Best Sedans under $40,000
Car and Driver's rankings are arrived at from the results of our extensive instrumented testing of several hundred vehicles each year and from our expert editors' subjective impressions gained in real-world driving. We've ranked the best sedans under $40,000 based on roughly 200 data points encompassing acceleration, handling, comfort, cargo space, fuel efficiency, value, and how enjoyable they are to drive. We take rankings seriously because we want you to know everything about the vehicles that you're interested in. Some of the sedans listed here are also offered as hatchbacks if you're looking for an extra measure of practicality.
Top Ranked Sedans under $40,000 at a glance
1
2026 Honda Accord
10
/10
C/D RATING
Starting at
$29,590
EPA MPG
N/A
C/D SAYS: The 2026 Honda Accord continues to offer loads of passenger space, superb ride-and-handling, and impressive fuel economy, making it a standout among mid-size sedans. Learn More
2
2026 Honda Civic / Civic Hybrid
10
/10
C/D RATING
Starting at
$25,890
EPA MPG
N/A
C/D SAYS: Available in sedan or hatchback form, with or without a hybrid powertrain, the 2026 Honda Civic caters to just about everyone. Learn More
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3
2026 Honda Civic Si
10
/10
C/D RATING
Starting at
$32,690
EPA MPG
N/A
C/D SAYS: Other sport compacts pack more punch but few can match the Honda Civic Si's blend of performance, practicality, and affordability. Learn More
4
2026 Hyundai Elantra N
10
/10
C/D RATING
Starting at
$36,345
EPA MPG
N/A
C/D SAYS: The 2026 Hyundai Elantra N sedan is part sports car, part commuter, and part goofball. What’s not to love? Learn More
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5
2026 Tesla Model 3
10
/10
C/D RATING
Starting at
$38,630
EPA Est. Range
309–363 miles
C/D SAYS: The aging Tesla Model 3 practically invented the EV sedan segment, but a steady stream of updates help keep it competitive. Learn More
6
2026 Toyota Prius
10
/10
C/D RATING
Starting at
$29,745
EPA MPG
49–57 combined
C/D SAYS: The 2026 Toyota Prius hatchback is out to save the planet and look good while doing it. Learn More
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7
2026 Toyota Prius PHEV
10
/10
C/D RATING
Starting at
$34,970
EPA MPG
48–52 combined
C/D SAYS: The 2026 Toyota Prius PHEV is an efficiency superstar, delivering up to 50 MPG in hybrid mode or 127 MPGe on battery power alone. Learn More
8
2026 Volkswagen Golf GTI
10
/10
C/D RATING
Starting at
$35,865
EPA MPG
27 combined
C/D SAYS: Even without a manual transmission, the Golf GTI is a blast to drive and lives up to its reputation as the quintessential hot hatchback. Learn More
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9
2026 Kia K5
9
/10
C/D RATING
Starting at
$28,735
EPA MPG
27–30 combined
C/D SAYS: The 2026 Kia K5 family sedan stands out from staid-looking segment competitors while delivering good value and a bit of fun. Learn More
10
2026 Mazda 3
9
/10
C/D RATING
Starting at
$25,785
EPA MPG
26–29 combined
C/D SAYS: The 2026 Mazda 3 sedan and hatchback are luxury-adjacent entries in the mainstream compact-car class. Learn More
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