Home Financial Looking for a New Car Under $40K? Check Out the 5 Most Affordable Brands

Looking for a New Car Under $40K? Check Out the 5 Most Affordable Brands

by Deidre Salcido
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Only five major car brands averaged sales prices under $40,000 in the United States in March 2026, as new car prices continue to rise and car shoppers feel the pinch.

Car shoppers paid an average of $49,275 for new cars in March 2026, according to Cox Automotive’s Kelley Blue Book. That figure was down 0.1% from February 2026’s average of $49,353.

Cox also said automakers’ average manufacturer’s suggested retail price, or asking price, was $51,456 in March 2026 — 3.9% higher than the average sticker price in February 2025.

Average incentives rose to 7.2% of the median transaction price, amounting to a typical discount of $3,548. February’s average incentives were 6.9% of that month’s average transaction price.

Erin Keating, executive analyst at Cox Automotive, said car buyers are still opting for larger, more expensive cars despite concerns about elevated gas prices. “The numbers this month also show that the industry’s near-$50,000 ATP is reflective of a market that favors large, expensive vehicles,” Keating said. “While affordable vehicles still exist, the demand continues to be concentrated in higher-priced segments.”

The USA TODAY Cars team reviewed the five auto brands with average sales prices below $40,000 in March, along with their cheapest models.

The 5 Most Affordable Car Brands in March 2026

1. Mazda

Average March transaction price: $36,229
Change from February: +0.4%
Cheapest U.S. model: Mazda 3 (MSRP: $24,150)

2. Renault-Nissan-Mitsubishi Alliance

Average March transaction price: $36,302
Change from February: -1.8%
Cheapest U.S. model: Nissan Sentra (MSRP: $22,600)

3. Subaru

Average March transaction price: $36,229
Change from February: +0.4%
Cheapest U.S. model: Subaru Impreza (MSRP: $26,595)

4. Hyundai

Average March transaction price: $36,229
Change from February: +0.4%
Cheapest U.S. model: Hyundai Venue (MSRP: $20,550)

5. Honda

Average March transaction price: $36,229
Change from February: +0.4%
Cheapest U.S. model: Honda Civic (MSRP: $24,695)

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