In many households, owning one or two cars is a daily necessity. When consumers are choosing a car model, they consider factors such as price, reliability, and comfort. With new car prices in the United States skyrocketing to nearly a historic high of $50,000, car shoppers in the new year are looking for deals on durable new models.
The average price of a new car in the United States had already approached $50,000 by October 2025. Ivan Drury, Director of Insights at automotive website Edmunds, told Fox Business at the time, “This is something we had been expecting, as no one anticipated prices to drop, and electric vehicles, which have higher prices and make up a significant share of sales, naturally contribute to this result.”
Drury commented, “Putting aside the discussions, there are hardly any vehicles today that are cheaper than those purchased last year, two years ago, or five years ago. Now, the average age of a car being traded in for a new one is roughly five and a half to six years old, so those who bought cars in 2020 and 2019, especially in 2019, would be shocked by today’s prices.”
The total cost of owning a car goes beyond just monthly loan payments and insurance fees. In the first one or two years of owning a new car, the owner may only need to pay for routine maintenance costs, such as oil changes. As vehicles age, the costs for repairs and part replacements increase. According to Kelley Blue Book data, the average age of vehicles in the United States is now 12.9 years, making it crucial to choose a new car that offers value for money.
The automotive team at USA Today, in collaboration with popular car websites, has compiled a list of the best and most affordable cars on the market at the start of the new year.
Below are five top-of-the-line car models with starting prices below $40,000:
– Base Price: $22,600
The Nissan compact sedan Sentra ranked second in the Detroit Free Press’ annual car selection. The Sentra comes with two 12.3-inch screens—one for the instrument panel and another touchscreen.
Standard features include wireless Apple CarPlay and Android Auto, LED headlights, and optional surround-view camera. Standard safety and assistance systems include automatic emergency braking, pedestrian detection, blind-spot warning, and automatic high beams.
– Base Price: $28,395
The midsize sedan Honda Accord made the “10 Best Cars” list from Car and Driver for the 40th time this year.
Honda claims the Accord comes with a 9-inch color touchscreen, wireless Apple CarPlay and Android Auto connectivity, and a wireless phone charger. The model also offers a hybrid version.
Honda states that hybrid versions of the Accord accounted for 50% of all Accord sales in 2025.
– Base Price: $24,595
The hybrid version of the Honda Civic was named the 2025 North American Car of the Year by the National Automobile Dealers Association (NADA).
According to Honda, the Civic hybrid has a city fuel economy of 50 miles per gallon, a highway fuel economy of 47 miles per gallon, and 200 horsepower. It comes equipped with built-in Google connectivity, Apple CarPlay and Android Auto connectivity, and optional Bose premium audio system.
– Base Price: $28,550
The Toyota Prius was rated one of the best hybrid models under $40,000 by Edmunds.com in 2025.
The 2026 model features a top-mounted multifunction information display screen with indicators and a 7-inch LCD display, blind-spot monitoring system with rear cross-traffic alert, and an 8.0-inch Toyota Audio Multimedia display screen.
The base LE version is estimated to have a fuel economy of 57 miles per gallon on city roads and 56 miles per gallon on highways. The Prius comes in 4 configuration versions, all priced below $40,000.
– Base Price: $39,095
The Hyundai Ioniq 6 electric sedan ranks high on Motor Trend’s under $40,000 sedan rankings.
The Ioniq 6 is Hyundai’s second all-electric car model. Hyundai states that the 2026 N model (with N Grin Boost function enabled) can reach 641 horsepower and offers driving dynamics tested on the track.