Cars to avoid in Australia in 2026: safety ratings, recalls and problem models

Every car on sale in Australia is legal to buy, but not every car is a smart buy. Some new models score poorly in independent crash testing. Some were sold with safety gear that was advertised but not fitted. And some used cars carry problems that are on the public record, from court rulings to compulsory recalls.

This guide sticks to facts you can check yourself: ANCAP results, official consumer alerts, court outcomes and recalls. It is not a list of cars we simply dislike. For every car below, we also tell you what to buy instead.

Quick answer: In 2026, think twice about the BYD Sealion 5 (three star ANCAP rating), the KGM Musso EV and Torres EVX (sold without some advertised airbags) and the Suzuki Swift (three stars). On the used market, avoid 2011 to 2016 Ford Focus, Fiesta and EcoSport models with the PowerShift automatic, check any 2015 to 2020 Toyota 2.8 diesel for DPF history, and never buy a car with an outstanding Takata airbag recall.

Our verdict in one line: a low price is never a bargain if the car is less safe or carries a known fault, and in every case below there is a safer or more reliable choice for similar money.

How we chose these cars

We only included a car if at least one of these applies:

• A weak ANCAP rating. ANCAP is the independent crash test body for Australia and New Zealand. Five stars is the benchmark. Three stars means a car falls well short in at least one area.
• An official ANCAP consumer alert. These are issued when a car on sale differs from what was advertised.
• A court finding or regulator action over a known fault.
• A compulsory recall that makes a car dangerous until it is fixed.

Ratings and recalls change, so always check the ANCAP website and the government recalls site for the exact car you are looking at.

New cars to think twice about

BYD Sealion 5: three stars from ANCAP

The Sealion 5 is Australia's cheapest plug in hybrid SUV at $33,990 plus on road costs for the Essential and $37,990 plus on road costs for the Premium. That price is tempting. But in September 2026 ANCAP gave both versions three stars under its tougher 2026 test rules.

ANCAP said crash protection was respectable, but protection dropped for larger occupants and in higher severity tests. The bigger issues were crash avoidance and safe driving aids. Its emergency lane keeping did not step in during ANCAP's road edge tests, and it misses features that other BYD models have, including child presence detection, a seatbelt misuse alert and protection against pressing the accelerator by mistake. It is the first BYD to fall short of five stars.

Buy this instead: the Geely Starray EM-i, a plug in hybrid SUV from $37,490 plus on road costs with a five star ANCAP rating from early 2026. If you want to stay with BYD, every other BYD model ANCAP has rated holds five stars.

KGM Musso EV and Torres EVX: missing airbags

In August 2026 ANCAP issued consumer alerts for two electric KGM models. The Musso EV dual cab ute was advertised with eight airbags, including a front centre airbag and a driver's knee airbag. ANCAP found every locally supplied Musso EV sold since November 2025 has neither, so it has six airbags, not eight. About 306 had been sold by the end of July 2026.

The Torres EVX SUV was found to be missing its advertised centre airbag, with seven fitted instead of eight. KGM has updated its advertising, but ANCAP has encouraged KGM to change production so the airbags are fitted. Both models are also unrated by ANCAP. The diesel Musso and the petrol and hybrid Torres are not affected.

Buy this instead: if you want an electric or plug in ute, look at the five star rated Toyota HiLux BEV or the BYD Shark 6. If you already own a Musso EV or Torres EVX, contact KGM or your dealer about your car's specification.

Suzuki Swift: three stars

The current Swift Hybrid is a likeable little hatch from $24,990 drive away, and Suzuki deserves credit for fixing its biggest problem. When it launched, local cars had less safety equipment than European cars and scored just one star. From August 2025, Australian Swifts were upgraded to match, lifting the rating to three stars. That is better, but it still trails most rivals.

Buy this instead: the MG4 EV Urban from $31,990 drive away, a five star rated small electric car. If you want petrol power and a small budget, compare the ANCAP results of each small car on your list before you sign.

Check the date on any ANCAP rating

ANCAP ratings now carry a date stamp and expire after six years. Several well known nameplates are now officially unrated because their old ratings have lapsed, including the Suzuki Jimny and the LDV T60 Max. Unrated does not always mean unsafe, but it means there is no current independent result to rely on. Our rule: if two cars suit you equally, buy the one with a current five star rating.

Used cars to avoid or check very carefully

Ford Focus, Fiesta and EcoSport with the PowerShift automatic (2011 to 2016)

These small Fords used a dual clutch automatic called PowerShift. Owners lodged thousands of complaints about shuddering, slipping and failures. In 2018 the Federal Court ordered Ford Australia to pay a $10 million penalty for unconscionable conduct in how it handled those complaints, following action by the ACCC.

Plenty of these cars are now cheap on the used market. That is exactly why first car buyers should be careful. If you are set on one, choose a manual, or get a full service history and a pre purchase inspection.

Buy this instead: a used Toyota Corolla, Mazda3 or Hyundai i30 from the same years with a conventional automatic or CVT.

Toyota HiLux, Prado and Fortuner 2.8 diesel (October 2015 to April 2020)

This is not a "never buy". These are tough vehicles that hold their value. But diesel particulate filter (DPF) faults on cars with the 2.8 litre and 2.4 litre diesels were the subject of a long running class action. In October 2026 Toyota agreed to pay $750 million to settle the claims covering about 264,000 vehicles, subject to Federal Court approval, with a hearing expected on 20 November 2026.

If you are buying one used, ask for the service history, confirm Toyota's DPF update has been done, and watch for warning lights or white smoke on a test drive. If you owned one in that period, check Toyota Australia's DPF class action page.

Buy this instead: a 2020 or later HiLux or Prado with the updated system, or the new generation HiLux.

Any car with an outstanding Takata airbag recall

The Takata recall was the largest in Australian history. Most cars have been fixed, but some are still on the road. The ACCC's advice for the most dangerous "alpha" airbags is clear: do not drive the car until the airbag is replaced. Repairs are free.

Before you buy any used car built before about 2018, check it at ismyairbagsafe.com.au and on the government's vehicle recalls site. If a recall is open, make the fix a condition of sale.

How to check any car before you buy

• Search ANCAP for the exact model and build date, and note the date stamp.
• Check recalls on the government's vehicle recalls site and with the manufacturer.
• Run a PPSR check to make sure the car is not stolen, written off or under finance.
• Ask for a full service history, especially for diesels and dual clutch automatics.
• Book a pre purchase inspection with a mechanic you trust.

Not sure what to buy instead? Tell us your budget and what you need, and we will find you a safe, five star car at the best price anywhere in Australia. Get the best deal.

Frequently asked questions

What cars should I avoid buying in Australia in 2026?

New cars with weak safety results, such as the three star BYD Sealion 5 and Suzuki Swift, and the KGM Musso EV and Torres EVX, which were sold without some advertised airbags. On the used market, avoid PowerShift automatic Ford Focus, Fiesta and EcoSport models from 2011 to 2016, and any car with an open Takata airbag recall.

Is a three star ANCAP car safe?

It meets the legal minimum to be sold, but it falls well short of the five star benchmark in at least one area. For the same money there is usually a five star alternative.

Should I avoid a used Toyota HiLux with the 2.8 diesel?

Not automatically. Check that the DPF update has been done and that the service history is complete. The $750 million class action settlement agreed in October 2026 covers HiLux, Prado and Fortuner diesels acquired between October 2015 and April 2020, subject to court approval.

How do I check if a car has a recall?

Search the vehicle on the Australian Government's vehicle recalls website and ask the manufacturer or a dealer. For Takata airbags, use ismyairbagsafe.com.au.

Which cheap new cars have five star safety ratings?

In 2026, five star choices under $40,000 include the MG4 EV Urban, the Geely EX2 and the Leapmotor B05. Check ANCAP for the full and current list.

Want a car you can trust? We will use our network to find the best deal anywhere in Australia on a new, demo, near new or used car that meets your safety and budget needs. Get the best deal. Selling a car from the list above? We can help you sell your car, and you can see what it is worth with our car value tool.

Facts checked on 28 October 2026 against ANCAP media releases and consumer alerts, ACCC and Federal Court records, and Toyota Australia's DPF class action notice. Prices are manufacturer list prices plus on road costs or manufacturer drive away prices as published at that date. Images: BYD Australia, KGM Australia, Suzuki Australia and Wikimedia Commons contributors as credited.