Honda Civic wins Best Urban Car under $50K

So much of Australia’s new-car buying attention is focused on SUVs and dual-cab utes. These types of cars seemingly suit our unique landscape down to a tee.

However, for everyone who’s not carting around a family – or a tray full of tools – the humble passenger car segment still exists and continues to offer an array of compelling options.

Although the market for this kind of car is declining, there are still plenty of options below a $50,000 price point.

Cars still have to work hard in this segment, too. They need to be affordable to run, practical, entertaining, and tech-forward. And these non-negotiables need to be packaged in compact dimensions that ensure small cars are easy to park.

This category was all-new for 2024 and the Volkswagen Golf netted the inaugural win. While it was invited back to defend its crown, it faced newer competition in the Hyundai i30 Sedan and Honda Civic.

The new Honda Civic’s inclusion in this category came as a surprise to Drive judges, despite the brand being encouraged to put cars forward for testing.

In any case, a late launch of the new hybrid-powered Honda Civic has deemed it eligible for our category, priced just under the $50,000 barrier in e:HEV L trim.

And this come-from-behind appearance blew our judges away. With that, here is your Drive Car of the Year 2025 Best Urban Car Under $50,000.

Drive's pick: Honda Civic e:HEV L from $49,900 drive-away

We fully expected the Volkswagen Golf to take out top honours in 2025, yet again. However, the late launch of the Honda Civic took our judging staff by surprise, and we were all impressed by the substantial updates to an already impressive car.

Now, with a more affordable hybrid entry point, it’s the best car in its segment by a long shot.

The driving dynamics stand out here as one of the Civic’s best attributes. It’s a sharper driving experience than you’ll find from a Volkswagen Golf or Hyundai i30 Sedan – perhaps even some Type R DNA has rubbed off on the underlying variants in the Civic line-up.

Add in Honda’s smooth and refined hybrid system for a quiet and frugal driving experience and the Civic hybrid shapes up as a brilliant package that hits all the high points.

One other thing about the Honda hybrid system, the claimed fuel figures as low as 4.9L/100km are easily achievable in the real world. So much of the time you’re chasing a low economy figure with other petrol-electric systems, but the Honda regularly returns figures even lower than what Honda itself claims.

Inside the cab, there is a surprising amount of space given its compact exterior dimensions. The Civic might only come to us in hatchback body style this time around, but it offers the right balance between interior packing and exterior dimensions.

There is only one variant that slots below out $50,000 cut-off for this Urban-buying category. But, the e:HEV L variant offers a great spread of equipment and technology.

Standard features include 18-inch alloy wheels, LED headlights with auto high beam, keyless entry and start, heated front seats and steering wheel, leather-accented interior with cloth seat inserts, dual-zone climate control, auto lights and wipers, and a 12-speaker Bose audio system.

Honda’s 9.0-inch infotainment system is a breeze to use with the underlying Google-based software, plus the configuration offered by the digital cluster is handy for the driver.

To top it off, it’s affordable to own. Honda offers five low-cost services priced at $199 each and there’s a five-year warranty that buyers can count on into the future.

For these reasons, the Honda Civic represents the best of its segment in 2025 and is crowned our Drive Car of the Year Best Urban Car Under $50,000.

Tom started out in the automotive industry by exploiting his photographic skills but quickly learned journalists got the better end of the deal. With tenures at CarAdvice, Wheels Media, and now Drive, Tom's breadth of experience and industry knowledge informs a strong opinion on all things automotive. At Drive, Tom covers automotive news, car reviews, advice, and holds a special interest in long-form feature stories.

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