Best New Cars for Under $20,000

Overall Score: 5.9/10 | $16,695

The Mitsubishi Mirage is one of the cheapest cars you can buy new, but almost everyone can find something better. The Mirage is available as a hatchback and a sedan, both in several trim levels, though an anemic 78-horsepower engine is standard across the lineup.

It’s okay for city driving and gets great fuel economy, but is borderline miserable in nearly every other respect. It’s worth mentioning here that the Nissan Versa, which undercuts the Mirage by a few hundred dollars, beats the Mirage by 44 horsepower.

Despite the Mirage’s numerous shortcomings, we do give credit where it’s due. In addition to great fuel savings, the Mirage comes standard with an infotainment system with a 7-inch touch screen, Android Auto and Apple CarPlay smartphone capability and voice recognition, which make the Mirage much easier to live with.

Crash-test scores don’t impress or inspire much confidence, but Mitsubishi supplies a rearview camera, forward collision warning, forward automatic emergency braking and pedestrian detection as standard equipment.

Overall Score: 7.5/10 | $16,390

With refreshed styling, an updated list of standard and optional features and an upgrade to the infotainment system, the Nissan Versa strengthens its position as a fantastic value under $20,000. The Versa currently lands in the middle of our subcompact car rankings, with a surprisingly comfortable cabin and user-friendly technology.

It’s not particularly fun or entertaining to drive, but it’s really practical, comes at a bargain price and includes key infotainment and safety features as standard.

Every 2024 Versa comes with an efficient 122-horsepower four-cylinder engine that won’t win any awards for performance but gets the job done. A five-speed manual transmission comes standard, making the Versa one of the rare such cars with three pedals, but a continuously variable automatic transmission (CVT) is available.

Although rear riders will likely feel a bit cramped, particularly in terms of legroom, the Versa makes the most of its space. Trunk size varies by trim but tops out at an impressive 15 cubic feet. Every Versa gets, at a minimum, a 7-inch touch screen, a rearview camera, forward and reverse collision warning, forward and reverse automatic emergency braking, pedestrian detection and lane-departure warning.

Overall Score: 7.7/10 | $19,990

The Hyundai Venue is rare, in that it's a crossover with a starting price under $20,000. The Venue is a great choice thanks to its easygoing nature, with agile handling and good fuel economy, and for 2024, it gets more standard features.

The Venue comes standard with a 121-horsepower four-cylinder engine paired with a CVT, capable of delivering decent acceleration and passing power. However, while shoppers often expect all-wheel drive to be at least optional on a crossover, the Venue only comes with front-wheel drive.

One of the Venue’s few significant flaws is its meager cargo capacity, just 18.7 cubic feet beneath the rear liftgate, which is low for the segment. However, the Venue opens up to 31.9 cubic feet with the rear seats down, and it’s a minor inconvenience for the price.

Standard features include an 8-inch touch screen, Android Auto and Apple CarPlay, a rearview camera, forward collision warning, pedestrian detection and forward automatic emergency braking.

Overall Score: 7.7/10 | $19,990

The Kia Forte is a sharp-looking compact sedan with a spacious interior and plenty of features at an affordable price. The base Forte comes with a 147-horsepower 2.0-liter four-cylinder engine with lackluster acceleration but fantastic fuel economy ratings.

The driving experience isn’t particularly exciting, but the Forte is stable and reasonably agile. Overall, it’s a good alternative to more expensive compact sedan rivals.

The Forte comes equipped with a user-friendly infotainment system with an 8-inch touch-screen display, wireless Android Auto, wireless Apple CarPlay and a long list of safety features.

The Forte boasts a rearview camera, forward collision warning, forward automatic emergency braking, pedestrian detection, lane-departure warning, lane-keep assist and driver-attention monitoring.

What is the best new car under $20,000?
The Kia Forte is a solid new car, earning 7.7 out of a possible 10 points.

What is the most reliable new car under $20,000?
According to J.D. Power’s reliability data, the Kia Forte is the most reliable new car under $20,000.

What is the cheapest new car under $20,000?
The cheapest new car currently for sale is the 2024 Nissan Versa, with a sticker price starting at $16,390.

What is a good down payment on a $20,000 car?
A good rule of thumb for a down payment on a new car is 20 percent of the purchase price. For a car costing about $20,000, that would mean a down payment of about $4,000.

If you’re shopping for a new car, even on a budget of $20,000 or less, there are a few key features you should seek. As to safety, every new car comes with federally mandated electronic stability control and a rearview camera. Not required by law but still standard on some lower-priced cars are other desirable safety features such as emergency brake assist and lane departure warning.

Touch-screen infotainment displays are increasingly common, even in entry-level cars, and many manufacturers now include Apple CarPlay and Android Auto smartphone integration across their full lineups. Such features will make your car safer and more enjoyable to drive, as well as help your resale value.

Other features you may find in an affordable new car include:

Want to learn more about the cars and SUVs on this list? Then be certain to go and check out our new car rankings, where you can read the latest reviews and see how each make and model rates for performance, safety, reliability and interior quality. You can browse features and see how the car you're considering stacks up against the competition.

When you are ready to purchase your next car, head to our new car purchase deals page for current pricing promotions offered by car manufacturers. If you plan to lease, you can find special lease incentives on our lease deals page.

The U.S. News Best Price Program connects shoppers who want to buy or lease a new car with local dealers. It offers a significant savings with pre-negotiated prices, home delivery and online sales options.