Car Deal Canada

Cheapest Cars For 2024

Cheapest Cars For 2024

With inflation pushing prices higher across all sectors, many Canadian car buyers are looking for the most affordable options when shopping for a new ride in 2024. New vehicles are not immune to rising costs, with the average price of a new car in Canada exceeding $42,000 in 2022. Fortunately, even with inflationary pressures, there are still some surprisingly cheap brand new vehicles available if you know where to look.


This article will explore some of the least expensive new car models you can buy in Canada this year. We’ll start by looking at vehicles available for less than $20,000 – an increasingly rare find. We’ll also highlight more affordable options under $25,000, examining the lowest priced models from major mainstream brands. Beyond just listing cheap cars, we’ll also provide buying tips, look at ownership costs, discuss reliability and safety ratings, and outline what the future may hold for inexpensive transportation.


By the end, you’ll have a solid overview of the cheapest cars available in Canada for 2024. You may be surprised at the new vehicles it’s still possible to purchase for under $25,000 with the right model and trim. While rising prices are squeezing budgets, savvy Canadian shoppers can still find affordable new car options to suit their needs.

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Why Buy an Inexpensive Car in 2024?

With inflation pushing prices higher across all sectors, many Canadian car buyers are looking for the most affordable options when shopping for a new ride in 2024. High inflation coupled with rising interest rates have made large purchases like new vehicles more challenging. However, even with increased costs, there are still good deals to be found if you know where to look.

Opting for an inexpensive car this year makes sense for several reasons. First, you can take advantage of lower upfront purchase prices before rates and prices potentially climb higher. While cheap cars tend to be smaller and less luxurious, they offer excellent value and can significantly reduce your total cost of ownership.

Inexpensive models shine when it comes to fuel efficiency. Their small engines and light weight allow them to sip gas, saving you money at the pump. Insurance premiums are also lower thanks to the reduced repair costs. And you’ll spend less on maintenance items like tires and brakes that wear out faster on pricier vehicles.

While buying a cheaper car means sacrificing some comfort and features, an affordable vehicle still safely gets you from point A to point B. For shoppers on a tight budget or looking to minimize expenses, an inexpensive car is a smart choice in 2024.

 

The Sub-$20,000 Category

When shopping on an extremely tight budget, there are still a few brand new vehicles available in Canada for under $20,000 in 2024. While these won’t be loaded with features, they provide basic transportation at a fraction of the average new car price.

 

Mitsubishi Mirage (~$17,000)

The long-running Mitsubishi Mirage retains its title as Canada’s cheapest new car with a starting price around $17,000. The Mirage comes as a subcompact sedan or hatchback, providing a very affordable way to get around. However, its tiny 3-cylinder engine struggles during acceleration and the car is quite Spartan inside. On the plus side, the Mirage sips gas and offers a 5-year/100,000km warranty.

 

Nissan Versa (~$18,000)

Slightly bigger than the Mirage, the Nissan Versa offers a little more passenger and cargo room while still ringing in under $20,000. Available as a sedan or hatchback, the Versa provides good fuel economy from its small 4-cylinder engine. While no powerhouse, the Versa gets around town well enough while providing more comfort than the ultra-cheap Mirage.

 

Hyundai Accent/Kia Rio (~$19,000)

The Accent and Rio are corporate cousins that pack good value in an easy to drive compact package. Available as 4-door sedans or 5-door hatchbacks, these Korean compacts offer impressive warranty coverage up to 5 years/100,000km. Their refined ride and modern interiors belie their bargain pricing. The Accent and Rio represent excellent starter cars.

 

More Affordable Options Under $25k

For buyers with budgets that can stretch just a bit higher, there are some great choices available in the $20,000 to $25,000 range that deliver more space, features and performance while still representing excellent value:

 

Chevrolet Spark (~$21,000)

The subcompact Chevrolet Spark hatchback starts around $21,000 and provides a surprising amount of versatility thanks to its upright shape and fold-flat rear seats. With 137 horsepower, it has decent zip around town. An available suite of active safety features like automatic emergency braking and lane keep assist punch above its weight class. Though small, the Spark has excellent maneuverability and fuel economy, making it a smart choice for city drivers on a tight budget.

 

Kia Forte (~$22,000)

Kia’s compact Forte sedan has attractive styling and an upscale interior that disguises its bargain pricing. Even in base form, the Forte comes well equipped with features like an 8-inch touchscreen, Apple CarPlay/Android Auto smartphone integration and forward collision warning. Available creature comforts like dual-zone climate control, heated seats and adaptive cruise control make the Forte feel more expensive than its roughly $22,000 starting price. Its 2.0-liter engine is eager and returns excellent fuel economy.

 

Toyota Corolla (~$23,000)

The legendary Toyota Corolla compact sedan brings rock-solid reliability, great fuel mileage and strong resale value. Though its interior and performance skew basic, the Corolla wins on space, safety and overall value. Toyota’s reputation for bulletproof durability means the Corolla can easily run for over 300,000 km without issue. Active safety tech like a pre-collision system and lane tracing assist are standard. With roomy seating and cargo space, the Corolla gives up little for its sub-$25,000 pricing.

 

What to Expect with an Inexpensive Car

When shopping for the cheapest car in Canada for 2024, it’s important to set proper expectations around what you’ll get at the absolute bottom end of the market. While today’s affordable new cars offer excellent basic transportation, their ultra-low prices necessitate tradeoffs, especially in terms of comfort, amenities, and resale value.

Compared to more expensive models, Canada’s cheapest cars often have lesser sound insulation, thinner seat padding, smaller infotainment screens, and fewer convenience features. You’ll also notice more hard plastics in the cabin instead of soft-touch surfaces. Don’t expect options like leather seats, navigation, advanced safety systems, or premium audio even on top trims.

That said, all new vehicles sold in Canada, even the cheapest ones, still include standard safety provisions like airbags, seat belts, ABS brakes, and stability control. But you may not find extras like blind spot monitoring, lane keep assist, or automatic emergency braking.

Additionally, inexpensive cars tend to depreciate faster than pricier models. With used car prices high right now, basic transportation has appeal for getting from A to B on a budget. But when it comes time to sell or trade in, an affordable new car will have lower residual value after a few years of ownership.

While giving up amenities and resale value, Canada’s most affordable new cars offer excellent value for money. They provide worry-free, fuel-efficient, brand new transportation at the lowest possible price point.

 

Buying Tips for Affordable Models

When shopping for an inexpensive new car in Canada for 2024, keep these savvy buying tips in mind:

 

Inspect Closely

While cheap cars have come a long way in quality and features, it still pays to inspect them thoroughly before purchase. Look for uneven body panel gaps, poorly fitted trim pieces, and any other issues that may indicate potential problems down the road. Test drive the vehicle and make sure you are happy with the ride quality and performance.

 

Ask About Incentives

Many affordable models regularly have purchase incentives available like low interest financing or cash rebates. Ask the dealer what current incentives are available on the specific car you are interested in buying to help lower the price even further.

 

Consider Certified Pre-Owned

Opting for a certified pre-owned version of an inexpensive vehicle that is just a year or two old can get you significant savings over a brand new model. You still get peace of mind from a warranty but avoid the steeper initial depreciation of buying new.

 

The Best Cities for Cheap Cars

Some cities in Canada tend to have lower prices on new and used vehicles, making them ideal places to find a bargain on your next affordable set of wheels. Here are some of the top cities for scoring a cheap car deal:

 

Edmonton, AB

With lower costs of living compared to other major cities, Edmonton residents enjoy higher disposable incomes that make cheap cars more accessible. Dealers are eager to move inventory, resulting in discounts and incentives you may not find elsewhere. Used cars tend to be plentiful and sell for less than the national average.

 

Winnipeg, MB

Winnipeg emerges as one of the country’s best cities for affordable cars thanks to lower than average prices and wages that go further. Expect to pay several percent less for a new car than the national average. Strong used car supply keeps used prices low as well.

 

Quebec City, QC

Quebec has lower new vehicle prices than other provinces, partly thanks to lower sales taxes. Quebec City shoppers benefit from provincial incentives on electrics as well. Used car prices are kept in check by high supply.

 

Halifax, NS

Halifax combines competitive new car prices with a large selection of used vehicles. The city’s relatively low cost of living and wages make cheap cars a realistic option for many buyers. Strong demand for trucks and SUVs makes sedans and hatchbacks particularly affordable.

Focusing your cheap car search on cities with favourable economic factors can help you score the best deal on an inexpensive new or used vehicle.

 

Financing and Insurance Considerations

When purchasing an inexpensive vehicle in Canada, financing and insurance costs can have a significant impact on the overall cost of ownership. Here are some key factors to consider:

Financing inexpensive vehicles often means taking out longer term loans to keep payments affordable. Loans of 6-8 years are common for sub-$20,000 models. While this reduces the monthly payment, you end up paying much more interest over the life of the loan.

Insurance premiums tend to be higher for inexpensive vehicles. This is due to factors like:

 

  • Higher repair costs – Replacement parts can be expensive on cheap cars
  • Increased risk – Less safety features and lower build quality
  • Lower resale value – Provides less incentive for owners to avoid collisions

 

Consider getting quotes from multiple providers, looking for discounts, and finding ways to keep your driving record clean. Higher deductibles and basic coverage levels can also lower premiums.

While cheap cars offer big savings on the purchase price, be prepared for potentially higher financing and insurance costs. Carefully consider the overall budget impact to find the best value.

 

How Reliable Are Cheap Cars?

When shopping for an inexpensive new car, reliability is often a top concern. Buyers want reassurance that their budget-friendly vehicle will provide years of dependable service without breaking down or needing major repairs.

Overall, today’s affordable models deliver pretty good reliability compared to pricier vehicles. Brands like Toyota, Honda, Hyundai, and Kia have made great strides in build quality and durability for their low-cost offerings. While you make some sacrifices with a cheaper car, reliability does not have to be one of them.

In reliability surveys and owner reviews, many of the least expensive new cars earn praise for avoiding major issues and providing a trouble-free ownership experience. For example, the tiny Mitsubishi Mirage consistently ranks among the most dependable subcompact cars in consumer studies, despite its bargain pricing. The Hyundai Accent and Kia Rio also fare well for reliability in their class according to surveys like J.D. Power’s Initial Quality Study.

While their overall scores may not be as high as pricier models, cheap new cars often perform on par or better than competitors when it comes to avoiding mechanical problems and unscheduled repairs. Brand reputation also comes into play – Toyota and Hyundai have strong reliability track records across their lineups, so even their cheapest models benefit.

When buying an inexpensive car, getting one with a solid factory warranty is highly recommended. Most brands now offer at least 5 years/100,000 km of bumper-to-bumper coverage. This protects against early defects and gives added peace of mind with a tight budget vehicle. Consider warranty when comparing affordable models to help find the most reliable choice.

 

Operating and Ownership Costs

One of the biggest advantages of buying an inexpensive car is the low total cost of ownership. With lower purchase prices, affordable models tend to have much more reasonable operating and ownership expenses compared to pricier vehicles.

On the fuel front, cheaper cars are almost always very efficient. Models like the Mitsubishi Mirage, Toyota Corolla, and Hyundai Accent all achieve excellent fuel economy thanks to their small engines and lack of performance. You can expect 30-40 mpg in combined driving with most vehicles in this class. That adds up to huge savings at the pump over more expensive and thirsty vehicles.

Maintenance and repair costs are also minimized with affordable transportation. Cheaper cars tend to use tried and true older technology that is inexpensive to service and maintain. Parts are plentiful and you won’t pay a premium for repairs. DIY maintenance is also easier than on more complex vehicles.

Finally, depreciation is much friendlier on an inexpensive car. Because you are buying at the low end of the market already, there’s less room for values to fall. Affordable cars tend to hold their value better as a percentage of original purchase price. You’ll take less of a depreciation hit when it comes time to sell or trade-in an inexpensive vehicle.

Overall, opting for a cheaper car will keep more money in your wallet not just at purchase, but throughout your ownership experience thanks to lower operating costs across the board.

 

Safety Ratings for Inexpensive Vehicles

When shopping for an affordable car, safety should still be a top priority. While less expensive models may not have all the latest high-tech active safety features, many offer the essentials to keep you protected on the road.

In crash testing by the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS), many inexpensive vehicles perform quite well thanks to improvements in basic safety engineering and construction. Strong occupant compartments, crumple zones, seat belts, and airbags help minimize injuries in a crash.

For example, top picks like the Hyundai Accent, Kia Rio, Toyota Corolla, and Honda Civic all earn high marks in NHTSA and IIHS testing for frontal, side, and rollover protection. Many earn top “Good” ratings in the IIHS moderate overlap front, side, roof strength and head restraint tests.

While you’ll find fewer high-tech safety options like automatic emergency braking or lane departure warning on the cheapest cars, features like rearview cameras and Bluetooth connectivity are becoming standard even on low-priced models.

By sticking with a brand-new inexpensive car from a major mainstream automaker, you can get all the latest standard safety advances built-in, for strong protection without breaking the bank.

 

The Future of Cheap Cars

The future of inexpensive cars in Canada faces some uncertainty due to several market trends. Most significantly, rising costs of materials, logistics, and labor have put pressure on automakers’ ability to offer bargain-priced vehicles. This inflationary environment has already led to price increases across new car lineups. Experts predict this trend will continue in the coming years.

High demand for used vehicles has also driven up their prices, meaning buying a pre-owned model is not as cost-effective as it once was. New car incentives and discounts have declined as well, removing another way buyers could get into a cheap vehicle.

On the positive side, automakers are finding ways to cut costs through platform sharing, improved manufacturing techniques, and technology like 3D printing. Small cars also tend to have lower profit margins, so automakers have incentive to keep their prices down to attract first-time and budget-conscious buyers. The future likely involves fewer sub-$20,000 models, but affordable transportation will remain for those willing to compromise on size, power, and features.

 

Conclusion

For Canadian car buyers on a tight budget in 2024, there are still some great affordable new vehicle options even with rising prices. The cheapest car in Canada remains the tiny but thrifty Mitsubishi Mirage starting under $17,000. Other sub-$20,000 choices like the Nissan Versa, Hyundai Accent and Kia Rio deliver solid basic transportation without breaking the bank.

Move up to the $20-25k range and you can get larger, more comfortable compact cars like the Chevrolet Spark, Kia Forte and legendary Toyota Corolla that offer more features and versatility. While these inexpensive models may lack the glitz and glamour of pricier vehicles, they provide excellent value and can satisfy the needs of many buyers looking for an affordable, reliable ride.

For those on a strict budget, resist the temptation to overspend and focus on the fundamentals in a cheap car. Prioritize fuel efficiency, reliability and low ownership costs. Shop around for the best financing and insurance rates. And don’t forget to check safety ratings – many cheaper new cars offer decent crash protection these days. With realistic expectations and smart shopping, an inexpensive new car can be a great choice for savvy Canadian buyers in 2024.

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Questions About The Cheapest Cars in Canada for 2024

The cheapest car in Canada for 2024 is the Mitsubishi Mirage, with a starting MSRP of $16,998. When destination charges and other fees are factored in, the Mirage can be purchased for around $19,480.

The 2024 Mitsubishi Mirage ES comes standard with a 7-inch touchscreen display, Bluetooth phone and audio connectivity, a rearview camera, cruise control, keyless entry, air conditioning, and a 5-year/100,000 km powertrain warranty. Higher trim levels add features like automatic climate control, a leather-wrapped steering wheel, heated front seats, and more.

The most fuel-efficient 2024 car in Canada is the Mitsubishi Mirage hatchback. When equipped with the continuously variable transmission (CVT), it achieves an estimated 7.9 L/100 km in the city, 6.5 L/100 km on the highway, and 7.1 L/100 km combined. With the manual transmission, the combined rating is 7.4 L/100 km.

 

According to quotes from various insurance providers, annual insurance premiums for the 2024 Mitsubishi Mirage generally range between $1,200 – $2,500 for basic coverage depending on factors like driver age and location. Given its low price and good safety ratings, it is one of the most affordable vehicles to insure in Canada.

 

The next cheapest new car in Canada after the Mitsubishi Mirage is the Nissan Versa, with a starting MSRP of $20,298. When fees and charges are included, the Versa has an all-in price of around $23,000, making it an affordable alternative to the Mirage hatchback.

 

Some of the most affordable SUVs available in Canada for the 2024 model year include the Hyundai Venue, Chevrolet Trax, Nissan Kicks, and Kia Seltos. These small crossover SUVs are priced between $21,000 – $26,000 before taxes and fees, while offering good fuel economy and an elevated driving position.

The most affordable pickup trucks in Canada for 2024 are the mid-size options like the Hyundai Santa Cruz, Ford Maverick, and Nissan Frontier. These trucks start around $30,000 but can haul cargo and tow small trailers while providing better fuel efficiency than full-size trucks.

 

The most affordable 2024 model year vehicles in Canada largely come from Japanese and Korean automakers such as Mitsubishi, Nissan, Hyundai, Kia, Toyota, Honda, and Mazda. Brands like Chevrolet and Volkswagen also offer very inexpensive cars and SUVs like the Spark, Jetta, and Taos.

While cheaper new cars offer excellent value and fuel efficiency, most lack some luxury features found in premium vehicles. These can include options like leather upholstery, navigation systems, premium audio systems, heated rear seats, ventilated front seats, surround view cameras, heads-up displays, and soft-close doors.

The most affordable new car options in Canada are generally found in the subcompact and compact vehicle segments. These include hatchbacks like the Mirage, sedans such as the Nissan Versa and Kia Forte, and small crossover SUVs like the Hyundai Venue and Chevrolet Trax.

Currently, there are no purely electric vehicles available brand new in Canada for under $30,000 when accounting for delivery fees and taxes. However, some plug-in hybrid options from Kia and Hyundai, like the Niro and Ioniq, are priced around $30,000 before federal and provincial EV incentives, which could reduce the effective cost by $5,000 or more.

A few manufacturers still make affordable cars with manual transmissions in Canada, primarily Mazda, Toyota, Honda, Volkswagen, and Subaru. The cheapest 2024 vehicles available with a manual gearbox include the Mitsubishi Mirage, Nissan Versa, Kia Rio, Hyundai Accent, and Chevrolet Spark.

The most affordable sports cars in Canada include the Subaru BRZ ($31,395), Mazda MX-5 ($34,150), Toyota GR86 ($31,490), Volkswagen GTI ($33,895), and Hyundai Veloster N ($35,699). These affordable performance vehicles offer great handling and acceleration for budget-minded enthusiasts.

 

No, the cheapest new car in Canada is the 2024 Mitsubishi Mirage with an MSRP of $16,998. Even smaller city cars from Chinese manufacturers like the Changli Freeman, which sells for around $10,000 USD in China, are not certified for sale in Canada as they do not meet Canadian safety and emissions regulations.

 

The most affordable minivans in Canada for 2024 are the Chrysler Voyager, Dodge Grand Caravan, and Chrysler Pacifica. Large three-row SUV options on a budget include the Volkswagen Atlas Cross Sport, Buick Enclave, and Chevrolet Traverse, priced from around $40,000 to the low $50,000 range.

Kia and Hyundai lead the industry by offering outstanding 5-year/100,000 km comprehensive warranties as standard equipment on new vehicles sold in Canada. Mitsubishi matches that coverage for the powertrain components only. Toyota, Mazda, and Honda also have excellent reputations for reliability and build quality.

Many of the most affordable cars and trucks sold in Canada originate from plants located in Mexico and the southern United States for brands like Toyota, Honda, Nissan, Hyundai, and Kia. GM also produces budget-friendly models like the Spark and Sonic in facilities in Michigan and South Korea.

 

In general, rural areas of Canada tend to have lower car prices than major urban centers. Provinces like Alberta, Saskatchewan, and Quebec tend to have the most affordable pricing on both new and used vehicles compared to Ontario, British Columbia, and Atlantic Canada.

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