Got a tight budget? Whether you’re a first-time buyer, have a growing family, or simply want to save money, researching the market for the cheapest cars in Canada is the first step toward making a smart choice. Canada’s 2025 portfolio includes unexpectedly affordable vehicles from reputable brands such as Toyota, Nissan, and Hyundai. Many include premium features typically found in pricier models, proving you don’t need to overspend for quality. Below, we’ve created a list of the cheapest car models available in Canada for 2025.
While the attraction of a new car is compelling, the savvy car buyer knows that true value often lies in the used car market, a specialty of ours at YST Auto Sales. We offer used car models like the Nissan Versa, Hyundai Elantra, and Toyota Corolla, offering a pathway to ownership that is both financially accessible and practical. For Ontario residents, YST Auto Sales is committed to paving, ensuring you find a vehicle that is not only budget-friendly but also a perfect fit for your lifestyle.
8 Cheapest New Cars in Canada for 2025
Searching for an affordable vehicle in Canada? Discover the cheapest car models that balance cost and performance for savvy buyers below.
2025 Nissan Versa
MSRP: $20,798
Starting at $20,798, the Nissan Versa remains Canada’s most affordable new car. Its 1.6L engine delivers 122 hp via a CVT, though a manual transmission isn’t offered. Standard tech includes a 7-inch touchscreen with Google Assistant and Bluetooth, but Apple CarPlay/Android Auto requires higher trims.
Key Specifications:
- 1.6L DOHC 4-cylinder engine (122 hp, 114 lb-ft torque)
- Standard Xtronic CVT transmission (manual discontinued for 2025)
- Fuel economy: 7.1L/100 km city / 5.9L highway
- Enhanced Feature Breakdown:
The Versa’s redesigned cabin now includes soft-touch materials on higher trims, with the base S model featuring a 7-inch touchscreen supporting Bluetooth calling and audio streaming. The mid-tier SV trim adds Android Auto/Apple CarPlay integration plus the Nissan Safety Shield 360 package, including:
- Intelligent Forward Collision Warning
- Automatic Emergency Braking with Pedestrian Detection
- Rear Cross-Traffic Alert
Surprisingly spacious for the segment, its 60.9 cubic feet of passenger volume accommodates taller adults comfortably.
Shop used Nissan Versa models on YST Auto Sales
2025 Hyundai Elantra
MSRP: $22,599
Hyundai’s Elantra starts at $22,599, featuring a 147-hp 2.0L engine with a CVT. Opt for the turbocharged 1.6L (201 hp) to boost power—and the price. The base trim impresses with an 8-inch touchscreen, wireless smartphone integration, and advanced safety systems like lane-keep assist.
Key Specifications:
- Standard 2.0L MPI Atkinson-cycle engine (147 hp/132 lb-ft)
- Optional 1.6L Turbo GDI (201 hp/195 lb-ft) on N Line trims
- New Eco trim achieves 6.3L/100 km combined
- Technology Evolution:
- Hyundai’s 2025 updates bring wireless device charging across all trims and an upgraded 8-inch display with split-screen functionality. The redesigned Digital Key 2.0 allows smartphone-as-key functionality for compatible devices. Base models now include:
- LED headlights with auto-leveling
- Rear Occupant Alert system
- Lane Following Assist with centering capability
Shop used Hyundai Elantra models on YST Auto Sales
2025 Nissan Sentra
MSRP: $23,898
Priced from $23,898, the Sentra offers a sporty design and a 149-hp 2.0L engine paired with a manual or CVT. Its cabin includes a 7-inch infotainment system, Apple CarPlay/Android Auto, and safety tech like blind-spot monitoring.
Key Specifications:
- 2.0L 4-cylinder now produces 149 hp (+5% vs 2024)
- Retains Xtronic CVT with manual mode paddle shifters
- Tuned suspension improves road isolation
Premium Touches in Base SR Trim:
Nissan’s value play offers segment-exclusive features in its entry model: - Bose Premium Audio with 8 speakers
- Leather-wrapped steering wheel
- Dual-zone automatic climate control
- Heated front seats with 3-stage adjustment
Shop used Nissan Sentra models on YST Auto Sales
2025 Toyota Corolla
MSRP: $23,970
While not the base model, the Corolla Hybrid starts at $27,350 – still among Canada’s most affordable electrified options, delivering 4.4L/100 km combined fuel efficiency. Toyota’s Corolla ($23,970) balances efficiency and features, with a 169-hp engine, wireless smartphone connectivity, and adaptive cruise control. A spacious interior and Toyota’s reputation for reliability add to its appeal.
Safety Tech Deep Dive:
All trims include Toyota Safety Sense 3.0, featuring:
- Pre-Collision System with Intersection Support
- Dynamic Radar Cruise Control (full-speed range)
- Road Sign Assist with Stop Sign detection
- Emergency Driving Stop System for driver incapacitation
Shop used Toyota Corolla models on YST Auto Sales
2025 Kia K4
MSRP: $23,995
Replacing the Forte, the K4 starts at $23,995. Its 147-hp engine pairs with a CVT, while the cabin boasts a 12.3-inch touchscreen and safety features like adaptive cruise control. Built on Hyundai-Kia’s new N3 platform, the K4 offers class-leading:
- Wheelbase: 2,720 mm (+20mm vs outgoing Forte)
- Shoulder room: 1,448 mm front/1,420 mm rear
- Cargo capacity: 428 L with hidden storage compartment
Infotainment Specs:
Standard 12.3-inch touchscreen features: - Over-the-air navigation updates
- UVO Link remote start/climate control
- Connected Routing with real-time traffic learning
Shop used Kia Forte models on YST Auto Sales
2025 Toyota Corolla Hatchback
MSRP: $24,375
The sportier Corolla Hatchback, starting from $24,375, shares the sedan’s 169-hp engine and CVT. Features include wireless Apple CarPlay/Android Auto and Toyota Safety Sense 3.0.
Performance Tuning:
- Sport-tuned suspension (-10% bump stiffness vs sedan)
- 18-inch alloy wheels are standard on SE trim
- Available 6-speed manual with rev-matching downshifts
- Practicality Advantages:
- Despite its sporty profile, the hatchback offers:
- 60/40 split folding seats with 23.3 cu.ft cargo space
- 1,500 lb towing capacity (unbraked)
- Rear seat legroom: 893 mm (comparable to sedan)
Shop used Toyota Corolla Hatchback models on YST Auto Sales
2025 Mazda Mazda3
MSRP: $24,900
Mazda3’s sleek design starts at $24,900, offering a 191-hp engine with manual or automatic transmission. Standard amenities include heated front seats, an 8.8-inch infotainment screen, and blind-spot monitoring. Mazda3 continues its premium push with:
- 8-way power driver’s seat (base model)
- Genuine Santos Red wood trim on GS-Line
- Multi-layer dashboard sound insulation
- AWD Availability:
- All trims offer i-ACTIV AWD ($2,100 option) featuring:
- Predictive traction pre-loading
- 50:50 torque split capability
- Off-road Assist for low-traction starts
Shop used Mazda Mazda3 models on YST Auto Sales
2025 Honda Civic
MSRP: $27,840
Though pricier at $27,840, the Civic justifies its cost with a 150-hp engine, robust safety tech (adaptive cruise control, traffic-jam assist), and a refined cabin. Honda Sensing® now integrates:
- Traffic Jam Assist (0-40 km/h steering)
- Driver Attention Monitor with espresso detection
- Blind Spot Information System with Cross Traffic Monitor
- Resale Value Factors:
- 5-year retained value: 58% (Canadian Black Book)
- 12-year anti-perforation warranty
- Complimentary 2-year maintenance program
Shop used Honda Civic models on YST Auto Sales
The Smart Money Move: Why a Used Car is Your Most Affordable Car Option
The most financially savvy understand that the secret to affordability lies in the used car market, for the single largest expense in car ownership, outside of the purchase itself, is depreciation—the steep decline in a vehicle’s value the moment it’s driven off the dealership lot.
A new car can lose 20-30% of its value in the very first year and up to 60% within five years. This reality presents a golden opportunity for those willing to consider a gently used vehicle. By choosing to buy a car that is just a few years old, you let the original owner absorb the most significant depreciation hit, allowing you to acquire a modern, reliable vehicle for a fraction of its original price.
Consider the models we listed as Canada’s most affordable new cars, such as the Nissan Versa, Hyundai Elantra, or Kia K4. While their starting MSRPs seem appealing, a two-to-three-year-old version of the same car offers substantial savings. You get a vehicle with up-to-date features, safety technology, and design, but without the hefty initial financial blow. For residents of Ontario, the vibrant used car market offers a diverse selection of these models, and at YST Auto Sales, we specialize in selecting a collection of high-quality, low-mileage vehicles that represent the pinnacle of value.
Additionally, the advantages of buying a used car go well beyond avoiding initial depreciation. Insurance premiums, a significant ongoing expense, are typically lower for used vehicles. The market value of the car is a primary determinant of insurance costs, and a lower-valued car naturally costs less to insure. Reliable models with a reputation for longevity, such as the Honda Civic, Toyota Corolla, and Hyundai Elantra, are available in the pre-owned market and are known for their low maintenance costs and strong track records, lower insurance premiums, making them a wise long-term investment. By choosing to explore the world of used cars, you are not just purchasing a vehicle; you are making a strategic financial decision that maximizes value and minimizes long-term costs.
How to Find an Affordable Used Car in Ontario?
The process of buying a used car in Ontario can be straightforward and rewarding when you’re equipped with the right knowledge and strategy. The trip begins not on a car lot, but rather with thorough study and budgeting.
First, establish a realistic budget that accounts for more than just the vehicle’s price; include taxes, registration fees, insurance, and a contingency fund for any immediate maintenance needs. A good rule of thumb is to keep your total transportation costs at or below 10-15% of your monthly income. Once you have a budget, you can begin researching vehicles that fit your criteria. Focus on models known for reliability and low ownership costs, such as the Honda Civic, Toyota Corolla, Mazda3, and Hyundai Elantra, which are consistently ranked as some of the best and most affordable used cars in Canada.
When you’re ready to start viewing vehicles, it’s crucial to know what to look for. In Ontario, a private seller is legally required to provide you with a Used Vehicle Information Package (UVIP), which contains vital details about the car’s registration history, lien information, and condition. Regardless of whether you buy privately or from a dealership like YST Auto Sales, always insist on seeing the vehicle’s history report from a provider like CARFAX. This report offers a comprehensive look into the car’s past, including any reported accidents or damage. A thorough test drive is non-negotiable. During the drive, pay attention to the engine’s response, the transmission’s smoothness, braking performance, and any unusual noises.
Finally, before you finalize the purchase, a pre-purchase inspection by a licensed mechanic is one of the wisest investments you can make. This inspection provides an unbiased, expert assessment of the vehicle’s mechanical and structural condition, potentially saving you from costly future repairs. To register a vehicle in Ontario, a Safety Standards Certificate is required, which certifies that the car meets minimum safety requirements at the time of inspection.
Navigating the financing process is another key step. While banks and credit unions are options, dealership financing can frequently give low rates and ease, particularly at places like YST Auto Sales, which has relationships with various lenders and can find you the best terms. By following these steps, you can confidently navigate the Ontario used car market and drive away in a reliable, affordable vehicle that you’ll be happy with for years to come.
Driving Home the Value with a Pre-Owned Vehicle from YST Auto Sales
While new budget-friendly models offer modern features, the unparalleled financial advantage of purchasing a pre-owned vehicle is clear. By avoiding the initial, substantial depreciation, buyers can get reliable, feature-rich vehicles at a significantly cheaper entry cost and benefit from reduced ongoing expenses like insurance.
For those looking to buy a used car in Ontario, the key is to look beyond the sticker price and a comprehensive picture of affordability—one that considers the total cost of ownership. From fuel efficiency and maintenance costs to insurance premiums and resale value, a truly affordable car continues to save you money long after the purchase is complete.
At YST Auto Sales, we are committed to guiding our customers through this process. We specialize in high-quality, reliable used vehicles that represent the best value in the market. Our focus is on empowering you with the knowledge to make a confident and financially sound decision. We invite you to explore our inventory and discover how an affordable used car can be the smartest, most rewarding vehicle purchase you’ve ever made.