The Most Cost-Efficient New Cars of 2023
With a global microchip shortage making cars more expensive, it can be difficult finding something that fulfills that resolution you made to save money. Whether you’re looking for the cheapest car, something more fuel efficient at the pump, or a way to avoid gas stations altogether, we’ve compiled these recommendations.
The Least Expensive New Cars
Due to supply and demand, the average price for a new car in 2023 is an astounding $49,388, according to KBB.1 Nevertheless, there are still vehicles available under $20K. To date, the cheapest car new for sale in the US is the Nissan Versa at just under $16K before delivery. To get the least expensive model, you’ll need to know how to drive stick. For a little more money, you can spec your Versa with a CVT transmission.
For a slightly higher list price, the Mitsubishi Mirage and the Kia Rio retail under $20K. Like the Versa, they seat five adults and offer combined mileage in the mid-30s. Keep in mind with vehicle shortages, many dealers want more than list price. Fortunately, used car values are at record highs so you might be able to sell your current vehicle for an amazing price.
Highest MPG Cars in 2023
There’s more to a thrifty ride than the price you negotiate. What you pay at the pump can also add up. The three most fuel-efficient cars in 2023 with internal combustion engines are all hybrids. At the top of the list are the Toyota Prius, Hyundai Elantra, and Kia Niro. All three retail for under $30K and offer combined MPGs in the 50s.2 Hybrids are also nearly as efficient around town as on highway trips. Plus, you never need to worry about finding a charging station.
Leaving the Pump Behind
Electric vehicles should eventually become more cost-efficient, but an average price of $61,448 puts the dream out of reach for many.3 And, while EVs can save money on maintenance expenses and fuel, it can take a long time for the economics to pencil out.
Fortunately, there are federal tax credits for many of these vehicles. You can find a list of all the rebates on the FuelEconomy.gov website.4 The rules for EV tax credits change frequently, so it makes sense to check updates before shopping.5
However, despite luxury EVs sending costs up, there are still many EVs below $50K with high cost-efficiency. The most basic Tesla Model 3 tops the list at 132 MPG-equivalent, and the significantly more affordable Chevrolet Bolt EV and Hyundai Kona EV both deliver 120 MPG-equivalent.6
Saving Money with Cost-Efficient Car Insurance
Insurance is an essential expense with car ownership, but there are basic things you can do to put more of your budget into a cool car and less into insurance. Price insurance before shopping, because even if you’re not buying a sports car, costs can vary greatly. From maximizing your discounts to helping you bundle, the insurance experts at Answer Financial can help you be more cost-efficient by comparing policies across 40+ top-rated companies.
Who is Answer Financial?
Answer Financial has helped more than 5-million people find the right coverage when shopping for a new car. On average, we’ve helped save customers $557* a year on cost-efficient insurance.Use our online comparison tool to compare quotes or call 1-800-258-5101 to discuss your individual needs with one of our experts today.
March 7, 2023
- KBB.com, “When Will Car Prices Drop,” https://www.kbb.com/car-advice/when-will-car-prices-drop/
- TrueCar.com, “Hybrids with Best Gas Mileage,” https://www.truecar.com/best-cars-trucks/fuel-hybrid/by-gas-mileage/
- InsideEVs.com, “Average Price Paid For New EVs Down $3,600 In December 2022: KBB,” https://insideevs.com/news/630786/average-price-paid-for-new-evs-down-3600-usd-december-2022-kbb/
- FuelEconomy.gov, “Federal Tax Credits for New All-Electric and Plug-in Hybrid Vehicles ,” https://www.fueleconomy.gov/feg/taxevb.shtml
- Kiplinger.com, “EV Tax Credit 2023: What's Changed and What’s Ahead,” https://www.kiplinger.com/taxes/605081/ev-tax-credit-inflation-reduction-act-2022-changes
- Cars.com, “Top 10 Most Efficient Electric Cars,” https://www.cars.com/articles/top-10-most-efficient-electric-cars-447501/
*Results of a national survey of new Answer Financial customers reporting insurance savings in 2022.