This article has been updated for the 2026 vehicle model year. Each year, I enjoy researching and ranking the cheapest new cars sold in the U.S. market and sharing my findings. Transportation is the 2nd highest consumer expense category in the U.S., and almost all of that comes from the purchase or lease of vehicles (plus insurance, which is directly related to a vehicle’s replacement value). With recent inflation, including price increases from tariff passthroughs to consumers for imported parts and vehicles, finding an affordable ride is essential for those on a tight budget. This article will provide a ranked list of the 10 cheapest new cars in 2026, ranked by the lowest MSRP for base automatic transmission models (along with a number of additional cost factors). You may also be interested in my ranking of the most fuel-efficient cars and cheapest electric vehicles.
If you’re in the market to buy a new car, keep an eye out for new prior year models, to potentially find an even better deal. Dealers are still trying to get rid of prior model year inventory and shift focus to the new 2026 models, so you may be able to catch a good deal. In most cases, the 2026 model is the exact same vehicle as last year’s model.
I have made efforts to limit my vehicle use, but am still somewhat dependent on one and I know many others here are too. As a vehicle consumer, I think it is interesting to see what’s trending in the automotive market and what performance and fuel-efficiencies have been gained. There is value in knowing what to look for now (in the right circumstance) or further down the road.
Our Cheapest New Cars List: Criteria & Specifications
When looking for the cheapest new cars, there is more to it than just the sticker price. For your convenience, I’ve focused on:
- The base automatic transmission model, without added options. Most of these models no longer offer a manual transmission. If they do, they can be hard to find and sell (less than 1% of the vehicles sold in the U.S. market are manual vs automatic transmission). If you can find and drive a manual, it could save you roughly $800 – $1,200 versus the prices highlighted in this article.
- Manufacturer’s Suggested Retail Price (MSRP). There may be credits, rebates, or other incentives available for each model at any given moment. And you should never pay MSRP, as part of an effective new car negotiation strategy.
Also, I’d recommend pricing out vehicles at KBB.com and nadaguides.com to see not only what the MSRP and factory invoice costs are (I’ve included those below), but what actual buyers are paying in your local market.
I’ve also included other variables that impact total cost of vehicle ownership:
- city, highway, and combined MPG fuel efficiency
- average annual fuel cost (from the EPA’s fueleconomy.gov website, at $2.94 per gallon of regular unleaded, and 15,000 miles driven (45% city, 55% highway)
- length of the limited and powertrain warranties
Finally, I’d recommend pricing out insurance premiums at a number of auto insurers prior to choosing which car to purchase, as prices per vehicle can vary dramatically. No vehicle here will break the bank on insurance costs versus the others, but there may be some differences (e.g. Hyundai and Kia vehicles have had security/theft issues in recent years).
The Cheapest New Cars Have Been Disappearing in Recent Years
We’re solidly within a period of disappointing new market entrants in the economical compact and subcompact car segments. I think there’s a few big reasons for that:
- Higher efficiency across the U.S. vehicle fleet and moderate gas prices have led to decreased demand for small vehicles, which led to less automaker focus on this segment.
- There is less profit margin to squeeze out of small, cheap cars, so there’s less incentive for automakers to develop and market them.
- Those looking for fuel efficiency are gravitating more and more to hybrid, plug-in hybrid, and electric vehicles – not smaller cars.
Zero new and just 1 redesigned model – the Nissan Sentra – made the cheapest new cars list this year. Every other vehicle on this list saw zero to very minor updates. Looking at a broader trend, a large number of cheap compact and subcompact vehicles have recently had their production end in recent years. Here’s a shortlist:
- Chevy: Volt, Cruze, Sonic, Spark
- Chrysler: 100
- Dodge: Dart
- Fiat: 500
- Ford: EcoSport, Fiesta, Focus, Fusion
- Honda: CRZ, Fit
- Hyundai: Accent
- Kia: Forte, Rio, Soul
- Mitsubishi: Mirage
- Nissan: Juke, Kicks Play, Rogue, Versa
- Smart: ForTwo
- Toyota: Prius C, Yaris
- VW: Beetle, Touareg
Last year’s cheapest new car, the Nissan Versa (with an MSRP of $19,075), has ended production – making 2026 the first year where we have not had a sub-$20,000 vehicle model in the U.S. since the advent of mass production vehicles. There still may be a small window to pick one up in early 2026, if you can find one.
While this shift away from small, cheap vehicles makes sense from a business perspective, it’s not a good sign for the future for those who like to have their own vehicle, on a budget.
What’s New in 2026?
There were a few big changes to the 2026 cheapest cars ranking versus the prior model year. As previously noted, last year’s #1 cheapest vehicle, the Nissan Versa, ended production last year. The Kia Soul – which came in at #4 on last year’s list – also ended production.
Only one of the 10 vehicles on the list – the Nissan Sentra – received a major redesign. The 2026 Sentra has all new styling and tech, but retains the same drivetrain as the prior model year.
Joining the list this year are the Chevy Trailblazer and Kia Seltos. Otherwise a few vehicles traded spots and plenty of models saw sizable price increases, most likely from tariff pass-alongs.
How About Cheap New EVs?
With the EV tax credits prematurely expiring last year, we’re primed to see a shrinking of the EV market. A few models have already been discontinued (Nissan Ariya and Genesis G80). However, a gen 2 Chevy Bolt EV is back for 2026 (technically they are saying “2027 Chevy Bolt”) after disappearing for a year, and it’s the cheapest EV on the market with an MSRP starting at $28,895 .
Unfortunately the Bolt (and every other EV) are no longer eligible for the $7,500 federal Clean Vehicle Tax Credit that was set to run through 2032. There are a number of state EV tax credits still available, but the federal EV tax credits were prematurely ended 9/30/25 through the OBBBA legislation.
The Cheapest New Cars of 2026: Top 10 Ranking
Here are the top 10 cheapest new cars of 2026 in the U.S. market. Which would you choose, if you were going to buy a new car right now?
10. Kia Seltos
- Base Automatic Transmission model: Kia Seltos LX, 4-Door Hatchback
- MSRP: $25,285
- Factory Invoice Price: $24,920
- Engine Specs: 2.0L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 147 hp
- City MPG: 31
- Highway MPG: 27
- Combined MPG: 29
- Annual Fuel Cost: $1,500
- Powertrain Warranty: 10 years or 100,000 miles for original owner, 5 years or 60,000 for subsequent owners
- Limited Basic Warranty: 5 years or 60,000 miles
- Overview: the 2026 Kia Seltos effectively drops its entry price by roughly $1,000 vs the prior model year with the introduction of a lower-cost FWD base trim, even as upper trims rise modestly in price. Its known for having one of the most tech-heavy cabins in the subcompact SUV segment.
9. Volkswagen Jetta
- Base Automatic Transmission model: Volkswagen Jetta S, 4-Door Sedan
- MSRP: $25,270
- Factory Invoice Price: $24,310
- Engine Specs: 1.5L, 8-speed Auto Transmission, 16 valve, 4 cylinder, 158 hp
- City MPG: 29
- Highway MPG: 40
- Combined MPG: 34
- Annual Fuel Cost: $1,300
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 4-year or 50,000-miles
- Overview: Volkswagen increased the base price of the 2026 Jetta by a whopping $2,050 compared to the prior year, reflecting added standard equipment and inflationary pressure. The Jetta remains one of the roomiest compact sedans, though it’s probably due for a redesign.
8. Chevy Trailblazer
- Base Automatic Transmission model: Chevy Trailblazer LS, 4-Door Hatchback
- MSRP: $25,095
- Factory Invoice Price: $24,720
- Engine Specs: 1.2L, Continuously Variable Auto Transmission (CVT), 12 valve, 3 cylinder, 137 hp
- City MPG: 29
- Highway MPG: 33
- Combined MPG: 31
- Annual Fuel Cost: $1,400
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2026 Chevy Trailblazer sees a modest MSRP increase of roughly just $400–$600 versus the prior year, keeping it competitively priced among subcompact SUVs. There is an AWD version for a modest price increase.
7. Toyota Corolla
- Base Automatic Transmission model: Toyota Corolla LE, 4-Door Sedan
- MSRP: $24,120
- Factory Invoice Price: $22,842
- Engine Specs: 2.0L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 169 hp
- City MPG: 32
- Highway MPG: 41
- Combined MPG: 35
- Annual Fuel Cost: $1,250
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: Toyota raised the Corolla’s base MSRP by approximately $1,300 for 2026, but it still has a strong value. The Corolla continues to deliver excellent fuel economy, strong safety tech as standard, and a pricier hybrid option that remains a benchmark for efficiency.
6. Nissan Kicks
- Base Automatic Transmission model: Nissan Kicks S, 4-Door Hatchback
- MSRP: $23,925
- Factory Invoice Price: $23,392
- Engine Specs: 2.0L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 141 hp
- City MPG: 28
- Highway MPG: 35
- Combined MPG: 31
- Annual Fuel Cost: $1,400
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2026 Nissan Kicks arrives with a price increase of about $500 versus the prior year. Last year’s model kicked off a total redesigned generation that still looks and feels pretty fresh, by most accounts.
5. Hyundai Elantra
- Base Automatic Transmission model: Hyundai Elantra SE, 4-Door Sedan
- MSRP: $23,870
- Factory Invoice Price: $23,417
- Engine Specs: 2.0L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 147 hp
- City MPG: 32
- Highway MPG: 41
- Combined MPG: 36
- Annual Fuel Cost: $1,250
- Powertrain Warranty: 10 years or 100,000 miles for original owners, 5 years or 60,000 for subsequent owners
- Limited Basic Warranty: 5 years or 60,000 miles
- Overview: Hyundai nudged the Elantra’s base MSRP up by roughly $500 for 2026, keeping it firmly in the affordable compact-sedan category. Excellent fuel economy, and one of the longest powertrain warranties in the industry remain key selling points.
4. Nissan Sentra
- Base Automatic Transmission model: Nissan Sentra S, 4-Door Sedan
- MSRP: $23,845
- Factory Invoice Price: $22,730
- Engine Specs: 2.0L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 149 hp
- City MPG: 30
- Highway MPG: 38
- Combined MPG: 33
- Annual Fuel Cost: $1,400
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2026 Nissan Sentra is the only vehicle on this cheapest new cars list to receive a major redesign for the model year. Technology and styling are entirely new, while the drivetrain remains the same as the prior generation. The price for the upgrade? $1,115. Not bad, all things considered.
3. Kia K4
- Base Automatic Transmission model: Kia K4 LX, 4-Door Sedan
- MSRP: $23,535
- Factory Invoice Price: $22,739
- Engine Specs: 2.0L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 147 hp
- City MPG: 29
- Highway MPG: 39
- Combined MPG: 33
- Annual Fuel Cost: $1,400
- Powertrain Warranty: 10 years or 100,000 miles for original owner, 5 years or 60,000 for subsequent owners
- Limited Basic Warranty: 5 years or 60,000 miles
- Overview: the Kia K4 sees an MSRP increase of roughly $800 over its introductory pricing last year. It distinguishes itself with a sleek design, advanced digital displays, and a feature set that rivals more expensive compact sedans.
2. Chevy Trax
- Base Automatic Transmission model: Chevy Trax LS, 4-Door Hatchback
- MSRP: $23,495
- Factory Invoice Price: $23,146
- Engine Specs: 1.2L, 6-speed Auto Transmission, 12 valve, 3 cylinder, 132 hp
- City MPG: 28
- Highway MPG: 32
- Combined MPG: 30
- Annual Fuel Cost: $1,450
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2026 Chevy Trax retains its spot as the #2 cheapest new vehicle, despite a $2,000 jump in base MSRP versus last year. I still really like the size and styling value for the price. Car & Driver ranked the Chevy Trax as the #1 subcompact SUV for the 3rd year in a row. My only gripe is that the fuel efficiency is poor for its size, despite the tiny 1.2L engine.
1. Hyundai Venue
- Base Automatic Transmission model: Hyundai Venue SE, 4-Door Hatchback
- MSRP: $22,150
- Factory Invoice Price: $21,780
- Engine Specs: 1.6L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 121 hp
- City MPG: 29
- Highway MPG: 33
- Combined MPG: 31
- Annual Fuel Cost: $1,400
- Powertrain Warranty: 10 years or 100,000 miles for original owners, 5 years or 60,000 for subsequent owners
- Limited Basic Warranty: 5 years or 60,000 miles
- Overview: with the Nissan Versa exiting the market for 2026, the Hyundai Venue jumps into the #1 spot with a price increase of just $370 versus last year’s model. The Venue has many similarities to its old sister model, the Kia Soul, which was discontinued for 2026. Will the Venue see a similar fate? Only time will tell.
Thoughts on Whether to Purchase a New Car or Not
Now that I’ve shared this list of the cheapest cars, I wanted to share some thoughts on whether it’s worth purchasing a new car or not. This is a personal finance site, so note that sharing this list of the cheapest new cars is not an endorsement for everyone to go out and buy a new car. When it comes to optimizing your finances, vehicle ownership has a few rules that I would suggest readers consider:
- If you can, opt for public transportation, biking, walking, and carpooling, and an occasional rideshare over vehicle ownership. Start with a test run and see if you can progress from there.
- If you have a 2-vehicle household, is it possible for you to shift from 2 vehicles to 1? I shifted from 2 cars to 1 many years ago and it saved us tens of thousands of dollars.
- Get as much run as possible out of your vehicle by properly maintaining it, until the cost of maintenance clearly outweighs the cost benefits of holding on to it. New vehicles these days can often go 15+ years with regular maintenance and my personal goal is to go 10+ years, at a minimum, on each vehicle we purchase.
- If you do need a vehicle, do market research and negotiate the best deal. I don’t believe in the “always buy used” motto, particularly with the elevated prices seen in the used car market in recent years. With proper incentives, a new car may actually be a cheaper total cost option in some cases. Do your homework to find the most economical option for you.