8 New Cars Under $40,000 You’ll Probably Regret Buying

Consumers purchasing a new car in 2025 have plenty of enticing options to choose from. With new hybrids, SUVs, and crossover vehicles hitting the market, there's something to fit everyone's lifestyle.

However, not all of these vehicles are worth your time or money. In spite of their stylish designs and attractive pricing, some vehicles are unreliable, making them bad money moves for car owners.

Here are new vehicles available with a manufacturer's suggested retail price under $40,000 that consumers might want to avoid.

Starting MSRP: $27,190

The 2025 Kia K5 has a sporty exterior and spacious interior that looks great on the surface. However, appearances can be deceiving.

Reviewers say the K5 has a woeful transmission and noisy, lackluster engine that ruin the driving experience.

Consumers have filed complaints with the National Highway Traffic Safety Administration (NHTSA) due to issues with the vehicle's air bags, wheels, electrical system, engine, engine cooling system, and powertrain.

Starting MSRP: $32,050

Featuring a robust redesign and a muscular V6 engine with towing capacity to spare, the 2025 Nissan Frontier appears to be a formidable midsize pickup truck.

Unfortunately, its beefy powertrain can't make up for bumps in the road when it comes to passenger comfort, according to reviewers.

Consumer Reports says the 2025 Nissan Frontier has an uncomfortable ride. It also predicts that the 2025 Frontier will be below average in new-car reliability, giving it a rating of 23 out of 100.

Starting MSRP: $21,995

The 2025 Volkswagen Jetta is another new vehicle that Consumer Reports expects to falter. Its reliability score is just 25.

Some reviewers found the Jetta's new infotainment setup unsatisfying, comparing it unfavorably to the similarly priced Honda Civic.

Reports have identified the new Jetta as having issues with its brakes, climate system, in-car electronics, and electrical accessories.

Smart Drivers, Smarter Savings

Compare car insurance rates in Ohio

See if you qualify for a lower rate in less than 2 minutes

Check Rates

By clicking the button above, I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Starting MSRP: $31,500

Reviewers have criticized Toyota's beloved pickup truck for feeling worn down even though it's brand-new.

They have also taken issue with its noisy, rattling hybrid powertrain that failed to offer a refined ride like its more modern competitors, the Ford Ranger and the Chevrolet Colorado.

The 2024 Toyota Tacoma also has 60 complaints on file with NHTSA, the majority of which come from issues with the truck's powertrain.

Starting MSRP: $32,690

The 2025 Jeep Wrangler is a rugged off-roader that offers a bumpy ride, according to reviewers who criticize its small, uncomfortable interior and lackluster steering.

There are reports of the 2025 Wrangler having steering and suspension issues, as well as problems with its engine and drive system. Consumer Reports gave the Wrangler a reliability score of 27.

Additionally, this V6-powered vehicle gets a measly 19 MPG combined fuel economy rating.

Starting MSRP: $24,995

With a budget-friendly starting price of less than $25,000, the 2025 Volkswagen Taos should be a killer deal for thrifty consumers. The German automaker gave the compact SUV a sleek redesign, and it boasts good fuel efficiency.

However, Consumer Reports gave the 2025 Taos a dismal reliability score of 18. Problem areas for the compact SUV included its transmission, engine, and brakes.

Starting MSRP: $38,710

The 2025 Ford F-150 hybrid has one of the highest price tags on this list. It also has one of the worst reliability scores from Consumer Reports, at just 19.

Consumer Reports noted issues with this full-size pickup truck's transmission, electrical system, hybrid battery, and electrical accessories.

Reviewers have taken issue with the hybrid's brake pedal sensitivity and bland styling. They also noted that the F-150's more affordable configurations pale in comparison to what you get from the vehicle's expensive premium models.

Starting MSRP: $36,495

At a glance, the 2025 Jeep Grand Cherokee looks like a bargain for premium SUV shoppers. Available for less than $40,000, Jeep has redesigned the Grand Cherokee with a refined interior and improved fuel economy.

However, Consumer Reports took issue with the SUV's braking distance and convoluted controls. It also gave the midsize SUV a dismal reliability score of 26.

Consumers can pay a steep price for choosing the wrong car. From hefty maintenance and repair costs to wasted time, a lemon can quickly turn into a money pit for car owners.

Thankfully, car shoppers can avoid some of these pitfalls by shopping carefully.

Car owners looking to hold onto their hard-earned money should also consider ways to save money on car insurance, such as shopping around regularly for the best deal.