According to Kelley Blue Book, the average new car in America cost $48,397 last September. Surprisingly, it's actually half a percentage point lower than a year earlier. This highlights the significance of The Drive's five nominees in the Best Under $40K category, which remind us that quality, utility, and style don't have to come with an exorbitant price tag.

Why We Love Cheap Cars

Selling cars is a challenging task, but it becomes easier as budgets increase. True innovation often emerges within constraints. These 2024 cars, introduced or significantly reworked, represent the spirit of making technology accessible. They offer a diverse range of options, allowing us to choose our own adventure with a value play.

Runner-Up: Toyota Camry, The Best Midsize Sedan Under $40K

Andrew P. Collins emphasizes that the Camry is not only competent in daily driving but also enjoyable. The steering feedback is good, providing a great sense of control. Acceleration is acceptable, and the brakes are responsive without being overly aggressive. It feels smooth and clean.Growing up, the Camry was everywhere and often associated with certain stereotypes. However, its reputation for reliability and frugality grew over time. The 2025 updates have made the car even better, with improvements in various aspects.

Runner-Up: Kia Carnival, The Best Minivan Under $40K

Chris Tsui highlights the main draw of minivans - space. The Kia Carnival has plenty of it, with multiple ways to open and close the doors and liftgate. It also offers luxurious features like hand-deployable shades and illuminated seat belt buckles.Even without the hybrid powertrain, the 2025 Kia Carnival is a practical and serene vehicle. It's stylish and relaxing to drive, and Chris believes that SUVs and crossovers will eventually become associated with oldness.

Runner-Up: Nissan Kicks, The Best Small Crossover Under $40K

Beverly Braga notes that the Nissan Kicks has undergone a significant transformation. It's bigger and more stylish than before, with a premium cabin for its segment. Although it's still a small crossover, it offers a lot more than its price suggests.Based on consumer feedback, Nissan has enhanced the Kicks in various ways without adding complexity or cost. Its engine and performance may not be exceptional, but it over-delivers compared to its competition.

Runner-Up: Subaru BRZ tS, The Best Sports Car Under $40K

Nico DeMattia describes the BRZ tS as a shockingly sharp little car that can handle tight corners with confidence. It has its own unique flavor and is a pure driving experience.However, the BRZ tS isn't for everyone. It's unrefined and immature compared to its rivals, but it focuses on delivering driver enjoyment. It's one more rung on the ladder for sports car enthusiasts.

Winner: Honda Civic Hybrid, The Best Car Under $40K

Chris Tsui explains that Honda executed well with the latest Civic Hybrid. It builds on the already satisfying 11th-generation Civic, adding a punchy 232 lb-ft of torque while enhancing efficiency.The Civic Hybrid offers a clean design, intuitive controls, and decent materials. Its hybrid system integrates seamlessly, and it's hard to fault in any aspect. Starting at just $29,845, it's a great commuter car.In conclusion, these cars in the Best Under $40K category showcase the best of what the market has to offer, providing value and driving pleasure at an affordable price.