5 Affordable Car Brands You Can Buy Now for Under $40,000

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  • The average price of a new car in the U.S. was nearly $50,000 in April 2026.
  • The price hike is driven by demand for larger vehicles and lack of supply in certain segments.
  • Only five major auto brands had average transaction prices below $40,000 in May.

Only five major auto brands had average selling prices below $40,000 in the U.S. in May 2026, as car buyers feel the pinch as the average new car price remains near $50,000.

Consumers paid an average of $49,220 for a new car in April 2026, according to Cox Automotive’s Kelley Blue Book. According to the group, the average price of a new car in April was 0.5% lower than the average price of $49,456 in April 2026 and up 1.2% compared to the average price of $48,627 in May 2025.

Cox also said the average manufacturer’s suggested retail price (also known as sticker price) for automakers is $51,595, which the group said is 3.4% higher than the average sticker price in May 2025.

Erin Keating, an executive analyst at Cox Automotive, said in a statement that Americans’ demand for larger vehicles, combined with tight supply in some key segments such as pickup trucks, is contributing to the high average new vehicle price.

“Converging product cycles and supply dynamics are driving average transaction prices up 2% to 4% year over year across major automotive segments,” he said. “Redesigned SUVs from Toyota, Kia, Jeep and Hyundai have been commanding higher prices since the beginning, but production constraints on Ford’s F-Series have tightened truck inventories and increased average transaction prices. New Ram pickups are stepping in to capture upscale buyers.”

With this in mind, the USA TODAY Cars team looked at five car brands and their best-selling models with an average selling price of less than $40,000 in May.

1. Subaru

Average transaction price in May: $36,862

Rate of change from April: -0.1%

best selling car in usa: Subaru Crosstrek

2. Renault-Nissan-Mitsubishi Alliance

Average transaction price in May: $37,236

Rate of change from April: -0.3%

best selling car in usa: Nissan Rogue

3.Mazda

Average transaction price in May: $37,444

Rate of change from April:2.0%

best selling car in usa:Mazda CX-5

4.Honda

Average transaction price in May: $38,816

Rate of change from April: -0.2%

best selling car in usa:Honda CR-V

5. Hyundai

Average transaction price in May: $39,228

Rate of change from April:0.8%

best selling car in usa:Hyundai Tucson

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