Top 10 Most Affordable Cars in 2026

Although sedans and hatchbacks continue to decline, some affordable cars managed to increase their sales in the past year. For example, the aging Volkswagen Jetta and Mazda3 attracted more Canadian drivers in 2025 than in 2024. This shows that car shoppers on a budget, lacking other options, are turning to the few remaining entry-level vehicles.

Just like we do every January, we now bring you our updated annual ranking of the most affordable cars in Canada. As you’ll see, the Nissan Versa, which used to be the only new car under $25,000, has retired and no longer appears on this list.

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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. Toyota Camry – $38,009 (MSRP of $35,075)

With the Nissan Altima leaving the Canadian market, the Toyota Camry becomes the most affordable midsize sedan. It’s also by far the most popular and the only one to combine all-wheel drive with a hybrid powertrain.

9. Toyota GR86 – $35,629 (MSRP of $32,695)

What? A sports car among the 10 most affordable vehicles in Canada? That’s right. Toyota’s entry-level coupe carries reasonable prices—and the same goes for Subaru’s BRZ. Lite, agile and powerful enough, the GR86 offers superb driving dynamics and isn’t burdened with fancy or unnecessary equipment.

8. Honda Civic – $31,350 (MSRP of $28,340)

A number of Civic customers are opting for the excellent hybrid powertrain that earned Honda’s compact sedan the 2025 North American Car of the Year award. You have to pay at least $37,000 for it, though. Honda continues to offer two gasoline-powered Civic models (LX and Sport). Their reliability, durability and performance remain above average. Ditto for their prices.

7. Subaru Impreza – $30,956 (MSRP of $28,295)

The Subaru Impreza lives in the shadow of the Crosstrek, which uses the same components but offers extra ground clearance and a higher driving position. The two ​​benefit from a capable all-wheel drive system that provides excellent stability in all conditions. Keep in mind, however, that base Impreza models are powered by a 2.0-litre four-cylinder engine that’s less powerful and less refined than the 2.5-litre unit that comes standard on the Crosstrek for 2026.

6. Volkswagen Jetta – $29,218 (MSRP of $26,495)

As we mentioned up top (and in our latest review), the Volkswagen Jetta is experiencing a resurgence. Last year’s styling and technology updates have helped. Customers also appreciate the interior space, driving dynamics and fuel efficiency. And don't forget the Jetta GLI, a sporty variant that delivers everyday driving pleasure and offers excellent value for the money.

5. Mazda3 – $28,263 (MSRP of $25,250)

Despite nearing the end of its current cycle and being plagued by a frustrating infotainment system, the Mazda3 remains one of the most fun-to-drive compact cars. Fit and finish, especially in the higher trim levels, demonstrate Mazda's attention to detail and commitment to excellence. On the flip side, fuel economy is unimpressive. Visibility and interior space could be better, too.

4. Nissan Sentra – $27,887 (MSRP of $25,268)

The Nissan Sentra returns for 2026 with a new generation that is remarkably similar to the old one. For example, the car’s exterior dimensions and 2.0-litre engine are unchanged. Highlights include refreshed looks and a new digital interface. The conservative evolution has allowed Nissan to keep price hikes to a minimum.

3. Toyota Corolla – $27,854 (MSRP of $25,020)

While Toyota is preparing to introduce the next-generation Corolla (likely as a 2027 model), the current one remains an easy recommendation for budget-conscious buyers looking for long-term ownership. Resale value and durability are virtually unmatched, although the Honda Civic would beg to differ. The drab interior, dated screens and long delivery times are no fun. Consider the available hybrid powertrain, which can be paired with all-wheel drive.

2. Kia K4 – $27,031 (MSRP of $24,295)

The K4 has successfully replaced the Forte as a more stylish, more spacious and better equipped compact sedan. Unlike many automakers, Kia offers a variety of trim levels. New for 2026 is the even more attractive K4 Hatchback, which adds a good dose of versatility for only $500 more. In fact, it's the least expensive hatchback in Canada.

1. Hyundai Elantra – $25,945 (MSRP of $22,999)

The Hyundai Elantra is now the most affordable car in Canada and is closing in on the Honda Civic and Toyota Corolla in sales. Pleasant handling, good build quality, steadily improving reliability and a generous 5-year/100,000km warranty all work in its favour. On the other hand, you'll likely have trouble finding a base Elantra Essential (the one sold for around $26,000) at your local dealership.