The average purchase price for a new car is still more than $48,000. In addition, as the Federal Reserve increases interest rates, buyers might face higher annual percentage rates (APR ) related to their car loans. Buyers who are focused on a tighter budget might need to find a car that’s less than $30K.
What are the cheapest new cars for 2023? There are many affordable options and buyers can find models that are priced less than $20K and $25K. However, the cheapest new cars include these compact 2023 models:
- 2023 Mitsubishi Mirage $16,245
- 2023 Nissan Versa (Price TBD)
- 2023 Kia Rio $16,550
- 2023 Mitsubishi Mirage G4 $17,245
- 2023 Kia Forte $19,490
- 2023 Kia Soul $19,790
The price for the 2023 Nissan Versa is yet to be announced. However, the 2022 Versa starts at $15,580; the new model might be priced higher but will likely still be one of the more affordable models for budget-conscious buyers.
Unfortunately, the most affordable model for 2022—the Chevrolet Spark—will no longer be available for the 2023 model year. However, those who want a Spark might still be able to find one at local dealerships. The Spark starts at $13,600.
The Hyundai Accent, which also was one of the most affordable vehicles on the market, also isn’t listed on Hyundai’s website for a 2023 model. However, the 2022 Accent starts at $16,645.
New Cars Under 20000
All the most affordable 2023 models are less than $20K. In addition, the 2023 Subaru Impreza also starts at less than $20K—it has a starting MSRP of $19,795.
Are buyers only limited to seven new car models if they have less than $20K in their budget? Kelley Blue Book reports that the 2023 Nissan Sentra will probably be priced at around $20K. However, it’s not yet known if the Sentra will be priced below this budget. The Sentra might be the only other model that is affordable for buyers in this budget range.
While the Ford Maverick hybrid pickup truck was priced less than $20K for 2022, the 2023 model will start at $22,195. For buyers who want a hybrid pickup less than $20K, they might be out of luck.
New Cars Under 25000
Buyers with a higher budget of $25K will have a few more choices. With an extra $5K in the budget, buyers could have numerous models from which to choose from many different vehicle brands. Here’s what some of the most popular auto brands offer for less than $25K.
Chevrolet typically offers numerous affordable models. The brand produced the Spark, which was the most affordable compact car in 2022. For the 2023 model year, Chevrolet offers two models priced affordably (less than $25K):
- 2023 Chevrolet Trailblazer $22,100
- 2023 Chevrolet Malibu $24,700
Hyundai also is known for affordability. Many of its models also get decent fuel efficiency, too. For 2023, Hyundai offers the following affordable models that fit into a budget of less than $25K
- 2023 Hyundai Elantra $20,500
- 2023 Hyundai Kona $21,990
- 2023 Hyundai Elantra Hybrid $24,400
- 2023 Hyundai Sonata $24,950
Toyota is known for dependable vehicles that offer good safety ratings, too. Many Toyota models also offer good MPG specs. While Toyota doesn’t offer models below $20K, the brand offers three models priced below $25K for 2023:
- 2023 Corolla $21,550
- 2023 Corolla Hybrid $22,800
- 2023 Corolla Hatchback $22,965
Kia’s models are typically some of the most affordable on the market. The brand offers three 2023 models for less than $20K but only one additional model that’s priced below $25K.
The 2023 Kia Seltos starts at $22,840 and can get an estimated 30 MPG on the highway. The Seltos is a smaller SUV that has space for five. The 2022 Seltos received a Top Safety Pick (with specific headlights) from the Insurance Institute for Highway Safety.
Ford produces the best-selling vehicle in the country—the F-Series pickup. The Ford F-Series has been the most popular vehicle in America for more than four decades.
However, the only vehicle in Ford’s 2023 lineup that is less than $25K is the 2023 Maverick, which starts at $22,195. The Maverick debuted for the 2022 model year and proved to be so popular that Ford stopped accepting orders. Buyers interested in a hybrid Maverick pickup truck might place their orders for a 2023 model ASAP.
While the Maverick is currently the only 2023 model in Ford’s lineup that is priced less than $25K, the price for the 2023 Ford EcoSport has yet to be released. The 2022 EcoSport starts at $22,040; the small SUV could be another affordable option for 2023.
Honda typically competes with Toyota for several of its most popular models. Like Toyota, Honda is known for cars that are dependable and that also offer good safety ratings, too. Again, many models also offer good fuel efficiency.
How many vehicles will Honda offer in its 2023 lineup that are accessible to buyers with $25K and less to spend on a new car? Honda offers two models for buyers with this budget:
- 2023 Honda HR-V $23,800
- 2023 Honda Civic Sedan $24,650
Nissan offers several 2023 models that are priced for budget buyers. The brand offers two 2023 models that are priced less than $25K:
- 2023 Nissan Kicks $20,290
- 2023 Nissan Rogue Sport (possibly around $25,000)
The pricing for the 2023 Rogue Sport hasn’t been announced. However, Car and Driver estimates that the starting MSRP might be around $25K. The 2023 Nissan Kicks will start at $20,290 and will offer an estimated 31 MPG in the city and 36 MPG on the highway.
For 2023, Mitsubishi offers the most affordable model on the market—the 2023 Mirage. Buyers who can only spend $25K can choose either the Mitsubishi Mirage or the Mirage G4 for models that are priced less than $20K.
The only other model in Mitsubishi’s lineup that is priced less than $25K is the Outlander Sport. However, the 2023 price for the Outlander Sport is not yet available on Mitsubishi’s website. KBB reports, though, that the 2023 Outlander Sport is expected to start at $22,000.
Subaru is another affordable brand that offers a few options for buyers on a tighter budget. In addition to the 2023 Impreza (which is priced less than $20K), Subaru offers two 2023 models that are less than $25K.
The 2023 Crosstrek starts at $23,645, and the 2023 Legacy starts at $24,395. The Crosstrek is a small SUV, and the Legacy is a sedan. The Legacy can get an estimated 27 MPG in the city and 35 MPG on the highway.
Those who like Volkswagen might not be able to secure a new 2023 model for less than $20K, however the brand does offer two models priced at less than $25,000.
The 2023 Volkswagen Jetta starts at $20,665, and the 2023 Volkswagen Taos starts at $24,155.
Can Buyers Find Cheap New Cars that are Electric?
Car buyers who want to make the switch to a battery-powered motor and ditch the ever-changing price at the pump might wonder about affordable electric vehicles. Unfortunately, buyers will not be able to find a new 2023 electric vehicle for less than $25K.
The most affordable 2023 electric vehicles include these models:
- 2023 Chevrolet Bolt EV
- 2023 Chevrolet Bolt EUV
- 2023 Nissan Leaf
- 2023 Mazda MX-30
- 2023 Mini Cooper SE Electric Hardtop
The 2023 Chevrolet Bolt EV starts at $25,600, which is just above the $25K budget range for some buyers. The 2023 Bolt EV is the most affordable electric vehicle on the market, and it offers an estimated range of 259 miles.
The 2023 Chevrolet Bolt EUV is an electric sports utility vehicle. It is the second most affordable electric vehicle and starts at $27,200 and offers an estimated range of 247 miles.
While the 2022 Nissan Leaf once held the top position as the most affordable electric vehicle only in the market, the 2023 Bolt EV and Bolt EUV models bumped the affordable Leaf to the third place position. The 2023 Leaf starts at $28,040 and offers an estimated range of 212 miles. Not only are both Chevrolet models more affordable, but, unfortunately for Nissan, they also offer a longer range.
The 2023 Mazda MX-30 EV will have a starting MSRP of $33,470. Mazda has not yet released the estimated range specs for the 2023 MX-30 EV.
The 2023 Mini Cooper SE rounds out the list of the most affordable electric vehicles. The Mini Cooper SE has a starting price of $34,225 and offers an estimated range of 114 miles.
Shopping for Affordable New Vehicles
Buyers who can only spend less than $20K or less than $25K actually have more choices than they might realize. Many brands offer several vehicles that are priced less than $25K. While new 2023 models that are less than $20K are a bit more limited, buyers still can choose from about seven new models.
While buyers might prefer a new vehicle, they also might be able to expand their model options if they search for used or pre-owned vehicles. However, for buyers who want the newest model on the market, they might need to research their options from the different brands to find the vehicle that fits their budget and their driving needs, too.