Top 10 Most Affordable Cars in 2025

New vehicle prices are averaging over $66,000 in Canada, making life extremely tough for many shoppers, especially from the middle class. And that’s not even counting registration, fuel/energy, insurance, maintenance and repairs.

Looking for something much cheaper? We’ve compiled a list of the 10 most affordable new cars in Canada in 2025. There are just seven models left under $30,000 and none under $20,000 following the discontinuation of the Mitsubishi Mirage.

• Also: Honda Civic Recaptures Canada’s Best-Selling Car Crown
• Also: 2025 Kia K4 vs. 2025 Honda Civic: The Numbers

Note: The prices listed below are all accurate at the time of writing. However, they are subject to change at any time. They include freight and PDI plus other charges such as dealer fees and A/C tax.

10. Nissan Altima – $34,660 (MSRP of $31,798)

In recent months, the Chevrolet Malibu, Kia K5 and Subaru Legacy have left the Canadian market. Chances are the Nissan Altima will soon follow suit. While it remains an affordable alternative to SUVs with standard all-wheel drive, a fuel-efficient powertrain and spacious cabin, customers have to deal with unimpressive build quality, a dated appearance and steep depreciation compared to the Honda Accord and Toyota Camry. These two rivals require a premium of around $5,000, but give you much more.

9. Subaru Impreza – $30,257 (MSRP of $27,795)

Last year, Subaru sold 28,303 Crosstreks but only 3,276 Imprezas. Yet the two vehicles share the same chassis and engines. Leaving aside its dated interior design, the Impreza surpasses the Crosstrek in terms of driving dynamics and even cargo room. And with a price tag some $2,000 lower than the Crosstrek, the Impreza is one of the least expensive AWD vehicles on the market. Subaru’s system works wonders in winter and sets the Impreza apart from other compact cars. However, you’ll pay for its virtues both up front and at the pump.

8. Honda Civic – $29,793 (MSRP of $27,840)

In 2024, the Honda Civic reclaimed the title of the most popular car in Canada, helped by the return of an excellent hybrid powertrain that earned it the 2025 North American Car of the Year award. The system shines in terms of fuel efficiency (around 5 L/100 km combined) and power (200 hp), which contributes to its balanced handling. That said, the Civic Hybrid's many qualities come at a price. Not planning to pay the $35,000 price tag? The entry-level LX and Sport models will prove reliable and durable, but less exciting.

7. Volkswagen Jetta – $28,360 (MSRP of $25,795)

The seventh-generation Volkswagen Jetta benefits from a second refresh. In addition to minor styling revisions and improvements to connectivity, the redesigned dashboard loses several physical controls, to the detriment of ergonomics. The manual gearbox has been removed from the catalog, with the exception of the sporty Jetta GLI. Otherwise, regular Jettas offer a pleasantly smooth and quiet ride on long trips, great fuel economy and generous space for their segment.

6. Mazda3 – $27,913 (MSRP of $24,900)

As Mazda continues to move upmarket, the Mazda3 brings a sweet dose of refinement and elegance to the compact segment. The game-changing GT and Suna models boast a highly flexible turbocharged engine and sophisticated design. Even the cheaper GX and GS models provide undeniable pleasure behind the wheel, supported by a nicely tuned engine (2.5-litre, four-cylinder with 191 hp) and remarkable soundproofing. Agile handling comes at the expense of ride quality, however, while visibility and space are both compromised.

5. Toyota Corolla – $26,752 (MSRP of $23,970)

In entry-level L or LE trim, the Toyota Corolla is content to meet the basic criteria of a modern car, but it does so brilliantly. Highly reliable, fairly practical and equipped as standard with several driving assist features, the Corolla offers peace of mind for the very long term. Its ownership costs are some of the lowest in the industry, while resale value is top-notch. Like the Honda Civic, the Corolla is a safe bet. This also applies to the hybrid powertrain, which can be specified with all-wheel drive.

4. Kia K4 – $26,567 (MSRP of $23,995)

The Kia K4 launched last fall as a replacement for the Forte. Currently available only as a sedan, it is the longest compact car in the segment (4,710 mm), which benefits interior space. Like all South Korean products, the K4 stands out with bold styling, plenty of technology and competitive pricing. Unsurprisingly, the K4's many refinements have led to much higher prices than the Forte’s ($3,500 on average). Nevertheless, we applaud Kia for investing in cars even in 2025.

3. Nissan Sentra – $26,580 (MSRP of $23,898)

Since its redesign for 2020, the Sentra has elevated its game in terms of looks, equipment and owner satisfaction. However, it continues to offer just one body style and a 149-hp engine delivering modest performance. The latter can be mated to a manual gearbox or a CVT for an extra $600 or so, but the driving experience is not very engaging. The Sentra’s cabin makes up for lackluster fit and finish with plenty of cargo space and a long list of safety features across the lineup.

2. Hyundai Elantra – $25,260 (MSRP of $22,599)

As with the Honda Civic and Toyota Corolla, there's a Hyundai Elantra to suit every budget—above the $25,000 mark, that is. The South Korean brand’s compact car offers high-value models, even the cheaper ones. You might also consider the Elantra Hybrid to save money at the pump. Unlike some competitors that tend to go unnoticed, this sedan does not. Build quality is commendable, too. And don’t forget about the 5-year/100,000km warranty.

1. Nissan Versa – $23,480 (MSRP of $20,798)

With the Mitsubishi Mirage not coming back for 2025, the Nissan Versa becomes the most affordable new car in Canada. Good luck finding one, though. This Japanese subcompact sedan is a rare sight on dealer lots. Unless you buy one in cash, switching to a Sentra or Kicks Play will cost you only a few dozen dollars more per month. Heck, these two can even be cheaper to lease at times thanks to special offers and lower rates. So, why would you settle for the smaller and less refined Versa? You could probably be tempted by its surprisingly practical trunk and minimalist design, particularly if you advocate simple living.