Cheapest New Cars to Buy Right Now in America

The cheapest new cars to buy right now in America are the Nissan Versa, Mitsubishi Mirage, and Kia Rio, with starting MSRPs under $17,000. These subcompact sedans and hatchbacks offer the lowest entry price into new-car ownership, though final out-the-door costs vary by dealer, trim, and destination fees.

Formula

Estimated out-the-door price = (Base price + Destination fee + Other fees) × (1 + Sales tax rate).

Variables:

• Base price – the manufacturer’s suggested retail price (MSRP) for the trim you choose, in dollars.
• Destination fee – the delivery charge added by the manufacturer, typically $1,000–$1,500.
• Sales tax – your local tax rate as a percentage (e.g., 7 for 7%).
• Other fees – dealer documentation, title, registration, and any add-ons, in dollars.

This gives you a realistic estimate of what you’ll actually pay, not just the advertised price.

Worked Example

Using the default values: base price $16,000, destination $1,200, tax 7%, other fees $500.

1. Sum the non-tax costs: $16,000 + $1,200 + $500 = $17,700.
2. Multiply by tax rate: $17,700 × 0.07 = $1,239.
3. Add tax to the subtotal: $17,700 + $1,239 = $18,939.

The calculator returns $18,939, matching the step-by-step result.

Why Prices Are So Low (and What You Give Up)

Automakers price these entry-level cars to attract first-time buyers and fleet sales, but they keep costs down by using smaller engines, simpler infotainment, and fewer standard safety features than larger models. For example, the Mitsubishi Mirage uses a 1.2-liter three-cylinder engine that produces about 78 horsepower, which is adequate for city driving but struggles on steep highways. Similarly, the Nissan Versa and Kia Rio come with 1.5- or 1.6-liter engines in the 120-horsepower range. You won’t get leather seats, a large touchscreen, or advanced driver aids like blind-spot monitoring on base trims—those are reserved for higher packages.

How to Choose the Right Budget Car

Before you visit a dealership, decide what matters most:

• Fuel economy – The Mirage leads with around 39 mpg combined; the Versa and Rio get about 35 mpg combined.
• Reliability – Honda and Toyota models cost more upfront but often have lower long-term repair costs.
• Cargo space – Hatchbacks like the Rio and Mirage offer more flexible storage than the Versa sedan.
• Resale value – Kia and Nissan historically depreciate faster than Honda or Toyota, which affects total cost of ownership.

Test-drive at least two models back-to-back to feel the difference in ride comfort and acceleration. Also, check current manufacturer incentives—many automakers offer cash-back or low APR financing on these models to clear inventory.

Common Problems with Budget New Cars

Owners of these entry-level cars frequently report:

• Road noise – Minimal sound insulation makes highway driving loud.
• Hard plastic interiors – Expect scratchy surfaces and basic controls.
• Slow acceleration – Merging onto highways requires planning.
• Limited rear legroom – Taller passengers will feel cramped in the back seat.

These are trade-offs of the low price, not defects. However, some models have had recalls for specific issues, so check the National Highway Traffic Safety Administration (NHTSA) website for any open recalls on the exact VIN before buying.

How the Calculator Helps

Use the calculator above to compare different trims and fees. For instance, if you’re deciding between a base Versa at $15,730 and a mid-level Rio at $16,450, the calculator will show the true difference after taxes and fees—often narrowing the gap to less than $1,000. That’s useful because the advertised price rarely reflects what you’ll finance. Always ask the dealer for an itemized quote and plug those numbers in.

Alternatives to the Cheapest New Cars

If you can stretch your budget slightly, consider these options:

• Honda Civic or Toyota Corolla – Starting around $23,000, they cost more but offer better reliability, safety, and resale value.
• Kia Forte – Priced just above the Rio, it gives you more space and a longer warranty.
• Hyundai Elantra – Similar price to the Forte, with a comfortable ride and strong warranty.
• Certified pre-owned (CPO) – A 2-3 year old CPO compact car often costs less than a new subcompact and has more features.

Also consider the total cost of ownership: insurance rates for new cars are higher, and depreciation on a $16,000 car is less in dollar terms than on a $25,000 car, but the percentage loss can be similar.

Safety and Reliability Considerations

Budget cars have improved in safety, but they still lag behind larger vehicles. The 2024 Nissan Versa and Kia Rio both earned four-star overall ratings from NHTSA, while the Mitsubishi Mirage received a four-star rating as well. Standard safety features on most trims include forward collision warning and automatic emergency braking, but blind-spot monitoring and rear cross-traffic alert are usually optional. In terms of reliability, J.D. Power’s studies consistently rank Kia and Hyundai above Nissan and Mitsubishi, but all three are below Toyota and Honda. If you plan to keep the car for more than five years, a slightly more expensive model might be cheaper in the long run.

Frequently Asked Questions

What is the absolute cheapest new car in 2025?

As of early 2025, the Mitsubishi Mirage has the lowest starting MSRP at around $16,000, followed by the Nissan Versa and Kia Rio. However, prices change frequently, so check manufacturer websites for current figures.

Are these cheap cars worth buying?

If you need basic transportation for commuting and city driving, yes. They’re reliable and fuel-efficient, but they lack power and features. If you frequently drive on highways or carry passengers, consider a slightly larger car.

Can I negotiate the price of a budget car?

Yes, especially at the end of the month or year when dealers have sales quotas. Even a $500 discount can make a difference. Always negotiate the out-the-door price, not the monthly payment.

How much should I budget for insurance on a cheap new car?

Insurance for a new subcompact typically costs $1,200–$1,800 per year for full coverage, but rates vary by location, driving record, and coverage levels. Get quotes before you commit to a purchase.

What is the difference between MSRP and out-the-door price?

MSRP is the manufacturer’s suggested retail price, which doesn’t include destination, taxes, title, and dealer fees. The out-the-door price is the total you actually pay. Use the calculator to estimate it.

Are there any hidden costs with cheap new cars?

Besides the obvious fees, be aware of higher interest rates on small loans, potential dealer add-ons like paint protection or extended warranties, and higher depreciation if you sell within a few years. Always read the fine print.

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in t | Base price ($) | $ | 16000 | 0 | 200000
in d | Destination fee ($) | $ | 1200 | 0 | 5000
in tax | Sales tax (%) | % | 7 | 0 | 15
in f | Other fees ($) | $ | 500 | 0 | 10000
out total | Estimated out-the-door price | $ | t + d + f + (t + d + f) * tax / 100 | 0