New car prices are averaging close $50,000, and recent data shows near 10% of car buyers who take out loans for their vehicles are paying more than $1,000 monthly for their vehicles.
Consumers paid an average of $49,758 for new cars in June, according to Cox Automotive’s Kelley Blue Book. The average June price for new cars was up 0.4% from May’s average of $49,220, and up 0.6% over May 2025’s average of $48,907, according to the group.
Meanwhile, new data from Lending Tree shows 9.6% of Americans with active auto loans had at least one monthly payment of $1,000 or more. That’s also up from 8.6% last year. Lending Tree said a $1,000 car payment is the equivalent to 14% of the median household monthly income of $7,147.
“A $1,000 car payment is really, really high, but many Americans are clearly willing to take them on,” LendingTree chief consumer finance analyst Matt Schulz said in a statement.
Erin Keating, an executive analyst for Cox Automotive, noted many car buyers are shopping out of necessity these days.
“After several years of inflation, high interest rates, and policy volatility, many buyers have come to view uncertainty as the new normal,” Keating said, also in a statement. “If they need a vehicle, they’re moving forward and adjusting their budget and vehicle choice accordingly.”
The numbers are still staggering enough to leave even the most experienced car shopper reeling. With that in mind, the USA TODAY Cars team compiled a list of the best budget-friendly cars of 2026 that we’ve tested so far.
Best Affordable Sedan: 2026 Kia K4
Kia has become synonymous with affordability when it comes to brand-new cars and SUVs. The K4 is an affordable small car that is also available as a hatchback.
Despite its low price ($22,290), the 2026 Kia K4 is far from barebones. Its upper trims are loaded with great standard features and don’t break the bank.
The GT-Line Turbo starts at just $28,390 and comes with a 1.6-liter turbocharged four-cylinder engine (190 horsepower), a Harman Kardon premium audio system, and dual 12.3-inch panoramic displays.
If value is what you’re after in a new sedan, there’s no beating the affordable 2026 Kia K4.
Another Top Affordable Sedan: 2026 Mazda3
The Mazda3 is a venerable sedan that is sporty, but still packs a punch when you rev its engines.
The 2026 Mazda3 starts at a modest $24,650 before taxes and additional fees. It’s available in five trims, ranging from the base model 2.5 S to the top of the line 2.5 Turbo Premium Plus. Our Mazda3 Turbo Premium Plus test vehicle starts at $36,940, but it comes with all the bells and whistles like a Bose premium audio system with 12 speakers, and a 360 view monitor. It also offers the ability to remotely start your car using the MyMazda app.
If you want style to go with your savings, the Mazda3 is the way to go.
Best Affordable Hybrid SUV: Mazda CX-50 Hybrid
The Mazda CX-50 hybrid tested is the Premium Plus, which is the highest trim model of the popular two-row SUV, and it starts at just under $40,500. Entry-level hybrid trims start at a little under $35,000, while the base model of the similar gas-powered Mazda CX-5 SUV starts at just under $30,000.
The Mazda CX-50 hybrid comes with a 2.5-liter, four-cylinder hybrid engine. Mazda says it offers up an EPA-estimated total driving range of 551 miles. The hybrid SUV achieves an estimated 38 mpg combined (city and highway).
If you want a fuel-efficient crossover SUV that’ll cost you less than $40,000 in most cases, the Mazda CX-50 hybrid is the way to go.
Best Affordable Electric SUV: Toyota bZ
The Toyota bZ is the automaker’s first fully electric car, and after receiving a midcycle refresh in 2025, the 2026 model has a 25% larger battery range than its earlier iteration.
The bZ starts at just under $35,000 for a base model XLE. All bZ vehicles come with a lithium-ion battery and use a single electric motor for front-wheel-drive models and dual motors for all-wheel-drive models. Toyota says it offers up to 338-horsepower total system power output. The electric SUV achieves an estimated 314 miles per battery charge in front-wheel drive.
If you’re looking for a fully electric that won’t cost you more than $50,000, the Toyota bZ is the way to go.
Charles Singh, an Autos Connect Reporter for The Tennessean, part of the USA TODAY network, contributed to this report. Keith Laing is an automotive reporter on the National Trending Desk at USA TODAY.
