The era when American customers could purchase a new car for under $20,000 is long gone. The average transaction price for new vehicles in this market has now surpassed $50,000. The silver lining is that used cars today are far more durable, making the 160,000-mile mark less daunting than it once was. Additionally, if you’re looking to enjoy the warranty benefits of a new car, there are still some solid options available for under $25,000.
Of course, this depends on whether dealerships are actually selling these vehicles at prices below $25,000. Price markups at U.S. dealerships remain prevalent, even for budget-friendly models. To help buyers avoid overpaying, Consumer Reports analyzed real transaction data from TrueCar to identify the 5 most affordable and worthwhile car models, detailed below.
Kia K4
Model: Kia K4 LXS 2026
MSRP: $23,290
Average Markup: $1,088
Average Transaction Price: $24,378
Kia K4
The Kia K4 is essentially the new generation of the Forte, also known as the K3 globally. While it’s the priciest model on this list, buyers are currently paying about $1,000 above the MSRP. However, the average price of this South Korean sedan remains under $25,000.
The Kia K4’s design involves some compromises, but it offers a smooth ride, spacious interior, and excellent fuel efficiency for a non-hybrid vehicle. It’s neither a luxury nor a sports sedan, yet Consumer Reports highly recommends it. “Unlike many budget-friendly cars that sacrifice quality to cut costs, the K4 has very few drawbacks,” notes Consumer Reports. It’s certainly worth considering.
Chevrolet Trax
Model: Chevrolet Trax LT 2026
MSRP: $23,200
Average Markup: $1,124
Average Transaction Price: $24,324
Chevrolet Trax
Not everyone prefers affordable sedans, and fortunately, there are a few worthy SUVs under $25,000. The Chevrolet Trax is one of them. While it lacks all-wheel drive and isn’t the smoothest ride, it offers great value for its price. Despite being a compact SUV, the new Chevrolet Trax provides more interior space than expected.
Hyundai Elantra
Model: Hyundai Elantra SEL Sport IVT 2026
MSRP: $23,750
Average Markup: $282
Average Transaction Price: $24,032
Hyundai Elantra
If you like the Kia K4 but aren’t sold on its design, the Hyundai Elantra could be the perfect alternative. Mechanically, the two share similarities since Hyundai and Kia are sister brands, but their styling differs. If possible, opt for the Hyundai Elantra Hybrid for a smoother ride and better fuel efficiency. However, the standard model is still worth a test drive.
Hyundai Venue
Model: Hyundai Venue SEL FWD 2026
MSRP: $22,825
Average Markup: $575
Average Transaction Price: $23,400
Hyundai Venue
If the Chevrolet Trax isn’t your style or you’re looking for something cheaper, the Hyundai Venue is a strong contender in the compact SUV segment. Like the Trax, it lacks all-wheel drive, but this isn’t a major issue since it’s not designed for off-roading. With good tires, its winter performance remains reliable. Neither the Trax nor the Venue is luxurious, but both offer more practical space than their size suggests.
Toyota Corolla
Model: Toyota Corolla LE 2026
MSRP: $22,925
Average Markup: -$138 (even lower than MSRP)
Average Transaction Price: $22,787
Toyota Corolla
While the Honda Civic didn’t make the list this time, the Toyota Corolla is a solid choice for those seeking an affordable Japanese sedan. Remarkably, buyers in the U.S. are currently paying less than the MSRP for this model.
The Toyota Corolla features a long-standing design and basic interior but boasts exceptional durability and fuel efficiency. Like the Hyundai Elantra, the hybrid version is the best option if your budget allows, but the standard model is still a great choice, especially for long-term ownership (10+ years).
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