06Oct
In the present-day automotive industry, finding a new car that combines affordability with exceptional features poses a painful dilemma. However, even with the increasing prices of new and used vehicles, there are still remarkable options available for under $20,000.
In this article, we present the top five best new cars for 2023 and 2024 that not only fit within your budget but also offer outstanding design and desirable features. Gone are the days when a limited budget meant compromising on style and functionality. With advancements in technology and a keen focus on consumer needs, automakers have managed to create a range of vehicles that deliver exceptional value for money.
Unfortunately, large SUVs did not make the list this year, but whether you're seeking a compact sedan, a versatile subcompact SUV, or a nimble hatchback, these affordable options have something to offer for every discerning driver.
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How We Found The Best Cars Under $20K
In our quest to identify the best new cars within the $20,000 price range, we carefully evaluated numerous contenders based on a comprehensive set of criteria. As you’ll soon see, our assessment considered performance, interior comfort and quality, safety features, and reliability.
Additionally, we took into account the inclusion of key technological advancements such as touch-screen infotainment displays, Apple CarPlay, Android Auto, and even automatic emergency braking in some cases.
The resulting list represents the crème de la crème of budget-friendly automobiles for 2023. Each vehicle has earned its place based on its overall score, ensuring that you receive the utmost value for your hard-earned money.
In the event of a tie, we have prioritized the option with the most affordable price tag, allowing you to make an informed decision without compromising your financial constraints.
2023/2024 Best New Cars Under $20k
1. 2024 Kia Soul
- Starting MSRP: $19,990
Overview
Despite its impressively low starting price, the Kia Soul has evolved into a remarkably comfortable and feature-rich choice within the subcompact SUV category. This vehicle has remained a distinctive and unconventional offering from the Korean brand since its introduction in 2008.
In 2020, Kia introduced the third generation of what they affectionately term their "urban runabout," and it has now received a refresh for the 2023 model year.
While some subtle changes have been made to the front and rear styling, the most notable updates are the streamlined trim levels from six to four and a single non-turbocharged 2.0-liter four-cylinder engine.
The off-road-inspired X-Line and sporty GT-Line Turbo variants have been discontinued, marking a shift in the Soul's lineup.
Performance And Efficiency
While Kia had previously included a turbocharged four-cylinder engine in its lineup until 2023, the 2024 Soul now exclusively offers a 147-horsepower 2.0-liter non-turbo four-cylinder engine that transfers power to the front wheels via a CVT transmission.
According to EPA estimates, this configuration delivers fuel efficiency ranging from 27 to 29 miles per gallon in the city and 33 to 35 miles per gallon on the highway. An independent speed test saw the 2024 Kia Soul accelerate from 0 to 60 mph in 8.3 seconds.
Interior Design, Cargo Space, And Technology
The Soul's spacious interior and fashion-forward exterior design make it a standout in the market. Inside, Kia has added youthful elements like textured door-panel inserts and colorful trim.
It comes loaded with features like ambient lighting, a smartphone charging pad, a head-up display, push-button ignition with keyless entry, and heated seats and steering wheel. Kia also offers customization options with two-tone paint and various interior color choices.
The cargo space is impressive, accommodating seven carry-on suitcases, and with the rear seats folded, it can fit up to 20 cases. In comparison, Hyundai’s Venue offers less cargo space.
The infotainment system is top-notch, with a 10.3-inch display, navigation, Apple CarPlay, and Android Auto. For audiophiles, the GT-Line provides an optional Harman Kardon premium audio upgrade. It’s obvious Kia is targeting students with this Soul.
Safety Rating
The Kia subcompact performed admirably in the safety aspects, even though it got a four-star overall safety rating from NHTSA. Even so, its closest rivals – Nissan Kicks and Hyundai Venue – didn’t do any better.
However, it's worth noting that some vehicles in this segment achieve a five-star rating. The 2023 Soul, the latest version tested by IIHS, received top scores in all crash categories evaluated, highlighting its strong safety performance.
When it comes to safety features, the Soul doesn't disappoint. All models, including the base trim, come equipped with automatic emergency braking featuring pedestrian detection, lane keep assist, driver attention monitoring, automatic high-beams, and rear-seat occupant alert.
For added peace of mind, blind-spot monitoring and rear cross-traffic alert are available as options on the base trim and come standard on all other variants.
2. 2023 Kia Rio
- Starting MSRP: $16,750
Overview
Raise a salute to the budget-friendly Rio in the United States, as Kia officially confirmed the discontinuation of this no-frills subcompact. Kia revealed to Automotive News in a statement that it has no intentions to keep selling this model beyond the 2023 model year.
This move follows in the footsteps of Hyundai, which removed the Accent from its lineup after the 2022 model year. Given the ongoing trend of consumers gravitating towards crossovers and SUVs, the discontinuation of yet another sedan doesn't come as a major surprise.
It’s not all bad, though, since the larger, equally affordable Kia Forte is still here and kicking it. In any case, the subcompact Kia Rio sedan and hatchback will continue to be available for the 2023 model year, with the only notable change being the addition of an engine oil level sensor.
Positioned just below the Forte sedan in Kia's lineup, the Rio remains one of the few cars that can be had for under $20,000. Rio’s subcompact rivals include the Nissan Versa and Mitsubishi Mirage.
Performance And Efficiency
The Rio makes nice with 1.6-liter inline-four engine with a humble 120 horsepower. This engine, in turn, makes nice with the sole CVT. While it may not be the fastest car in the neighborhood, Rio’s performance is on par with many subcompact crossovers.
What's truly impressive is how well the Rio handles rough road conditions for a vehicle of its size, all thanks to its sturdy frame and finely-tuned suspension system. It excels in maintaining a comfortable ride and exhibits commendable control over body roll when navigating corners.
While the steering might lack the quick response we all love, it compensates with a well-balanced and precise feel. The Rio's driving experience proves that it's more than just an affordable subcompact.
Interior Design, Cargo Space, And Technology
Rio’s interior speaks oozes simplicity. The dashboard is clean and user-friendly, with easily accessible climate and audio controls. While there's a fair amount of hard plastic, it's pleasantly textured, and the overall interior exudes a mature and sophisticated feel for a subcompact.
While the driver and front passenger seats are commendably accommodating, rear-seat passengers might find their legroom a bit cramped. If you're thinking about cargo space, the Rio hatchback offers more trunk volume compared to the sedan, though neither is ideal for heavy hauling.
It's worth noting that the folded seats in the hatch don't create a flat load floor. The center console and door pockets are adequately sized. When it comes to technology, the 2023 Kia Rio doesn't disappoint.
It comes standard with an 8.0-inch touchscreen that includes wireless Android Auto and Apple CarPlay. Every Rio also features a six-speaker sound system.
The hatchback even includes a rear USB port, while for the Rio sedan, you'll need to opt for the S trim to get the same feature. Additionally, the Rio offers convenient options like push-button start and automatic temperature control.
Safety Rating
In 2023, the IIHS awarded the Rio with Good ratings across most crashworthiness categories, except for the small overlap front passenger test, where it received “Acceptable” rating. Rio S models equipped with the Technology package feature “Good”-rated headlights, while other Rios scored “Poor” for headlights.
As for standard active safety features, the Rio is relatively basic, including essential stability control and hill-start assist. However, the Technology package is available, bundling forward collision avoidance with pedestrian detection, lane keeping assist, lane following assist, high beam assist, driver attention warning, and lane departure warning for enhanced safety.
3. 2023 Kia Forte
- Starting MSRP: $19,690
Overview
The 2023 Kia Forte is a mature small sedan offering outstanding value for your investment and above-average versatility. It impresses with a comfortable, quiet interior and an extensive array of optional features.
However, it falls short in terms of driving dynamics, ride quality, and rear legroom when compared to top competitors. While the Kia Forte might not enjoy the level of popularity accorded some other small sedans, it's typically priced a bit lower than its direct rivals and often comes with additional features depending on the trim level.
Coupled with impressive fuel efficiency, robust performance from the GT trim, and a generous warranty, the Forte delivers compelling value in the compact sedan segment.
Performance And Efficiency
The 2023 Forte lineup, consisting of the LX (formerly known as the FE trim), LXS, and GT-Line, shares a common powertrain. These models are equipped with a 2.0-liter naturally aspirated inline-four engine that delivers 147 horsepower and 132 lb-ft of torque.
All Forte variants come with a CVT automatic transmission, and they are exclusively front-wheel drive (FWD). The base model achieves a fuel economy of 30/41 mpg city/highway, while the LXS and GT-Line offer 28/39 mpg.
Speaking of the GT-Line, an independent speed test saw a 2019 Kia Forte accelerate from 0 to 60 mph in 8.2 seconds. In contrast, a 2022 GT model accomplished the same sprint in just 6.4 seconds.
All current-generation GT models, including the 2023 version, come equipped with a 1.6-liter turbocharged inline-four engine generating a robust 201 hp and 195 lb-ft of torque.
These GT models offer a choice between a seven-speed dual-clutch automatic transmission or an available six-speed manual. The DCT-equipped Forte cars achieve fuel efficiency ratings of 27/35 mpg, while the manual variant returns 22/31 mpg.
Interior Design, Cargo Space, And Technology
The Kia Forte’s interior leaves a strong impression with its minimalist design and the use of high-quality materials. The rear seat space is more than adequate for two adults to enjoy long road trips comfortably.
You can further customize your ride with a power driver's seat, heated and ventilated front seats, push-button start, dual-zone climate control, and illuminated vanity mirrors in the visors.
Advanced tech options include six- and eight-speaker sound systems, a 10.3-inch touchscreen, wireless smartphone charging, and the convenience of two additional USB ports, bringing the total to three.
Starting with the base model, you'll find all the essential amenities, but as you explore the various trim levels, the comfort and convenience factor elevates. For instance, you have the option for dual-zone automatic climate control and the luxury of heated and ventilated front seats.
The Forte also proves its practicality by surpassing the trunk volume of its closest rivals, accommodating seven carry-on bags with all seats in place. Rivals Toyota Corolla and Honda Civic would be short one bag.
Standard features on the 2023 Forte include automatic headlights, keyless entry, an auto-dimming rearview mirror, and a 4.2-inch gauge cluster screen. Base models also come equipped with an 8.0-inch infotainment touchscreen and a four-speaker audio system.
For those looking to enhance their Forte experience, there are options such as LED headlights, taillights, daytime running lights, and foglights, along with the availability of a sunroof and remote start.
Safety Rating
Kia offers a range of both standard and optional driver-assistance features for the 2023 Forte. Notably, there's an optional adaptive cruise control system that utilizes navigation to anticipate upcoming curves in the road, proactively slowing down the car in preparation for turns.
In terms of safety ratings, the NHTSA assessed and gave the 2023 Kia Forte a four-star overall safety rating, just one star short of the highest grade. The lost mark is probably thanks to the side barrier test results, where the left rear door intruded into the cabin.
However, it's worth noting that the Forte still achieved a five-star rating in the side test. Across the board, all 2023 Forte models come standard with Kia's Drive Wise suite of active driver-assist technologies, including essential features like automatic emergency braking, adaptive cruise control, and lane-keeping assistance.
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4. 2024 Nissan Versa
- Starting MSRP: $16,130 (S trim / 5-Speed Manual)
Overview
The Nissan Versa more than justifies its humble price tag with ample interior space and a generous array of standard technology and safety features. Additionally, it offers extra vakue with a solid fuel economy. While its acceleration might not be the quickest, it remains a sensible choice for those seeking an affordable small sedan.
For the 2024 model year, the Versa maintains its design without any significant updates following a notable refresh in 2023. However, the grapevine is squirting with rumors that the Versa's future might be in question.
We hear reports indicating that Nissan is contemplating discontinuing the Versa after the 2025 model year. At least, the car already enjoyed a leading role in the action movie Stuber.
Performance And Efficiency
While we didn’t expect sports car performance from an economy sedan like the Versa, the Versa's four-cylinder engine does take its time in acceleration.
Indeed, it performs adequately in typical city driving or merging with traffic, but situations requiring quick acceleration or passing in tight spots will leave you wanting more.
During a speed test at Edmunds’ track, the Versa took a leisurely and somewhat noisy 10.4 seconds to go from 0 to 60 mph, making it one of the slowest cars the Edmunds has tested recently. However, the Versa shines in the handling department.
It maintains composure while navigating turns, even though the steering can feel somewhat numb and occasionally heavy. Nevertheless, the Versa remains responsive to your inputs. Plus, the brake pedal facilitates smooth stops in everyday driving.
Equipped with the CVT, the Versa achieves a fuel efficiency rating of up to 32 mpg in the city and 40 mpg on the highway. However, the entry-level Versa with a manual transmission posts considerably lower figures, estimated at 27 mpg city and 35 mpg highway.
A private testing of an automatic-equipped Versa on a 75-mph fuel-economy route returned an impressive 40 mpg.
Interior Design, Cargo Space, And Technology
The Versa’s performance may be poor, but we can’t say the same about the interior design, boasting an effortlessly accessible and adjustable seating arrangement. The spacious cabin ensures a comfortable ride, even in the highest driving position that mimics the feel of an SUV.
The ample headroom and legroom lets you to stretch out comfortably. It’s just that taller rear-seat passengers might find the headliner uncomfortably close.
The touchscreen interface impresses with its responsiveness and clarity. User-friendly controls on the center stack and steering wheel simplify navigation, and the tuning button offers a convenient alternative to touchscreen interaction while on the road. The Versa's design also prioritizes visibility, thanks to its short hood and expansive windows.
While the Versa lacks onboard navigation, it compensates by offering Apple CarPlay and Android Auto compatibility on most trims. This feature allows for seamless smartphone integration, including on-screen directions powered by your mobile device. Pairing your phone with the car is a swift process.
Additionally, the SR trim includes a convenient wireless charging pad. For practicality, the Versa provides ample storage solutions, such as cubbies on the center console.
Moreover, its trunk can accommodate up to six carry-on suitcases, expanding to a total of 17 with the rear seats folded down. This makes the Versa an ideal choice for those who value both style and functionality in their vehicle.
Safety Rating
The Nissan sedan is equipped with an array of standard driver-assistance technologies to enhance driver safety and peace of mind. The Versa’s key safety features includes, front and rear Automated Emergency Braking (standard), Blind-Spot Monitoring, Adaptive Cruise Control, and Rear Cross-Traffic Alert.
5. 2024 Mitsubishi Mirage
- Starting MSRP: $16,695
Overview
In the United States, Mitsubishi Mirage is the Japanese automaker’s last non-SUV offering and represents one of the few survivors in the North American subcompact cars segment.
The Mirage is available in both hatchback and G4 sedan variants, with the current generation making its debut in 2011 and undergoing a noteworthy refresh in 2021. It doesn’t have to contend with many competitors, but the Nissan Versa is a big rival.
For the year 2024, Mitsubishi introduces notable enhancements to the mid-level Mirage LE trim. These improvements include the addition of a center armrest mounted on the driver's seat, along with the convenience of rain-sensing windshield wipers and automatic headlights.
Also, the exterior color options have been updated to include Graphite Gray and Jet Black replacing last year's Mercury Gray and Mystic Black.
Furthermore, Mitsubishi demonstrates its commitment to customer satisfaction by offering a two-year complimentary scheduled maintenance plan as a standard feature across all its models. This ensures that owners can enjoy their Mirage with added peace of mind, knowing that maintenance needs are well-taken care of.
Performance And Efficiency
The Mitsubishi Mirage's distinctive character stems in part from its diminutive engine. Nestled under the hood is a petite 1.2-liter inline three-cylinder powerplant coupled with a CVT automatic transmission.
This engine is good for 78 horsepower and 74 lb-ft of torque – a big turn-off, of course, but note that the Mirage is an exceptionally lightweight vehicle. Its heaviest variant tips the scales at just over 2,100 pounds.
Perhaps, more important than speed is that this combination of a small engine, front-wheel drive (FWD) configuration, and a modest curb weight culminates in impressive fuel efficiency without the need for a hybrid system.
The Mirage boasts impressive fuel economy figures, delivering 36 miles per gallon in the city and 43 miles per gallon on the highway for the hatchback, and 35 city/41 highway mpg for the sedan. The continuously variable automatic transmission (CVT) is the standard transmission option across all Mirage models.
Unfortunately, the CVT accentuates the car's uninspiring performance characteristics. The transmission has a tendency to keep the engine at higher RPMs, attempting to extract the most from its limited power.
Regrettably, this results in a constant droning sound that can make the Mirage's acceleration feel more sluggish than it already is—it's undoubtedly a bit tedious. You can expect this car to take all of 11 seconds to reach 60 mph, and that will a lot of cabin noise.
Interior Design, Cargo Space, And Technology
Both the 2024 Mirage hatchback and sedan provide seating for five passengers, but if your priority is maximizing cargo space, the hatchback is the way to go.
Even with the rear seats folded down, the available cargo room in the Mirage hatchback is quite competitive, and it even compares favorably to the 2023 Kia Rio hatchback, despite the latter having more space behind the rear seats.
Lifting the rear hatch reveals a 17-cubic-foot cargo area with all seats in place. If you need more room, folding down the 60/40-split rear seatbacks expands the cargo space to a commendable 47 cubic feet.
The Mirage proudly holds its position as one of the most affordable new cars on the market, and this affordability is reflected in its interior design. The cabin is adorned with hard plastic surfaces, and the overall aesthetic feels like the designers just want to be done with it.
While none of the five seats provide an exceptionally plush seating experience, the front seats at least offer adequate legroom. Regardless of whether you choose the hatchback or sedan variant, the 2024 Mirage offers consistent features across all trim levels.
The base ES models, for instance, come equipped with a 7.0-inch central screen, Apple CarPlay and Android Auto compatibility, and a four-speaker sound system. Upgrading to the SE trim brings additional standard features, including LED headlights, heated front seats, and a convenient push-button start.
Safety Rating
The 2024 model year brings a welcome standard safety enhancement to the base model, as automatic emergency braking with pedestrian detection is now included as a standard feature. This represents a significant step forward in ensuring the safety of all occupants and pedestrians alike.
For those considering the LE models, 2024 brings added convenience and safety with the inclusion of standard automatic headlights and rain-sensing wipers. These features are designed to enhance visibility and ensure optimal driving conditions, especially in inclement weather.
However, if you're seeking the most comprehensive package of standard driver assistance features, the SE trim level is where they come into play. Here, you'll benefit from a robust suite of safety technologies, including a lane keeping system that helps you stay securely within your lane, along with the convenience of automatic headlights and rain-sensing wipers.
Notable Mention
2024 Hyundai Venue
- Staring MSRP: $19,800
The 2024 Hyundai Venue SUV is a true standout with an astonishingly affordable base price. What's remarkable is that this base price includes essential driver assistance technologies like lane keep assist and forward collision-avoidance assist.
However, it's important to note that this budget-friendly price tag does come with certain trade-offs. For instance, the Venue lacks all-wheel-drive, a feature available in its pricier competitors such as Mazda and Volkswagen.
Despite this, Hyundai's compact wonder, the Venue, manages to pack a considerable punch within its petite frame. It excels in handling everyday tasks with ease and offers a comfortable ride.
If you're in the market for something more practical and stylish than a subcompact sedan, the Hyundai Venue deserves your attention as a compelling choice that won't break the bank.
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