Top 9 Budget-Friendly Car Brands Priced Below $40K Today

Average New Car Prices Rise in August 2026

In August 2026, the average price of new cars in the U.S. exceeded $50,000 for the first time, causing consumers to feel the financial strain. Here are the key highlights:

• Average Transaction Price: $50,089, which is a 0.5% increase from July and a 2.2% increase from August 2025.
• Manufacturer’s Suggested Retail Price: The average sticker price rose to $51,852, showing a 0.4% growth from the previous month.

Key Brands Under $40,000

Only nine major car brands managed to keep their average transaction prices below $40,000:

1. Mitsubishi

   • Average Price: $35,661 (+4.8% from July)
   • Best-selling Model: Mitsubishi Outlander

2. Mazda

   • Average Price: $36,824 (-1.4%)
   • Best-selling Model: Mazda CX-5

3. Buick

   • Average Price: $36,901 (0.0%)
   • Best-selling Model: Buick Envista

4. Nissan

   • Average Price: $37,343 (+0.7%)
   • Best-selling Model: Nissan Rogue

5. Subaru

   • Average Price: $37,366 (-0.1%)
   • Best-selling Model: Subaru Crosstrek

6. Hyundai

   • Average Price: $37,382 (+0.1%)
   • Best-selling Model: Hyundai Tucson

7. Honda

   • Average Price: $37,805 (+0.1%)
   • Best-selling Model: Honda CR-V

8. Kia

   • Average Price: $38,681 (-0.3%)
   • Best-selling Model: Kia Sportage

9. Volkswagen

   • Average Price: $39,158 (-3.2%)
   • Best-selling Model: Volkswagen Tiguan

Market Impact

Erin Keating, an executive analyst, noted that consumers are gravitating toward more affordable vehicle segments in response to rising prices. Despite the challenges, the demand for subcompact SUVs is increasing, highlighting consumers’ need for affordability in today’s market.

For more detailed information, visit USA TODAY Cars.