The 5 Best Affordable Car Brands Priced Under $40K

Cox Automotive’s Kelley Blue Book reports that only five major car brands averaged transaction prices under $40,000 in the United States in May 2026, as average new-car prices stay near $50,000. Consumers paid $49,220 on average in May 2026, down 0.5% from $49,456 in April and up from $48,627 a year earlier. Cox said automakers’ average manufacturer’s suggested retail price (sticker price) was $51,595, 3.4% higher than May 2025. Erin Keating of Cox attributed the persistence of higher prices to demand for larger vehicles and tighter supply in key segments such as pickup trucks. She cited redesigned SUVs from Toyota, Kia, Jeep, and Hyundai, and production constraints in Ford’s F-Series. The brands under $40,000 were Subaru ($36,862), the Renault-Nissan-Mitsubishi Alliance ($37,236, led by the Nissan Rogue), Mazda ($37,444), Honda ($38,816, with the CR-V), and Hyundai ($39,228, with the Tucson).