Buying a new car is always an exciting idea. That fresh interior smell, the zero miles on the odometer, they all contribute to a feel-good factor that is hard to match. Until you realize just how quickly a new vehicle depreciates. And if you are considering buying a box-fresh entry-level car, there may be a better option out there.We decided to compare a 2023 Toyota Camry to the cheapest new car out there, a Nissan Versa. The Camry is bigger and much more luxurious. However, is it really a financially savvy idea to invest in an older, larger car rather than a brand-new model? We did some digging to find out. The Case For A Camry Toyota The Toyota Camry regularly tops the sales charts thanks to its mix of space, practicality, and great pricing. They are known for being reliable and affordable to maintain, making them the perfect choice for families that want a solid daily driver.Driving fun is not top of the agenda, but that can be said of most rivals in this segment. Few owners would wake up at 6 AM to go for a fun weekend blast in the hills. Instead, they'd be on the way to their kid's baseball game with four excited teenagers and all their gear in the trunk. The Camry excels as a family hauler.If your budget doesn't quite stretch to the $29,100 base MSRP of a 2026 Camry, is it better to step down a few levels and buy something like a new Nissan Versa instead, which starts at just $17,390? We'll get to the Versa in a minute, but let's look at whether a used Camry for the same price is a viable option.In 2023, a base LE trim Camry started at $25,945. Add taxes, delivery charges, and a few extras, and most vehicles left the dealership at closer to $27,500. Three years later, these models are now selling for as low as $17,500. Bear in mind that these are previous-generation models because a new Camry was introduced in 2025.ToyotaThe figures below show the values of the 2023/2024 model year Camry, separated by trim level. We only focused on vehicles with clean titles and those with under 60,000 miles. Unsurprisingly, the two lower trims are where the best value can be had. You'd miss out on larger wheels and leather seats, and would have to make do with a 7.0-inch touchscreen instead of a larger 9.0-inch unit, but the driving experience is much the same.The standard powertrain was a 203-hp, 2.5-liter four-cylinder with an eight-speed automatic driving the front wheels. There was also a 202-hp all-wheel-drive version. The XSE made 205 hp with AWD and 206 hp with FWD. There was also a 208-hp hybrid model, and a 301-hp 3.5-liter V6 was also offered on the XLE, XSE, and TRD trims.The V6 and hybrid models command a premium over those with only the four-cylinder combustion engine. Opting for a non-hybrid 2023 Camry LE or SE is your best bet for affordable motoring on a budget. But Isn't A New Compact Car A Better Purchase? NissanYou may still wonder whether a car like a new Nissan Versa isn't a better buy. It comes with a longer warranty, potentially lower running costs, and, of course, that new-car smell. The downsides are a much smaller cabin, fewer standard features, and less power.A base Versa starts at $17,390, but factor in destination charges, taxes, and other dealer fees, and that figure is now closer to $19,000. That's still a seriously good deal, and it makes the Versa the only new car you can still buy for under $20,000.However, there's a very important consideration before deciding to buy a new Versa because the model is only available while the current stock lasts, as production ended in 2025. The good news is that there are still plenty of Versas on dealer lots. When they do eventually run out, the Hyundai Venue, a compact city SUV, is the next cheapest offering, with a base MSRP of $20,550 before taxes.Considering that the Versa produces just 122 hp, is a tight fit for a family of four, and is less well-equipped, the older Toyota Camry comes across as the superior car in just about any comparison. Would this still be the case in a few years from now? Let's see. What About Long-Term Ownership? Toyota It is almost guaranteed that an older vehicle from a higher-class segment is going to beat a new entry-level car, but what about the daily realities of long-term ownership? In terms of running costs, both cars should be fairly similar. According to J.D. Power data from the past few years, the Camry edges out the Versa on quality and reliability, which bodes well for the long term. That initial new car depreciation is also an important consideration, and the older Camry wins here hands down.Even though we are looking at two- to three-year-old models that aren't all that old, most have already lost a big chunk of their initial value. This is why the Versa may cost you more over the next two years. Fuel economy is also very close despite the Camry being so much larger and more powerful, and if you opt for a manual Versa, it would actually consume more fuel than a base Camry.Nissan All things considered, a 2023-2024 Toyota Camry is the better choice than the Versa. However, this isn't a dig at the Nissan because it rings true for any new entry-level compact car. Most Camrys run for decades with basic maintenance, and buying a two-to three-year-old example today for around $20,000 represents great value in the long run. With so many cars on the market, and the option of FWD, AWD, gas, hybrid, and even a V6, you can find the perfect used Camry to fit your budget.
+26 others
