Most Fuel-Efficient Cars to Consider in 2027

Fuel prices are one of those costs you notice every time you fill up. So when you're looking for your next car, choosing a fuel-efficient model can make a real difference to your ongoing budget.

But fuel economy isn't the only number worth looking at.

A car that uses less petrol may cost more to buy, while an electric vehicle can reduce your reliance on petrol altogether but comes with different considerations around charging, purchase price and running costs.

As we head into 2027, Australian buyers have more choices than ever across petrol, hybrid, plug-in hybrid and electric vehicles. So which type makes the most sense for you?

What makes a car fuel efficient?

Fuel efficiency refers to how much fuel a vehicle uses to travel a certain distance. For petrol and diesel vehicles, it's generally measured in litres per 100 kilometres (L/100km).

The lower the number, the less fuel the vehicle uses.

For example, a car using 5L/100km will generally consume less fuel than one using 8L/100km when travelling the same distance.

Australian buyers can compare official fuel consumption figures through the Australian Government's Green Vehicle Guide. It provides information on fuel consumption, emissions, energy consumption and electric range for vehicles sold in Australia.

It's important to remember that these figures are based on laboratory testing. Your actual fuel consumption can vary depending on traffic, driving style, weather, vehicle load and where you drive.

Which types of cars are most fuel efficient?

There isn't one type of vehicle that will be the most efficient for every driver.

Hybrid cars

Hybrids combine a petrol engine with an electric motor and battery. They can be particularly efficient in urban and stop-start driving because the electric motor can assist the petrol engine and recover energy through regenerative braking.

This makes hybrids worth considering if you spend a lot of time commuting around cities and suburbs.

Electric vehicles

Electric vehicles don't use petrol or diesel, so their energy consumption is measured differently. Instead of L/100km, you'll generally see electricity consumption measured in watt-hours per kilometre or a similar metric.

For EV buyers, it's worth looking at both the vehicle's energy efficiency and its driving range, as well as where you'll charge the vehicle.

Plug-in hybrids

Plug-in hybrids combine a petrol engine with a larger battery that can be charged externally.

They can be useful for drivers who want to complete shorter daily journeys using electric power while retaining a petrol engine for longer trips.

However, their real world efficiency depends heavily on how often the battery is charged and how much of your driving is completed using electric power.

Efficient petrol cars

You don't have to buy a hybrid or EV to reduce your fuel costs. There are still efficient petrol vehicles available, particularly smaller cars and models designed around lower weight and smaller engines.

For some buyers, a highly efficient petrol vehicle may make more financial sense than paying a premium for an electrified model.

What fuel-efficient cars should you consider in 2027?

The Australian market continues to expand, so your shortlist will depend on whether you want a small car, SUV, family vehicle or something larger.

Some models worth researching include:

• Toyota Corolla Hybrid: A long-standing option for buyers who want low fuel consumption without moving to an electric vehicle.
• Toyota Corolla Cross Hybrid: An SUV alternative for buyers who want additional practicality while retaining hybrid efficiency.
• Toyota RAV4 Hybrid: A larger option for families who want SUV space and hybrid technology.
• Kia Sportage Hybrid: A medium SUV combining hybrid technology with additional space and available all-wheel drive.
• Hyundai Kona Hybrid: A smaller SUV option for drivers looking for a more compact vehicle with hybrid technology.
• The exact models, specifications, prices and fuel-consumption figures available in 2027 may change, so it's worth checking the latest Australian specifications when you're ready to buy.

If you’d like to check your options for second hand cars, our used cars page might be a great place to start.

Does better fuel economy really save money?

It can, but don't look at fuel consumption in isolation.

Imagine you're comparing a $30,000 petrol car using 7L/100km with a $40,000 hybrid using 4.5L/100km.

The hybrid uses considerably less fuel, but that doesn't automatically make it cheaper to own.

Your annual kilometres matter too. Someone driving 5,000km a year may see relatively modest fuel savings, while someone travelling 25,000km could benefit much more.

The Green Vehicle Guide's fuel-cost calculator can help you estimate annual fuel costs based on your vehicle's consumption and the distance you drive.

How can you finance a fuel-efficient car?

Once you've chosen the type of vehicle you want, work out what fits comfortably into your budget.

Don't start with the maximum amount you could potentially borrow. Instead, consider the repayment alongside your existing expenses and ongoing vehicle costs.

Our car loan calculators can help you compare different vehicle prices and repayment scenarios before you start shopping.

Remember to leave room for insurance, registration, servicing, fuel or charging and unexpected expenses.

Is a fuel-efficient car worth buying in 2027?

For many Australian drivers, a fuel-efficient car could help reduce ongoing running costs.

But there's no single vehicle that's best for everyone.

A hybrid may suit a city commuter, an EV could work well for someone with reliable home charging, while an efficient petrol car may be the better option for someone focused on a lower upfront cost.

Instead of choosing a car based solely on its fuel economy figure, look at the whole cost of ownership.

If you're planning to upgrade in 2027, getting your budget and finance options organised early can help you shop with greater confidence.

You can explore your car finance options with Pink Loans and see what may suit your circumstances.

FAQs

What is the most fuel-efficient type of car in Australia?

Electric vehicles generally use less energy per kilometre than petrol vehicles, while hybrids can be particularly efficient in stop-start driving. Efficient petrol cars can also be a practical option for buyers wanting a lower upfront cost.

Are hybrid cars cheaper to run than petrol cars?

They can be, particularly for drivers who regularly travel in urban areas. However, purchase price, insurance, servicing, finance repayments and annual kilometres all affect whether a hybrid will actually save you money overall.

Are electric cars cheaper to run?

EVs can have lower energy costs than petrol vehicles, depending on electricity prices and how you charge. Home charging can be particularly convenient, but buyers should also consider purchase price, insurance, tyres and servicing.

Should I buy a hybrid or electric car in 2027?

It depends on your circumstances. A hybrid may suit drivers who regularly take longer trips, while an EV could work well if you have convenient charging and most of your driving fits within its range.

Does fuel economy really make a difference?

Yes, particularly if you drive a lot of kilometres each year. However, your savings will depend on fuel prices, annual kilometres and the vehicle's purchase price. The Green Vehicle Guide provides a fuel-cost calculator to help estimate potential savings.