If you’re looking for a brand-new vehicle, you might be asking what is the cheapest new car you can buy. The market for new cars still has a few surprising entry points, with the absolute lowest-priced models often being bare-bones sedans.
Finding that rock-bottom price takes some research. Prices change, incentives come and go, and dealer fees can add up.
This guide will walk you through the current cheapest models, what you actually get for your money, and the smartest way to approach buying one.
What Is The Cheapest New Car You Can Buy
As of this writing, the title for the most affordable new car in the United States consistently goes to one model. It’s important to note that the Manufacturer’s Suggested Retail Price (MSRP) is the starting point, but the final “cheapest” car can vary based on destination fees and local dealer adjustments.
The current leader is the Nissan Versa S. With a starting MSRP well under $20,000, it undercuts nearly all competition. It’s a subcompact sedan that offers the basics of transportation.
Close contenders for the cheapest new car title include the Mitsubishi Mirage hatchback and the Kia Forte. While their base prices might be slightly higher in some comparisons, they often come with different standard features that can affect the overall value proposition.
Understanding The True “Drive-Off” Price
The sticker price is just the beginning. To know what you’ll actually pay to drive the car home, you must factor in several non-negotiable costs.
- Destination Charge: This fee covers the cost of shipping the car from the factory to the dealership. It’s added to every new car’s MSRP and can range from $1,000 to $1,500.
- Dealer Documentation Fee: Often called a “doc fee,” this charge varies wildly by state and dealer. It’s meant to cover the cost of processing your paperwork.
- Tax, Title, and License: These are government fees based on your location. Sales tax is a percentage of the purchase price, while title and registration fees are fixed amounts.
Always ask for an “out-the-door” price quote. This total figure includes all fees and taxes, giving you a clear picture of the real cost.
What You Sacrifice For The Lowest Price
To achieve that lowest possible MSRP, manufacturers strip these cars down to the essentials. Understanding these trade-offs is crucial before you commit.
Base models often come with manual windows and manual door locks. You’ll be rolling the windows down by hand and using a key to unlock the doors.
Infotainment systems are very basic. Expect a simple radio with USB connectivity instead of a large touchscreen with Apple CarPlay or Android Auto. Some may not even have Bluetooth standard.
Advanced safety and driver-assistance features are rare. You likely won’t find automatic emergency braking, lane-keeping assist, or adaptive cruise control on the absolute base trim.
A Detailed Look At The Top Contenders
Let’s examine the specific models that fight for the cheapest new car crown. We’ll look at their starting prices, standard features, and what makes each one unique.
Nissan Versa S
The Nissan Versa S sedan holds the crown for the lowest starting MSRP. It’s a straightforward car designed purely for affordability.
- Starting MSRP: Around $16,000 (plus destination)
- Engine: 1.6-liter 4-cylinder
- Key Standard Features: Automatic transmission, 7-inch touchscreen with Apple CarPlay/Android Auto, automatic emergency braking, and six airbags.
Notably, the Versa includes more advanced safety tech as standard than some rivals, which is a significant plus. It’s also one of the few sedans in this class to offer an automatic transmission at the very base price.
Mitsubishi Mirage
The Mitsubishi Mirage, available as a hatchback, is famous for its ultra-low price and incredible fuel economy. It’s one of the most fuel-efficient non-hybrid gas cars sold.
- Starting MSRP: Slightly above the Versa (plus destination)
- Engine: 1.2-liter 3-cylinder
- Key Standard Features: Remarkable EPA-estimated MPG, a 7-inch touchscreen, Apple CarPlay/Android Auto, and multiple airbags.
The Mirage’s main advantage is its low running cost. Its small size makes it easy to park in urban areas, though its three-cylinder engine can feel underpowered on highways.
Kia Forte
The Kia Forte often appears on “cheapest” lists because of its aggressive pricing and long standard warranty. It’s a compact sedan, offering a bit more space than a subcompact.
- Starting MSRP: Competitively priced just above the others (plus destination)
- Engine: 2.0-liter 4-cylinder
- Key Standard Features: Kia’s excellent 10-year/100,000-mile powertrain warranty, an 8-inch touchscreen, and forward collision-avoidance assist.
The Forte’s killer feature is its warranty, which provides long-term peace of mind that other budget cars can’t match. It feels more substantial on the road than some rivals.
Other Notable Budget-Friendly Models
While not always the absolute cheapest, these cars are worth considering for their value.
- Hyundai Venue: A small SUV with a low starting price and good feature content.
- Chevrolet Spark: A tiny hatchback that has historically been a price leader, though it is being discontinued.
- Kia Rio: A subcompact sedan or hatchback that shares platforms with the Hyundai Accent and offers great value.
How To Get The Best Deal On A Cheap New Car
Buying the cheapest new car requires a specific strategy. You want to secure the lowest price without falling for upsells or unnecessary add-ons.
Research And Price Shopping Online
Never walk into a dealership without doing your homework first. Use car-buying websites to compare the MSRP and invoice price for the exact trim you want.
Contact several dealerships via email or their internet sales department. Request their best “out-the-door” price for the specific vehicle. This allows you to compare real numbers and pit dealers against each other without the pressure of a showroom.
Focus On The Total Loan Amount
Dealers might try to lower your monthly payment by extending the loan term to 72 or 84 months. This makes the car seem more affordable but drastically increases the total interest you pay.
- Get pre-approved for a loan from your bank or credit union before you shop. This gives you a baseline interest rate.
- Negotiate the final sale price of the car first, before discussing financing or monthly payments.
- Use an auto loan calculator to understand how the loan term affects the total cost.
Resist Unnecessary Add-Ons
The finance and insurance office is where dealers make a lot of their profit. Be prepared to say “no” to products that offer little value for a cheap car.
- Extended Warranties: On a very reliable car or one with a good factory warranty (like Kia’s), these are often not cost-effective.
- Fabric Protection or Paint Sealant: These are typically high-markup items you can do yourself for a fraction of the cost.
- VIN Etching: This service, where the vehicle identification number is etched on windows, is usually overpriced at the dealer.
New vs. Used: Is The Cheapest New Car Actually A Good Value?
This is the most important question to ask. For the price of a base-model new car, you could purchase a used car that is larger, more powerful, or has more features.
The Case For Buying New
- Full Warranty Coverage: You get the complete factory bumper-to-bumper and powertrain warranty, covering repairs for years.
- Latest Safety Features: Even base models now often include automatic emergency braking, which was rare on cars from just five years ago.
- No Unknown History: You are the first owner. There’s no worry about previous accidents, poor maintenance, or how the car was driven.
- Lower Financing Rates: Banks and credit unions typically offer lower interest rates for new car loans compared to used car loans.
The Case For Buying Used
- More Car For The Money: A $16,000 budget can get you a lightly used, well-equipped compact sedan from a reputable brand, like a Toyota Corolla or Honda Civic.
- Less Depreciation: New cars lose value fastest in their first few years. A 2-3 year old used car has already absorbed that steep initial depreciation hit.
- Insurance Costs May Be Lower: Insuring a new car is generally more expensive than insuring a used car of the same model, due to its higher value.
The best choice depends on your priorities. If warranty, latest safety tech, and peace of mind are top concerns, the cheapest new car is compelling. If getting the most features and size for your budget is key, a used car is likely the better route.
Long-Term Ownership Costs To Consider
The purchase price is only part of the story. To truly understand affordability, you must look at the costs of owning the car for several years.
Fuel Economy
Cars like the Mitsubishi Mirage excel here, offering over 35 MPG combined. This can save you hundreds of dollars per year compared to a less efficient vehicle, especially if you have a long commute.
Insurance Premiums
Contact your insurance agent for quotes on the specific models you’re considering. Small, cheap cars can sometimes have higher insurance rates if their safety ratings are lower or if they are frequently involved in claims.
Maintenance And Repairs
All new cars come with a basic maintenance schedule. While oil changes and tire rotations are relatively inexpensive for these models, always check the warranty details.
Does it include complimentary scheduled maintenance? What is the powertrain warranty length? A longer warranty, like Kia’s 10-year/100,000-mile coverage, can significantly reduce long-term financial risk.
Depreciation
Inexpensive cars tend to depreciate slower in percentage terms than luxury cars, but they still lose value. Research the projected resale value of the model you like. Brands like Toyota and Honda traditionally hold their value better than others.
Frequently Asked Questions
What Is The Absolute Cheapest New Car For 2024?
As of now, the Nissan Versa S typically has the lowest starting Manufacturer’s Suggested Retail Price (MSRP) in the United States, making it the cheapest new car you can buy. Always verify with local dealers for final out-the-door pricing.
Are These Cheap New Cars Reliable?
Modern cars, even the most affordable ones, are generally reliable when properly maintained. Brands like Kia, Hyundai, and Mitsubishi offer very long powertrain warranties, which reflects their confidence in reliability. It’s still wise to check reliability ratings from sources like Consumer Reports or J.D. Power.
Can I Get A Cheap New Car With An Automatic Transmission?
Yes. Unlike a decade ago, most base models now come with an automatic transmission standard. The Nissan Versa and Kia Forte, for example, include automatics at their base price. The Mitsubishi Mirage also offers a CVT automatic.
Is It Better To Lease The Cheapest New Car?
Leasing can result in a very low monthly payment, often lower than a loan payment for the same car. However, you won’t own the car at the end of the lease, and you’ll have mileage restrictions. For long-term cost, buying is usually better if you plan to keep the car for more than 5-6 years.
What Hidden Fees Should I Watch Out For?
Beyond the destination charge and doc fee, be wary of dealer-added accessories installed on every car (like nitrogen in tires, door edge guards). These add pure profit for the dealer. Also, confirm there are no “market adjustment” markups added to in-demand vehicles. Always negotiate from the MSRP, not the sticker on the window.
Finding the cheapest new car you can buy requires a balance between upfront price and long-term value. By focusing on the total out-the-door cost, understanding the trade-offs of a base model, and considering alternatives like a used car, you can make a smart financial decision that gets you reliable transportation without breaking the bank. Start your search online, get multiple quotes, and don’t rush the process. The right affordable car for you is out there.