15 Cheapest New Cars in Canada for 2025–26

Searching for the Affordable New Cars in Canada

Finding the cheapest new car in Canada in 2025 isn’t just about saving money, it’s about getting real value for what you spend. With average new car prices in Canada hovering above $60,000, affordable options matter more than ever. Thankfully, automakers are still offering best budget cars, affordable new cars and cheap reliable cars that deliver on fuel economy, safety and style.

We’ve listed the 15 cheapest new cars in Canada for 2025–26, from the most affordable sedans and hatchbacks to compact crossovers that balance price with practicality.

Before You Buy: The Truth About Car Pricing Across Provinces

Quick note on pricing: MSRPs vary by province, freight/PDI, dealer fees and incentives. Use these as starting points and confirm locally.

Regional Price Reality (Canada)

• Quebec: Often sharp pricing due to market volume.
  
• Ontario: Watch HST and admin fees; strong dealer competition in GTA & Windsor.
  
• BC/Atlantic: Freight can be higher; inventory can shift final price.

At-a-Glance Rankings & MSRPs (Est.)

These rankings highlight the cheapest new cars Canada has to offer a go-to list for anyone seeking the cheapest new car to buy in Canada with smart features and strong resale.

15 Cheapest New Cars in Canada for 2025-26

New vs Used: Quick Math (No-Nonsense)

• New: Full warranty, latest safety tech, predictable ownership.
  
• Used (2–3 yrs): Avoid early depreciation; more features for the same budget.
  
• Your move: If lowest upfront cost matters most, start at Versa/Venue/Mirage. If total cost of ownership matters, consider Corolla/Civic (fuel, insurance, resale).

Why “cheapest new car in Canada” matters today

• New-vehicle prices in Canada are high; the average car now often runs in the $60,000+ range.
• The cheapest new car Canada still offers basic essentials: safety, fuel efficiency and reasonable reliability.
• For many buyers, the most affordable new car in Canada is about balancing monthly costs (fuel, insurance, maintenance) with the purchase price.
• Especially in places like Ontario, Quebec or BC, incentives, local taxes and regional demand all shift the effective cost.

Before we dive in, a caveat: there are currently no 2025 models in Canada priced under $20,000 base after delivery, as the Mitsubishi Mirage has been discontinued.

Still, that doesn’t mean cheap new cars are gone; you’ll see compelling options under $30,000. Let’s roll.

Tips for Picking the Best cheapest compact car Canada or cheap reliable car

When comparing:

• Fuel efficiency / running cost — a lower price isn’t worth it if you burn through gas or maintenance.
  
• Safety features — even entry trims should offer essentials like ABS, airbags, maybe lane assist. The best cheap vehicles often include these safety features as standard, even in budget trims.
• Warranty & repair networks — brands like Toyota, Honda, Hyundai have broader support. Buying from automakers that offer multiple cheap new vehicles can also help with parts availability and servicing costs.
• Resale value — bargain cars often take bigger hits in depreciation.
  Local incentives / rebates — in Ontario or BC, EV / hybrid rebates may tilt the scales.
• Insurance premiums — small, cheaper cars often get lower rates (but that depends on your profile and province).

What is the cheapest new car in Canada?

As of 2025, the 2025 Nissan Versa S is widely recognized as the cheapest new car in Canada on sale, priced around $20,789 CAD base. With the discontinuation of the Mitsubishi Mirage, Versa now claims this space.

However, “cheapest” isn’t just about label price; you’ll want to compare cheap new cars under $20,000, affordable new cars and cheap reliable cars across provinces, factoring in insurance, fuel, taxes and local dealer incentives.

Why there are fewer ultra-cheap new cars now

• Stricter safety, emissions and active driver assistance standards push up base costs.
• Inflation, supply chain challenges and high raw material prices affect small car models disproportionately.
• Automakers are phasing out ultra-budget vehicles in many markets in favor of more profitable segments.

Hence, the disappearance of models like the Mitsubishi Mirage and tightening of the “affordable car” range.

Best strategies for buying a budget new car in Ontario (or your province)

• Time your purchase near model year-end (late summer/fall) — car dealers often discount to clear space.
• Check provincial or federal incentives (especially for EVs/hybrids).
• Ask for “dealer holdback,” discounts or “flooring allowance” adjustments.
• Compare insurance quotes for models (cheap new car Ontario premiums can vary).
• Prioritize higher trims with safety packs if the price difference is small — resale will reward you.

Key Takeaways

• Cheapest overall: Nissan Versa, It tops the list of cheap cars in Canada, offering excellent value with low running costs.
• Cheapest SUV: Hyundai Venue
• Best resale & reliability: Toyota Corolla
• Most fun to drive (budget): Mazda3 Sport
• Best infotainment value: Kia K4 / Kia Soul
• Best long-term bet: Honda Civic (Hybrid if possible)

Final Thoughts

Finding the cheapest new car in Canada in 2025 means accepting that ultra budget models (under $20,000) are mostly gone. But at The Car Boys in Mississauga, we’re excited to show you that affordable new cars still exist with solid options for the cheapest compact car in Canada. Shop cheap reliable cars and best resale value cars with The Car Boys hassle free.

If you’re shopping in Ontario or any province, talk to multiple dealers, compare all-in costs, estimate insurance and fuel and use this list as your starting point.

FAQs – Cheapest New Cars in Canada

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