The 12 Cheapest New Cars You Can Buy Right Now (April 2023)

The last few years have been rough for car manufacturers. Pandemic restrictions, geopolitical tensions, and a global shortage of semiconductors have meant that buying a new car often meant waiting weeks or months for delivery or paying above sticker price to secure any remaining inventory left on forecourts. Thankfully, it looks like the shortages should start to ease over the coming months, making now a good time to start looking for a new car if you've been holding off until this point.

The combination of supply shortages and inflation has driven the price of new cars to record highs in recent months, with December 2022 seeing an average new price of nearly $50,000. Luckily, there are still plenty of cars available for less than half of that figure, with a few even still retailing for under $20,000. Keep in mind that these prices don't include things like destination fees, taxes, or dealer charges, which can vary by location. If you're on a tight budget, or you simply want to spend as little as possible on your new car, then these twelve are currently the cheapest options on the market.

The vast majority of the cheapest cars in America come from Japanese or South Korean brands, with the 2023 VW Jetta being the only European car to make it onto the list. At a starting price of just over $20,000 (plus fees), the Jetta is by far the cheapest car in the Volkswagen stable, but it was also the best-selling VW car model by far in 2022. Part of its appeal is that even base-spec models come with a turbocharged four-cylinder engine making 158 horsepower and 184 lb-ft of torque, making it one of the more powerful cars in its price bracket.

It's also attractively styled, and there's plenty of space in the cabin. Both the inside and outside of the car feel a little more blandly designed than the Jetta's South Korean rivals, but everything feels solid and well-built. A Jetta is also one of the cheapest ways to get your hands on a manual transmission, if that's your thing — an eight-speed auto 'box is an $800 optional extra on base-spec trims.

The Chevy Trax crossover was killed off after the 2022 model year, but recently re-emerged as a 2024 model year car, after skipping 2023 entirely. The car is manufactured in GM's South Korean facility, with the first shipment leaving the country for the U.S. at the end of February 2023. Every Trax is powered by a 1.2L turbocharged three-cylinder engine making 137 horsepower and 162 lb-ft of torque. A six-speed automatic transmission is standard.

The 2024 Trax brings the car's design more in line with the rest of Chevy's range, with styling clearly inspired by the Blazer. Although the car officially starts at $20,400, a compulsory fixed destination fee brings its effective MSRP up to $21,495. That's still a very competitive price, especially for a crossover that looks considerably sharper than its main rival, the Nissan Kicks. With its relatively modest power output, it's safe to say that it will be best suited to city and suburban driving rather than long road trips. Still, it's a welcome return for what looks to be a well-equipped resurrection of Chevy's entry-level car.

The 2023 Kia Soul keeps the unique boxy shape that makes it stand out from the crowd but does sport a few key changes from the previous model year. The biggest of those is that the top-spec Soul Turbo is no longer, which won't matter much to buyers looking to take advantage of the Soul's sub-$20,000 base spec starting price. In fact, the base spec model is arguably better than ever, with more tech now included as standard, including Lane Departure Warning, High Beam Assist, and a Driver Attention Warning.

Two-tone paint options are now available, with the roof able to be painted in either white or black while the body gets a range of more vibrant color options including "Surf Blue." All variants of the Soul come with a 2.0L four-cylinder engine making 147 horsepower, with a standard CVT meaning you don't have to shift your own gears. The car's unusual look and compact size won't be for everyone, but there's plenty to like about this cheap, charming car, not least its attractive MSRP.

The 2022 Kia Forte saw a major overhaul from its predecessor, and as a result, Kia offered no major changes for 2023. The 2.0L four-cylinder engine remains unchanged with 147 horsepower, and a CVT is the only transmission option. The Forte's fuel economy figures are impressive, with a claimed 41 mpg on the highway and 30 mpg in the city. Kia's suite of safety features is not the most comprehensive in its price bracket but still includes Lane Keeping Assist, Lane Following Assist, and Pedestrian Forward Collision Avoidance. For other safety features, you'll have to pay for an additional package or upgrade to a higher trim.

The Forte's styling is in line with the rest of Kia's lineup, with an angular face and more sculpted lines that prove "cheap" doesn't always have to equal "bland." It's worth noting that the Forte is among the Hyundai and Kia models that have been affected by the notorious "Kia Boys" trend, which involves teenagers taking advantage of a flaw in the car's security system to steal it and post the resulting joyride on TikTok. While Hyundai has issued updates to fix the flaw on older models and 2023 models are not affected at all, the fallout from the scandal has caused insurance premiums for certain Kia and Hyundai models to increase. As such, it's worth checking how much your insurer will charge to cover a new Forte, as a hefty premium could detract from the car's overall value for money.

Kia's cheapest car is the Rio, which like much of the rest of Kia's range, doesn't see many changes for the 2023 model year. The only addition is an oil sensor that alerts the driver if levels get too low. The Rio is one of a handful of cars that remain truly under the $20,000 mark once destination fees and taxes have been taken into account, but it's not as drab as you might expect for that price. The sole engine option is a 1.6L four-cylinder making 120 horsepower, which is far from fast but very efficient, with up to 41 mpg achievable on the highway according to the EPA.

Most safety features like Lane Departure Warning and Forward Collision Avoidance are only available with the optional "S Tech" package, and only a few basics like Hill-Start Assist and Electronic Stability Control come as standard. The infotainment features are more impressive, with Android Auto and Apple CarPlay integration even on base models.

The Mirage might work out cheaper to run over several years, but for an upfront purchase price, nothing beats the Nissan Versa. The entry-level compact sedan gained an exterior refresh for 2023, with a bigger grille and more angular styling to replace the rather tired appearance of the 2022 model. The cheapest base-spec Versa gets a five-speed manual transmission, with a CVT available as an optional extra.

In terms of safety features, not much is standard on the cheapest variants of the Versa. Automatic Emergency Braking is included, but that's about it. Blind Spot Warning and Rear Cross Traffic Alert are standard on higher-spec SV and SVR trims. In manual form, the car only manages 27 mpg in the city, and 35 mpg on the highway, so expect to fill up more frequently than some of the other cars on this list. Apple CarPlay and Android Auto are also not included as standard on the base-spec trim, but are available as part of the "S Plus" package.