Shopping for a new car can be an expensive endeavor. Plenty of new cars will have you spending upwards of $40,000. The good news is that you don’t have to spend $40,000 when car shopping. The even better news is that TrueCar recently revealed its picks for the best new cars under $40,000. Let’s find out what they are.

The 2022 Honda Insight is one of the best new cars under $40,000

The 2022 Honda Insight isn’t just one of the best new cars under $40,000, TrueCar reports. It’s also a remarkably fuel-efficient new car that’s designed to make the most out of every gallon that you put into it. In fact, this year’s model comes equipped with a 1.5-liter four-cylinder engine and an electric motor, both of which deliver an EPA-estimated 55 mpg in the city and 49 mpg on the highway. According to the EPA, the Insight saves drivers $4,000 in fuel costs over five years when compared to the average new car.

As for how much the 2022 Honda Insight actually costs? Opt for a base model, and you can anticipate spending $25,210 on this affordable new hybrid. Upgrade to the range-topping Touring, and the Insight costs approximately $29,240. But if you aren’t looking to spend quite that much? TrueCar reports that the 2022 Honda Insight comes stock full of standard features, including remote engine start, Honda Sensing, and an 8-inch touchscreen display with Apple CarPlay and Android Auto compatibility. 

The 2021 Honda Accord is a favorite among new car shoppers

The 2022 Honda Insight isn’t the only new Honda that made TrueCar’s list. In fact, the 2021 Honda Accord also found itself among the best new cars under $40,000. Though, that shouldn’t come as too much of a surprise. The Honda Accord has been a favorite among its segment for quite some time. For good reasons too.

Boasting a starting price of $24,970, at its most expensive, this year’s Accord costs approximately $36,900. But when it comes to the most popular Honda Accord trim? TrueCar suggests taking a gander at the Honda Accord EX-L. This particular trim costs $31,290 and comes well-outfitted with features like wireless Android Auto and Apple CarPlay integration, a wireless phone charger, a blind spot information system, leather-trimmed seating, a one-touch power moonroof, and more. 

The 2021 Toyota Prius Prime is a fuel-efficient new car under $40,000

Much like the 2022 Honda Insight, the 2021 Toyota Prius Prime is a fuel-efficient new car. It’s also one of the best new cars under $40,000. It comes equipped with a 1.8-liter four-cylinder engine, an electric motor, a battery pack, and a continuously variable automatic transmission. This year’s model also delivers an EPA-estimated 54 mpg combined city/highway and a 133MPGe combined city/highway. The 2021 Toyota Prius Prime can drive up to 25 miles on electricity alone, too, TrueCar reports.

Available in three trim levels, the most popular Toyota Prius Prime trim is reportedly the XLE. This particular trim level starts at $30,000. It includes a slew of great features too. In fact, slip behind the wheel of this fuel-efficient new car and enjoy premium interior amenities like SofTex-trimmed heated front seats, Qi-compatible wireless smartphone charging, and an 11.6-inch touchscreen display featuring premium navigation.

The 2021 Hyundai Ioniq is both affordable and remarkably fuel-efficient

The 2021 Hyundai Ioniq found itself among the best new cars under $40,000 too. This year’s Ioniq starts at $23,400 and, according to TrueCar, is a tempting option for car shoppers who do a lot of driving. It’s not only available with a hybrid, plug-in, or electric powertrain, but it also comes well-stocked with standard features, including push-button start, dual automatic temperature control, and an 8-inch touchscreen display featuring both Android Auto and Apple CarPlay.

When it comes to the most popular Hyundai Ioniq trim level? TrueCar reports that the EV Limited is a favorite among new car shoppers. It starts at $38,815 and boasts an estimated range of up to 170-miles. This year’s new Ioniq Limited also comes standard with leather seating surfaces, a Harmon Kardon premium audio system, and a 10.25-inch touchscreen display featuring navigation.

The 2021 Hyundai Sonata is the best new car under $40,000

Last but certainly not least is the 2021 Hyundai Sonata, which, according to TrueCar, is the best new car under $40,000. “The midsize family sedan’s low starting price and class-leading warranty bolster its outstanding value, while upscale styling, agile handling, and a spacious interior make it a compelling everyday driver,” reports TrueCar.

They aren’t wrong either. This year’s model starts at $23,950. Opt for the range-topping Limited, and you’ll be spending approximately $33,950 on this affordable new car. Regardless of which trim you choose, this year’s new Hyundai Sonata also comes standard with three years or 36,000-miles of complimentary vehicle maintenance, which is pretty hard to beat when shopping for a new car. 

Which new car is the best option for you and your budget?

When it comes to the best new cars under $40,000, TrueCar highlighted several options that are worth checking out. But when it comes to choosing the best option for you and your budget? That’s going to take a test drive.