Most Affordable New Cars in Canada: 2026

Every year, the benchmark for what is considered “affordable” gets higher and higher. Less than five years ago, this list of the most affordable vehicles would have mostly consisted of vehicles with a Manufacturer's Suggested Retail Price (MSRP) under $20,000. Ten years ago, you could get a brand new car for under $10,000.

Unfortunately, that is no longer the case. Even the cheapest, entry-level economy cars now exceed $20,000.

The good news is that although prices have increased, the cheapest vehicles all have better interiors, are higher quality than they used to be, and now come with more standard features, such as Apple CarPlay and Android Auto. There are also far more safety features readily available or standard, meaning that at least you’re getting more value for your money.

This year’s list is also notable for the absence of any vehicles with a manual transmission, as the Nissan Sentra is now only available with an automatic transmission.

Here are the 10 cheapest new vehicles on sale in Canada for 2026, with the cost displayed accounting for MSRP and the non-negotiable freight fee. There are also taxes and additional fees, so take this into account when setting a budget and shopping.

10. Volkswagen Jetta Trendline: $28,545 ($26,495 MSRP + $2,050 freight)

Despite being on the higher end of the budget, the Volkswagen Jetta Trendline is an excellent overall package. It's also one of the few vehicles on the list to come with a traditional eight-speed automatic transmission, which is typically better for performance and responsiveness. Power comes from a turbocharged 1.5L four-cylinder engine, producing 158 hp and 184 lb-ft of torque, so it’s one of the more powerful cars on this list. This powertrain makes the front-wheel-drive Jetta very efficient, with a fuel economy rating of 8.2 L/100 km in the city, 5.9 on the highway, and 7.2 combined. The Jetta comes with an eight-inch display with wireless Apple CarPlay and Android Auto as standard.

9. Kia Seltos LX: $27,695 ($25,695 MSRP + $2,000 freight)

The Kia Seltos is a good option for those who want a more practical vehicle, since it’s one of the more spacious crossovers on this list. The entry-level LX is the only trim of the Seltos that comes with front-wheel drive. It is equipped with a 2.0L four-cylinder engine producing 147 hp and 132 lb-ft of torque.

Fuel economy is rated at 8.3 L/100 km city, 6.8 highway, and 7.6 combined, solid figures for a taller vehicle. The entry-level Seltos comes decently equipped with an eight-inch infotainment system, six speakers, and wireless Apple CarPlay and Android Auto as standard.

8. Mazda3 GX: $27,345 ($25,250 MSRP + $2,095 freight)

Mazda3 Sport GX: $28,095 ($26,000 MSRP + $2,095 freight)

The Mazda3 comes in two body styles, sedan and hatchback, with the Sport hatchback costing $750 more than the sedan. The Mazda3 holds a special place on this list for being the most powerful car here. The entry-level GX trim comes with a 2.5L four-cylinder producing 191 hp and 186 lb-ft of torque, about 40 hp more than most other cars on this list.

Despite this power output, the Mazda3 can still achieve solid fuel economy figures: 8.4 L/100 km city, 6.3 highway, and 7.5 combined for the sedan, and 9.0 city, 6.4 highway, and 7.8 combined for the hatchback. The Mazda3 is well equipped even in base form, with an 8.8-inch infotainment screen, wired Apple CarPlay and Android Auto, and eight speakers, the highest count on this list.

7. Nissan Sentra S: $27,118 ($25,268 MSRP + $1,850 freight)

The Nissan Sentra was the cheapest car for 2025, but this year brings a new generation and a slight price increase. This also means the Sentra is the newest car on this list, featuring a fresh look inside and out.

The Sentra comes standard with the largest infotainment screen here, a 12.3-inch display equipped with Apple CarPlay and Android Auto. The powertrain is more conventional, with a 2.0L four-cylinder making 149 hp and 146 lb-ft of torque, sending power to the front wheels through a continuously variable automatic transmission (CVT).

This puts the Sentra squarely in the middle of the competition, much like its fuel economy ratings of 7.9 L/100 km city, 6.1 highway, and 7.1 combined.

6. Mitsubishi RVR: $27,123 ($24,998 MSRP + $2,125 freight)

In sharp contrast to the Sentra, the Mitsubishi RVR is by far the oldest vehicle on this list, entering its 16th year of production. The RVR uses a 2.0L four-cylinder making 148 hp and 145 lb-ft of torque, with power sent to the front wheels via a CVT.

This combination gives the RVR the worst fuel economy figures on this list: 9.7 L/100 km city, 7.8 highway, and 8.8 combined. The infotainment setup is basic, featuring an eight-inch display with Apple CarPlay and Android Auto, paired with a four-speaker audio system.

5. Chevrolet Trax: $26,999 ($24,699 MSRP + $2,300 freight)

A returning contender from previous years, the Chevrolet Trax is one of the larger crossovers on this list, measuring 4,536 mm in length with a wheelbase of 2,692 mm. Power comes from a turbocharged three-cylinder engine producing 137 hp and 162 lb-ft of torque, making it the second least powerful vehicle on this list and with the smallest engine.

Power is sent to the front wheels through a six-speed automatic transmission, allowing the Trax to achieve fuel economy ratings of 8.5 L/100 km city, 7.6 highway, and 8.1 combined. Like others on this list, the Trax comes standard with an eight-inch infotainment screen and wireless Apple CarPlay and Android Auto.

4. Toyota Corolla L: $26,280 ($24,520 MSRP + $1,760 freight)

Toyota Corolla Hatchback: $26,580 ($24,820 MSRP + $1,760 freight)

The base Corolla offers a very compelling package as one of the more powerful and better-equipped models on this list. Power comes from a 2.0L inline four-cylinder producing 169 hp and 151 lb-ft of torque, with power going to the front wheels through a CVT.

Fuel economy is among the best here, rated at 7.4 L/100 km city, 5.7 highway, and 6.7 combined. Standard features include an eight-inch display with wireless Apple CarPlay and Android Auto, a six-speaker sound system, and two rear USB-C charging ports. Toyota’s renowned reliability and efficient packaging make the Corolla a strong competitor.

3. Kia K4 LX: $25,845 ($23,995 MSRP + $1,850 freight)

The Kia K4 is one of the newer models on this list, as it was just released for the 2025 model year. It’s also one of the larger vehicles, measuring 4,710 mm in length with a 2,720-mm wheelbase.

Its 2.0L four-cylinder produces 147 hp and 132 lb-ft of torque, sending power to the front wheels via a CVT. Fuel economy is rated at 7.9 L/100 km city, 5.8 highway, and 7.0 combined. The K4 comes standard with a large 12.3-inch infotainment screen with wireless Apple CarPlay and Android Auto, paired with a four-speaker audio system.

2. Hyundai Elantra Essential: $24,899 ($22,999 MSRP + $1,900 freight)

In second place is the Hyundai Elantra Essential, the sister car to the Kia K4. The two share the same 2.0L four-cylinder engine and CVT driving the front wheels.

Fuel economy is very similar, with ratings of 7.8 L/100 km city, 5.9 highway, and 6.9 combined. Compared to the K4, the Elantra is slightly older, which is reflected in its smaller eight-inch infotainment screen. Wireless Apple CarPlay and Android Auto are standard, and the Elantra benefits from a higher standard speaker count at six, compared to four in the K4.

1. Hyundai Venue Essential: $24,049 ($21,999 MSRP + $2,050 freight)

After several years on the cheapest cars list, the Hyundai Venue finally takes first place, also marking the first time a crossover is the cheapest new vehicle. The Venue is a subcompact powered by a 1.6L inline four-cylinder producing 121 hp and 113 lb-ft of torque, the lowest performance figures on this list.

Power is sent to the front wheels through a CVT. Fuel economy is rated at 7.9 L/100 km city, 6.9 highway, and 7.5 combined. While some larger, more powerful vehicles achieve better efficiency, the Venue’s biggest advantage is its size. At just 4,040 mm long, it’s the smallest vehicle on this list.

Standard equipment includes an eight-inch infotainment display with wireless Apple CarPlay and Android Auto, along with a six-speaker audio system, making the Venue a compelling entry-level budget option.