In this article, we will list the 15 cheapest new cars for 2023.You can skip our car industry outlook and industry analysis and go to 5 Cheapest New Cars For 2023.
Average Price For New Vehicles Up 2.5% Year over Year in December
According to J.D. Power’s December 2022 Automotive Forecast, the average retail transaction price for new vehicles was above $46,380 in December 2022, up roughly 2.5% year over year. Moreover, the average interest rates for new vehicle loans were an estimated 6.40% in December 2022. The total new-vehicle sales in December were over 1.25 million units, up 5.3% year over year. According to J.D. Power, automotive sales are anticipated to go up in 2023, due to a gradual rise in the number of vehicles shipped to dealers. Even if the economy takes a downturn, the buildup of customer demand from the last two years should keep stock low, making it a year of good pricing and profitability.
Car Prices “Ain’t Coming Down Any Time Soon”
On January 23 CNBC’s auto and airline industry reporter, Phil Lebeau, discussed his take on new car prices and why he thinks they will not be coming down any time soon. Lebeau noted that “the latest data from J.D. Power, which cracks average transaction prices, shows that in January there was a very slight decline from the record-high in December”. Phil Lebeau thinks that the auto market has record-high new car prices and also made a note of the fact that carmakers’ inventory levels are still the same as they were in November. Here are some comments from CNBC’s auto reporter:
“North American production currently running below the expected demand level. That production right now- about third and a half million vehicles. Demand by the way, most believe is about fifteen million vehicles to be sold this year. So you still have more demand than production…
Next week we hear from General Motors (NYSE:GM) and Ford (NYSE:F). They will report their Q4 (2022) results and a big focus on the conference call will be their perspective on both inventory and transaction prices, as well as profit margins and how they may be squeezed if there is a bit of a price war. Why might there be a price war? Well Tesla (NASDAQ:TSLA) is slashing prices…”
Phil Lebeau thinks that new car prices “ain’t coming down any time soon, they remain elevated and likely will for some time”.
Photo by Igor Stepanov on Unsplash
Our Methodology
We looked up the recently released new car models from various car manufacturers and sourced the Manufacturer’s Suggested Retail Price (MSRP) and car specifications from manufacturers’ official websites and credible automotive research companies such as KBB and Edmunds. We searched for cars that had an MSRP of less than $25,000, well-below the average transaction price for new cars according to J.D. Power’s estimates. We narrowed down our selection to cars with the lowest MSRP, high fuel economy, and the most features. The cars are ranked in descending order of their MSRP.
Cheapest New Cars For 2023
15. 2023 Hyundai Sonata
Price: $24,950
The 2023 Sonata by Hyundai Motor Company (OTC:HYMTF) is a budget-friendly 5-seater midsize sedan. Hyundai Motor Company (OTC:HYMTF) offers 5 trims on the new Sonata, with the base model starting at $24,950. The base model features a 191-horsepower 2.5-liter four-cylinder engine which yields a mileage of 28 mpg within city and 38 mpg on the highway. The base Sonata comes with a premium interior, featuring an 8-inch touch screen and a six-speaker stereo. The 2023 Sonata offers good value, with a plethora of tech, a roomy interior, a top-notch warranty and excellent ownership benefits. If you’re looking for sophisticated safety and a stylish exterior, the 2023 Sonata is a decent choice for your money. At roughly $25,000, the 2023 Sonata is one of the cheapest new cars you can buy right now.
14. 2023 Honda Civic
Price: $24,650
The 2023 Honda Civic is an enjoyable ride, fuel-efficient, comfortable, solidly constructed and comes with plenty of amenities and safety features, all for the price tag of $24,650. The 11th-generation Civic is one of the most popular vehicles on the road today and is available as both a sedan and a hatchback. Honda Motor Co Ltd (NYSE:HMC) offers three types of engines for the 2023 Civic: a 2.0–liter four–cylinder that produces 158 horsepower, a turbocharged 1.5–liter four–cylinder that gives you between 180 and 200 horsepower, and a turbocharged 2.0–liter four–cylinder that packs 315 horsepower. All-in-all the 2023 Civic by Honda (NYSE:HMC) provides a roomy and cozy interior, accompanied by a user-friendly infotainment system and plenty of storage space. It is agile and exciting to drive, and its ride is smooth even on uneven roads. Furthermore, its turbocharged engines are swift and fuel-efficient, and it comes packed with a range of standard safety features such as adaptive cruise control, forward collision warning, and lane-keep assist. Honda (NYSE:HMC) surely allows customers to get the most bang for their buck.
In addition to Honda Motor Co. Ltd (NYSE:HMC), some other leaders in the automotive industry include General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and Tesla Inc. (NASDAQ:TSLA).
13. 2023 Subaru Legacy
Price: $24,395
If you are looking for a new midsize car, the 2023 Legacy from Subaru Corporation (OTC:FUJHY) is a great choice. Subaru (OTC:FUJHY) packed the base 2023 Legacy with a 182-horsepower 2.5-liter four-cylinder engine. If that’s not enough power for you, you can always go for the 260-horsepower turbocharged 2.4-liter four-cylinder engine. The car’s interior is roomy and stylishly designed, the seats are comfortable, the trunk is spacious, and it comes with a host of standard safety features like adaptive headlights, head-up display, and adaptive cruise control with lane centering. It also offers a smooth ride over bumpy terrain, and the all-wheel drive keeps you in control for a rainy day. Plus, it gets good gas mileage and has an affordable starting price, at an MSRP of $24,395. The 2023 Subaru Legacy is one of the best cheapest new cars for 2023.
12. 2023 Mazda3
Price: $22,550
Mazda Motor Corporation (OTC:MZDAY) is offering an attractively price car which can help you get the most out of your driving experience. The 2023 Mazda3 is an exceptional bargain, with powerful engines, dynamic performance, pleasant ride quality, a simple-to-use infotainment system and a first-rate interior – all at an affordable cost. Mazda (OTC:MZDAY) equipped the new Mazda3 with a base 191-horsepower 2.5-liter four-cylinder engine which yields 28 mpg within city and can yield up to 37 mpg on the highway.
Not only does the Mazda3 captivate with its peppy acceleration, agile maneuvering and smooth ride, but the cabin is also noteworthy for its use of durable materials and an intuitive infotainment system. Moreover, Mazda (OTC:MZDAY) went big on safety. The 2023 Mazda3 also comes with a host of safety amenities such as automatic high-beam headlights, driver-attention monitoring and forward automatic emergency braking with pedestrian and cyclist detection.
11. 2023 Toyota Corolla
Price: $21,550
The 2023 Toyota Corolla from Toyota Motor Corporation (NYSE:TM) is one of the best value-for-money cars you can buy right now. Available as both a sedan and a hatchback, this car boasts a well–constructed interior with comfortable front seats, a user–friendly infotainment system, and a plethora of next-gen safety features. When it comes to driving, the Corolla is surprisingly comfortable and agile, while its base 169–horsepower 2.0–liter four–cylinder engine providing excellent fuel economy – an estimated 31 mpg in the city and 40 mpg on the highway.
Toyota (NYSE:TM) equipped the 2023 Corolla with a multitude of safety features. The new Corolla comes with forward collision warning, pedestrian and cyclist detection, adaptive cruise control, and traffic-sign recognition. Toyota (NYSE:TM) has a long history of success and innovation and with the new Corolla, the company has once again established itself as a pioneer and leader in automobiles.
Some of the most valuable car companies in the world include Toyota Motor Corporation (NYSE:TM), General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and Tesla Inc. (NASDAQ:TSLA).
10. 2023 Hyundai Elantra
Price: $20,500
With an MSRP of $20,500, the 2023 Hyundai Elantra is one of the best cheapest new cars for 2023. Hyundai (OTC:HYMTF) equipped the new Elantra with a base 147-horsepower 2.0-liter four-cylinder which yields 33 mpg within city and 42 mpg on the highway. The 2023 Elantra also features a variety of safety features including blind-spot monitoring with rear cross-traffic alert, lane-departure warning with lane-keep assist, and forward collision warning with pedestrian detection. The Hyundai Elantra is a great option due to its great fuel economy, extensive safety features, and available luxuries. The car’s exterior styling is pleasing to the eye, and the range of selections is impressive as well.
9. 2023 Volkswagen Jetta
Price: $20,415
Volkswagen AG (OTC:VWAGY) is known for producing some of the best-in-class cars in the world. The 2023 Volkswagen Jetta is widely recognized as one of the top–selling compacts available. Volkswagen (OTC:VWAGY) equipped the base 2023 Jetta with a 158–horsepower turbocharged engine and a six–speed manual transmission. An eight–speed automatic gearbox is also available. The cabin is equipped with an impressive array of safety and infotainment features. The car offers a smooth ride, plenty of room for passengers in both rows and good fuel economy, with the base model reaching 29 mpg within city limits and 42 mpg on the highway. Volkswagen (OTC:VWAGY) packed the new Jetta with advanced safety features such as rear cross-traffic alert, forward collision warning, and blind-spot monitoring among others. The 2023 Jetta carries an MSRP of $20,415 and is one of the best cheapest new cars for 2023.
8. 2022 Nissan Sentra
Price: $19,950
Up next, we have the 2022 Nissan Sentra at an MSRP of $19,950. Nissan Motor Co., Ltd. (OTC:NSANY) packed the base 2022 Sentra with a 149-horsepower four-cylinder engine and a CVT transmission. The base variant’s infotainment system features a 7-inch touch screen and a four-speaker stereo. The infotainment system supports both Android Auto and Apple CarPlay. For safety features, Nissan (OTC:NSANY) also equipped the Sentra with forward and reverse automatic emergency braking, pedestrian detection, driver drowsiness monitoring, and more. Nissan (OTC:NSANY) is one of the leading automakers in Japan, and in the world, and is known for its cars’ build quality and minimal upkeep costs.
7. 2023 Subaru Impreza
Price: $19,795
The 2023 Impreza is a great option in the compact car class. It offers fantastic fuel economy and come with standard all–wheel drive, making it sporty and still comfortable. The car features a minimalistic infotainment system and offers a roomy interior. The Impreza is sold in both sedan and hatchback versions, and the hatchbacks offer plenty of cargo space. The 2023 Impreza by Subaru (OTC:FUJHY) is one of the best cheapest new cars for 2023, carrying an MSRP of $19,795.
6. 2023 Kia Forte
Price: $19,690
Kia Corporation (KSE:000270) has been rising in popularity among consumers. One of the company’s most successful budget-friendly models is the Kia Forte. Kia (KSE:000270) equipped this car with a standard 147-horsepower 2.0-liter four-cylinder engine that offers impressive fuel economy, yielding up to 30 mpg within city and 41 mpg on the highway. The 2023 Kia Forte is an impressive vehicle, with a high-end interior and abundant cargo space. Kia (KSE:000270) equipped the 2023 Forte with a plethora of standard safety features including pedestrian detection, driver-attention monitor, lane-departure warning, and many more. At an MSRP of $19,690, the 2023 Kia Forte is one of the best cheapest new cars for 2023.
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Disclosure: None. 15 Cheapest New Cars For 2023 is originally published on Insider Monkey.