The COVID-19 pandemic initially slowed car sales, but now many new-car buyers are making more expensive purchases than ever before, according to sales data from Edmunds.
The average transaction price for a new car in the third quarter of 2020 was slightly above $39,000, with payments averaging just under $570 per month. That’s a price increase of about $2,000 from 2019.
But a monthly payment approaching $600 just isn’t in reach for many shoppers. With this in mind, we sought to find a number of new vehicles that could be had at a more attainable $399 monthly payment.
Factoring in today’s average annual percentage rate (4.6%), a popular loan term (72 months) and a lower-than-average down payment amount of $4,000, a vehicle with a manufacturer’s suggested retail price of $29,000 will match that monthly payment target.
We’ve compiled a list of vehicles that can be financed for less than $399 a month using the above parameters. Remember that with a little research, you can easily secure a deal for less than MSRP. Note that while we will include destination and handling charges in the prices below, sales tax and fees are not included and can vary by location.
2021 KIA FORTE
Small sedans are no longer the drab, soulless econoboxes of yesteryear. The Kia Forte, for example, is a sharp little four-door with lots of features and personality. Redesigned for 2019, the Forte has all the latest driver conveniences and safety features, as well as a cabin with a sporty design aesthetic and high-quality materials. The base engine gets the job done, but buyers looking for a sportier edge should check out the GT model, which features a more powerful engine and unique transmission options.
Recommended trim: EX ($24,055). Unless you want the GT’s turbocharged engine, the EX is the way to go. It has almost every feature the Forte offers, yet it doesn’t cost an arm and a leg. Using the parameters above, payments on a Forte EX will be roughly $320 per month.
2021 HONDA INSIGHT
Think of the Honda Insight as an electrified Civic. The two match up pretty closely in terms of size, price and equipment, and both have plenty of passenger and cargo room. The Insight’s hybrid powertrain is the primary differentiator. While it isn’t as quick as the Civic in a straight line, the Insight consumes far less fuel. Depending on trim, the Insight earns 48-52 mpg in the EPA’s combined cycle, while the turbocharged Civic gets 33-36 mpg combined. The Insight is also slightly newer and benefits from a next-generation infotainment system.
Recommended trim: EX ($25,765). The EX is only a little more expensive than the base LX and adds features such as Apple CarPlay and Android Auto functionality, a touchscreen infotainment system and blind-spot monitoring. Payments on an Insight EX using our calculations will run just under $350 per month.
2021 KIA K5
The Kia K5 is the latest version of Kia’s midsize sedan, formerly known as the Optima. The K5 is notable for its sleek and sophisticated sheet metal and near-luxury cabin. Many interior surfaces are covered in soft-touch imitation leather or convincing facsimiles of open-pore wood and textured aluminum. The K5 presents a strong value statement, with nifty features including wireless smartphone compatibility and ventilated seats available at a price that is commensurate with more lightly equipped rivals.
Recommended trim: GT-Line ($26,355). The midtier GT-Line gives the K5 a sporty look and feel while adding desirable creature comforts. A pair of option packages can outfit the GT-Line with even more goodies, and it’s one of the only models available with all-wheel drive. Payments on a K5 GT-Line with our parameters will run about $355 per month.
2021 MAZDA CX-5
The Mazda CX-5 is one of our favorite compact crossovers. Though a little smaller on the inside than its primary competition, the CX-5 makes up for that with an eye-catching design and interior materials that rival what you’ll find in luxury SUVs. It’s also fun to drive, with excellent handling and sharp steering. Performance aficionados with a flexible budget should snag one of the models powered by the optional turbocharged engine.
Recommended trim: Touring ($28,110). The CX-5 Touring adds a lot of features for the money and opens the door to the budget-friendly yet comprehensive Preferred SV package. Monthly payments on a CX-5 Touring with our calculations check in at just under $385 per month.
EDMUNDS SAYS: Although the average car payment is now an eye-popping $570 per month, shoppers don’t have to spend that much to get a great car. In fact, some of Edmunds’ top-rated sedans and crossovers can be snagged for far less.
This story was provided to The Associated Press by the automotive website Edmunds. Cameron Rogers is a news and reviews Editor at Edmunds. Twitter: @_crogers.
Related links:
—Edmunds review: 2021 Kia Forte https://edmu.in/38ZW3qm
—Edmunds review: 2021 Honda Insight https://edmu.in/2KfUIBc
—Edmunds review: 2021 Kia K5 https://edmu.in/2IWZ5Ao
—Edmunds review: 2021 Mazda CX-5 https://edmu.in/2UJ01es
U.S. President Donald Trump says Iran has proposed negotiations after his threat to strike the Islamic Republic as an ongoing crackdown on demonstrators has led to hundreds of deaths.
Trump said late Sunday that his administration was in talks to set up a meeting with Tehran, but cautioned that he may have to act first as reports mount of increasing deaths and the government continues to arrest protesters.
“The meeting is being set up, but we may have to act because of what’s happening before the meeting. But a meeting is being set up. Iran called, they want to negotiate,” Trump told reporters on Air Force One on Sunday night.
Iran did not acknowledge Trump’s comments immediately. It has previously warned the U.S. military and Israel would be “legitimate targets” if America uses force to protect demonstrators.
The U.S.-based Human Rights Activists News Agency, which has accurately reported on past unrest in Iran, gave the death toll. It relies on supporters in Iran cross checking information. It said at least 544 people have been killed so far, including 496 protesters and 48 people from the security forces. It said more than 10,600 people also have been detained over the two weeks of protests.
With the internet down in Iran and phone lines cut off, gauging the demonstrations from abroad has grown more difficult. Iran’s government has not offered overall casualty figures.
The Latest:
A witness told the AP that the streets of Tehran empty at the sunset call to prayers each night.
Part of that stems from the fear of getting caught in the crackdown. Police sent the public a text message that warned: “Given the presence of terrorist groups and armed individuals in some gatherings last night and their plans to cause death, and the firm decision to not tolerate any appeasement and to deal decisively with the rioters, families are strongly advised to take care of their youth and teenagers.”
Another text, addressed “Dear parents,” which claimed to come from the intelligence arm of the paramilitary Revolutionary Guard, also directly warned people not to take part in demonstrations.
The witness spoke to the AP on condition of anonymity due to the ongoing crackdown.
—- By Jon Gambrell in Dubai, United Arab Emirates
Iran drew tens of thousands of pro-government demonstrators to the streets Monday in a show of power after nationwide protests challenging the country’s theocracy.
Iranian state television showed images of demonstrators thronging Tehran toward Enghelab Square in the capital.
It called the demonstration an “Iranian uprising against American-Zionist terrorism,” without addressing the underlying anger in the country over the nation’s ailing economy. That sparked the protests over two weeks ago.
State television aired images of such demonstrations around the country, trying to signal it had overcome the protests, as claimed by Iranian Foreign Minister Abbas Araghchi earlier in the day.
China says it opposes the use of force in international relations and expressed hope the Iranian government and people are “able to overcome the current difficulties and maintain national stability.”
Chinese Foreign Ministry spokesperson Mao Ning said Monday that Beijing “always opposes interference in other countries’ internal affairs, maintains that the sovereignty and security of all countries should be fully protected under international law, and opposes the use or threat of use of force in international relations.”
German Chancellor Friedrich Merz condemned “in the strongest terms the violence that the leadership in Iran is directing against its own people.”
He said it was a sign of weakness rather than strength, adding that “this violence must end.”
Merz said during a visit to India that the demonstrators deserve “the greatest respect” for the courage with which “they are resisting the disproportional, brutal violence of Iranian security forces.”
He said: “I call on the Iranian leadership to protect its population rather than threatening it.”
Iran’s Foreign Ministry spokesman on Monday suggested that a channel remained open with the United States.
Esmail Baghaei made the comment during a news conference in Tehran.
“It is open and whenever needed, through that channel, the necessary messages are exchanged,” he said.
However, Baghaei said such talks needed to be “based on the acceptance of mutual interests and concerns, not a negotiation that is one-sided, unilateral and based on dictation.”
The semiofficial Fars news agency in Iran, which is close to the paramilitary Revolutionary Guard, on Monday began calling out Iranian celebrities and leaders on social media who have expressed support for the protests over the past two weeks, especially before the internet was shut down.
The threat comes as writers and other cultural leaders were targeted even before protests. The news agency highlighted specific celebrities who posted in solidarity with the protesters and scolded them for not condemning vandalism and destruction to public property or the deaths of security forces killed during clashes. The news agency accused those celebrities and leaders of inciting riots by expressing their support.
Canada said it “stands with the brave people of Iran” in a statement on social media that strongly condemned the killing of protesters during widespread protests that have rocked the country over the past two weeks.
“The Iranian regime must halt its horrific repression and intimidation and respect the human rights of its citizens,” Canada’s government said on Monday.
Iran’s foreign minister claimed Monday that “the situation has come under total control” after a bloody crackdown on nationwide protests in the country.
Abbas Araghchi offered no evidence for his claim.
Araghchi spoke to foreign diplomats in Tehran. The Qatar-funded Al Jazeera satellite news network, which has been allowed to work despite the internet being cut off in the country, carried his remarks.
Iran’s foreign minister alleged Monday that nationwide protests in his nation “turned violent and bloody to give an excuse” for U.S. President Donald Trump to intervene.
Abbas Araghchi offered no evidence for his claim, which comes after over 500 have been reported killed by activists -- the vast majority coming from demonstrators.
Araghchi spoke to foreign diplomats in Tehran. The Qatar-funded Al Jazeera satellite news network, which has been allowed to work despite the internet being cut off in the country, carried his remarks.
Iran has summoned the British ambassador over protesters twice taking down the Iranian flag at their embassy in London.
Iranian state television also said Monday that it complained about “certain terrorist organization that, under the guise of media, spread lies and promote violence and terrorism.” The United Kingdom is home to offices of the BBC’s Persian service and Iran International, both which long have been targeted by Iran.
A huge crowd of demonstrators, some waving the flag of Iran, gathered Sunday afternoon along Veteran Avenue in LA’s Westwood neighborhood to protest against the Iranian government. Police eventually issued a dispersal order, and by early evening only about a hundred protesters were still in the area, ABC7 reported.
Los Angeles is home to the largest Iranian community outside of Iran.
Los Angeles police responded Sunday after somebody drove a U-Haul box truck down a street crowded with the the demonstrators, causing protesters to scramble out of the way and then run after the speeding vehicle to try to attack the driver. A police statement said one person was hit by the truck but nobody was seriously hurt.
The driver, a man who was not identified, was detained “pending further investigation,” police said in a statement Sunday evening.
Shiite Muslims hold placards and chant slogans during a protest against the U.S. and show solidarity with Iran in Lahore, Pakistan, Sunday, Jan. 11, 2026. (AP Photo/K.M. Chaudary)
Activists carrying a photograph of Reza Pahlavi take part in a rally supporting protesters in Iran at Lafayette Park, across from the White House, in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)
Activists take part in a rally supporting protesters in Iran at Lafayette Park, across from the White House in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)
Protesters burn the Iranian national flag during a rally in support of the nationwide mass demonstrations in Iran against the government in Paris, Sunday, Jan. 11, 2026. (AP Photo/Michel Euler)
