Finding a new, quality SUV for under $40,000 is getting increasingly difficult. The average transaction price of a new vehicle is now $50,000 as car prices continue to outpace wage growth. In other words, it’s getting harder to afford a new car in America. Still, great value can be found if you know where to look.

We’re here to save you time and money with five of the best SUVs under $40,000. These top picks offer the best overall value, features, and reliability. Our list includes compact crossover favorites, an affordable three-row SUV, and one leftover 2025 model worth considering. 

Here are the best-value SUVs and crossovers for new car buyers in 2026.

2026 Honda CR-V Sport Hybrid

The 2026 Honda CR-V TrailSport Hybrid starts at $38,800, but the destination fee alone can put you over $40,000. In comparison, the 2026 CR-V Sport Hybrid offers stylish compact efficiency at a $35,630 base price. This hybrid electric vehicle’s (HEV) mileage is rated at a competitive 43/36 city/highway mpg in front-wheel drive (FWD) and 40/34 city/highway mpg in AWD. 

Many economy compact hybrid SUVs force you to sacrifice too much power, but this model’s 2.0-liter 4-cylinder engine, paired with two electric motors, meets daily driving needs with 204 net horsepower. Sporty styling elements include dual exhaust finishers and 18-inch gloss-black alloy wheels, while features like roof rails optimize utility. 

Cloth seats with orange contrast stitching help the interior avoid a boring feel, and necessities like a power moonroof and wireless Apple CarPlay/Android Auto are standard. On the safety front, advanced driver-assist systems are plentiful, delivering peace of mind via features like blind-spot and cross-traffic monitors. 

CR-V hybrids have a track record of reliability since their 2020 production year debut, but extra-cautious buyers can rest assured knowing that this model comes with an excellent 8-year or 100,000-mile battery warranty, whichever comes first.

2026 Toyota RAV4 XLE Premium

The RAV4 remained the US’s most popular SUV in 2025, and Toyota reported that the model also experienced its best-ever sales year. 

So, what makes this vehicle stand out? 

To start, 2026 is the first model year where the RAV4 is exclusively hybrid, so its $31,900 starting price represents value in more ways than one. Besides hybrid efficiency, the base LE’s accessible price gives you room to graduate to the XLE Premium trim, which starts at $36,100. Toyota does a solid job distinguishing the XLE Premium from the entry-level LE with synthetic leather seats, a height-adjustable power liftgate, and heated front seats.

If you’re wondering whether you should choose the 2026 RAV4 XLE Premium or the 2026 CR-V Sport Hybrid, it’s worth considering that the RAV4 has better mileage at 47/40 city/highway mpg and higher net horsepower at 236. However, keep in mind that the CR-V Sport Hybrid offers 3.2 additional inches of rear legroom. Regarding battery coverage, the 2026 RAV4 XLE Premium matches the CR-V Sport Hybrid’s warranty, and J.D. Power rated its quality and reliability at 77/100, according to US News & World Report.

2026 Hyundai Santa Fe SEL

Drivers shopping for a three-row midsize SUV should consider the 2026 Hyundai Santa Fe SEL for its sharp exterior, robust powertrain, and spacious interior. The entry-level Santa Fe SE starts at $34,800, but, like the RAV4 XLE Premium, you can step up to the SEL without getting too close to $40,000. 

The 2026 Hyundai Santa FE SEL, starting at $37,340, offers a premium look and feel without the luxury price tag. Synthetic leather seats, digital key compatibility, and wireless charging are among this trim’s standard features, enhancing daily drives. A 2.5-liter 4-cylinder engine delivers 277 horsepower, and front/rear legroom dimensions are competitive at 44.4 inches and 42.3 inches, respectively. 

The third row is best reserved for kids and teens, but cargo capacity with the third row folded is good to excellent at 40.5 cu ft. Drivers looking to balance on-road performance with off-road capability can equip the Santa Fe SEL with optional HTRAC AWD, and J.D. Power awarded the model with a solid 81/100 quality and reliability rating.

2026 Hyundai Tucson XRT

The 2026 Hyundai Tucson is our list’s most budget-friendly recommendation, as its top-tier Limited trim is still under $40,000 with a $38,645⁠ starting price. However, the Tucson’s second-highest trim, the XRT, stands out as this model’s value pick, starting at $33,225. 

Hyundai’s Tucson XRT is ideal for drivers seeking rugged looks, but not serious off-road performance. The Tucson XRT decision to emphasize adventurous form over function isn’t necessarily a downside, given that many off-road-performance SUVs contain features drivers pay for, but make little use of in the long run. These features can include an electronic locking rear differential, optimizing traction on terrain like sand or rocks by locking the rear wheels so they spin at the same time, but moderate trails don’t require this capability. 

The 2026 Tucson XRT isn’t a hybrid, but its fuel economy is solid at 25/33 city/highway mpg. Blacked-out exterior styling enhances curb appeal, and its 12.3-inch infotainment touchscreen is 3.3 inches larger than the CR-V Sport Hybrid’s. J.D. Power gave the 2026 Tucson an 83/100 reliability rating, and its 10-year/100,000-mile powertrain limited warranty is industry-leading.

2025 Subaru Forester Wilderness

We’d be remiss not to include at least one off-road-focused SUV. The 2025 Subaru Forester Wilderness, starting at $36,285, is prepared for rugged travels with standard AWD, an elevated 9.2-inch ground clearance — which surpasses competitors like the RAV4 TRD by 0.6 inches — and dual-function X-MODE with specialized Snow/Dirt and Deep Snow/Mud settings. Copper-finish interior and exterior accents give this trim a unique look, and the 180-degree front view monitor is great for elevating environmental awareness on or off the beaten path. With an 81/100 J.D. Power quality and reliability score, the 2025 Forester Wilderness is on par with the rest of our list’s 2026 picks.

Most off-road capable SUVs start at over $40,000 (think Ford Bronco Big Bend, Toyota 4Runner SR5), so the Forester Wilderness stands out as an exception. Potential real-world discounts and incentives for remaining 2025 Forester Wilderness models solidify its value, especially given the public’s focus on 2026’s redesign. The 2026 Forester Wilderness still starts at under $40,000, but expect to pay over $40,000 with transaction fees, as its sticker price is $38,385.

Quit haggling with dealerships!

Are you ready to shop for these SUVs? Perhaps you have some more budget flexibility and would like to opt for a larger three-row SUV, or a top-tier trim from our recommendations. Either way, CarEdge has you covered. Before you visit dealerships, check out our free car-buying cheat sheets to help you negotiate confidently.

If you’d rather let a car buying pro find the SUV you’re looking for and negotiate on your behalf, check out CarEdge Concierge today. It’s the easiest, least stressful path to a great deal on a new or used SUV. Whether you plan to buy or lease, our experts negotiate the best deal so you can skip the hassle.

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