Top 10: The cheapest cars in 2026
Although sedans and hatchbacks continued to decline in favor of SUVs in 2025, sales of some affordable models rebounded. For example, the aging Volkswagen Jetta and Mazda3 attracted more Canadian drivers than in 2024. This shows that consumers, lacking alternatives, are turning to the only entry-level vehicles that remain.
As usual, we present our annual ranking of the least expensive sedans and hatchbacks. Note that the Nissan Versa, which was the last new car under $25,000 and the last gasoline-powered subcompact, will be discontinued in 2026.
Note: Prices shown include transportation, preparation, administration, and RDPRM fees, as well as excise taxes (tires and air conditioning), but do not include discounts or sales taxes. The MSRP (manufacturer's suggested retail price) does not include these fees.
10. Toyota Camry – $38,009 (MSRP $35,075)
With the Nissan Altima leaving the Canadian market, the Toyota Camry becomes the most affordable midsize sedan. It is by far the most popular and the only one to combine all-wheel drive with a hybrid powertrain. In comparison, the Hyundai Sonata has a distinctive look, while the Honda Accord sacrifices some comfort and soundproofing to offer more engaging handling than the Camry.
9. Toyota GR86 – $35,629 (MSRP $32,695)
It may seem incongruous to include a sports car in a list of affordable vehicles, but it serves as a reminder that there are few entry-level models left and that Toyota is asking reasonable prices for the GR86. The same goes for Subaru, which markets the BRZ. Agile, lightweight, and fairly powerful, these twins offer first-rate driving pleasure and avoid cluttering themselves with superfluous or luxurious equipment.
8. Honda Civic – $31,350 (MSRP $28,340)
Many Civic owners have opted for the excellent hybrid powertrain that earned it the title of North American Car of the Year in 2025. That said, you'll have to shell out at least $37,000 to get it. Honda continues to offer two gasoline-powered versions of the Civic (LX and Sport). Their reliability, durability, and performance remain above average... as do their purchase prices.
7. Subaru Impreza – $30,956 (MSRP $28,295)
The Subaru Impreza lives in the shadow of the Crosstrek, which uses the same components but is marketed as an SUV. These cousins benefit from a competent all-wheel-drive system that gives them great stability in all conditions. However, keep in mind that the base versions of the Impreza are powered by a 2.0-liter 4-cylinder engine that is less powerful and refined than the 2.5-liter engine that comes standard on the 2026 Crosstrek.
6. Volkswagen Jetta – $29,218 (MSRP $26,495)
As we mentioned in the introduction and during our test drive, the Volkswagen Jetta is enjoying a renaissance. The aesthetic tweaks and refresh for 2025 have helped, as have its interior space, road handling, and low fuel consumption. Don't forget the Jetta GLI, a sporty variant that's fun to drive every day and gives you great value for your money.
5. Mazda3 – $28,263 (MSRP $25,250)
Although its infotainment system is aging and it is nearing the end of its career, the Mazda3 remains one of the most fun compact cars to drive. The finish and presentation, especially in the higher-end trims, reflect Mazda's attention to detail and upward trend. That said, fuel economy isn't record-breaking, and you'll have to get used to reduced visibility and interior space.
4. Nissan Sentra – $27,887 (MSRP $25,268)
The Nissan Sentra is coming back in a new generation in 2026... that looks a lot like the old one! Technically speaking, the 2.0-liter engine and dimensions remain unchanged. The main changes are aesthetic and include a new screen. In short, this is more of a refresh, which allows Nissan to keep price increases in check. Seat comfort and interior space remain the Sentra's main strengths.
3. Toyota Corolla – $27,854 (MSRP $25,020)
As Toyota prepares to unveil the next Corolla (likely as a 2027 model), the current version remains easy to recommend for budget-conscious buyers looking for long-term ownership. Its resale value and durability are unmatched, except perhaps by the Honda Civic. However, you'll have to put up with a dull interior, outdated screens, and long delivery times. Consider the hybrid powertrain, available with all-wheel drive.
2. Kia K4 – $27,031 (MSRP $24,295)
The K4 succeeds the Forte and quickly makes it forgotten with its original styling, contemporary interior, generous dimensions, and long list of available equipment. Unlike many manufacturers, Kia offers a variety of versions with varying levels of equipment. Also worth noting is the arrival in 2026 of the attractive K4 hatchback, which offers a good dose of versatility for only $500 more than the sedan. In fact, it's the least expensive hatchback in Canada!
1. Hyundai Elantra –$25,945 (MSRP $22,999)
The Hyundai Elantra has climbed to the top spot among the most affordable cars and is closing in on the Honda Civic and Toyota Corolla in terms of sales. Its consistent handling, build quality, ever-improving reliability, and comprehensive 5-year/100,000-km warranty all work in its favor. On the other hand, you'll probably have a hard time finding an Elantra Essential (the one that sells for $26,000) at dealerships.
