These are the best family cars in Australia for 2023

In the market for a new family car in 2023? One of these picks might just hit the spot.

In 2023, Australia’s best family cars have to work harder than ever.

It now goes beyond just child seats and big boots, with modern-day buyers craving impressive fuel economy, advanced safety technology, low ongoing ownership costs and powertrains that don’t sacrifice driver enjoyment.

Thankfully, carmakers are answering the call with some seriously family-friendly offerings, providing powertrains and specification grades to suit every lifestyle and budget.

Luckily, the Drive team had the opportunity to narrow down the plethora of appealing options to a sharp shortlist during our testing for the 2023 Drive Car of the Year.

Here are our picks for the best family cars of the moment…

Best medium SUV for families: Nissan X-Trail

The long-anticipated new Nissan X-Trail was worth the wait – providing family buyers with a poised, practical and premium-feeling medium SUV.

Across the four model grades, there’s the choice of five seats or seven seats, front-wheel-drive or all-wheel-drive, and hybrid or full-petrol – kicking off from $36,750 before on-road costs.

The thoughtful and practical cabin combines plenty of space with elegantly executed modern convenience features, and even the entry-level model is well-equipped with safety and technology.

On the road, the X-Trail is quiet and refined – especially in e-Power hybrid form – with impressive dynamics and towing capabilities up to 2000kg, which is an increase of 500kg on the old model.

Best hybrid SUV for families: Mitsubishi Outlander

Efficient, well-packaged and flexible for growing families, the plug-in hybrid Mitsubishi Outlander is an excellent all-rounder and the perfect entrypoint into the hybrid world.

With four different trim levels available from $55,490 plus on-road costs, the plug-in hybrid Outlander offers value-for-money no matter your budget, with an interior that provides quality beyond its price.

On the road, the ride is soft but secure and the cabin is quiet, with impressively frugal fuel consumption (we saw as low as 3.4L/100km on our Drive Car of the Year test loop when using the electric-only range).

The added bonus of a compact third row provides extra convenience in the event of any school-run crises.

Best small SUV for families: Nissan Qashqai

The new-generation Nissan Qashqai offers a streamlined four-grade line-up kicking off from $33,890 before on-road costs, and all variants come equipped with the same 1.3-litre turbocharged four-cylinder engine.

This powertrain package is quiet and smooth but boasts solid performance, while the driver assistance and safety technology is well integrated into the on-road experience.

The surprisingly spacious cabin contains an accommodating boot and premium finishes, plus an impressively advanced infotainment system offers smartphone mirroring capabilities and an advanced overhead-view camera on the higher grades.

Our pick of the bunch is the ST-L grade, which provides some useful driver assistance extras as well as a well-appointed cabin with an upmarket feel.

Best large SUV for families: Toyota Kluger

As is the theme of most successful SUVs today, the Kluger range offers peak flexibility for the modern buyer, with all-wheel-drive or front-wheel-drive variants and the choice of a petrol engine or Toyota’s famously efficient hybrid powertrain.

Comfortable and familiar, the updated Kluger offers Toyota’s trademark affordable servicing costs, plus a much-improved infotainment system and lots of interior storage, with a starting price of $51,120 before on-road costs.

The third row is a bit of a squeeze, but it’s useful for those who need to occasionally carry extra passengers.

For us, the sweet spot in the range is the GXL grade – ideally in hybrid form – which offers comfort and technology in equal measure.

Best electric car for families: BYD Atto 3

One of the newest electric cars in Australia for 2023 also happens to be one of the best – and most affordable.

Starting at $48,011 before on-road costs, the BYD Atto 3 isn’t “cheap” by most people’s standards, but it offers good value for money.

The interior might feature some daring design choices, but importantly it also offers plenty of space and is comfortable and modern.

Performance is zippy – although, beware the low-grip tyres – and it’s a smooth and easy electric vehicle to drive.

Best people mover for families: Kia Carnival

Before we get into all the highlights of the 2023 Kia Carnival, let’s start with possibly its most appealing factor: five ISOFIX-compatible seats.

Starting at $47,480 before on-road costs, the Carnival line-up contains both petrol and diesel powertrains and the grades range from basic to incredibly well-equipped.

Few cars on the market are capable of accommodating so many child seats – or adult passengers – at once, and the Carnival does it with ease, without ever losing its composure on the road, even when fully loaded.

Even when every seat is occupied, access to all three rows is easy, plus a deep boot provides a genuine ability to accommodate luggage as well as passengers.

If sheer space is your priority, the Carnival is king of its segment – with an attractive appearance that still allows for some emotional appeal.

Best dual-cab ute for families: Ford Ranger

Our 2023 Drive Car of the Year winner might be a ute, but it’s also a viable family car, with a large, versatile range catering to every need and budget.

As one of the larger utes in the segment, the new Ranger offers plenty of space and comfort and its technology offering is a strong point – both in terms of safety and convenience.

Equipped with nine airbags and a fresh five-star safety rating from ANCAP, there is little room for criticism for the Ranger on the safety front.

Thanks to a well-tuned ride and handling and predictable and reliable intervention from its driver assist systems, the Ranger is a consistent bet both on road and off.

Best off-road SUV for families: Land Rover Defender

With the new Defender, Land Rover has somehow seamlessly blended the off-road prowess of the legendary nameplate with modern convenience and comfort.

Of course, this enticing combination will come at a steep price, with the Defender range kicking off from an eye-watering $81,950 before on-road costs for the base-spec, three-door 90 variant.

Refined on-road yet impressively capable off-road, with both diesel and petrol options (and a supercharged V8), there’s nothing the modern Defender can’t handle.

Kids will love the cabin too, with cool technology to play with (hello, air suspension party tricks) and the option of a third row for back-seat bandits.

Best medium luxury SUV for families: Jaguar F-Pace

Standout infotainment, a capacious boot and seriously good looks are just some of the highlights of the Jaguar F-Pace, the best luxury medium SUV in Australia.

Family buyers will delight in the smooth ride quality (no car-sickness here!), active noise-cancelling technology and comfy leather seats.

Impressive body control and ample power ensure it retains driver enjoyment, while comprehensive safety technology offers plenty of peace of mind.

Naturally, anything Jaguar touches doesn’t come cheap, and the F-Pace has a starting price of around $82,000 – but you’re unlikely to regret splashing out.

Best small luxury SUV for families: Volvo XC40

As the winner of the ‘best medium luxury SUV’ segment for three years running, the Volvo XC40 continues to improve as an upmarket offering for families.

Kicking off from just over $50,000, the XC40 offers impressive value for money – packing in a powerful engine, premium materials in the cabin, impeccable build quality and plenty of safety technology.

A small family will find the cabin accommodating, thanks to a boot that can swallow up most of your stuff without trouble – although second-row legroom is a little more limited.

Drive Car of the Year judges described the XC40 as “a true benchmark of compact luxury”. Enough said.

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