This article has been updated for the 2024 new car model year. Every 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 household expense category in the U.S., and almost all of that expense comes from the purchase or leasing of our vehicles. With over 60% of the country living paycheck-to-paycheck, finding a cheap ride is essential for those on a strict budget. This article will provide a ranked list of the top 10 cheapest new cars in 2024, ranked by the lowest MSRP for base automatic transmission models (I’ve also included factory invoice prices to help aid any negotiations with dealers). 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 the same models for the prior model year, to potentially find an even better deal. Dealers are trying to get rid of prior model year inventory and shift focus to the new 2024 models, so you may be able to catch a good deal. In most cases, the 2024 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 cost 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.
The redesigned Chevy Trax is an impressive new entrant to the cheapest new cars list in 2024 and my pick the best value vehicle of the year.
Our Cheapest New Cars List Criteria & Specifications
When looking for the cheapest new cars, there is a whole lot more to finding the the most affordable car than just looking at 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 (only around 2% of the vehicles sold in the U.S. market these days 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 (which I’ve included 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 $3.47 per gallon of regular unleaded, and 15,000 miles driven (45% city, 55% highway)
- length of basic and powertrain warranties
Finally, I’d recommend pricing out insurance premiums at a number of automotive 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.
Cheap 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:
- Up until the last 2 years, gas prices had been at low levels for a while. This led to decreased demand for small vehicles, which led to less automaker focus on this segment (there’s a multi-year lag on new model development).
- 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. I explored this further in my ranking of the most fuel-efficient cars and cheapest electric vehicles (linked at the top of the article).
At least 25 new or redesigned cars will hit the market in 2024. No new models made this 10 cheapest new cars list and the only redesigns are the Chevy Trax (major redesign) and Nissan Sentra (minor redesign). 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 Sedan (hatch will live on), Fusion
- Honda: CRZ, Fit
- Hyundai: Accent
- Kia: Rio
- Nissan: Juke, Rogue
- Smart: ForTwo
- Toyota: Prius C, Yaris
- VW: Beetle, Touareg
While this makes sense from a business perspective, it’s not a good sign for the future for those who like inexpensive vehicles.
What’s New in the Cheapest Cars in 2024 Rankings
There were only a few big changes to the 2024 cheapest cars ranking versus the prior model year. The Subaru Impreza (#10) and discontinued-in-2024 Kia Rio (#2) drop from the list. The redesigned Chevy Trax jumps into the #6 spot with a big price decrease, and the Toyota Corolla joins the list at #10. There were only small shifts to the rankings otherwise.
It’s also worth pointing out 2 electric vehicles that could make this list provided they (and the buyer) are fully eligible at the date of purchase for up to the full $7,500 federal Clean Vehicle Tax Credit that was authorized in the Inflation Reduction Act and confirmed for 2024:
- Chevy Bolt: base MSRP of $27,495 ($19,995 after $7,500 credit)
- Chevy Bolt EUV: base MSRP of $28,795 ($21,295 after $7,500 credit)
If the full $7,500 credit applies, each would have made this cheapest new cars list – coming in at #3 and #6, respectively. With the fuel and maintenance savings that electric vehicles can bring, this would make them a great value to those in the market for a new car. Why not automatically add them to the list then? Technically, both the Bolt and Bolt EUV ended production in 2023 (though the Bolt EUV will be returning in 2025 on GM’s new Ultium battery platform). Also, not every purchaser will be eligible for the full credit (see income limitations in the “Clean Vehicle Tax Credit” article linked to above). That said, there may still be models available at dealerships that would be eligible for up to a $7,500 federal EV tax credit (and maybe even some state EV tax credits), if you qualify and are lucky enough to find one.
Here’s an updated list of EVs eligible for tax credits with new materials, manufacturing, and sourcing requirements. The list is fairly limited for 2024 while vehicle manufacturers adjust their supply chains for eligibility, but due to an EV lease tax credit loophole, most vehicle manufacturers are passing along up to $7,500 in tax credits in the form of EV bonus cash lease offers – even if those same vehicles are not eligible for tax credits on new purchases.
The Cheapest New Cars of 2024: Top 10 Ranking
Here are the top 10 cheapest new cars of 2024 in the United States. Which would you choose, if you were going to buy a new car right now?
10. Toyota Corolla
- Base Automatic Transmission model: Toyota Corolla LE, 4-Door Sedan
- MSRP: $22,115
- Factory Invoice Price: $21,778
- 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: $1,500
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2024 Toyota Corolla sneaks on to the list of the cheapest new cars, having only increased its price by $350 over last year’s model. There’s a lot of interesting things going on with the Corolla platform this year with the new Corolla Cross hatchback (that doesn’t look anything like the Corolla), and a hybrid version of the Corolla and Corolla Cross.
9. Hyundai Elantra
- Base Automatic Transmission model: Hyundai Elantra SE, 4-Door Sedan
- MSRP: $22,590
- Factory Invoice Price: $21,946
- 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: $1,450
- Powertrain Warranty: 10 years or 100,000 miles for original owners, 5 years/60,000 for subsequent owners
- Limited Basic Warranty: 5 years or 60,000 miles
- Overview: the 2024 Hyundai Elantra is virtually the same car as the prior model year, with a price increase of $1,045 in 2024. The fuel economy for a 2.0L engine is great, as are the warranties.
8. Nissan Kicks
- Base Automatic Transmission model: Nissan Kicks S, 4-Door Hatchback
- MSRP: $22,315
- Factory Invoice Price: $21,403
- Engine Specs: 1.6L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 122 hp
- City MPG: 31
- Highway MPG: 36
- Combined MPG: 33
- Annual Fuel Cost: $1,600
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2024 Nissan Kicks has a price increase of $1,030 versus last year’s model, but is the same vehicle otherwise. The Nissan Kicks reminds me a lot of a car that I previously owned – the Pontiac Vibe/Toyota Matrix. It is slightly smaller, but still is a good looking hatchback, with solid fuel efficiency.
7. Nissan Sentra
- Base Automatic Transmission model: Nissan Sentra S, 4-Door Sedan
- MSRP: $21,905
- Factory Invoice Price: $20,718
- Engine Specs: 2.0L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 149 hp
- City MPG: 30
- Highway MPG: 40
- Combined MPG: 34
- Annual Fuel Cost: $1,550
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2024 Nissan Sentra gets a redesign for 2024 and comes with a price increase of $860 versus the prior year’s model. Good fuel efficiency for a 2.0L engine and solid value at this price point.
6. Chevy Trax
- Base Automatic Transmission model: Chevy Trax LS, 4-Door Hatchback
- MSRP: $21,495
- Factory Invoice Price: $21,169
- Engine Specs: 1.2L, 6-speed Auto Transmission, 12 vale, 3 cylinder, 132 hp
- City MPG: 28
- Highway MPG: 32
- Combined MPG: 30
- Annual Fuel Cost: $1,750
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2024 Chevy Trax is completely redesigned and a new addition to the 2024 cheapest new vehicle list. Newer, bigger (adding 37% more cargo volume behind the rear seats), and much better looking than the prior year models, but its price actually decreased by $1,400 from the prior generation, bumping it firmly into the 10 cheapest vehicles list. Car & Driver ranked the 2024 Chevy Trax as the #1 subcompact SUV. I think it’s the best value vehicle of 2024. Impressive redesign!
5. Kia Soul
- Base Automatic Transmission model: Kia Soul LX, 4-Door Hatchback
- MSRP: $21,315
- Factory Invoice Price: $20,616
- Engine Specs: 2.0L, Intelligent Variable Transmission (IVT), 16 valve, 4 cylinder, 147 hp
- City MPG: 27
- Highway MPG: 33
- Combined MPG: 30
- Annual Fuel Cost: $1,750
- Powertrain Warranty: 10 years, 100,000 miles for original owner, 5 years/60,000 for subsequent owners
- Limited Basic Warranty: 5 years, 60,000 miles
- Overview: the 2024 Kia Soul has a price increase of just $100 versus last year’s model, which is refreshing, given that the model has not changed (sadly, it’s nearly identical to being the same vehicle that launched 15 years ago, with only slight styling and engine updates). The Soul’s fuel economy is not the best, but it is still a solid offering for its size at this price level. How about a refresh, Kia?
4. Hyundai Venue
- Base Automatic Transmission model: Hyundai Venue SE, 4-Door Hatchback
- MSRP: $21,135
- Factory Invoice Price: $20,581
- 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: $1,700
- Powertrain Warranty: 10 years or 100,000 miles for original owners, 5 years/60,000 for subsequent owners
- Limited Basic Warranty: 5 years or 60,000 miles
- Overview: the 2024 Hyundai Venue comes with a price increase of $340 versus last year’s model. The Venue was a new model is now 4 years old and has many similarities to its sister model, the Kia Soul. The Venue has more of a rounded, sporty appearance than the Soul and is slightly cheaper. Lots of value, but like the Soul, fuel economy is just OK for the engine specs.
3. Kia Forte
- Base Automatic Transmission model: Kia Forte LX, 4-Door Sedan
- MSRP: $20,915
- Factory Invoice Price: $20,223
- Engine Specs: 2.0L, Intelligent Variable Transmission (IVT), 16 valve, 4 cylinder, 147 hp
- City MPG: 30
- Highway MPG: 41
- Combined MPG: 34
- Annual Fuel Cost: $1,550
- Powertrain Warranty: 10 years, 100,000 miles for original owner, 5 years/60,000 for subsequent owners
- Limited Basic Warranty: 5 years, 60,000 miles
- Overview: the 2024 Kia Forte’s price increased just $100 versus the identical model from last year. The Forte is an all around solid car with great fuel efficiency, a strong warranty, and good user reviews. Good value at the #3 spot on the cheapest cars list.
2. Nissan Versa
- Base Automatic Transmission model: Nissan Versa S, 4-Door Sedan
- MSRP: $19,075
- Factory Invoice Price: $16,841
- Engine Specs: 1.6L, Continuously Variable Auto Transmission (CVT), 16 valve, 4 cylinder, 122 hp
- City MPG: 32
- Highway MPG: 40
- Combined MPG: 35
- Annual Fuel Cost: $1,500
- Powertrain Warranty: 5 years or 60,000 miles
- Limited Basic Warranty: 3 years or 36,000 miles
- Overview: the 2024 Nissan Versa has a $650 price increase versus last year’s model, despite being nearly identical. It does jump up to being the 2nd least expensive car, with the Kia Rio being discontinued. The Nissan Versa was refreshed 4 years ago and looks a lot like the old Honda Civic. It offers strong fuel efficiency at 32 city and 40 highway MPG.
1. Mitsubishi Mirage
- Base Automatic Transmission model: Mitsubishi Mirage ES, 4-Door Hatchback
- MSRP: $17,790
- Factory Invoice Price: $17,587
- Engine Specs: 1.2L, Continuously Variable Auto Transmission (CVT), 12 valve, 3 cylinder, 78 hp
- City MPG: 36
- Highway MPG: 43
- Combined MPG: 39
- Annual Fuel Cost: $1,350
- Powertrain Warranty: 10 years or 100,000 miles for original owners, 5 years/60,000 for subsequent owners
- Limited Basic Warranty: 5 years or 60,000 miles
- Overview: the cheapest new car in 2024 is the Mitsubishi Mirage, which stays in the #1 spot from last year’s ranking, with a price increase of just $190 over last year’s model. The Mirage has a 3 cylinder engine, giving it excellent fuel economy (it’s only 78 horsepower, so it may feel sluggish). It also has an excellent warranty. It does have a reputation of not being high quality from owners, but it does have a good warranty to help with that concern. You win some, you lose some.
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 year 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.
- If you are in the market for a new car and can hold off for a bit, that might be best. The auto industry has started to refill new car inventory after it was heavily depleted in recent years due to supply chain issues.