When it's time for a new car but money is tight, you may feel like you’ll have to make sacrifices. Generally, a smaller budget can mean getting a smaller vehicle with fewer features and no real frills to speak of.

But what are the cheapest new cars in Canada and do they really lack essential features? Below we dive into the  six cheapest cars and their features below. For those who prefer an SUV, we also cover the five cheapest new SUVs in Canada to see whether better value really means less performance.   

Cheapest New Cars in Canada 

When you need a new car at an affordable price, these sub-$20,000 models will do the trick. 

2022 Toyota Corolla

With a starting price of $19,450, the Toyota Corolla is also one of the cheapest new cars in Canada. In its base L 6M trim, you get a 1.8-litre four-cylinder engine that produces 139 horsepower and pairs with a six-speed manual transmission. 

The Corolla is the best-equipped on our list so far, with a standard 7-inch touchscreen infotainment system that includes standard Android Auto and Apple CarPlay. Other features include a six-speaker audio system, a tilt-and-telescoping steering wheel, 60/40 split-folding rear starts, and bi-LED headlights, to name a few. 

Plus, the Corolla comes loaded with safety features, including automatic emergency braking with pedestrian and bicyclist detection, adaptive cruise control, lane-departure warning, lane-keep assist, high-beam assist, and more. 

2022 Nissan Versa

The Nissan Versa rings in at $18,283, making it one of the cheapest new cars you can buy at a Canadian new car dealership. You get a 1.6-litre four-cylinder engine that pushes 122 horsepower through a five-speed manual transmission at the base level. 

You also get a 7-inch touchscreen infotainment system with Google Assistant and Bluetooth and a four-speaker AM/FM audio system. Apple CarPlay and Android Auto aren't standard until you reach the pricier SV trim. The Versa also includes power front windows, a tilt-and-telescoping steering wheel, manual-adjust seats, cloth upholstery, and more. 

What really makes the  Versa stick out at this price point are its advanced safety features. Owners can expect  forward collision warning, automatic emergency braking with pedestrian detection, lane-departure warning, high-beam assist, a rearview camera, and automatic rear emergency braking.

2022 Kia Forte

No affordable car list is complete without Kia, and the $18,295 MSRP 2022 Kia Forte fits the bill nicely. In its base setup, you get a 2.0-litre four-cylinder engine that pushes 147 horsepower through a six-speed manual transmission and out to the front wheels.

Inside, the 2022 Forte comes standard with an 8-inch touchscreen infotainment system that boasts Apple CarPlay and Android Auto. There's also a six-speaker audio system, Bluetooth connectivity, power front windows, and more. 

The only downside is that it lacks  standard advanced safety features, which are reserved for the EX and higher trims only. 

2022 Hyundai Elantra

If the Kia Forte makes the list, then its $17,999 cousin, the entry-level Hyundai Elantra makes the cut too. This affordable sedan's standard powertrain includes the same 147-horsepower 2.0-litre engine and six-speed manual transmission as the Forte.

Inside, the Elantra comes standard with an 8-inch touchscreen infotainment system, Apple CarPlay and Android Auto, a six-speaker audio system, Bluetooth connectivity, power front windows, and more.

Like the Forte, the 2022 Elantra lacks standard advanced safety features. 

2022 Mitsubishi Mirage

The 2022 Mitsubishi Mirage qualifies for our list of the cheapest new cars in Canada with its starting price of $16,390. At this price point, you'll get a tiny 1.2-litre three-cylinder engine that produces all of 78 horsepower paired with a five-speed manual transmission. 

Inside, the Mirage is equally basic, as it comes standard with a four-speaker AM/FM display audio system but no Android Auto or Apple CarPlay. The latter is reserved for this subcompact hatchback's midrange SE and range-topping GT trims. Rounding out the interior is basic cloth upholstery, manual-adjust seats, power front windows (rears are manual), and other very basic equipment.

2022 Chevrolet Spark

The king of the cheap new vehicles in Canada is the Chevy Spark, which rings in at a starting price of just $12,548 for the base model. At this affordable price, you get a 1.4-litre four-cylinder engine that pushes 98 horsepower through a five-speed manual transmission. 

Inside, this compact car is very basic stylistically, but its features are on point. The headliner is the 7-inch touchscreen infotainment system with standard Apple CarPlay and Android Auto. Granted, you sacrifice small niceties like power windows and telescoping steering wheel to get this, but many buyers would prefer the connectivity over power windows. 

The 2022 Chevrolet Spark also lacks advanced safety features, which is not surprising for such a cheap car. 

5 Cheapest New SUVs in Canada

If a subcompact sedan or hatchback won't work, and you need an SUV, these affordable models should be on your radar. 

2021 Subaru Crosstrek

The 2021 Subaru Crosstrek is the priciest SUV on the list at $23,795, but it's also the only one with standard all-wheel drive. It also features a 152-horsepower 2.0-litre engine and up to 1,565 litres of cargo space. 

Inside, this off-road-ready crossover features a 6.5-inch touchscreen infotainment system with standard Apple CarPlay and Android Auto. It does, however, lack standard advanced safety features. To get these, you must move up one trim level and add another $2,000.

2022 Kia Seltos

The 2022 Kia Seltos makes our list with an MSRP of just $23,395 for the base LX trim. This model comes standard with a 2.0-litre four-cylinder engine that delivers 146 horsepower. It also has a roomy 1,778-litre cargo area with the rear seats folded. 

Inside, the Seltos is very well-equipped for a low-price SUV. Its standard features include heated front seats, cloth upholstery, tilt-and-telescoping steering wheel, an 8-inch touchscreen infotainment system, a six-speaker audio system, Bluetooth connectivity, Android Auto, and Apple CarPlay. 

2021 Nissan Kicks 

The next cheapest SUV on our list is the 2021 Nissan Kicks, which checks in at $22,043 and carries a 1.6-litre four-cylinder engine that injects 122 horsepower through a continuously variable transmission (CVT). 

Inside, the inexpensive Kicks comes standard with a 7-inch touchscreen, Apple CarPlay, Android Auto, Bluetooth, a tilt-and-telescoping steering wheel, manual-adjust seats, a six-speaker audio system, and three USB ports. 

Safety tech is plentiful in the 2021 Kicks, as it comes standard with blind-spot monitoring, rear cross-traffic alert, rear parking sensors, lane-departure warning, automatic emergency braking with pedestrian detection, automatic reverse braking, and more. 

2021 Mazda CX-3

The 2021 Mazda CX-3 is the second-cheapest SUV on our list at just $21,600. It comes powered by a 2.0-litre four-cylinder engine that sends 148 horsepower through a six-speed manual transmission in its base GX trim. Cargo room is a little light, though, at just 1,209 litres with the rear seats folded. 

Inside, the 2021 Mazda CX-3 has a range of top-notch standard features, including a 7-inch touchscreen, Android Auto, Apple CarPlay, a six-speaker audio system, Bluetooth, cloth upholstery, and more. 

The CX-3 is also loaded with safety tech, including standard automatic emergency braking, blind-spot monitoring, rear cross-traffic alert, and more. 

2022 Hyundai Venue 

The cheapest SUV available in Canada is the 2022 Hyundai Venue at a price point of $18,199. This tiny SUV comes standard with a 1.6-litre four-cylinder engine that pushes 121 horsepower through a six-speed manual transmission. 

Inside, this affordable SUV comes standard with wireless Apple CarPlay and Android Auto, an 8-inch touchscreen, Bluetooth, a four-speaker audio system, heated front seats, and much more. 

While the wireless smartphone compatibility and large touchscreen stand out, the Venue falls short on safety tech. It only has a standard rearview camera. All other advanced safety tech is optional. 

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Why Buy a Cheap New Car When You Can Get a Quality Pre-Owned Car Instead?

New cars generally depreciate 10% the moment you drive them off the lot and another 10-20% through the first year. That's up to 30% depreciation in just a year. The car will continue to lose 15-25% of its value in subsequent years, totaling upward of 60% depreciation in the first five years. 

Why take that initial 30% hit for a cheap new car when you can pick up a quality pre-owned vehicle at Clutch, Canada's first 100% online auto retailer. With a pre-owned vehicle from Clutch,  you can get additional features or a larger vehicle that's only a few years old for less than the price of a cheap new car. 

All our pre-owned vehicles go through a 210-point inspection and reconditioning process and are backed up with a 90-day or 6,000-km warranty. 

Plus, you get a 10-day or 750-km test-own period with your new Clutch vehicle. If you don't love it, simply exchange it for a new one or return it for a full refund.