Best Ranked Cars under 40k

Valerie Raskovic

Oct 18, 2023

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In today's dynamic automotive landscape, selecting the ideal vehicle for you and your family can be a challenging decision.This is why we composed a list of some of the best-ranked cars for under $40,000 in various categories. Remember that car rankings and prices can fluctuate with time, making it crucial to refer to the most recent car reviews, rankings and pricing information from trusted sources and dealerships.

Compact Car-

For our pick for the best compact car under $40,000 we have selected the new Acura Integra. Much like its relative, the Honda Accord, the Acura Integra impresses on multiple fronts. Beyond its attractive appearance, the Acura Integra delivers excellent value for your money, boasting exceptional handling, strong power output, a versatile hatchback design and a plethora of contemporary tech features that can cater to the inner teenager in all of us.

Our second pick in this category is the Toyota GR Corolla. The GR Corolla transcends the realm of ordinary compact cars, blurring the line between a high-performance hatchback ready for the track and a practical grocery-getter. Its primary drawback lies in its limited production making it kind of hard to find on the new as well as the used car market.

Midsize Sedan-

Our top picks for the midsize sedan category are the Lexus IS and the Acura TLX. Both models come just under 40k new and are available with a plethora of premium features and attributes. The Lexus IS combines a good blend of luxury with sporty performance offering a well-rounded driving experience for those who seek both comfort and compliant road performance. The TLX on the other hand seems a bit more driver focused placing a bit more emphases on the premium deriving experience and excitement. Both options represent excellent value as they are priced nearly $5,000 below their German counterparts' Manufacturer's Suggested Retail Prices (MSRPs).Additionally, they offer traditionally affordable maintenance and ownership expenses within their respective category.

Compact SUV-

For this category our winners are the Acura RDX and the Volkswagen Tiguan. We have chosen the RDX because we liked its appearance, sporty handling characteristics and a powerful 272 horsepower 2.0-liter turbocharged engine. The RDX also boasts a spacious interior and as it essentially shares the premium Honda lineage, you can have peace of mind knowing it's a well-crafted vehicle with minimal maintenance expenses and above-average reliability. The VW Tiguan may not share the Acura’s stellar reliability but it is one of the only vehicles in this price range that offers a distinctly European flavorwith elegantly tailored styling. It also offers optional seating for seven and lots of advanced safety and technology features. 

Full-Size SUV-

When discussing full-size SUVs our focus naturally shifts to family needs including a roomy interior, seating for seven, decent fuel efficiency, strong crash test ratings and reliable performance. By evaluating these criteria we've identified the Toyota Highlander and Honda Pilot as top contenders. These vehicles provide a similar set of family-friendly attributes though some subtle distinctions exist. The Honda Pilot boasts a slightly more spacious interior with additional storage and hip room. Both the Honda Pilot and Toyota Highlander hold strong reputations in the midsize SUV category ensuring that your choice between them hinges on your personal preferences, priorities and specific requirements.

Sports Car-

For the sports car category we have again chosen the Ford Mustang GT. The Mustang's unmistakable design is an enduring symbol of American muscle cars. Its aggressive and stylish exterior along with a comfortable and well-designed interior, offers a combination of performance and aesthetics. The best part a brand new 8-cylinder GT variant can be had for just under $40,000. For those seeking increased interior space the Subaru WRX presents an excellent choice. Beyond its practical 4-door sedan design it provides an exhilarating all-wheel-drive experience powered by a turbocharged boxer engine. This transformation turns your daily commute from a chore into an eagerly anticipated adventure. Another compelling aspect of both these options is the availability of a manual transmission catering to enthusiasts who relish in rowing their own gears. 

Electric/Hybrid-

The 2023 Honda CR-V Hybrid gets a lot of praise for its 40+MPG. With a starting price of $32,950 it offers a lot of value to budget minded Hybrid SUV consumers. It delivers the expected comfort, spaciousness and practicality of a mid-size SUV while achieving fuel efficiency typically reminiscent of subcompact vehicles. We also really liked the Toyota Rav4 however, we felt that the Honda offered a more refined and modern design and driving experience.  For those of you that are looking for a full electric option we suggest test driving the 2024 Chevrolet Equinox EV.It offers 250-mile range and almost 300 horsepower giving you plenty of passing power on the highway while retaining traditional SUV attributes. Given the recent introduction of both these vehicles, long-term reliability and ownership costs are challenging to foresee.

Luxury Car-

As car enthusiasts we really wanted our top pick to be the BMW 3 Series however, with a base MSRP of $44,795 the only 3 series you can buy under $40,000 will have to be on the used car market. Our top picks for this category will have to go to the Genesis G70 and the Acura TLX.   
If you can look past its humble origins and the somewhat limited brand recognition the Genesis G70 delivers substantial value considering its price tag of under $40,000.With peppy options of four- and six-cylinder engines, a refined interior, and serene on-road behavior this choice strikes a harmonious balance. It could very well surpass all competitors in the race to challenge the 3 Series. Our second choice is the Acura TLX, not only for its premium features and handling characteristics but also because it provides an added layer of assurance due to its Honda pedigree promising predictable low maintenance and ownership costs.

Truck (Midsize)-

For our best truck under $40,000 we have chosen the obvious option and that is the Toyota Tacoma. It’s legendary rugged practicality and best in class reliability is the reason why most people buy the Tacoma. The Toyota Tacoma name plate has stood the test of time and emerged victorious over its competition. While we considered nominating the Ford Ranger, we ultimately decided against it to ensure we serve our readers well. This decision arises from concerns about the Ford Ranger's reliability making it a considerably less preferable option.

These vehicles offer a range of features, performance and options within the $40,000 budget catering to various preferences and needs. It's important to consider what matters most to you such as size, style, fuel efficiency and features when choosing the best car for your specific requirements.