If you’re in the market for a versatile and budget-friendly vehicle, exploring the SUV segment under $40,000 is a smart move. These SUVs strike a balance between practicality and affordability, offering a range of features without breaking the bank. While they might not boast every luxury imaginable, our rigorous testing program consistently highlights these models for their strong performance and overall value, making them highly recommendable. Our curated list of top SUVs in this price bracket includes several fuel-efficient hybrids, although fully electric SUVs largely exceed this price point. We’ve meticulously assessed factors like performance, design, build quality, and value to bring you this selection of the best SUVs under $40k currently available.
It’s important to note that the BuzzScore assigned to each vehicle reflects its standing against direct competitors within its segment. Therefore, while the SUVs listed here may have similar scores, they don’t necessarily compete directly with each other. You can learn more about our BuzzScore rating system here. This list is continually updated to reflect the latest BuzzScores and vehicle information as new data becomes available.
1. Kia Sorento Hybrid
2025 Kia Sorento Hybrid
8.2/10
What is Buzzscore?
Base MSRP: $38,690
Engine: 1.6L Turbo Inline-4 Hybrid
Horsepower: 227 hp
Kicking off our list of top SUVs under $40,000 is the impressive Kia Sorento Hybrid. This three-row SUV offers two trim levels, EX and SX Prestige, with the EX trim being the only one that fits within our budget, starting at $38,690. The Sorento Hybrid is powered by a 1.6-liter turbocharged four-cylinder hybrid powertrain, delivering a combined 227 horsepower and 258 lb-ft of torque. Inside, the cabin comfortably accommodates up to six passengers, offering generous legroom in the second and third rows, measuring 40.7 inches and 29.6 inches, respectively. For those prioritizing cargo space over passenger capacity, folding down the rear seats reveals a maximum cargo volume of 75.5 cubic feet.
Despite its fuel-efficient nature, the Kia Sorento Hybrid provides ample power with its 227 horsepower. While the six-speed automatic transmission might not match the seamlessness of the gas model’s eight-speed dual-clutch or Toyota’s e-CVT in hybrid models, it offers smooth and responsive gear changes. The Sorento Hybrid stands out as a compelling choice for families seeking a spacious and economical SUV without exceeding the $40,000 mark.
- Jared Rosenholtz, CarBuzz Editor-at-Large
2. Subaru Forester
2025 Subaru Forester
8.1/10
What is Buzzscore?
Base MSRP: $29,810
Engine: 2.5L Flat 4 Gas
Horsepower: 180 hp
For those seeking a reliable and capable new SUV under $40,000, the Subaru Forester is a strong contender. This SUV is available in five trim levels, with the first four all priced under $40,000. The base model boasts an attractive starting MSRP of $29,995, and even the well-equipped Limited trim remains affordable at $36,410. The Forester is powered by a 2.5-liter four-cylinder boxer engine that produces 180 horsepower and 178 lb-ft of torque. This Subaru SUV comfortably seats five occupants, with rear passengers enjoying 39.6 inches of headroom and 39.4 inches of legroom in the base trim. Cargo capacity is practical, ranging from 29.6 cubic feet in the trunk to a generous 74.4 cubic feet with the rear seats folded.
The 2025 Subaru Forester offers a pleasant and easy driving experience. Drivers seeking a more engaging feel might find the engine requiring a heavier foot, which can result in noticeable engine noise. However, the new steering system, borrowed from the sporty WRX sedan, provides excellent feedback and responsiveness. The continuously variable transmission (CVT) effectively manages the engine’s power delivery, making the most of the available output. The Forester’s standard all-wheel-drive system and reputation for reliability further solidify its position as a top SUV under $40,000.
- Ian Wright, CarBuzz
2025 Subaru Forester First Drive Review: More Capable Than It Looks
Subaru’s next-generation Forester prioritizes capability over outright horsepower, making it a standout choice for light off-road adventures within its class.
3. Buick Envista
2025 Buick Envista
8.1/10
What is Buzzscore?
Base MSRP: $22,900
Base Trim Engine: 1.2L ECOTEC I3 ICE
Base Trim Horsepower: 137 HP @5000 RPM
The Buick Envista stands out as the best value SUV under 40k on our list, with a starting price well below $25,000. While not the most opulent SUV available, its refined styling, both inside and out, demonstrates that affordable can indeed be stylish. The Envista is offered in three trims, with the base Sport Touring model starting at a compelling $23,800. Power comes from a 1.2-liter turbocharged three-cylinder engine producing 137 horsepower and 162 lb-ft of torque. The Envista’s interior accommodates up to five passengers, with rear occupants enjoying 37.3 inches of headroom and 38.7 inches of legroom. Cargo space is respectable for its class, topping out at 42 cubic feet.
Buick has successfully crafted a vehicle that delivers a premium feel at an accessible price point. While it may not offer exhilarating power or the lavishness of a high-end luxury SUV, the Envista delivers a sophisticated and well-rounded package for budget-conscious buyers seeking an SUV under $40,000.
- Jared Rosenholtz, CarBuzz
4. Ford Explorer
10 Images
2025 Ford Explorer
8.0/10
What is Buzzscore?
Base MSRP: $39,625
Engine: 2.3L Turbo Inline-4 Gas, 3.0L Twin-Turbo V6
Horsepower: 300-400 hp
For families needing a spacious and capable SUV under 40k, the Ford Explorer is a top pick. In fact, it was recognized as CarBuzz’s Best Family Car of the Year. This large, three-row SUV is available in four trim levels, with the Active trim starting at $39,755. While the base Active trim is the primary option within our budget, it remains a highly practical, comfortable, and capable choice. Under the hood is a 2.3-liter EcoBoost four-cylinder engine producing a robust 300 horsepower and 310 lb-ft of torque.
Inside, the Explorer can accommodate up to eight passengers, offering 39 inches of legroom in the second row and 32.2 inches in the third row. Cargo space is expansive, reaching a maximum of 85.8 cubic feet with all rear seats folded down. The Ford Explorer excels as a family-friendly SUV, offering ample space, strong performance, and a range of features, all while remaining attainable within the $40,000 price range.
CarBuzz’s Best Family Car Of The Year Is The 2025 Ford Explorer
The Explorer’s impressive features and value proposition raise the question of why one might need a more expensive luxury SUV for family transportation.
5. Buick Encore GX
2025 Buick Encore GX
8.0/10
What is Buzzscore?
Base MSRP: $26,000
Base Trim Engine: 1.2L Turbo I3
Base Trim Horsepower: 137 hp
When searching for SUVs under 40k, the surprising affordability of many options becomes apparent. Another compelling choice well within our budget is the Buick Encore GX. This Buick SUV starts at an attractive $26,000. Powertrain options include a 1.2L turbocharged three-cylinder engine producing 137 hp and 162 lb-ft of torque, or an upgraded 1.3L turbocharged three-cylinder with 155 hp and 174 lb-ft. The Encore GX seats up to five occupants, with rear passengers enjoying 38.1 inches of headroom and 36 inches of legroom. Cargo space in the trunk measures 23.5 cubic feet, expanding to 50.2 cubic feet with the rear seats folded, making it a practical compact SUV under $40,000.
6. Chevrolet Trax
10 Images
2025 Chevrolet Trax
7.9/10
What is Buzzscore?
Base MSRP: $20,400
Engine: 1.2L Turbo 3 Cylinder Gas
Horsepower: 137 hp
For buyers seeking an SUV under 40k, the Chevy Trax offers exceptional value, starting at just $20,500. While not as large or rugged as some other SUVs on this list, it comfortably seats five and provides decent cargo space for its class. The Trax is exclusively available with front-wheel drive, limiting its off-road capabilities. Power comes from a 1.2-liter turbocharged three-cylinder engine producing 137 horsepower and 162 lb-ft of torque. Inside, the Trax offers a maximum cargo volume of 54.1 cubic feet behind the front seats, and rear passengers benefit from 38.1 inches of headroom and 38.7 inches of legroom. The Chevrolet Trax is a compelling option for those prioritizing affordability and fuel efficiency in a compact SUV under $40,000.
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7. Chevrolet Trailblazer
2025 Chevrolet Trailblazer
7.5/10
What is Buzzscore?
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
Another General Motors SUV offering excellent value within our budget is the Chevrolet Trailblazer. Available in four trims and with a choice of front-wheel or all-wheel drive, the Trailblazer provides versatility. The entry-level LS trim starts at $23,100, making it an attractive SUV under $40,000. Engine options include a 1.2L or 1.3L engine, delivering 137 hp and 155 hp respectively, similar to other models in the GM lineup. The Trailblazer accommodates up to five passengers, with the second row offering 38.4 inches of headroom and 39 inches of legroom. Cargo space is practical, maxing out at 54.3 cubic feet.
8. Hyundai Tucson
2025 Hyundai Tucson
7.3/10
What is Buzzscore?
Base MSRP: $28,605
Engine: 2.5L Inline-4 Gas
Horsepower: 187 hp
The Hyundai Tucson is another excellent SUV option that comfortably fits within the under $40k budget. The Tucson is offered in five trim levels, with the base SE trim starting at $28,605. Even the higher-end Limited trim remains under budget, starting at $38,645. All trims are powered by a 2.5-liter inline-four-cylinder engine producing 187 horsepower and 178 lb-ft of torque. The Tucson seats five passengers, with rear occupants enjoying a spacious 39.5 inches of headroom and 41.3 inches of legroom. The trunk provides 41.2 cubic feet of cargo space, expanding to an impressive 80.3 cubic feet with the rear seats folded, making it one of the most spacious compact crossovers available as an SUV under $40,000.
2025 Hyundai Tucson Is Still A Sub-$30k Bargain
The 2025 Hyundai Tucson remains a compelling value proposition in the compact SUV segment, with pricing starting under $30,000 for the entry-level SE trim.
9. Volkswagen Tiguan
2025 Volkswagen Tiguan
Engine: 2.0L Turbo Inline-4 Gas
Horsepower: 201 hp
The Tiguan is the sole Volkswagen representative on our list of SUVs under $40,000. While full details for the 2025 Tiguan are still forthcoming, the current 2024 model starts at $28,880, suggesting a similar price point for the upcoming model year. Volkswagen has confirmed that the 2025 Tiguan will retain the 2.0L turbo-four-cylinder engine, but with a power increase of 17 horsepower, bringing the total to 201 hp. Interior dimensions and cargo capacity for the 2025 model are yet to be announced, but the Tiguan is expected to continue offering a comfortable and practical option in the compact SUV segment.
10. Chevrolet Equinox
2025 Chevrolet Equinox
Base MSRP: $28,600
Engine: 1.5L Turbo Inline-4 Gas
Horsepower: 175 hp
Rounding out our list of Chevrolet SUVs under $40,000 is the Chevy Equinox. The Equinox is available in three trims: LT, RS, and Activ, with the base LT trim starting at $28,600. All Equinox 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. The Equinox seats up to five passengers, offering 39.2 inches of headroom and 39.9 inches of legroom for rear occupants. Cargo space is practical, with 29.8 cubic feet in the trunk and up to 63.5 cubic feet with the rear seats folded. The Chevrolet Equinox provides a well-rounded package with standard all-wheel drive and a comfortable interior, making it a solid SUV under $40,000.
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What To Consider When Buying The Best SUV For $40k
Purchasing a new vehicle is a significant decision, even when considering more affordable models. It’s crucial to assess whether an SUV under $40,000 meets your needs or if saving for a more expensive option is advisable. If high-performance SUVs are your priority, you’ll generally need to exceed the $40k budget. To aid in your decision-making process, here are some key advantages and disadvantages of opting for a new SUV model under $40,000.
Pros:
- Wide Variety of Models: The market offers numerous SUV models to choose from in this price range, catering to diverse needs and preferences.
- Hybrid Options Available: Several fuel-efficient hybrid SUVs are available under $40,000, offering improved gas mileage and reduced running costs.
- Enhanced Practicality Compared to Sedans: SUVs generally provide more cargo space, higher seating positions, and better versatility than similarly priced sedans.
Cons:
- Limited High-Performance Models: Finding powerful or performance-oriented SUVs under $40,000 can be challenging.
- Electric SUVs Generally Excluded: The majority of fully electric SUVs start above the $40,000 price point, limiting EV options in this budget.
- Smaller SUVs May Have Limited Capabilities: More compact and budget-friendly SUVs might have restricted off-road and towing capabilities compared to larger or more expensive models.
Sources: Subaru, Kia, Ford, Buick, Chevrolet, Volkswagen, Nissan
