5 Of The Best SUVs Under $40000, According To Consumer Reports

If you're in the market for a new SUV, there's never been a wider choice for the all-practical segment, and there seem to be no signs of production slowing down anytime soon. While buying a brand-new SUV comes with plenty of benefits over going for a used model, there's one key problem that makes buyers turn to the used market: price tags. In 2025, the average price for a new car is $48,841, which isn't as high as the pandemic's peak but is still expensive to say the least. 

Luckily, some major manufacturers offer brand-new SUVs that manage to fall under the $40,000 mark, many of which are unsurprisingly the best-selling nameplates in the segment. Putting practicality at the forefront, Consumer Reports tested many of the popular SUVs on the market today under this price point, whittling it down to the models that the outlet would recommend against the incredibly tough competition. Here's a look at five of the models that made the cut. 

The direction that Subaru has taken with the flagship Forester SUV makes for one of the most intriguing nameplates in the segment, making it unsurprising to see it feature in Consumer Reports' best-of list under the $40,000 mark. Blending performance, practicality, and safety in one neat package, pricing starts at $29,995 with a $1,420 destination charge. 

The Forester got a refresh for the 2025 model year, with the most notable updates to the exterior design. Consumer Reports notes its visibility, thanks to thin pillars, as one of the strong points for the new SUV. Under the hood, a 2.5L four-cylinder Boxer engine remains, but this time with 180 horsepower instead of 182 horsepower in last year's Forester. Instead, an improved chassis and a new steering system make up for the ever-so-slight drop in power. In our review of the 2025 Forester Sport, fuel efficiency wasn't something we felt was a strong point, with the EPA rating it at 28 MPG combined in the model we reviewed, and a higher 29 MPG in the base model.

But the standout features of the 2025 Forester are its standard all-wheel drive layout with a raised ride height, offering the sort of off-road capabilities Subaru has become synonymous with, as well as its vast array of safety-focused technology. Consumer Reports also gives the Forester an outstanding score when it comes to reliability, ticking many of the most important boxes needed to make a competitive SUV. 

When it comes to the SUVs that have contributed the most to the crossover SUV's popularity in recent years, none have had the same effect as the Toyota RAV4. This doesn't come as much of a surprise, given Toyota's well-established reputation for building some of the most dependable cars on the market, but the RAV4 doesn't just rely on that image. It's easily one of the most well-rounded compact SUVs on the market, despite a few reported flaws. 

Starting with the engine, the 2025 RAV4's 2.5L four-cylinder produces 203 horsepower and 184 pound-feet of torque, paired with a direct-shift eight-speed automatic transmission. Front-wheel drive comes as standard, with all-wheel drive costing another $1,400 on top of the base $29,800 (all before destination $1,450) for the LE trim. Consumer Reports praises the RAV4's acceleration and ability to stay planted through corners, but engine noise can become quite apparent at higher speeds. 

Inside, all passengers are treated to a solid amount of space, with overall volume coming in at 98.9 cubic feet. The cabin's design isn't anything that'll rival the likes of Lucid Motors, but that isn't the goal. The RAV4 is supposed to be functional and intuitive, which is another area that Consumer Reports points out as one of the best elements of Toyota's best-selling SUV. With the new and updated RAV4's release imminent, all eyes will be on it to see if it continues the trend set by the current model.

The Hyundai Santa Fe has been a popular mid-size SUV for a while now, but the 2024 redesign turned the relatively safe nameplate into one of the most unique among its competitors. Embracing the boxy design style more than most other cars on the road, the Santa Fe is one of the most practical in the segment in 2025. It's noticeably more expensive than some other SUVs on Consumer Reports' best under $40,000 list, but it earns its $34,800 base MSRP ($1,600 destination charges extra) for the 2026 model, not just through cargo space. 

Hyundai has made one key change for the new Santa Fe compared to the 2025 model by ditching the eight-speed dual-clutch automatic for an eight-speed torque converter transmission instead. Besides some upgrades for higher trims, you get the same SUV as last year, outside of the mentioned change. Under the hood, the Santa Fe produces a solid 277 horsepower and 311 pound-feet of torque from a turbocharged 2.5L inline-four, giving the mid-size SUV the acceleration that helped it garner praise from Consumer Reports. 

Going back to the Santa Fe's boxy design, the change of philosophy was to bolster its cargo capacity, with the latest model offering up to 79.6 cubic feet of volume behind the first row of seats. Also, this is one of the few mid-size SUVs to offer a third row of seating, helping you save some money instead of going for a full-size SUV to unlock more passenger space. 

The closest rival to the best-selling RAV4 has long since been the Honda CR-V, with the latter being the only direct rival to get close to the Toyota's sales numbers this year. On paper, the two models are closely matched across the board, aside from Honda putting more emphasis on the fit and finish of the cabin. With there not being much between them, it's no surprise to see Consumer Reports name it as one of the best SUVs on the road within its price range. The hybrid version of the CR-V also makes it onto the list, which we loved in our review of the electrified model.

For the 2025 model, the Honda CR-V comes in at $30,100, with the new 2026 model sitting at a slightly higher $30,920 (before $1,450 destination). There isn't much difference between the two, besides the nine-inch touchscreen now being standard across the board. Even so, Consumer Reports still praises the 2025 model's seven-inch infotainment display for being easy to use. You get more passenger space in the CR-V than you do in the RAV4, with the Honda measuring at a higher 106 cubic feet. 

One area where the CR-V falls behind its main rival, but not by much, is power. The 2025 Honda CR-V is motivated by a turbocharged 1.5L inline-four engine, producing 190 horsepower and 179 pound-feet of torque. Consumer Reports does mention the smaller engine feeling underpowered at times, but it manages to match the RAV4's 30 MPG combined efficiency rating.

Another compact SUV that's been on the market for as long as the likes of the Toyota RAV4 and Honda CR-V is the Kia Sportage. While its sales numbers aren't quite as impressive as its rivals, the Sportage certainly shouldn't be written off if you're in the market for a modern-feeling compact SUV. For the 2026 model year, Kia puts the Sportage through its mid-gen redesign, updating the front fascia, giving it a new steering system, and connecting the new 12.3-inch center touchscreen to the digital gauge cluster with a single piece of glass. Some additional tech upgrades can be found, but elsewhere, the Sportage remains very similar to the 2025 model that Consumer Reports loves at its core.

Performance for the Sportage comes from a 2.5L four-cylinder engine, producing 187 horsepower and 178 pound-feet of torque. Not stellar numbers, but comparable with its key competitors moving into 2026. And for a lower base price tag of $28,690 (along with a $1,445 destination charge), the Sportage continues to make a compelling case for being one of the very best in the segment. Consumer Reports also points out how comfortable the Kia is, both up front and in the rear seats, although the climate/audio touchscreen didn't go down as well.