If you’re in the market for a versatile and budget-friendly vehicle, exploring the range of SUVs under $40,000 is a smart move. These SUVs strike a balance between practicality and affordability, offering a compelling option for many car buyers. While they may not boast every luxury feature, the models highlighted here have proven their merit through rigorous testing, earning high ratings and solid recommendations. Within this price bracket, you’ll find a selection that includes fuel-efficient hybrids, although fully electric SUVs are less common due to their generally higher starting prices. This curated list focuses on SUVs that deliver strong performance, appealing design, good build quality, and overall value, all while staying under the $40,000 mark.
It’s important to understand that the BuzzScore mentioned reflects a vehicle’s standing against its direct competitors in its segment. Therefore, while the SUVs listed here have similar scores, they might not always compete directly with each other in the market. For a deeper understanding of the BuzzScore system, you can find more details here. This list is regularly updated to reflect the latest BuzzScores and incorporate new vehicles as they become available.
1. Kia Sorento Hybrid
Kia Sorento Hybrid front view on road
The 2025 Kia Sorento Hybrid leads our list of top SUVs under $40,000. This three-row SUV offers two trim levels, but the EX trim is particularly attractive as it starts at a budget-friendly $38,690. The Sorento Hybrid is powered by a 1.6-liter turbocharged four-cylinder hybrid engine, producing 227 horsepower and 258 lb-ft of torque. The interior comfortably seats up to six passengers, offering generous legroom in the second and third rows, with 40.7 inches and 29.6 inches respectively. For those needing cargo space over passenger capacity, folding down the seats reveals a maximum of 75.5 cubic feet of storage.
Despite its fuel efficiency, the Kia Sorento Hybrid delivers ample power for daily driving. The six-speed automatic transmission provides adequate performance, although it may not match the seamlessness of the eight-speed dual-clutch found in the gas-powered model or Toyota’s hybrid CVT systems. However, it offers a functional and reliable driving experience.
2. Subaru Forester
Subaru Forester driving on a dirt road
The 2025 Subaru Forester is another excellent SUV option under $40,000. This SUV comes in five trim levels, with the first four all priced below our budget. The base model starts at an MSRP of $29,810, and even the well-equipped Limited trim remains affordable at $36,410. Powering the Forester is a 2.5-liter four-cylinder boxer engine that produces 180 horsepower and 178 lb-ft of torque. It comfortably seats five passengers, with rear occupants enjoying 39.6 inches of headroom and 39.4 inches of legroom in the base trim. Cargo capacity ranges from 29.6 cubic feet in the trunk to 74.4 cubic feet with the rear seats folded down.
The Subaru Forester is known for its easy handling and comfortable ride. While it may require a heavier foot for drivers seeking brisk acceleration, the new steering system, borrowed from the WRX sedan, enhances the driving experience. The CVT effectively manages the engine’s power output, making the most of available performance.
2025 Subaru Forester exterior parked
3. Buick Envista
Buick Envista parked in a city setting
For buyers prioritizing value, the 2025 Buick Envista stands out as the best SUV under 40k. With a starting price well under $25,000, it offers exceptional affordability. While not the most luxurious SUV, the Envista features stylish design both inside and out, proving that affordable can still be attractive. The base model Sport Touring trim starts at just $23,800. The Envista is powered by a 1.2-liter turbocharged three-cylinder engine producing 137 horsepower and 162 lb-ft of torque. The interior accommodates up to five passengers, with rear seats offering 37.3 inches of headroom and 38.7 inches of legroom. Cargo space reaches up to 42 cubic feet.
Buick has successfully combined a premium feel with an accessible price point in the Envista. While it doesn’t offer high-end power or luxury, it delivers a satisfying experience for its price, making it a smart choice for budget-conscious buyers.
4. Ford Explorer
Ford Explorer front view on city street
The 2025 Ford Explorer is a top contender for families seeking the best SUV under 40k. It was recognized as CarBuzz’s Best Family Car of the Year, highlighting its family-friendly features. This spacious three-row SUV is available in four trim levels, starting with the Active trim at $39,625. The base Active trim fits within our budget and offers practicality, comfort, and capability. Under the hood, it features a 2.3-liter EcoBoost four-cylinder engine delivering 300 horsepower and 310 lb-ft of torque.
Inside, the Explorer can accommodate up to eight passengers. The second row provides 39 inches of legroom, and the third row offers 32.2 inches. Cargo space is expansive, reaching a maximum of 85.8 cubic feet with all rear seats folded, making it ideal for family trips and hauling needs.
Ford Explorer interior view
5. Buick Encore GX
Buick Encore GX driving on a winding road
Many shoppers looking for SUVs under 40k may be pleasantly surprised by the affordability of models like the 2025 Buick Encore GX. Starting at just $26,000, this Buick SUV is well below our price limit. Engine options include a 1.2L turbo three-cylinder producing 137 hp and 162 lb-ft of torque, and a 1.3L turbocharged three-cylinder with 155 hp and 174 lb-ft. The Encore GX seats up to five passengers, with rear occupants enjoying 38.1 inches of headroom and 36 inches of legroom. Trunk cargo space is 23.5 cubic feet, expanding to 50.2 cubic feet with the rear seats folded.
6. Chevrolet Trax
Chevrolet Trax parked in an urban environment
For those aiming to significantly cut their budget for an SUV under 40k, the 2025 Chevrolet Trax is an attractive option. With a starting price of just $20,400, it’s one of the most affordable SUVs available. While not as large or rugged as some competitors, it still seats five and offers decent cargo space for its class. The Trax is exclusively front-wheel drive. It’s powered by a 1.2-liter turbocharged three-cylinder engine that produces 137 horsepower and 162 lb-ft of torque. Interior space includes a maximum cargo volume of 54.1 cubic feet behind the front seats, and rear passengers get 38.1 inches of headroom and 38.7 inches of legroom.
Chevrolet Trax exterior red color
7. Chevrolet Trailblazer
Chevrolet Trailblazer parked in a scenic overlook
Another compelling General Motors offering in the affordable SUV segment is the 2025 Chevrolet Trailblazer. The Trailblazer comes in four trims and offers both front-wheel and all-wheel drive configurations. The base LS trim starts at $23,100, making it very accessible. Engine choices include a 1.2L and a 1.3L, both turbocharged three-cylinder engines producing 137 hp and 155 hp respectively. The Trailblazer accommodates five passengers, with the second row providing 38.4 inches of headroom and 39 inches of legroom. Maximum cargo space is 54.3 cubic feet.
8. Hyundai Tucson
Hyundai Tucson side view on road
The 2025 Hyundai Tucson is another SUV that comfortably fits within our under $40k budget. The Tucson is available in five trim levels, with the base SE starting at $28,605 and extending to the Limited trim, still under budget 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 and offers rear passengers 39.5 inches of headroom and 41.3 inches of legroom. Cargo space is generous, with 41.2 cubic feet in the trunk and 80.3 cubic feet with the rear seats folded, making it one of the most spacious compact crossovers.
Hyundai Tucson front view
9. Volkswagen Tiguan
Volkswagen Tiguan parked in a suburban setting
The 2025 Volkswagen Tiguan is the sole Volkswagen representative on our list. While full details for the 2025 model are still emerging, the current 2024 Tiguan starts at $28,880, suggesting similar pricing for the new model year. Volkswagen has announced that the 2025 Tiguan will retain the 2.0L turbo-four-cylinder engine, now tuned to deliver 201 horsepower, an increase of 17 hp. Interior dimensions and cargo capacity are yet to be confirmed for the 2025 model.
10. Chevrolet Equinox
Chevrolet Equinox parked in front of modern building
Rounding out our list of Chevrolet SUVs under $40k is the 2025 Chevrolet Equinox. The Equinox is offered in three trims: LT, RS, and Activ. The base LT trim starts at $28,600. All trims come standard with all-wheel drive and a 1.5-liter turbocharged four-cylinder engine producing 175 horsepower and 203 lb-ft of torque. The Equinox seats up to five passengers, with second-row occupants getting 39.2 inches of headroom and 39.9 inches of legroom. Cargo space is 29.8 cubic feet in the trunk, expanding to 63.5 cubic feet with the rear seats folded.
2025 Toyota Grand Highlander front view
Considerations When Choosing an SUV Under $40k
Purchasing a new vehicle is a significant decision, even when considering more affordable models. When looking at SUVs under $40,000, it’s important to assess whether these models meet your needs or if saving for a more expensive option might be necessary. If high-performance SUVs are a priority, the under $40k category may not be the ideal hunting ground. To help with your decision, here are some advantages and disadvantages of new SUVs in this price range:
Pros:
- Wide selection of models to choose from, catering to diverse needs.
- Availability of fuel-efficient hybrid powertrains for better economy.
- Increased practicality compared to similarly priced sedans, offering more space and versatility.
Cons:
- Limited availability of high-performance models within this price range.
- Electric SUV options are generally scarce, with most priced above $40,000.
- Smaller, more affordable SUVs may have restricted off-road and towing capabilities compared to larger or more expensive models.
Sources: Subaru, Kia, Ford, Buick, Chevrolet, Volkswagen, Hyundai.
