Affordable small cars are a bit of a rarity in this day and age. $20,000 (or less) used to score such fuel efficient cars as the Chevrolet Spark, Kia Rio, Mitsubishi Mirage, Honda Fit, and Ford Fiesta. But, sadly, not anymore. Not even the Toyota Corolla, Nissan Sentra, or Honda Civic. BMW, Mazda, and Volkswagen don’t make cars at this price anymore, either, and American choices are slim. This also isn’t leather seat, all-wheel drive (AWD), or extensive safety feature territory, either.
The cheap car field is a bit thin, to say the least But there are still some value-packed, commuter-ready are that commands a base price of around $20,000. That’s right: You won’t have to pick through the used car lot just yet. Let's discuss what’s out there, and why each may be fit what any value-minded consumer is looking for.
It must be said that some of what we’ve highlighted might list slightly above $20,000, but the market says dealership negotiation is back en vogue. Not only that, but some may already be listed at below MSRP—plus have certain incentives—if you search hard enough.
The Best New Cars Under $20,000
Chevrolet Trax
Best for: Those who want affordability and value in an American vehicle.
The 2024 model year kicked off a brand-new generation of the Chevy Trax, and we think the bowtie brand knocked it out of the park. It’s become a better (and better-looking) competitor to other compact crossovers like the Hyundai Venue, and is now the smallest and least expensive car in Chevy’s lineup.
It’s styling may point to a hiked-up mini SUV, but the driving experience is very much car-like. The Trax’s 1.2-liter turbocharged inline-three engine is also thrifty, delivering 30 mpg combined, 28 mpg city, and 32 mpg highway after sending 137 horsepower and 162 pound-feet of torque to its front-wheel drive (FWD) drivetrain.
Inside, its chic accouterments and pleasing tech connectivity features like an 11-inch touchscreen, Bluetooth, and an 8-inch digital instrument cluster are impressive for the Trax’s low starting price. Better yet: the Trax bests the Hyundai Venue in cargo space by a respectable margin.
Hyundai Venue
Best for: Those in search of fun, higher-sitting hatchback sensibility
Technically, the Hyundai Venue is a crossover, not a hatchback, but it’s awfully close in that it’s the smallest crossover you can buy. In fact, at just 159.1 inches long, it’s exactly the same length as a four-door Mini hardtop. Debuting for the 2020 model year, the Venue rides the same platform and uses the same powertrain as the discontinued Hyundai Accent, but sports cooler styling and more space.
Underneath the stylish exterior, every Venue is powered by a 1.6-liter four-cylinder engine mated to a continuously variable automatic transmission (CVT) that powers the front wheels, exclusively. With just 121 hp and 113 lb-ft of torque, the Venue is never in much of a hurry and passing is best done strategically. It’s a mundane driver, but not dangerously slow. It earns 31 mpg combined, low for this class, thanks to the tall shape’s aerodynamics.
Inside, the Venue has a bit more room than most of the cars on this list, and lots of headroom, which improves the experience. There are also 18.7 cubic feet of cargo room behind the rear seats and 31.9 with them folded, much more than any tiny sedan. Hyundai doesn’t skimp on features either, with a nicely designed dashboard with a standard 8-inch touchscreen offering wireless Apple CarPlay and Android Auto. Only basic driver-assist gear is included, but more systems are optional. The Venue also comes with Hyundai’s lengthy warranty coverage.
Kia Forte
Best for: traditional compact sedan sensibility
Out of the entire trim lineup, just the base model Kia Forte LX subcompact truly falls under the $20,000 barrier if you factor in destination fees, making it among the cheapest new cars you can drive off the dealership lot. Measuring out to around the same size as the Hyundai Elantra and Subaru Impreza, it’s handsome, roomy, and has more rear-seat legroom and a bigger trunk (15.7 cubic feet) than any other sedan on this list.
While the Forte’s base engine is a 2.0-liter four-cylinder making only 147 hp and driving the front-wheels via a CVT, the car doesn’t feel sluggish and doesn’t drone on the highway. It delivers a comfortable, controlled ride, isn’t loud inside, and even returns great fuel economy at 34 mpg combined.
Every Forte gets an 8-inch touchscreen with wireless Apple CarPlay and Android Auto. There are also a fair number of standard driver-assist systems like forward automatic emergency braking, lane-departure warnings and a driver-attention warning system. Options include navigation, adaptive cruise control, wireless charging, an upgraded Harman Kardon sound system, and more. Plus, all Fortes come with Kia’s lengthy warranty coverage. It might be the best car you can buy at this price.
Kia Soul
Best for: Quirky looks in a plucky-driving package
That’s right: Kia has not one, but two cars that fit our list. The Kia Soul is the Korean automaker’s least expensive offering and a beloved member the $20,000-or-so starting price segment.
After receiving a styling refresh for the 2024 model year, this compact crossover SUV looks more handsome than ever. Its boxy shape provides solid head- and legroom in the front row, plus good visibility with a minimal blind spot. The Soul’s heart is a 2.0-liter naturally aspirated four-cylinder engine producing 147 hp and 132 lb. ft of torque, bolted up to a CVT transmission. Despite not sporting any hybrid assistance, it earns good overall gas mileage for its size; 31 mpg combined.
The more affordable LX trim comes standard with an 8-inch touchscreen infotainment system plus wireless Apple CarPlay and Android Auto connectivity. What’s impressive is its suite of standard advanced driver assistance technology: auto emergency braking, pedestrian and cyclist detection, automatic high beams, lane keep assist, and driver attention warning.
Nissan Versa
Best for: Big value in a small package
By MSRP, the Nissan Versa is the least expensive new vehicle in America, just like it was a decade ago. But unlike older versions of this car, the current model is not a basic bottom-feeder. It isn’t fast or luxurious, but a major redesign back in 2020 onto the same platform as the Nissan Kicks crossover added size, style, and technology. It still has a tight back seat, but it’s only 5.7 inches shorter overall than the pricier Sentra and has a fair bit of that car’s style on the outside. It also has a bigger trunk, 14.7 cubic feet to the Sentra’s 14.3.
The cheapest Versa S comes with a five-speed manual transmission, which some drivers will prefer to the optional CVT. This is quite rare in modern car buying. Both drive only the front wheels and the 1.6-liter four-cylinder engine has just 122 hp and 114 lb-ft of torque to work with. The manual is more satisfying, but can only be had on the base model, so you have to forego some of the nicer features optional on the higher trims.
It isn’t as pretty as the Sentra’s cabin, but the Versa’s interior doesn’t look bad and it still features a modicum of tech features that are nice at this price. There’s a 7-inch touchscreen with at least one USB port even on the base model, plus Apple CarPlay and Android Auto. Nissan also includes forward and rear automatic emergency braking, lane-departure warnings and high-beam assist on all Versas. Higher trims can be had with even more, including adaptive cruise control. All told, it’s a solid value.
