Looking new car under $40K? Check out the 5 most affordable brands

• The average price for a new car in the U.S. was $49,275 in March 2026.
• Only five major car brands had average transaction prices below $40,000 in March 2026.
• Despite concerns about gas prices, car buyers continue to favor larger, more expensive vehicles.

Only five major car brands averaged sales prices under $40,000 in the United States in March 2026, as new car prices continue to rise and car shoppers feel the pinch.

Car shoppers paid an average of $49,275 for new cars in March 2026, according to Cox Automotive's Kelley Blue Book. The average February price for new cars was down 0.1% from February 2026's average of $49,353, according to the group.

Cox also said automakers' average manufacturer’s suggested retail price, or asking price, was $51,456 in March 2026, which the group said was 3.9% higher than the average sticker price was in February 2025.

Average incentives rose to 7.2% of the median transaction price, which amounts to a typical discount of $3,547.80. February's average incentives were 6.9% of that month's average transaction price.

Erin Keating, executive analyst at Cox Automotive, said car buyers are still opting for larger, more expensive cars despite their concerns about elevated gas prices.

"The numbers this month also show that the industry's near-$50,000 ATP is reflective of a market that favors large, expensive vehicles," Keating said. "While affordable vehicles still exist, the demand continues to be concentrated in higher-priced segments."

The USA TODAY Cars team took a look at the five auto brands that had average sales prices below $40,000 in March and their cheapest models.

1. Mazda

Average March transaction price: $36,229

Percentage change from February: 0.4%

Cheapest U.S. car: Mazda 3 (MSRP: $24,150)

2. Renault-Nissan-Mitsubishi Alliance

Average March transaction price: $36,302

Percentage change from February: -1.8%

Cheapest U.S. car: Nissan Sentra (MSRP: $22,600)

3. Subaru

Average March transaction price: $36,229

Percentage change from February: 0.4%

Cheapest U.S. car: Subaru Impreza (MSRP: $26,595)

4. Hyundai

Average March transaction price: $36,229

Percentage change from February: 0.4%

Cheapest U.S. car: Hyundai Venue (MSRP: $20,550)

5. Honda

Average March transaction price: $36,229

Percentage change from February: 0.4%

Cheapest U.S. car: Honda Civic (MSRP: $24,695)