Here are the 6 most affordable new vehicles you can buy in Canada in 2021

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It’s kind of an oxymoron to put “cheap” and “new vehicle” in the same sentence, if for, no other reason, than the fact the average transaction price of a new car in Canada is north of $40,000.

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Things have gotten even more expensive relatively recently. First off, when we last brought you a list of the cheapest cars a year-and-a-half ago , there were a bunch of small cars — ones no longer sold on our continent.

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Here are the 6 most affordable new vehicles you can buy in Canada in 2021 Back to video

We knew Ford was getting out of sedans, but who would have thought the Hyundai Accent and Honda Fit would be discontinued? The bleeding is not over, with the Toyota Yaris and VW Golf leaving us after the 2021 model year.

Second, although there are advertisements claiming you can buy a car for only “$50 a week,” it seems we like our vehicles bigger and more well-equipped than those entry-level models. Indeed, says the J.D. Power PIN Network, Canadians who bought a new vehicle last year spent $45,594 on their average automotive transaction.

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Want to fork out waaay less money for your new ride? You’re not alone. So, for all you bargain shoppers, here is our list of the cheapest cars, crossovers, three-row SUVs, and even minivans you penny-pinchers can buy. (All prices are before sales taxes and fees.)

Canada’s absolute cheapest car

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It’s still the Chevrolet Spark . While most of the sub-compact competition has now disappeared (think Ford Fiesta, Fiat 500, Nissan Micra and, to some extent, the Chevrolet Sonic) the little Chevy hatchback keeps going on with the lowest price tag of all our market: $12,198 including freight and delivery for the LS manual version. But note that’s $600 more than 18 months ago.

What do you (not) get for that money? For twelve grand, you get 10 airbags, a 7-inch infotainment screen, Bluetooth connectivity and even the 4G LTE Wi-fi hotspot. Plus, you’ll benefit from a semi-generous cargo space (770 litres) for such a small vehicle.

But you don’t get electric power windows. No audio controls on the steering wheel, either. Said steering is not telescopic, it only tilts; if you’re not of average height and girth, better choose another car. The base LS Spark doesn’t feature a basic forward collision alert — even less, there’s no automatic emergency braking, although that’s on the verge of being standard on all our new vehicles.

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One last thing: The Spark only seats four passengers. But that’s a good thing, because the teeny 98-hp four-cylinder 1.4-litre engine is one of the weakest on the market.

Watch out! The interest rate for the base (LS) Chevrolet Spark is among the highest in the industry: Financing at 5.49% (up to 84 months) and leasing at 8.99%. So before committing to what seems to be a cheap “$213 a month,” check for better-equipped Sparks — those versions benefit from two to three times lower interest rates.

Transport Canada-certified fuel consumption: 8.0 L/100 km (city); 6.2 L/100 km (highway)

The cheapest mid-size sedan

Winner here is the Chevrolet Malibu . What, you thought American manufacturers were all abandoning sedans? Well, for now, the Chevrolet Malibu is still alive. And starting at $25,598 , it is at least two grand cheaper than any other intermediate sedan.

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What do you (not) get for that money? The Malibu is all about comfort and spaciousness, with solid and silent highway manners. Its infotainment system is one of the easiest to navigate, there’s a built-in 4G LTE wifi hotspot standard, and the remote start system is standard (much to environmentalists’ chagrin). And while long denigrated as a “boring fleet car,” the sexagenarian today shows off a good-looking and muscular silhouette.

But because the Malibu is the cheapest offering in its category, it has to forego certain equipment — sadly, heated seats don’t make the cut. Also, only the Malibu’s Premium luxury version gets some driving aids, like forward collision braking, rear cross-traffic alert, and a blind-spot monitoring system. Lastly, the base engine, the 163-hp 1.5-litre four-cylinder turbo is not only one of the weakest performers – the category average is around 190 – but it’s paired to a CVT, not the modern 9-speed transmission found in more upscale Malibus.

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Watch out! Chevrolet doesn’t make the Malibu available for leasing, so you can only buy. The claimed 0% interest may seem compelling, but know there’s $4,400 rebate for a cash transaction. Forking in that rebate really means you’re paying an “effective” rate between 5.2% and 12.4% — something that might make you consider your credit line or another financing method.

Transport Canada-certified fuel consumption: 8.2 L/100 km (city); 6.6 L/100 km (highway)

The cheapest crossover

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It’s no longer the Nissan Kicks, not with the arrival of the Hyundai Venue . At $17,599 — plus $1,825 of freight and destination — the sub-sub-compact SUV (is it really an SUV?!) is the only one in Canada under the $20,000 mark.

What do you (not) get for that money? If you read our Duet comparing the Venue with its (slightly) bigger sibling, the Hyundai Kona, you know we were impressed the unpretentious silhouette of the Venue leads to a surprisingly generous interior space. The four-cylinder non-turbocharged 1.6L unit seems weak on paper, with just 121 horsepower.

But then, we found Hyundai’s smallest crossover one of the most fun-to-drive vehicles in the Korean brand’s lineup. And even for as low as $19,425, you get standard heated front seats.

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But the Venue’s low price tag comes with the caveat its base Essential trim comes with a 6-speed manual transmission. Also, Venue doesn’t offer all-wheel-drive — for that, you’ll have to turn to models that hurdle the $20,000 mark.

Watch out! For those driving mostly in the city, you want the Hyundai Venue equipped with the more-fuel-efficient CVT, since it sips eight per cent less gas in the urban cycle than the manual. At a buck-and-a-quarter a litre, it means after 150,000 kilometers of city-driving, the $1,300 CVT pays off itself.

Transport Canada-certified fuel consumption (manual): 8.6 L/100 km (city); 6.8 L/100 km (highway)
Transport Canada-certified fuel consumption (CVT): 7.9 L/100 km (city); 7.0 L/100 km (highway)

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When you need AWD for cheap, you’ll want—

Well, not an SUV. Again this year, it’s the Subaru Impreza . For $19,995 , plus $1,675 in freight and destination fees, you get a compact sedan boasting one of the most efficient all-wheel-drive systems in — let’s not be shy! — history.

What do you (not) get for that money? Let’s say it again: The four-door sedan (as well as its 5-door hatchback sibling, for $1,000 more) offers, as standard equipment, the symmetrical full-time (i.e. permanent) AWD. It is one of the industry’s best. The Impreza also drives on a rarity: A double-wishbone rear suspension. You won’t notice at first, but after hitting a couple of potholes, you realize how disciplined this architecture is.

Sadly, your base Impreza won’t get you EyeSight, one of the most effective driving aid suites on the market. You’d need to jump on the next trim, conveniently called the Impreza Convenience EyeSight, for $2,000 more.

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Watch out! But then, you may want to add an extra $800 and jump into the Touring version with its heated seats. If we make a fuss about this winter-y comfort item, it’s because we looove its two levels: very-hot, and Very-very hot. Even then, at $22,795, the Impreza Touring remains the cheapeast AWD. While there are more sedans offering AWD, they are not cheap: The compact Mazda3 GX AWD starts at $26,500; the intermediate Nissan Altima starts at $29,498 (all Canadian Altimas are now AWD); and the hybrid Toyota Prius with its AWD-e system costs $29,850.

Transport Canada-certified fuel consumption (manual): 10.1 /100 km (city); 7.6 L/100 km (highway)
Transport Canada-certified fuel consumption (CVT): 8.3 L/100 km (city); 6.4 L/100 km (highway)

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The cheapest three-row SUV

You’re looking at Mitsubishi’s 2021 Outlander . The brand-new generation of the compact (yes, compact!) SUV offers a third row as standard equipment, even in its base ES S-AWC trim, starting at $31,998 (plus $1,900 freight and delivery fees).

What do you (not) get for that money? The new Outlander gets a “positively modern interior”, says my fellow autoscribe David Booth, something very much needed. It’s still equipped with Mitsubishi super-all-wheel-control (S-AWC), a system that lets you choose between Eco, Normal, Snow, Gravel, Tarmac, and Mud modes. Simply, they offer you control before you get into trouble. Of course, as with every Mitsubishi, the Outlander comes with a generous 10-year/160,000-km powertrain limited warranty.

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What you won’t get with this new Outlander iteration is legroom for the passengers in those two extra seats. As Consumer Reports states , “There’s a reason most small SUVs don’t offer third-row seats.” Or as Mister Motor Mouth himself wrote , “Your nickname will need to be ‘Stumpy’ if you’re sitting in the last row.” In fact, this author doesn’t remember seeing, in 20 years of car reviewing, as little as 475mm in dégagement aux jambes in any vehicle spec sheets.

Watch out! If keeping your passengers happy is a priority, for as little as $750 extra, check the three-row compact Volkswagen Tiguan. The German SUV is not really more powerful, despite being turbocharged (its 2.0L four-cylinder delivers 184 hp, versus 180 hp for the 2.5L naturally aspirated Outlander); its towing capacity is even lower (680 kg vs 907 kg); but at least the Tiguan boasts 50 per cent more legroom in its third-row seats. That said, 708 mm is not exactly the Klondike, and maybe a minivan would make more sense.

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Transport Canada-certified fuel consumption: 9.7 L/100 km (city); 7.9 L/100 km (highway)

The cheapest minivan

It’s a Kia. The Kia Sedona could be yours for a MSRP of $32,295 , plus $1,795 in freight and delivery fees. But the Sedona will be gone after this 2021 model year, because a new (Kia) Carnival is coming to town, with a MSRP starting at $34,495 (plus $1,850 in prep fees). In either case, the cheapest family-hauler remains in the family.

What do you (not) get for that money? For both Kia’s minivans, you get a V6 engine, more and more a rarity under any models’ hoods. The six is a 276-hp 3.3L for the outgoing Sedona; and a 290 hp 3.5L for the upcoming Carnival. Both are paired to an eight-speed automatic, but the latter shows its modernity with five per cent better fuel efficiency, despite being also five per cent more powerful. Our boss tested the Carnival last month, and as he wrote, you’ll get what you expect from a Kia minivan: practicality, value, and comfort for the whole family. What you won’t get is AWD, not even on high-end versions of the new party.

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Watch out! Although its price tag starts at $37,995, the Chrysler Grand Caravan – you read right, the Chrysler Grand Caravan – currently shows a 10-per-cent rebate on its manufacturer website. So even if it’s not officially the cheapest, you may want to consider this built-in-Windsor-Ontario minivan.

Transport Canada-certified fuel consumption (Sedona): 12.7 L/100 km (city); 10.0 L/100 km (highway)
Kia-announced fuel consumption (Carnival): 12.0 L/100 km (city); 8.9 L/100 km (highway)
Transport Canada-certified fuel consumption (Chrysler Grand Caravan): 12.4 L/100 km (city); 8.4 L/100 km (highway)