I’ve bought a lot of cars over the years, and I can tell you one thing for sure. Paying top dollar for an asset that drops in value the second you drive it off the lot is a terrible feeling.
Yet, that’s exactly what most buyers are doing. According to Kelley Blue Book, the average transaction price for a new vehicle in the U.S. is holding near an eye-watering $50,000.
You don’t have to spend anywhere near that amount to get a reliable, brand-new ride with a factory warranty. If you’re willing to skip the luxury badges and massive touchscreens, there are still a handful of genuine bargains out there.
Based on recent market data and pricing from U.S. News and Cars.com, here are the 10 absolute cheapest new vehicles you can buy right now.
The 10 most affordable new cars on the market
Nissan Versa: Starting around $18,330, the Versa is currently the undisputed king of cheap cars. It’s a simple, compact sedan that gets the job done. While it won’t win any drag races, it boasts an impressive EPA-estimated 35 miles per gallon combined. That means you’re saving money at the dealership and at the gas pump.
Hyundai Venue: If you prefer the look and ride height of a crossover SUV, the Venue is your cheapest option at roughly $22,150. It’s essentially a hatchback with a lift, making it easy to park in tight city spaces.
Chevrolet Trax: Starting at $23,495, the Trax is a roomy, stylish crossover that provides lots of value. It’s the cheapest vehicle GM currently sells and comes with plenty of standard tech features.
Kia Soul: The boxy Kia Soul starts around $21,885. It’s been a long-time favorite for budget buyers because its unique shape provides a surprising amount of passenger and cargo room. It’s proof that you don’t have to sacrifice interior space just because you’re buying a cheap car.
Nissan Kicks: Coming in around $23,220, the Kicks offers a larger standard engine and an attractive base price for a small SUV.
Nissan Sentra: If the Versa is a bit too small for your liking, its larger sibling starts at $23,845. The Sentra offers a more comfortable cabin and ride quality than you’d expect at this price point. It’s a solid, practical commuter car that won’t destroy your monthly budget.
Kia K4: Replacing the older Forte model, the brand-new K4 starts at $23,535. It brings a sleek exterior and standard wireless smartphone connectivity to the compact car segment.
Hyundai Elantra: Starting at $23,870, the Elantra offers quality driving characteristics, a surprisingly nice cabin, and Hyundai’s legendary 10-year powertrain warranty.
Toyota Corolla: The Corolla starts around $24,120. It’s exactly what you expect: a highly reliable, fuel-efficient machine that will likely run forever with basic maintenance.
Volkswagen Jetta: Rounding out the top 10 at $25,270, the Jetta brings a touch of European driving refinement and a spacious interior to the budget category.
Don’t forget the hidden costs
Buying a cheap car is a great start, but the sticker price isn’t the only number that matters. You also have to factor in long-term maintenance, gas, and insurance premiums.
If you need help navigating the dealership and finalizing the price on any of these models, check out “The Best Way to Buy a New Car (and Avoid Car Salesmen).”
If you’re upgrading to a newer model, your insurance rates are likely going to change. Make sure you shop around and compare quotes before you sign any dealership paperwork.
(Related: See “This Car Insurance Mistake Is Costing 71% of Drivers — and They Don’t Even Realize It.”)
The bottom line is simple. You don’t need to spend 50 grand to get from point A to point B. Stick to the basics, buy what you can comfortably afford, and keep the rest of your cash working for you in an investment account.
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