The dilemma

Peter's old Ford Laser has filled his family's second-car role for more than a decade but is now on its last legs. He's after a cheap urban runabout to replace it but isn't sure what he should be aiming for in his budget range. It doesn't need to be flash, just light on the fuel, reliable and easy and affordable to maintain. Being able to easily sling his bike in the back is another big priority.

The budget

Less than $10,000

The shortlist

Targeting a light or city-sized car would allow Peter to maximise fuel economy and minimise maintenance costs while also giving him the chance to target the latest year model possible.

But boot space is a potential sticking point. Our recommendation aside, most city and light-sized contenders just don't have the lugging abilities he seems to be looking for.

So we might expand our reach to the small-car segment, where bigger boots are generally the rule and the value/economy/maintenance-cost prospects are still strong.

2008-15 Honda Jazz, from $5300*

This Honda conforms to the light-car rulebook with its easy driving, easy parking and economical petrol engines.

If you pin down a MY12-on model – not hard to do in this budget range – you get stability control and curtain airbags, regardless of model.

But the real attraction of the Jazz in this context is its packaging. Its cabin and boot are comparably sized to many small cars and its clever back seat – which, in addition to folding flatter and lower than usual, has seat bases that fold up – makes carrying bigger objects a cinch.

Downsides? The base 1.3-litre engine and its ride, handling and refinement all show up as a bit underdone on the open road. It asks for more regular servicing (six-monthly/10,000km) than some alternatives.

Read Drive's Honda Jazz reviews:

Road test: Honda Jazz GLi
Used-car review: Honda Jazz

2007-12 Hyundai i30cw, from $6400*

This Hyundai is far from a memorable looker, drive or performer. Some cheaper aspects mean its cabin can look a bit rough in well-used examples.

Two of its key advantages – its diesel-engine option and its maker's five-year warranty – don't really apply here. The former's benefits don't really translate to an urban-runabout scenario and models in this price range have typically exhausted the latter.

But the i30 is easy to drive, easy to park, dependable and respectably economical. It falls under the umbrella of its maker's lifetime fixed-price servicing regime and only asks for yearly/15,000km attention.

This wagon version delivers a welcome increase in carrying capacity over the hatch without impacting noticeably on its small-car strengths.

All MY10-on models – which, like the Jazz, can be targeted at this budget – have stability control and curtain airbags in their standard safety fitout.

Read Drive's Hyundai i30 reviews:

Used-car review: Hyundai i30

2002-07 Toyota Corolla wagon, from $2500*

This Toyota's has some of the most bomb-proof reliability of any car on the market.

Pin down one of the last ones in low-kilometre, well-maintained form and you can expect years of affordable, trouble-free service, a key advantage over the occasionally troublesome Holden Astra wagons that are also kicking around this budget range.

Its petrol engines are respectably thrifty, it's easy to drive and park and this wagon version – like its Hyundai rival – allows you to gain impressive load-lugging abilities without sacrificing the benefits of a compact package.

But this generation of Corolla is an older design than the i30, Astra and other small cars in this price range. Its appearance, driving qualities and refinement all reflect it.

It's the only car here not to offer access to stability control and curtain airbags. Short six-monthly/10,000km service intervals are one pimple on an otherwise robust ownership deal.

Read Drive's Toyota Corolla reviews:

Used-car review: Toyota Corolla

Drive recommends

The Corolla's load-lugging potential and rock-solid ownership make it almost the perfect candidate for this kind of scenario but in this price range and company it's ultimately hobbled by its ageing design and inferior safety fitout.

It's a tight fight between the Jazz and i30, despite their differences. The fact the former delivers a similar level practicality to its rival in a smaller, more economical package is a particularly laudable feat.

The latter, though, runs just that bit closer to Peter's criteria with its easier, more secure servicing. With little to fundamentally separate them on most other key fronts, that's just enough to give the Hyundai the upper hand.

* Values are estimates provided by Redbook based on an example averaging up to 20,000km per annum and in a well-maintained condition relevant to its age.