If you’re searching for a new vehicle that balances practicality and affordability, an SUV priced under $40,000 might be the ideal choice.
While these models may lack some premium features, they have all achieved high ratings in our testing program, making them strong recommendations.
Our top selections within this price range include several hybrids, though fully electric options are scarce, as most EVs start above the $40,000 mark.
In compiling this list of the best SUVs under $40K, we have carefully evaluated factors such as performance, design, quality, and overall value.
1. Kia Sorento Hybrid
BuzzScore: 8.2/10
Base MSRP: $38,690
Engine: 1.6L Turbo Inline-4 Hybrid
Horsepower: 227 hp
Leading our selection of the best SUVs under $40,000 is the Kia Sorento Hybrid. This three-row SUV is available in two trims the EX and the SX Prestige but only the EX fits within our budget at a starting price of $38,690.
Under the hood, it features a 1.6-liter four-cylinder hybrid powertrain producing 227 horsepower and 258 lb-ft of torque. Inside, the Sorento Hybrid comfortably seats up to six passengers.
The second and third rows offer 40.7 inches and 29.6 inches of legroom, respectively.
If passenger space isn’t a priority and you need additional storage, folding down the seats expands cargo capacity to a maximum of 75.5 cubic feet.
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2. Subaru Forester
BuzzScore: 8.1/10
Base MSRP: $29,810
Engine: 2.5L Flat-4 Gas
Horsepower: 180 hp
If you’re in the market for a new SUV under $40,000, the Subaru Forester is worth considering. This SUV is available in five trim levels, with the first four starting below the $40K mark.
The base model has a starting MSRP of $29,995, while even the Limited trim just one step below the top-tier version comes in at $36,410.
Under the hood, the Forester is powered by a 2.5-liter four-cylinder boxer engine that delivers 180 horsepower and 178 lb-ft of torque.
Inside, this Subaru SUV seats up to five passengers, offering a comfortable ride for everyone on board. Rear-seat occupants in the base trim benefit from 39.6 inches of headroom and 39.4 inches of legroom.
As for cargo space, the base model provides 29.6 cubic feet of storage in the trunk, which expands to a generous 74.4 cubic feet when the rear seats are folded down.
3. Buick Envista
BuzzScore: 8.1/10
Base MSRP: $22,900
Base Trim Engine: 1.2L ECOTEC I3 ICE
Base Trim Horsepower: 137 HP @ 5000 RPM
When it comes to sheer value, the Buick Envista stands out as the best SUV under $40,000 on this list, with a starting price well below $25,000.
While it may not be the most luxurious SUV available, its refined styling both inside and out proves that affordability can still look upscale. That being said, it is also one of the most budget-friendly models featured here.
The Envista comes in three trims, with the base model Sport Touring version starting at just $23,800. Powering this Buick is a 1.2-liter turbocharged three-cylinder engine that produces 137 horsepower and 162 lb-ft of torque.
Inside, the Envista comfortably accommodates up to five passengers, with rear-seat occupants benefiting from 37.3 inches of headroom and 38.7 inches of legroom.
When it comes to cargo space, this SUV offers a maximum capacity of 42 cubic feet.
4. Ford Explorer
BuzzScore: 8.0/10
Base MSRP: $39,625
Engine: 2.3L Turbo Inline-4 Gas, 3.0L Twin-Turbo V6
Horsepower: 300-400 hp
For families looking for one of the best SUVs under $40,000, the Ford Explorer is a standout option. In fact, it was named CarBuzz’s Best Family Car of the Year last year.
This spacious three-row SUV is available in four trim levels, starting with the Active trim, which has a base price of $39,755. While the base model is the only one within this budget range, it remains a practical, comfortable, and capable choice.
Under the hood, the Explorer features a 2.3-liter EcoBoost four-cylinder engine that generates 300 horsepower and 310 lb-ft of torque.
Inside, the cabin accommodates up to eight passengers, offering 39 inches of legroom in the second row and 32.2 inches in the third row. Cargo space is generous, with a maximum capacity of 85.8 cubic feet when the rear seats are folded down.
5. Buick Encore GX
BuzzScore: 8.0/10
Base MSRP: $26,000
Base Trim Engine: 1.2L Turbo I3
Base Trim Horsepower: 137 hp
When exploring SUVs under $40,000, many buyers may be surprised to find just how affordable some models are.
One such option that falls well below our budget is the Buick Encore GX. This Buick SUV has a starting price of just $26,000, making it an excellent value in this segment.
Under the hood, the Encore GX offers two engine options: a 1.2-liter turbocharged three-cylinder producing 137 horsepower and 162 lb-ft of torque or a slightly larger 1.3-liter turbocharged three-cylinder generating 155 horsepower and 174 lb-ft of torque.
Inside, this compact SUV seats up to five passengers, with rear-seat occupants benefiting from 38.1 inches of headroom and 36 inches of legroom.
Cargo space starts at 23.5 cubic feet in the trunk but can be expanded to 50.2 cubic feet by folding down the rear seats.
6. Chevrolet Trax
BuzzScore: 7.9/10
Base MSRP: $20,400
Engine: 1.2L Turbo 3-Cylinder Gas
Horsepower: 137 hp
While many shoppers are looking for an SUV under $40,000, the Chevrolet Trax offers an option at nearly half that price. With a starting MSRP of $20,500, this Chevy is one of the most budget-friendly choices on the list.
It may not be as large or as capable as some of the other SUVs featured here, but it still provides seating for up to five passengers and a respectable amount of cargo space for its segment.
The Trax comes exclusively with front-wheel drive, meaning it isn’t designed for off-road adventures. Under the hood, it features a 1.2-liter turbocharged three-cylinder engine that produces 137 horsepower and 162 lb-ft of torque.
Inside, the SUV provides a maximum of 54.1 cubic feet of cargo space with the rear seats folded down. Rear-seat passengers will find 38.1 inches of headroom and 38.7 inches of legroom, ensuring a comfortable ride.
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7. Chevrolet Trailblazer
BuzzScore: 7.5/10
Engine: 1.2L Inline-3 Turbo Flex-Fuel (FFV) | 1.3L Inline-3 Turbo
Horsepower: 137 hp (1.2L) | 155 hp (1.3L)
Base MSRP: $23,100
For those looking for a budget-friendly SUV, another General Motors offering to consider is the Chevrolet Trailblazer.
Available in four trims, this SUV can be configured with either front-wheel drive or all-wheel drive, providing some flexibility based on your driving needs. The most affordable trim, the LS, starts at $23,100, making it an accessible choice for buyers.
Under the hood, the Trailblazer offers two engine options: a 1.2-liter turbocharged inline-three producing 137 horsepower or a slightly more powerful 1.3-liter turbocharged inline-three generating 155 horsepower.
Inside, this SUV seats up to five passengers, with rear-seat occupants getting 38.4 inches of headroom and 39 inches of legroom. Cargo space is also generous for its class, maxing out at 54.3 cubic feet when the rear seats are folded down.
8. Hyundai Tucson
BuzzScore: 7.3/10
Base MSRP: $28,605
Engine: 2.5L Inline-4 Gas
Horsepower: 187 hp
The Hyundai Tucson is another budget-friendly SUV that fits well within the under-$40,000 price range. It is available in five trim levels, starting with the base SE trim at $28,605.
Even the top-tier Limited trim remains within budget, with a starting price of $38,645. Regardless of the trim level, every Tucson is powered by the same 2.5-liter inline-four engine, delivering 187 horsepower and 178 lb-ft of torque.
Inside, this SUV offers seating for up to five passengers. Those in the second row enjoy 39.5 inches of headroom and 41.3 inches of legroom, ensuring a comfortable ride.
The Tucson also boasts impressive cargo capacity, with 41.2 cubic feet of storage space in the trunk.
Folding down the rear seats expands the available space to 80.3 cubic feet, making it one of the roomiest compact crossovers in its class.
9. Volkswagen Tiguan
Engine: 2.0L Turbo Inline-4 Gas
Horsepower: 201 hp
The Volkswagen Tiguan is the only model from the brand to make this list. While full details and specifications for the 2025 version have yet to be released, the current 2024 model starts at $28,880, so the upcoming model year is expected to have a similar price range.
Volkswagen has confirmed that the 2025 Tiguan will retain its 2.0-liter turbocharged four-cylinder engine.
However, for this model year, the engine has been tuned to deliver 17 more horsepower than before, bringing the total output to 201 hp.
Interior dimensions and cargo capacity have not yet been disclosed, so more details are expected closer to its official release.
10. Chevrolet Equinox
Base MSRP: $28,600
Engine: 1.5L Turbo Inline-4 Gas
Horsepower: 175 hp
The final Chevrolet on this list is the Chevy Equinox, a versatile SUV that comes in three trims: LT, RS, and Activ. The base LT trim starts at $28,600, making it an affordable option in the segment.
All three trims come standard with all-wheel drive and are powered by a 1.5-liter turbocharged four-cylinder engine, producing 175 horsepower and 203 lb-ft of torque.
Inside, the Equinox offers seating for up to five passengers. Those in the second row enjoy 39.2 inches of headroom and 39.9 inches of legroom, providing a comfortable ride.
When it comes to cargo capacity, the trunk offers 29.8 cubic feet of storage space, which can be expanded to 63.5 cubic feet by folding down the rear seats.