The Minimum Savings You Need To Buy a New Car Without a Loan
Don’t want to borrow a car loan, but you want a new car?
Assuming you don’t have an existing car to trade in, you’re looking at coughing up plenty of cash. Consider these the minimum, most affordable options available among new cars.
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The Nearly-Extinct Sub-$20K Car
In 2024, Mitsubishi stopped producing its ultra-budget model, the Mirage.
At the end of 2025, Nissan discontinued the Versa, its cheapest model. It had been the last new car in the U.S. selling for under $20,000.
That said, a handful of unsold new Versas remain at Nissan dealerships around the country. If you’re willing to do some sleuthing, you might still uncover one available.
It’s also possible you can negotiate today’s cheapest model, the Hyundai Venue, down to $20,000. The Venue starts at $22,150 according to Kelley Blue Book (KBB), but dealerships have been known to knock $2,000 off the price to make the sale.
As it turns out, you could do far worse than the Venue (the Versa and Mirage come to mind). Drivers rate it 4.5 out of 5 stars on KBB and Car and Driver rates it an 8 out of 10. Just don’t expect to win any drag races in it.
New Cars Between $23K to $25K
The approximately $22,000 Venue aside, you have several strong options in the $23,000 to $25,000 range. Take these entry-cost options out for a test drive and you might just be surprised how well they handle.
Chevrolet Trax
Another sub-compact SUV, the Trax also scores high marks from both drivers (4.6 out of 5 on KBB) and experts (10 out of 10 on Car and Driver).
The diminutive SUV starts at $23,495 according to KBB, although you can of course negotiate that down.
“The Trax offers a strong mix of reliability, fuel economy, resale value and affordability,” said Ashley NeSmith from Ashley the Auto Advocate.
Hyundai Elantra
If you prefer a sedan, the Elantra punches above its weight class. It starts at $23,870, but drives like a pricier ride.
Car and Driver rated it 8.5 out of 10 and KBB’s experts rated it 4.6 out of 5. It gets 31 to 35 miles per gallon, powered by 147 to 201 horses under the hood depending on the trim.
“The Hyundai Elantra is where things start to feel worth it,” explained Ryan Salata of Specialty Auto Parts USA. “It offers great build quality, a 10 year powertrain warranty, decent MPG and options that cost extra $5,000 elsewhere.”
Kia K4
The K4 starts at a similar price point of $23,535, with a similar expert rating of 8.5 out of 10 from Car and Driver. Consumers seem less enthused, rating it just 3.5 out of 5 stars on KBB.
Trims top out at 190 horsepower and it does a little worse on fuel economy at 28 to 33 MPG. Still, it’s worth a test drive and remains a popular car at the affordable end of the spectrum.
Toyota Corolla
Corollas start at $24,320, although both experts and drivers share mixed reviews. Drivers rate the 2026 Corolla at 4.0 out of 5 stars on KBB, while Car and Driver ranks it just 7.5 out of 10.
Nissan Sentra
The Sentra starts around the same price point as well, at $23,845. But it slips on both expert and driver ratings, with Car and Driver rating it 8 out of 10.
Nissan has struggled with both reliability and financial problems in recent years, as the Wall Street Journal reported. In particular, Nissans have gained notoriety for premature engine problems, electrical issues and Continuously Variable Transmission (CVT) failures. Consider the Elantra as a stronger alternative or the ever-reliable Corolla or Civic.
Tips To Drop Less Cash
Salata noted that dealerships often have sales quotas for each month, quarter and year and sometimes get desperate to make sales at the end of each period. “December and June through July have been my best months for car negotiations,” Salata said.
Some car companies offer recent college graduate rebates. For example, Toyota offers a $500 rebate — but it requires you to finance the car.
Incentives don’t end with college grads either. “Many manufacturers offer rebates for military members, first responders, loyalty customers and employees of certain companies,” NeSmith added.
Most of all, don’t be afraid to shop around and negotiate hard. Tell dealers you have the funds ready to buy today, but you’re going to buy from the dealership with the lowest bottom-line cost for the model you like.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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