The Best New Cars Under $20,000 in 2024 (2024)

Affordable cars are a rare breed these days. The supply-chain shakeups an inflation brought on by Covid-19 have collided with consumer preferences for SUVs, meaning big car price increases and the gradual winnowing of the budget car field. As recently as 2020, value-priced small-car stalwarts like the Chevrolet Spark, Honda Fit, Hyundai Accent and Toyota Yaris were going strong and the field of cars priced under $20,000 (and even under $15,000) was fairly broad. Not anymore.

All of those cars have since been discontinued, sometimes replaced with very hatchback-like tiny SUVs that cost a bit more, like the Hyundai Venue. But while the field has narrowed, there are still some value-packed rides on offer for less than $20,000.

You’ll have to temper your expectations; Mercedes-Benz, and even Ford, Mazda, and Volkswagen, don’t make cars at this price anymore, and there are no American-made entries here. This also isn’t an arena where you’ll find leather seats, all-wheel drive (AWD), or the latest in tech or safety features, but in that last area some of these cars offer more than they used to.

It's worth noting that a budget of $20,000 will go further if you opt for a used car, but new vehicles get you a fresh warranty. Two of the manufacturers that dominate this segment, Kia and Mitsubishi, also offer some of the longest warranty coverage on the market.

Some of the following vehicles may list at slightly more than $20,000, but you may be able to negotiate your way down. Conversely, there are also vehicles that can be had below MSRP if you search hard enough, even in the current high-priced automotive environment.

Check out our various research and review pages to learn more about any of the following small, front-wheel drive (FWD) cars that pique your interest.

The Best New Cars Under $20,000 in 2023 and 2024

Hyundai Venue
Kia Forte
Kia Rio
Kia Rio5
Mitsubishi Mirage
Mitsubishi Mirage G4
Nissan Versa

Hyundai Venue

Priced from: $19,650

Technically, the Hyundai Venue is a crossover, not a car, but it’s awfully close. This is the smallest crossover you can buy. At just 159.1 inches long, it’s exactly the same size as a four-door Mini hardtop. New in 2020, it’s essentially a tall wagon version of the Hyundai Accent, riding the same platform and using the same powertrain but with cooler styling and more space. When the Korean automaker axed the Accent in 2022, the Venue became the least-expensive way into a new Hyundai, but it doesn’t look “cheap” or much like an economy car.

Underneath the stylish exterior, which borrows some lines from Hyundai’s much larger Palisade SUV, the Accent’s pieces remain. Every Venue is powered by a 1.6-liter four-cylinder engine mated to a continuously variable automatic transmission (CVT), and they’re all FWD. With just 121 horsepower and 113 pound-feet of torque, the Venue is never in much of a hurry and passing is best done strategically. It’s a mundane driver, but not dangerously slow. It earns 31 mpg combined, low for this class, thanks to the tall shape’s aerodynamics.

Kia Forte

Priced from: $19,690

Only the base model Kia Forte LX truly falls under the $20,000 barrier if you factor in destination fees, but the one-rung-up Forte LXS isn’t much pricier, and all versions of this compact sedan are an excellent value. Considerably larger inside and out than Kia’s cheaper Rio, the Forte is about the size of a Subaru Impreza but much cheaper. It’s handsome, if plain, and it's roomy, with more rear-seat legroom and a bigger trunk (15.7 cubic feet) than any other sedan on this list.

While the Forte’s base engine is a 2.0-liter four-cylinder making only 147 horsepower and driving the front-wheels via a CVT, the car doesn’t feel sluggish and doesn’t drone on the highway. It delivers a comfortable, controlled ride and it isn’t loud inside. A spirited 201-horsepower turbocharged 1.6-liter four is available on the Forte GT, but it costs quite a bit more. The non-GT Forte isn’t as exciting, but it’s a capable driver with great fuel economy. It’ll return 34 mpg combined, only just shy of the much smaller Rio.

Every Forte gets an 8-inch touchscreen with wireless Apple CarPlay and Android Auto. There are also a fair number of standard driver-assist systems like forward automatic emergency braking, lane-departure warnings and a driver-attention warning system. Options include navigation, adaptive cruise control, wireless charging, an upgraded Harman Kardon sound system, and more. Plus, all Fortes come with Kia’s lengthy warranty coverage. It might be the best car you can buy at this price.

Kia Rio

Priced from: $16,750

Kia is rapidly transforming into a hip and stylish brand, but it hasn’t forgotten its roots. The Kia Rio is its least expensive offering and a long-time mainstay of the sub-$20,000 car world. There are two body styles, the Rio sedan and the hatchback Rio5, which we cover separately. The sedan is the more affordable of the two, and even if you opt for some of its best options, you can still roll off the lot for less than 20 grand.

Though not as pretty as the Rio5 hatch, the Rio sedan’s upright design looks mature and modern, and it provides solid head- and legroom in the front row. Rear-seat space, however, is confining. The Rio’s 13.7 cubic-foot trunk isn’t bad by class standards, but the Forte has more space in every dimension. To drive, the Rio isn’t anything special, with a 120-hp 1.6-liter four-cylinder engine driving the front wheels through a CVT. It’s pleasant and not a bad handler, but there isn’t much verve. It will, however, return up to 36 mpg combined.

The more affordable LX trim comes standard with an 8-inch touchscreen infotainment system plus Apple CarPlay and Android Auto, both wireless, but not much else. If you want all the best features on the Rio, you’ve got to upgrade to the higher-trim S and add the $1,800 S Technology Package, which gives you the full suite of driver-assist systems, alloy wheels, rear disc brakes and a few other extras.

Kia Rio5

Priced from: $17,390

The hatchback Kia Rio5 costs a little bit more than its sedan siblings, but the extra cash is worth it. Not only is it more attractively styled, it also nets you more versatility. There are 17.4 cubic feet of cargo space behind the rear seats, and 32.8 with them folded down compared to the sedan’s 13.7 cubic-foot trunk. Since it’s a full foot shorter overall than the Rio sedan, the subcompact Rio5 is also easier to park, though the blind spots will make you grateful for the backup camera. Some of the sedan’s shortcomings still apply though, like the tight back seat.

Unlike the sedan, there’s only one Rio5 trim, the S (the higher trim on the sedan), with a starting price of nearly $19,000 including destination. It comes with a standard 8-inch touchscreen infotainment system with wireless Apple CarPlay and Android Auto, and its cabin feels a little nicer than those of the Mitsubshi Mirage or Nissan Versa. Kia does skimp a little on some features though, and getting any active-safety systems means opting for the $1,800 S Technology Package. That’s pricey, but it does net you every available option including rear disc brakes, the DriveWise safety suite, alloy wheels and more.

Like the sedans, the Rio5 uses a 1.6-liter four-cylinder engine making 120 hp and 112 lb-ft of torque. It powers the front wheels through a CVT, and while not an exciting drive, but it isn’t a bad one either. It’ll also return up to 36 mpg combined. 2023 is the Rio5’s last year, but supplies will be available into 2024. If you want a larger hatchback vehicle for not much more cash, the Kia Soul is a good alternative.

Mitsubishi Mirage

Priced from: $16,245

If you want a new car with an automatic transmission, the Mitsubishi Mirage is the cheapest and smallest one on the market. Better still, patient shoppers can sometimes find them below MSRP. But life with the Mirage means compromises. This is a truly subcompact car (smaller than a Mini hardtop) and a very basic one. Power comes from a 1.2-liter four-cylinder engine with just 78 horsepower, and since Mitsubishi dropped its manual transmission last year, it comes only with a droning, noisy CVT.

That said, it isn’t an entirely terrible experience. The Mirage’s hatchback is very useful, with 17.4 cubic feet of cargo room behind the rear seats and a crossover-like 47 with them folded. There’s also more backseat space than in the Nissan Versa. The seats aren’t terrible even if the plasticky interior feels cheap, and in hatchback form the Mirage even looks kind of cute. It also gets fuel economy up to 39 mpg combined, something no other non-hybrid car can match. Plus it has a good reputation for long-term durability with a lengthy warranty for backup.

A basic 7-inch touchscreen, a single USB port, and both Apple CarPlay and Android Auto are standard, as is forward automatic emergency braking with pedestrian detection, but that’s about it. There are a few more features available on the higher trims, but honestly, the cheapest Mirage is the best, this is a car meant to be basic and inexpensive. You could get fancier fabrics or the silly Ralliart package, but they don’t improve the value proposition. If you can live with its shortcomings, the Mirage is cheap motoring in the extreme.

Mitsubishi Mirage G4

Priced from: $17,245

Typically, the hatchback variant of a sedan gains a differentiator in its name (like the Kia Rio5), but with the Mirage, it's the sedan that gains an extra label, G4. If the bottom dollar is your top priority and you absolutely must have a sedan, the G4 has your back. It has the same tepid performance and low-rent cabin as the Mirage hatchback, but also the same reputation for hassle-free operation and durability, plus Mitsubishi’s lengthy warranty.

There are some differences, however. In the G4, you get a much larger back seat than in the hatch, with three inches more legroom. What you gain there, however, you lose in cargo versatility, as the G4’s rear seats don’t fold down. It does have a fairly roomy 12.4 cubic-foot trunk for such a small car, but if you have to lug any oddly shaped stuff, the Mirage hatchback is better. The stretched wheelbase also makes for much more awkward styling than the hatch.

G4s use the same 78-hp 1.2-liter four-cylinder engine and CVT as the hatch, and it makes just as much noise here. On the plus side, the G4 returns 37 mpg combined (the hatch does 39). It’s very basic, but the Mirage G4 does come standard with automatic climate control, a USB port, and a 7-inch touchscreen infotainment system with Apple CarPlay and Android Auto. Mitsubishi includes forward automatic emergency braking with pedestrian detection, but few other driver-assist features.

Nissan Versa

Priced from: $15,980

By MSRP, the Nissan Versa is the least expensive new vehicle in America, just like it was a decade ago. But unlike older versions of this car, the current model is not a basic bottom-feeder. It isn’t fast or luxurious, but a major redesign in 2020 onto the same platform as the Nissan Kicks crossover added size, style, and technology. It still has a tight back seat, but it’s only 5.7 inches shorter overall than the pricier Sentra and has a fair bit of that car’s style on the outside. It also has a bigger trunk, 14.7 cubic feet to the Sentra’s 14.3.

What it does not have is much in the way of performance. The cheapest Versa S comes with a five-speed manual transmission, which some drivers will prefer to the optional CVT. Both drive only the front wheels and the 1.6-liter four-cylinder engine has just 122 hp and 114 lb-ft of torque to work with. The manual is more satisfying, but can only be had on the base model, so you have to forego some of the nicer features optional on the higher trims. The CVT adds $1,670 to the bill, but it does better on gas, at 35 mpg combined to the manual’s 30.

It isn’t as pretty as the Sentra’s cabin, but the Versa’s interior doesn’t look bad and it still features a modicum of tech features that are nice at this price. There’s a 7-inch touchscreen with at least one USB port even on the base model, plus Apple CarPlay and Android Auto. Nissan also includes forward and rear automatic emergency braking, lane-departure warnings and high-beam assist on all Versas. Higher trims can be had with even more, including adaptive cruise control. All told, it’s a solid value.