The AAA Car Guide's top vehicles under $40,000

In the summer of 2021, the average sale price of a new car in the U.S. crossed the $40,000 threshold for the first time ... and kept climbing.

By January 2024, it had reached $47,401. If you’re in the market for a new car, price increases like those can be discouraging, but don’t lose hope. There are still plenty of quality new cars available for less, and in some cases, a lot less.

This is a list of the top 10 vehicles featured in the 2024 AAA Car Guide under $40,000, tested by the Automobile Club of Southern California’s Automotive Research Center. They’re listed in rank order and represent almost every vehicle category: several small and midsize cars, a strong showing of SUVs and hybrids, and even a pickup. And best of all, their as-tested prices all came in under $40,000.

1. 2023 Honda CR-V Hybrid Sport Touring

Price as tested: $39,845

The compact CR-V crossover SUV was introduced in 1997. Honda’s best-selling vehicle in the U.S. consistently places in the top 10 vehicles sold. The CR-V Hybrid, introduced in 2020, could be considered icing on the cake.

The sixth-generation, new-for-2023 CR-V delivers excellent value. It’s just the right size for many motorists, and it provides a comfortable ride, with a solid-feeling suspension. Its spacious cabin offers plenty of room for passengers and cargo, lots of storage cubbies, incline-adjustable rear seats, and good visibility all around. Additionally, all CR-Vs come with a solid lineup of ADAS features, including traffic-jam assist.

But the CR-V doesn’t get off scot-free—although complaints are relatively minor. The infotainment system and rearview camera’s image quality, perennial CR-V weak points, need updating and improving. The quality of the interior’s fit and finish is good, but the styling remains on the bland side. 

2. 2023 Honda Accord Hybrid Touring

Price as tested: $38,985 

The Honda Accord midsize sedan, now in its 11th generation, was fully redesigned for 2023. The redesign sharpened up the Accord’s exterior styling; the interior—which has plenty of room for passengers and cargo—has a clean, attractive design as well. 

Our well-equipped test vehicle came with a full suite of advanced safety features, dual-zone climate control, a Bose premium audio system, and automatic LED headlights (with auto high beams) that turn on when the windshield wipers are activated. The Accord Hybrid’s powertrain provides better fuel economy than the gasoline-powered Accord (44 mpg versus 32 mpg) and makes a difference in performance as well, delivering plenty of power and seamless gas-electric transitions. 

There’s not much to gripe about: Rear visibility is restricted because of a high rear deck, and the sloping roofline makes getting in and out of the back seat somewhat awkward. 

3. 2023 Nissan Leaf SV Plus

Price as tested: $37,750

One of the original EVs—its first generation debuted in 2011—the Leaf retains some of its virtues, but other qualities keep it from being a serious competitor. 

The Leaf has a smooth, quiet drivetrain with decent acceleration and easy drivability and maneuverability. The drivetrain is efficient (109 MPGe combined), and all Leafs come with a complete set of ADAS features, including several sophisticated features such as blind-spot intervention. It also has standard 1-pedal driving.

Downsides include the Leaf’s driving experience. The ride quality is poor, the rear seats are uncomfortable, the steering is too loose and light, the brake pedal feels spongy, and torque steer is present. On top of that, the interior fit and finish feels cheap, and the infotainment system is outdated. 

4. 2023 Honda CR-V 1.5T EX-L

Price as tested: $36,900

Redesigned inside and out for 2023, the compact CR-V crossover is Honda’s best-selling vehicle in the U.S. Its updated exterior design gives off a bold, sporty vibe, with noticeably more creases and angles in its sheet metal. The cabin is spacious, with plenty of room for passengers and cargo. The interior decor is attractive as well, with thoughtfully chosen, tasteful materials, and good fit and finish.

The CR-V rides well and is easy to control over most surfaces, though our testers noticed some harshness on rough roads. Unfortunately, the drivetrain is anemic and noisy, the CVT is whiny and doesn’t shift smoothly, and too much road and tire noise gets into the cabin.

5. 2023 Toyota Corolla Cross Hybrid XSE

Price as tested: $36,694

The Corolla Cross, new in 2022, looks like a miniature version of Toyota’s best-selling RAV4 crossover. All 3 of its trim levels use the same powertrain: a naturally aspirated inline 4-cylinder engine paired with a CVT. 

The Cross’s cabin is roomy, with good front headroom and legroom. Fuel economy is high, and Toyota’s strong suite of advanced safety features, LED headlights with auto high beams, and Apple CarPlay/Android Auto smartphone integration are standard.

But a few possible deal breakers are present, too, like a rough ride quality and dated infotainment system. And unless you go for the top trim level, you can’t get many of the features many people want, like dual-zone automatic climate control and power driver’s seats, even as options.

6. 2023 Toyota Prius Limited

Price as tested: $37,494

For two decades, the Toyota Prius reigned supreme as the iconic hybrid—reliable and fuel-efficient, but also slow and ugly. In 2023, that changed for the better as a result of a complete makeover.

Desirable features on our Limited-trim test vehicle included Safety Sense 3.0, a comprehensive set of advanced safety features; LED headlights with auto high beams; heated and ventilated front seats; a power liftgate; an upgraded infotainment system; driver’s seat memory settings; and a digital rearview mirror.

There are a few areas that could stand some improvement, however. First and foremost is how much engine, road, and tire noise gets into the cabin. The sloping roof restricts vision to the sides and rear, and the steering wheel blocks a clear view of the instrument cluster for most seating positions. 

7. 2023 Ford Maverick XLT

Price as tested: $28,855

The new-in-2022 Ford Maverick quickly sold out for that model year and helped revive a moribund compact pickup segment. Its popularity is no mystery—it’s a no-frills, capable truck with an affordable price tag. 

The Maverick’s cabin is spacious up front, and its bed is large enough to be useful. All-around visibility is good, and the HVAC system works well. Forward-collision warning and automatic emergency braking are standard, but blind-spot warning, rear cross-traffic warning, and lane-keeping assistance are available only with the Co-Pilot 360 package or on the Lariat edition.

Driving the Maverick isn’t what you’d call an exciting experience: There’s no real driver engagement, vibrations from its noisy drivetrain can be felt throughout the cabin, and the ride quality is just so-so. The back seat is cramped, and getting in and out can be awkward. 

8. 2023 Toyota Camry Hybrid SE Nightshade

Price as tested: $32,909

The Camry, introduced in 1983, is typically the top-selling sedan in the U.S. It’s generally among the 10 best-selling vehicles as well, and its numerous strengths have helped it earn and maintain its elevated status.

It has a nicely improved exterior styling (particularly the refreshed Nightshade edition we tested) and the standard Toyota Safety Sense 2.5+ suite of advanced safety features (blind-spot warning with rear cross-traffic warning still costs extra, though). 

But a few of the Camry’s traits could stand some improvement. The engine is noisy at full throttle, the infotainment system is outdated, and the Camry lacks features found in some competitors (e.g., heated and ventilated seats, back seat climate controls). Rear visibility is compromised by a high rear deck and fixed rear head restraints, and the rearview camera image isn’t sharp.

9. 2023 Kia Niro SX Touring

Price as tested: $36,435

The Niro small SUV comes in 3 environmentally conscious versions: a hybrid, a plug-in hybrid, and an EV. All were completely redesigned for 2023.

The Niro hybrid offers good value, with a reasonable MSRP and a number of noteworthy qualities to recommend it. A big plus is the number of standard ADAS features, including a few surprises, such as reverse automatic emergency braking, driver-attention warning, and safe-exit assist—features usually found on higher-end vehicles. The Niro also has plenty of interior space for passengers and cargo, and it’s easy to get in and out of.

Unfortunately, many of the qualities that make a car enjoyable to drive are in short supply. The Niro’s ride quality is uncomfortable (verging on rough), handling is uncommunicative, and ride control is skittery—the Niro never feels solidly planted. Also, the infotainment system is awkward to use: The infotainment and HVAC systems use the same physical controls, and you have to toggle back and forth between them. And although the Niro’s interior styling is improved, the quality of the materials feels cheap and the fit and finish is subpar.

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