A new milestone has been reached when looking at the most affordable new cars to buy: there are now no brand new vehicles that can be purchased for under $20,000.
As of 2024, the Mitsubishi Mirage, the long-reigning holder of the most affordable new car title, was discontinued, ending its run as the last new car that could be purchased for less than $20,000.
Not too long ago, you could get a new car for under $10,000, but as inflation marches on and automakers are under more pressure to increase profits, the most affordable new cars in 2025 all cost more than $20,000.
While prices have gone up, all the cars listed have more standard features such as air conditioning, Apple CarPlay and Android Auto, and power windows, which helps justify the higher prices.
Here are the top 10 cheapest cars in Canada for 2025 (prices don’t include destination fees or taxes, so make sure to budget for them before you start shopping).
10. 2025 Kia Seltos LX: Starts at $25,695
The Seltos is a very well-rounded option for an affordable compact crossover. It is one of the newer entries to this list and features great tech for the price. It features a 2.0L four-cylinder engine producing 147 hp and 132 lb-ft of torque, mated to a continuously variable transmission (CVT). The Seltos also achieves a respectable fuel economy rating of 7.6 L/100 km combined. Overall, the Seltos offers good standard features such as heated seats, culminating in a package that ticks many boxes for those seeking a reliable, comfortable, and stylish compact crossover.
9. 2025 Mazda3 GX/Sport: Starts at $24,900/$25,650
The Mazda3 is an entry that punches above its weight for the performance and driving dynamics it delivers for the price. It offers refinement and performance far better than many of its competitors, and has heated seats by default. Available as either a sedan or a slightly more expensive hatchback, the base Mazda3 comes in as the most powerful option on this list, coming standard with a 2.5L four-cylinder engine producing 191 hp and 186 lb-ft of torque. This engine uses Mazda’s Skyactiv technology, allowing the engine to produce more power while using less fuel. It also comes standard with cylinder deactivation. The overall result is an impressive fuel consumption rating for such a powerful engine of 7.5 L/100 km combined.
8. 2025 Corolla Hatch/ Corolla L: Starts at $23,970/$24,375
Coming in at eighth place are both body styles of Toyota Corolla, with the sedan costing slightly less than the hatchback. Drivers can benefit from Toyota’s reputation for safety and reliability, but also a long lit of standard safety features. Both cars come equipped standard with adaptive cruise control, lane departure alert, and automatic climate control. This generation of Corolla has been out for several years and has proven itself, much like its predecessor, to be a customer favourite. The Corolla’s base engine is a 2.0L four-cylinder engine making 169 hp and 151 lb-ft of torque, and is connected to a CVT, with an excellent consumption rate of 6.7 L/100 km. The Corolla is a great all-round option known for its dependability.
7. 2025 Kia K4 LX FWD: Starts at $23,995
The newest edition to this list is the Kia K4 sedan, launched in 2024. The K4 is the replacement for the Forte.The car has a stylish contemporary design both inside and out, and is one of larger sedan offerings on this list for those who value space.
The car comes standard with a 2.0L four-cylinder engine making 147 hp and 132 lb-ft, connected to a CVT resulting in a combined estimated fuel consumption of 7.0 L/100 km. The K4 overall offers a versatile, well-priced package, offering standard amenities such as heated seats across all trim levels. For those seeking a practical and stylish small sedan, the K4 is a solid contender.
6. 2025 Kia Soul: Starts at $23,195
Whether it’s considered a tall hatchback or small crossover is up for debate, but there is no denying that the Kia Soul is practical for its size, having amazing headroom while only being 4.1 metres in length. It also comes well equipped with features such as heated seats and cruise control on the base trim. The Soul comes as standard with the same base drivetrain available in the K4; a 2.0L, 147-hp and 132 lb-ft four-cylinder engine connected to a CVT. This results in a decent combined city and highway fuel consumption rating of 7.9 L/100 km. The Soul is the quirky option on this list, combining well-sized practicality and a unique look.
5. 2025 Hyundai Elantra Essential: Starts at $22,599
The Elantra is a great entry as Hyundai’s smallest sedan despite not being so small in size. The Elantra is one of the larger sedans on this list, matching the Kia K4 in size, as the two cars share a platform. While the base Elantra comes with a 2.0L four-cylinder engine producing 147 hp and 132 lb-ft, both hybrid and performance engines are also available for those seeking better efficiency or more power. The Elantra is a great option if frugality is a priority with a fantastic combined average fuel consumption of 6.5 L/100 km, making it the most fuel efficient non-hybrid option on this list. However, it still comes well equipped with heated seats and the latest infotainment technology, even on the base model.
4. 2025 Nissan Kicks Play S: Starts at $22,598
While there’s a new-generation Nissan Kicks, the brand will continue to sell the previous-generation model alongside the new one as a more budget-focused option, now known as the Kicks Play. The Kicks Play is the smallest crossover in Nissan’s lineup for those who value a compact yet practical vehicle. It uses a small 1.6L, 122-hp and 114 lb-ft four-cylinder engine connected to a CVT. The Kicks Play achieves very respectable fuel consumption for a small crossover with a rating of 7.2 L/100 km, making it the most efficient crossover on this list. The Kicks Play is a worthwhile choice for those who value solid standard equipment such as heated seats, a higher driving position, and great fuel economy.
3. 2025 Nissan Sentra: Starts at $22,548
The Nissan Sentra presents sportier option for buyers on a budget. While it’s not necessarily a performance car, the Sentra is the only entry on this list that comes standard with a six-speed manual transmission. Paired with a peppy 2.0L engine with 149 hp and 146 lb-ft, and multi-link suspension, the Sentra could be the most engaging car to drive on this list.
The Sentra’s fuel consumption is on the higher end of the list, rated at 8.0 L/100 km, but it makes up for it in other areas. Despite the Sentra being an older model, it’s still well appointed with standard heated seats and voice recognition.
Overall, the base Sentra’s simplicity hearkens back to economy cars of the past, offering a fun, engaging driving experience for those seeking low-budget thrills.
2. 2025 Hyundai Venue Essential: Starts at $21,299
Coming in as the second most affordable car on sale for 2025 in Canada is the Hyundai Venue, offering crossover practicality while still having a small, manageable footprint. The Venue’s base features match that of any Hyundai offered, with heated seats and a touchscreen display in the entry-level trim. The Venue comes with a frugal 1.6L, 121-hp engine but weighs very little at just under 1,200 kg, resulting in decent performance for its size despite the smaller engine. Fuel consumption is average for the class, especially considering the Venue’s taller height, with a rated fuel consumption of 7.5 L/100 km. The Venue’s biggest upside is its interior space. Despite being a small crossover, it utilizes space wonderfully, giving front and rear passengers excellent room.
1. 2025 Nissan Versa S: Starts at $20,789
Coming in as the most affordable car in the country for 2025 is the Versa S. It is a great economy car for those seeking straightforward transportation on a budget. The Versa comes as standard with a 122-hp 1.6L four-cylinder engine connected to a CVT, allowing for modest performance. It achieves very respectable fuel consumption numbers, with a rating of 6.7 L/ 100 km combined, one of the better contenders for those who seek to have a simple and cheap-to-run car. Keep in mind, however, that the Versa is the only car on this list that doesn't come standard with Apple CarPlay, Android Auto, or heated seats.