Looking for an inexpensive car or truck? Here are some models that fit all budgets
Peter Faricy is betting that many Americans are going to buy his electric truck.
Faricy, who is the CEO of Slate Auto, said the startup EV maker already has 180,000 reservations for its Slate vehicle, which comes in three forms: a 2-seater pickup, a "squareback" SUV and a "fastback" SUV. It's one of a handful of new vehicles that cost less than $30,000, a shrinking segment of the market yet an important one for many consumers.
The Slate truck is still budget-friendly even without federal tax incentives; the starting price of the truck is $24,950. The SUVs are priced similarly at $29,950 and $31,950.
"There has never been a model like this before," Faricy told ABC News. "It can be a pickup or an SUV -- it adds a lot of value to the consumer."
The low price will certainly attract price-conscious motorists. Others will be drawn in by the endless possibilities of personalization, he said.
"There will be a mix of buyers and not all will be EV owners," he said. "For some people they're excited because it's affordable. Some people did worry, 'Oh is the truck price low and then the accessories will be expensive?' We did exactly the opposite. There are 200 accessories at launch and 1/3 of them are under $100."
He added, "We want our customers to know this idea of affordability isn't only about the vehicle -- it's about the accessories, the wraps. It's an affordable price but it drives more like a vehicle that costs [double the price]."
The average monthly payment on a new vehicle right now is $785, according to Ivan Drury, director of insights at Edmunds. There are only 47 new models with an average transaction price of $35,000 or less, he said, noting that few Americans buy the base model available on the dealer lot. For Americans looking for a vehicle under $25,000, the options are even slimmer.
"The $20,000 car segment has been obliterated," Drury told ABC News. "Just 3.4% of industry sales are vehicles under $25,000."
Buying a budget sedan or compact SUV does not mean living without modern tech or safety features, Drury said.
"Every Honda product has sensors. Rear review cameras are mandatory," he said. "The set of vehicles on this list check the box for A to B transportation any day of the week."
Drury's recommendations include the Toyota Corolla ($24,420), the Honda Civic ($24,695), the General Motors Trax ($23,495) and Buick Envista ($24,700).
"I would scoop up a Civic. It has good reliability and a fantastic resell value," he said.
Tony Quiroga, editor-in-chief of Car and Driver, said consumers should absolutely check out the Civic and the all-new electric Chevrolet Bolt ($27,600).
"If I was in the market, a base Honda Civic would make me very happy," he told ABC News. "You can get a nicely equipped Civic with all the safety features for $30K."
Quiroga said the Bolt, Car and Driver's 2026 "EV of the Year," has a lot to offer even if buyers choose the lowest-cost version.
"You really don't lose out on anything if you get the basic Bolt," he said. "The more expensive Bolt has Super Cruise. The Bolt is a great car, is super practical and has a ton of room inside."
Quiroga also pointed to the Kia K4 sedan ($22,290) and hatchback ($24,990), which he said "looks good and is fun to drive."
The K4 is "one of the most affordable compact sedans in the industry," Eric Watson, vice president of sales at Kia Motors America, told ABC News. "Not a lot of brands offer affordable sedans ... it's important to us to have this vehicle."
Watson said the brand's Seltos subcompact SUV ($24,990) has also been popular since its relaunch last year.
"Sales are up 65% in July compared to a year ago," Watson said. "We have some very competitive vehicles for under $40,000 that come with outstanding tech and connectivity and are high quality. We also offer a 10-year, 100,000 warranty on our powertrains."
Another new model that meets the affordability requirements for consumers: the Ford Fathom electric pickup ($28,350). Preorders begin in early 2027 and Ford is targeting the same group of buyers as the Slate.
"This feels less like a bet on the entire truck market and more like a bet that Ford has identified an underserved buyer who wants a smaller, more affordable electric pickup," Erin Keating, executive analyst at Cox Automotive, told ABC News. "If they’ve correctly identified that customer, it could carve out a meaningful niche. If not, I think they’ll have a much harder time convincing buyers to choose it over the growing number of hybrid options already on the market."
She went on, "In some ways, it almost feels like Ford is targeting someone who might consider the Slate truck but wants a more refined product with the features and technology that Slate intentionally leaves out. If that’s the strategy, I’m not sure how large that market really is, because the Slate buyer feels fairly niche."
David Christ, a vice president and general manager at Toyota Motor North America, said the Japanese automaker has seen "growing demand" for its affordable models in the past year. Toyota makes 11 models under $35,000.
"In fact, several of our key nameplates, including Corolla, Prius, GR86 [and] Camry, are all sitting at single-digit days’ supply with dealers, which reflects very strong interest," he told ABC News. "At a time when new-vehicle prices in the U.S. remain near record highs, affordability matters more than ever ... we're committed to helping keep prices down and mobility within reach for Americans now and in the future.”
Christ said Toyota has sold 209,580 Camrys so far this year, making it the marque's top seller.
"Toyota customers are really balancing a mix of priorities — price, fuel economy, technology and durability. Fuel economy remains a major factor, and we’re seeing that clearly in the strong demand for our hybrids. Price is still very important as well, especially with the strong demand we continue to see for many of our lower-priced models."
Faricy, of Slate, said interested buyers can download the Slate app to see all the different colors and options available to order. There will also be test drives throughout the country and a showroom in Chicago. He said owners will be surprised at how well the vehicle performs on the street and off-road.
"The suspension feels like a luxury vehicle. It handles tight corners," he said. "You push the pedal to the floor and you'll be like 'woah.'"
