6 Best Cars for $20K That Are Totally Worth Buying

A car can be an expensive addition to your budget, but there are affordable options that you can check out if you need a new car.

In fact, you might be surprised to find out that you can pick up a new car for under $20,000, depending on what you’re looking for.

If you're trying to manage your money while also adding some transportation to your budget, check out these potential options based on the manufacturer’s suggested retail price (MSRP).

1. Nissan Versa

Courtesy of Nissan

MSRP: $16,680

The Nissan Versa is a great sedan that can give you good value and look good.

Another thing to consider with the Versa is its gas mileage. The car gets 32 miles per gallon in the city and 40 miles per gallon on highways, which can help you save money on gas if you’re worried about driving on a budget.

2. Kia Forte

Courtesy of Kia

MSRP: $19,990

The Kia Forte has a sleek exterior with plenty of features under the hood that can help you get around.

For example, the Forte has auto emergency braking technology as a standard feature if you’re interested in an affordable vehicle with safety attributes to protect you in your new car.

3. Hyundai Venue

Courtesy of Hyundai

MSRP: $19,900

Try a crossover vehicle that gives you some extra space without spending extra money with the Hyundai Venue.

The Venue has Snow Mode available to help drivers who may encounter snowy and muddy roads during the year.

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4. Mitsubishi Mirage

Courtesy of Mitsubishi

MSRP: $16,695

Check out a hatchback option with the Mitsubishi Mirage's compact options for an affordable price.

Another advantage of the smaller vehicle is that the Mirage gets a combined 39 miles per gallon, helping you keep cash in your pocket rather than spending extra money to fill up your gas tank regularly.

5. Kia Soul

Courtesy of Kia

MSRP: $20,290

If you're looking for something new, the Kia Soul, which has an updated 2025 model, is a good option. It’s a crossover SUV that costs around $20,000.

The Soul also has some fun tech, including a touchscreen for maps and entertainment, wireless charging for your phone, and a remote start option that can come in handy in the winter.

6. Kia Rio

Courtesy of Kia

Suggested used car price: $17,173

The Kia Rio was discontinued with its 2023 model year, but that doesn’t mean you can’t find a good deal on a new-to-you version of the car.

The Rio is a great commuter car and usually comes with long warranty coverage, which could be a great option when you’re picking up a 2023 model.

Costs to consider: Add-on features

If you're looking for something around $20,000, you can find a great car on a tight budget but remember to factor in additional features.

The manufacturer’s suggested retail price is usually the base price of a vehicle before adding extra features like an upgraded interior package or more power under the hood, so factor those costs into your budget.

Costs to consider: Financing

It might be enticing to get your car financed through the dealer you’re buying it from, but you should shop around for financing before you agree to a dealer’s option.

It’s a good idea to check with your bank or a local financial institution to see if you can get better terms for a car loan than the dealer might give you to keep some cash in your pocket.

Costs to consider: Fees

It’s a good idea to review all the fees that might be included in your vehicle purchase and see if you can negotiate to have some of them removed from the final price.

Some fees, like a car registration fee, are important to pay, but the dealer may add other junk fees, such as a dealer preparation fee or key protection, that you can remove during negotiations to save money.

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Costs to consider: Manufacturer incentives

It’s a good idea to keep an eye on incentives and deals that may be available for different vehicles that you’re interested in.

Manufacturers can offer discounts and deals from time to time, so paying attention to when deals come up for a car you want can help you save money.

Bottom line

You can still get a new car if you’re on a tight budget with affordable options that aren’t that expensive.

It’s a good idea to create an estimated budget before you go shopping so you know how much a car will cost to buy and own. You’ll need to consider the cost of gas, repairs, and maintenance.

Shopping around for the best car insurance to afford good coverage for your new vehicle is also a good idea.

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).