBest Hybrid SUVs under $70k
Best Luxury Hybrid SUVsBest Luxury Hybrid SUVs
Best Diesel SUVsBest Diesel SUVs
Best Medium Luxury SUVBest Medium Luxury SUV
* ‘MRLP’ is the manufacturer’s recommended list price as provided by our data provider and is subject to change, so is provided to you for indicative purposes only. Please note that MRLP is inclusive of GST, but is exclusive of any options and does not include on-road costs such as registration, CTP, stamp duty and dealer delivery. Where an MRLP is stated as a price range, this reflects the lowest to highest MRLP provided for that model range across the available variants.