Finding a new car under $20,000 isn’t as easy as it was—but from the cool and compact Kia Rio to the master all-wheel-drive Subaru Impreza, there are still excellent options for car buying on a budget.

When you think about a cheap car, chances are you think about basic and budget transportation that lacks the frills and thrills of an expensive car. But that’s not the case. While the price tag on some vehicles may be almost a basement bargain, they’re more than just basic transportation. You’ll find a list of popular features like Apple CarPlay and Android Auto, in addition to a host of driver safety features—all without breaking the bank.

If you’re in the market for a new set of wheels but don’t want to blow your budget,

Jerry

, the

car insurance

expert and

trusted broker app

, has compiled a list of the eight best new cars under $20,000. We’ll also highlight the best ways to reduce car insurance costs and maximize savings!

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2022 Chevrolet Spark—$14,595 MSRP

Car & Driver rating: 7/10

Consumer Reports score: 47/100

For drivers looking for a small, inexpensive car, the selection is limited—but the 2022

Chevy Spark

is one of the best pint-sized hatchbacks on the market. You can't go wrong with good fuel economy, an almost unheard-of low starting price, and plenty of standard features. The interior is more upscale than the price would suggest, it offers nimble handling, and every model is offered in a manual transmission. Value is where the Spark shines.

Pros:

Manual transmission available

Inexpensive

Great fuel economy

Easy to park in tight places

Many high-tech features available

Cons:

Cramped rear seats

Minimal cargo capacity

Pokey acceleration

2022 Kia Rio—$17,545 MSRP

Car & Driver rating: 9/10

Consumer Reports score: 53/100

The

Kia Rio

may not have a huge price tag, but it makes you feel like you paid a lot more—it’s cheap, simple transportation at its finest. It offers a composed ride and sharp handling that allows you to zip through traffic with no problem. And with an adult-friendly cabin, you’ll be comfortable no matter where you’re seated.

The Rio is available in a sedan and hatchback, but neither body style offers a ton of cargo space. But it has fuel efficiency in the bag, achieving an EPA-estimated 33 mpg in city driving and 41 mpg on the highway.

Pros:

Well-built and affordable

Sharp handling

Fuel-efficient

Good warranty coverage

Cons:

Less roomy rear seats compared to rivals

Minimal standard equipment

MORE:

Are Kias expensive to maintain?

2022 Nissan Sentra—$19,950 MSRP

Car & Driver rating: 6.5/10

Consumer Reports score: 77/100

The

Nissan Sentra

is a small, affordable vehicle that had a complete facelift in 2020 and reps some of the most stylish looks in the compact sedan segment. While it may not offer the most exciting drive, it’s packed with a long list of standard active safety features and interior comfort for passengers.

Power is supplied by a 2.0-liter four-cylinder engine paired with a continuously variable transmission (CVT) and front-wheel drive. While it has its shortfalls, the 2022 Sentra is well-equipped and stylish for a car under $20,000—and drivers appreciate it.

Pros:

Stylish looks inside and out

Comfortable seating

Good safety and tech features

Cons:

Slow acceleration

Subpar emergency braking system

Optional sunroof reduces headroom

2022 Hyundai Venue—$19,000 MSRP

Car & Driver rating: 8/10

Consumer Reports score: 61/100

The 2022

Hyundai Venue

stands above its competitors for agility, fuel efficiency, and a solid lineup of standard features—including an 8-inch infotainment system with wireless Apple CarPlay and Android Auto, HD radio, a USB port, and Bluetooth.

For a subcompact SUV (but more of a four-door hatchback), the Venue boasts a decent amount of cargo space with 18.7 cubic feet behind the rear seats and 31.9 cubic feet with the rear seats down. And to the driver’s surprise, the 121-horsepower four-cylinder engine under the hood offers zippy acceleration.

Pros:

Roomy interior

Plenty of standard driver-assist features

Great value

Cons:

Rough engine at high speeds

All-wheel drive unavailable

Smaller than others in its class

MORE:

All the best Hyundai compact cars

2023 Subaru Impreza—$19,795 MSRP

Car & Driver rating: 6/10

Consumer Reports score: 81/100

You may not think you can get behind the wheel of a Subaru for under $20k, but the

Subaru Impreza

proves you wrong. And it comes with standard all-wheel drive, making it one of the best cars for all-weather security and road safety.

While it may have a good grip, the 152-horsepower four-cylinder has subpar power at high speeds but works well for city driving. Available as a sedan and hatchback, there’s ample cargo space, excellent driving dynamics, and value you can’t beat. Oh, and did we mention it comes in a manual transmission?

Pros:

Standard all-wheel drive

Responsive steering

User-friendly infotainment system

Roomy cabin

Plenty of cargo space in the hatchback

Cons:

Slow acceleration

Lower quality interior compared to rivals

Unimpressive fuel economy

2023 Nissan Versa—$17,000 MSRP

Car & Driver rating: 8/10

Consumer Reports score: 62/100 (2022)

The

Nissan Versa

consistently makes the top picks for compact cars, so there’s no question why it’s one of the best cars under $20k. While it may be small, the Versa is classy, spacious, comfortable, and a fantastic option for base model budget-friendly buyers.

It’s powered by a 122-hp four-cylinder engine that is pokier than competitors on the highway but works well around town. But while power may be lacking, fuel efficiency isn’t, with an EPA-estimated 32 mpg in the city and 40 mpg on the highway. If you’re looking for value, there’s not much fault with the Nissan Versa—and the pros easily outweigh any cons.

Pros:

Impressive fuel economy

Comfortable

Several standard safety features

Generous cargo capacity

Cons:

Sluggish acceleration

Minimal interior storage

Smaller backseat than rivals

MORE: What can you expect from the 2022 Nissan Versa?

2022 Hyundai Accent—$17,740 MSRP

Car & Driver rating: 9/10

Consumer Reports score: 61/100

The 2022

Hyundai Accent

proves that just because your car is cheap doesn’t mean it has to look cheap. With eye-catching style at a bargain-basement price, the Accent feels sporty and offers strong fuel economy and unbeatable value. The 120-hp four-cylinder engine paired with a continuously variable automatic transmission (CVT) isn’t as thrilling as other cars, but it gets the job done.

What sparks interest is the long list of modern conveniences—and even some luxuries like heated seats, touchscreen infotainment, push-button start—a spacious interior, and excellent driving dynamics. Even the top-level fully-loaded

Accent Limited

is less than $21,000.

Pros:

Comfortable

Quiet cabin

Excellent fuel economy

Cons:

Snug rear seats

Unimpressive power

Desirable safety features are only available on top trim level

No onboard navigation

2023 Kia Soul—$19,790 MSRP

Car & Driver rating: 8.5/10

Consumer Reports score: 54/100

Part of what makes the

Kia Soul

so enticing is the toaster-shaped body and crossover-esqe looks. With its boxy design, the Kia Soul sparks interest on the road—and with plenty of space in the cabin and ample storage, it’s a top pick for practicality.

If you want to stay on budget, you’ll have to stick with the 147-hp four-cylinder engine with a continuously-variable automatic transmission and front-wheel drive. Even still, the Soul delivers a decent ride and balanced performance—and it’s fun to drive!

Pros:

Roomier than competitors

Agile handling

Great value

Cons:

Noisy at high speeds

Single engine option

All-wheel drive unavailable

Not as fuel efficient as competitors

MORE: All you need to know about the 2022 Kia Soul

How to find cheap car insurance for your new vehicle

Finding a car that fits your budget without comprising all the features you want can be tedious. But there’s another benefit to being on a budget—

car insurance

is cheaper, too. Cheaper cars typically mean more affordable car insurance rates, meaning a win-win for everyone.

And if you want to ensure you’re getting the best price, shop with

Jerry

. As the #1 rated car insurance comparison app and a

trusted licensed broker

, Jerry partners with over 55 top insurers to find you the best deals on car insurance without sacrificing coverage. Getting started is as easy as downloading the app, entering your driving details, and scanning your personalized quotes. Whatever type of car insurance you’re looking for, Jerry has you covered.

“I decided to try
Jerry
because my car insurance had been increasing drastically with each policy renewal. Jerry found me multiple ways to save after entering just a few pieces of info! I’m saving almost $70 a month after choosing Nationwide.” —Ish M.

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FAQs

What is the most reliable car under $20,000?

Based on ratings from Consumer Reports, J.D Power, and RepairPal, the 2022 Kia Rio and 2022 Hyundai Accent are almost equal in reliability. The Kia Rio received 3/5 predicted reliability from Consumer Reports, 4.5/5.0 from RepairPal, and 86/100 from J.D. Power, while the Hyundai Accent received 3/5 predicted reliability from Consumer Reports, 4.5/5.0 from RepairPal, and 87/100 from J.D. Power.

What’s the best cheap car for a family?

The best cheap car for a family depends on what you’re looking for. If you’re looking for reliability, the Hyundai Accent and Kia Rio are top choices If cargo and cabin space is more important to you, the Kia Soul might be the best choice.

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