Top Cars Under $40,000 for 2024 & 2025

Summary: In terms of buzz, Ford's sporty all-electric crossover has come a long way since it first sparked outrage for appropriating the famous Mustang name. It seems most have accepted or resigned themselves to an electric Mustang, and the conversation these days seems to be all about how much owners love it-and how much Ford continues to improve it. It got Ford's BlueCruise hands-free driving highway driving technology for 2023. For 2024, Ford raises the bar with a new Rally trim while also giving the rest of the lineup some key upgrades.

Verdict: Thanks to Ford's continued attention, the Mustang Mach-E is a better value proposition than ever. Best of all, the automaker has plans to look after owners of 2023 and older models as well.

Unlike some SUVs that only look like they were designed to excel in the dirt, the 2025 Ford Bronco delivers the goods. It’s more comfortable on streets and highways than the Jeep Wrangler and it offers buyers a wide range of variants to choose from.

Verdict: Buyers would do well to consider carefully how they plan to use their car day in and day out before making the decision to buy a new Bronco. While the 2025 Bronco is an extremely fun beast that’s a blast to play with on-road and off, it requires some serious compromises to use as a daily driver, and it's hardly a bargain.

Toyota has been trying to crack the full-size pickup truck code for over 30 years. The company’s first try was the T100, followed by three generations of Tundras that got bigger and more capable with each redesign. The 2024 Tundra is a massive Texas-built truck, but it still can’t match the towing and payload capacities of the segment leader, and it bests only the Ram 1500 when it comes to towing a trailer. The Tundra also lacks the diversity of configurations you’ll find at the Chevy, Ford, and Ram stores.

Verdict: When you talk to longtime Tundra owners and recent converts, the common theme is reliability. We can’t tell you if the current third-generation Tundra is reliable after many years of service, but Toyotas are well-known for their dependability. So if you like the 2024 Toyota Tundra and it can serve your needs, help it to pull up a chair to the big boy's truck table.

This year, the 2024 Honda Ridgeline gets several updates that make the unibody crew-cab, short-bed truck more appealing. Foremost among them is a new TrailSport trim level with an off-road suspension, all-terrain tires, underbody protection, and an available exclusive Diffused Sky Blue paint color. Tech updates and a new center console modernize the interior, and the dual-action tailgate now says RIDGELINE in big letters, just like other trucks.

Verdict: With those changes to the 2024 Ridgeline, Honda makes its midsize pickup truck more appealing than ever. If you won’t need more than 5,000 pounds of towing capacity and have no plans to tackle technical terrain, a Honda Ridgeline is almost perfect. Why? It is endlessly practical and a terrific daily driver deserving more consideration than it gets.

Thanks to a new, more powerful rear-drive motor, increased driving range to nearly 300 miles, a next-generation infotainment system with substantial user-experience improvements, and a handful of comfort and convenience upgrades, the 2024 Volkswagen ID.4 is a better than before. However, it no longer includes complimentary DC fast charging for three years. Instead, you get up to 500 kWh of free charging, after which you’ll pay to play.

Verdict: While the downgrade in free charging is a bummer, the updated 2024 Volkswagen ID.4 is not. With the technology better sorted, improved comfort, an impressive sound system, and more power, performance, and range, VeeDub’s electric SUV need not make apologies.

The 2024 Chrysler Pacifica is the last Chrysler model standing, as well as one of a shrunken contingent of U.S.-market minivans that also includes the Honda Odyssey, Kia Carnival, and Toyota Sienna. While it hasn’t been redesigned since its introduction as a 2017 model, the Pacifica continues with minimal changes. The only news for 2024 is a handful of new color options and an emergency vehicle alert driver-assist feature.

Verdict: The Pacifica checks all of the boxes, with only small issues to detract from its overall goodness.

Ford reintroduced the Bronco for the 2021 model year, and it’s been an exciting run ever since. Initial demand far outstripped supply, but Ford went ahead and added the more-capable Everglades and Raptor versions to the 2022 Bronco lineup. Heritage-inspired variants followed them up for 2023. Now, the 2024 Bronco adds a standard 12-inch Sync 4 infotainment system, a more rugged front bumper on the Bronco Badlands, and two new colors for the Bronco Raptor.

Verdict: In the summer of 2024, Ford is still clearing unsold 2023 Broncos from inventory, suggesting cooling demand for the rough and tough SUV. A federal investigation into V6 engine problems and poor fuel economy ratings aren’t helping to sell them. Nevertheless, there is plenty to love about the 2024 Ford Bronco.

The redesigned 2025 BMW 2 Series Gran Coupe adds a bit more power and technology. While it may be the least expensive BMW model, it makes only a few sacrifices on the sharp end of performance to get there. For most drivers, this entry-level sedan will be a great appetizer to the rest of the lineup.

Verdict: The all-new 2025 BMW 2 Series Gran Coupe is a relative bargain among compact luxury cars, leading shoppers to the brand’s pricier and more athletic models. However, if your preferences favor performance over practicality, you might want to consider spending just a bit more for the two-door 2 Series coupe.

In addition to promising 35 to 36 mpg in combined driving, the 2025 Sienna distinguishes itself in several ways. First, it offers an available all-wheel-drive system for extra traction. Second, a Woodland Edition trim level provides half an inch of extra ground clearance for light off-roading capability. Third, while its maximum cargo capacity measurement falls short of rivals, you never need to remove the second-row seats to use it.

Verdict: Saving money on gas, making life simpler, and the option of AWD ruggedness are all good things in a minivan, and they make the Toyota Sienna worth considering if you’re also looking at cars such as the Chrysler Pacifica, Honda Odyssey, and Kia Carnival.

Redesigned this year, the 2025 Countryman grows in size but remains a small crossover SUV. Expressively styled, infused with parent company BMW’s engineering and technology, and packed with cheeky Mini quirks, the Countryman is available in Cooper S All4, John Cooper Works All4, and electric SE All4 model series, each equipped with standard All4 all-wheel drive (AWD). It can comfortably hold rear-seat passengers, carries a competitive amount of cargo, and remains fun to drive.

Verdict: With prices starting at just over $40,000, the Mini Countryman sells in entry-level luxury territory. However, anyone expecting plush refinement will want to shop elsewhere because the Countryman is decidedly rough around the edges. We begrudgingly accept its quirks in exchange for its personality, but many people likely won’t.

In production since 2011, the Durango exits stage left following the 2025 model year. For its final run down the Detroit assembly line, Dodge cuts the lineup in half, dropping the SXT, Citadel, and SRT 392 versions while retaining the GT, R/T, and SRT Hellcat. Dodge will sell the Durango in a series of special edition models, including an R/T 20th Anniversary Edition and three “Last Call” Hellcats: Silver Bullet, Hammerhead, and Brass Monkey.

Verdict: Though the Durango is now 15 years old, it has aged remarkably well and remains a likable if flawed midsize three-row SUV. However, time waits for no vehicle, and the Dodge Durango has reached the end of its road. For now.

The CT5 is Cadillac’s midsize luxury sedan, positioned above the CT4 and competing against the Audi A6, BMW 5 Series, and Mercedes-Benz E-Class. It carries over unchanged for 2024, but is due for a refresh for the 2025 model year.

Verdict: The CT5 is a multitalented luxury sedan that’s also a decent value.

The 2025 Atlas is Volkswagen’s midsize, three-row crossover SUV. It debuted for the 2018 model year, designed specifically for Americans and manufactured in VW’s Chattanooga, Tennessee, assembly plant. Over the years, it has received numerous updates to keep it fresh and technologically competitive, most recently for 2024, when styling, powertrain, and tech upgrades were introduced. The 2025 Atlas adds standard automatic high-beam headlights and wireless charging in addition to two new color choices.

Verdict: This family-sized SUV has more interior space than most rivals, making the 2025 VW Atlas a great choice if passenger and cargo room are high on your list of requirements. However, unimpressive fuel economy, dissatisfying ride quality, and a sometimes-infuriating infotainment interface could have you mapping out alternatives to an Atlas.

For just a little more money, you can trade the 2025 Audi A3 sedan’s superior performance, nimbler handling, and better fuel economy for the Audi Q3 crossover SUV’s additional interior room, cargo space, and ride height. It’s a deal most people make; Audi sells over three times the number of Q3s that it does A3s. Perhaps changes to the refreshed 2025 A3, including the newly standard Quattro all-wheel-drive (AWD) system and additional standard features, will sway more Audi customers toward the sedan.

Verdict: Small, speedy cars like the 2025 Audi A3 are a lot fun. While you can upgrade performance with the Audi S3 or RS 3 models, the standard A3 equipped with the Black Optic Package is a delightful companion on any twisty road. Quality materials, modern tech, and practical packaging make it even better.

While this midsize truck can tow up to 7,700 pounds and haul up to 1,725 pounds of payload, those figures apply only to the base Sport trim. The more you spend, the less capable the Gladiator is. The 2025 Gladiator loses its manual transmission, gains a few special-edition models, and adds Fathom Blue, ’41, Joose, and Mojito paint colors. The Sport trim now has standard power windows and door locks as well.

Verdict: Unique among pickup trucks, the Jeep Gladiator is an appealing alternative to the status quo. That’s especially true if you value open-air driving or you plan to tackle untrodden territory. But for serious towing and hauling tasks, there are better choices than the Gladiator.

Available with a turbocharged inline six-cylinder engine or as a plug-in hybrid, the CX-90’s powertrains are unique in a segment where turbocharged four-cylinder, V6, and hybrid drivetrains are common. Additionally, the 2025 Mazda CX-90 doesn’t have a touchscreen for the native Mazda Connect infotainment functions, a conversational digital voice assistant, or a hands-free driving-assistance system. Mazda also sets the cabin back on the platform, reducing passenger and cargo space. However, the stylish 2025 CX-90 is entertaining to drive.

Verdict: Can the CX-90’s elegant design, premium interior, unusual powertrains, enjoyable driving dynamics, and impressive safety ratings ensure competitiveness in a family-size SUV segment where the Ford Explorer, Honda Pilot, and Kia Telluride dominate? With more attention to detail and better technology, this Mazda SUV could lead instead of follow.

Launched for the 2018 model year, the Volkswagen Atlas is engineered specifically for the United States market. It's a three-row midsize crossover SUV, big for a VW, but targeting a popular market segment that already includes the Chevrolet Traverse, Ford Explorer, Hyundai Palisade, Kia Telluride, Nissan Pathfinder, Subaru Ascent, and Toyota Highlander. To keep up in such a competitive segment, the Atlas gets a major refresh for the 2024 model year.

The 2024 Volkswagen Atlas is essentially the same vehicle as before, but it gets key updates like different styling and more standard features. It also loses its six-cylinder engine option, but the remaining turbocharged four-cylinder engine gets more horsepower and torque.

The 2024 Atlas lineup includes SE, SE with Technology, SEL, and SEL Premium R-Line trim levels, plus a new-for-2024 Peak Edition treatment available on the SE with Technology and SEL trim levels. For this review, we tested an Atlas SEL Premium R-Line, representing the top of the range.

The open-air driving experience you can enjoy with a Gladiator is just one of many appealing things about it. As expected of a Jeep, the Gladiator is also a rock star off-road. And some versions of this crew-cab midsize truck offer substantial payload and towing capacity. Better yet, Jeep has updated the 2024 Gladiator with minor styling revisions, next-generation infotainment technology, added comfort and convenience features, and new range-topping trim levels. A Gladiator 4xe plug-in hybrid arrives in 2025.

Verdict: Though we’re fans of the 2024 Jeep Gladiator, it requires some trade-offs. Fuel economy is poor, the ride can be rough, the interior is loud at higher speeds, and the cabin looks like you can hose it out—because you can. Buy a 2024 Gladiator for what it can do and not for the image it projects, and you’ll more easily accept its inherent flaws.

The 2024 Mazda CX-90 is the family-hauling crossover we finally want to drive. This all-new Mazda delivers a turbocharged straight-six engine (or a PHEV, if you prefer), rear-wheel-drive architecture, brilliant handling, and a 20% discount from the surprisingly similar BMW X5. We sampled the new 2024 Mazda CX-90 Turbo S and the CX-90 PHEV on Northern California’s twisty roads, and we came away impressed by the big and powerful SUV’s handling and composure.