You can still buy a great new car for under $40,000.
Car prices are through the roof. The average price of a new car is now over $40,000.
New car prices have increased almost 18 per cent from 2020 to 2021. And if you think turning to the used market is an alternative, you’re out of luck there too. Used car prices are at an historic high and experts say this trend shows no signs of slowing down until the end 2023 at the earliest.
Mercifully, you’re not completely out of luck if you’re working with a (frankly, totally sensible) budget of around $40,000 for a new car.
Factoring out any predatory dealer mark up, these are ten great cars manufacturers intended to start under $40,000.
Acura ILX
Starting at $31,400
The best thing you can say about the Acura ILX (and I truly do mean this as a compliment) is that it does a very, very good job of convincing you it’s more than just a dressed up version of the last generation Honda Civic.
On the contrary, the ILX’s Civic underpinnings are one of its strong suits. It means you get a terrific power plant (a 201 horsepower 2.4-litre four-cylinder, long-since unavailable on the Civic) with Honda reliability and service prices. But then you also get the full Acura treatment on the inside. The ILX’s interior luxuries are as good as anything under $40,000.
Should you wait for the ILX’s replacement, the Integra? After that reveal? The answer is a resounding, “Meh.”
Audi Q3
Starting at $38,650
It’s a German luxury SUV that you can buy for under $40,000. Does that mean it’s mostly a rebadged VW? Yes, but your neighbors won’t know that.
The Q3 packs the same 228-hp turbo I4 as the Volkswagen Golf GTI, so it’s gutsy enough. It’s also practical with 670L of cargo space behind the rear seats. It’s also full of bells and whistles like Audi’s MMI touch display. Really, you’d have a hard time convincing someone this wasn’t a car worth twice the money.
And because it’s an Audi, owning it will make you feel good about your general standing in the world. Because, let’s be honest. What this really is is an affordable status symbol.
Ford Mustang EcoBoost
Starting at $29,395
It wasn’t so long ago that the average Joe could pick themselves up a V8-powered Mustang GT for under $40,000 out of the showroom. Now you’re lucky to touch one under $60,000.
Happily, though, the entry-level Mustang EcoBoost offers all the performance (and then some) that the GT used to a decade ago.
With 310 horsepower on tap, the EcoBoost has no problem hanging with real sports cars. Sincerely, the four-cylinder Mustang is powerful and quick enough to impress even the most jaded of enthusiasts. And because it’s a Mustang, you can have just about all the same interior and infotainment options as the higher-end GT trim.
Honda Civic Si
Starting at $33,150
It is to no one’s surprise that the latest Honda Civic Si has been well-received. It does have to be said the latest Si costs more than the old one… but is strangely down on power as well. Still, the Si offers much sports car fun in a sub-compact package. It’s also, mercifully, still offered in a good ol’ six-speed manual transmission.
The Si’s 1.5-litre four-cylinder turbocharged engine delivers 200 horsepower to the front wheels, which can now be wrapped in summer-only tires and are complemented by larger rotors and stiffer suspension over the standard model.
The Si’s set of bolstered sport seats complete the package. Which means this is a lot of boy-racer for the money.
Mazda CX-5
Starting at $31,281
While other manufacturers have managed to close the gap in terms of luxury offerings at a price point, Mazda still seems to be doing it best.
A few years after the hype of Mazda’s “bargain luxury” approach, models like the CX-5 remain fiercely competitive in the segment and remain decidedly more luxurious than any of its direct competitors — while also feeling more athletic and spirited than so many other humdrum crossovers.
It’s also quite good looking, too.
Mazda MX-5
Starting at $35,177
Name a driver-focused, two-seater roadster at an entry-level price point? Just as it has been since its inception, the answer remains, “Miata”.
Aside from Mazda’s new design language providing the MX-5 with levels of equity far beyond its price point, the real bargain to be had with this Mazda is joy. There are few cars left on the market that will let you put the top down and shift your own gears. And none of them can be had as inexpensively as the MX-5.
Toyota GR 86 / Subaru BRZ
Starting at $31,490
Like the MX-5, what the GR-86 is simply bursting at the seams with is “fun”.
Not that it’s hopelessly unusable, Spartan on the inside or terrible at behaving itself. The GR 86 is a massive upgrade over the old 86 GT — which was mostly harsh and a pain to drive in the civilized world. A healthy interior upgrade makes the GR 86 positively comfy on the inside. And a newly designed 2.4-litre boxer engine fixes the infamous “torque dip” problem which plagued the old car. The GR 86 now has no trouble cruising on the highway or crawling through traffic.
However, when you do start misbehaving, the GR 86 can put a smile on your face as big as any sports car worth three times the money.
Toyota RAV4
Starting at $28,850
There’s a reason the RAV4 remains in the top five best-selling cars in North America.
Sure, its off-road “inspired” styling is writing some checks that its chassis can’t cash. And it’s recently lost some cargo space. And the drivetrains are all a little dull.
But with a price starting under $30,000, the RAV4 still drives a very hard bargain. It looks dignified, gets great gas mileage, has reasonable acceleration and an available options list as long as any of its competitors… all backed by the knowing feeling of Toyota reliability.
It’s not that there’s anything amazing about the RAV4. It’s that there’s nothing at all wrong with it.
Volvo XC40
Starting at $39,950
This one just squeaks in just under the $40,000 limbo bar. But how could we not include it? It’s such a looker. Like the Audi Q3, the XC40 is a subcompact SUV which communicates more equity than its market segment and price point would suggest.
It has its known foibles. The infotainment system is finicky. It’s not quite as fuel efficient as its competitors. And you’ll have to pay a premium for the T5 if you want some decent power.
But then there’s the styling. Inside and out this may be the best looking vehicle within its segment. It’s charming, dignified and dare I say about a crossover, beautiful.
VW Golf GTI
Starting at $31,495
No car list, it seems, is complete without the GTI. Every time I write it into a list, I think, “Do I just not know enough cars?”
But come on. The Golf GTI was, is and will hopefully forever be the “most bang for your buck” car you can buy. Still a fun and engaging drive, the latest model offers a spirited 240 horsepower, produced by a turbocharged four-cylinder engine, and yes, you can still have it in a manual.
While the GTI skimps on no options on the inside, its instruments have, unfortunately, gone primarily digital. Also, I’m not crazy about that new lower front grill on the exterior. It’s busy. Which is very un-GTI like.
Still. There’s no doubting the sheer levels of value to be had with a GTI.
Keyword: 10 Inexpensive New Cars Which Transcend Their Price Tags