Top 10 Most Fun New Cars Under $40000 in 2025

1. Toyota GR86 / Subaru BRZ: The Modern Classic

The spiritual successor to the classic lightweight sports car, the Toyota GR86 and its twin, the Subaru BRZ, remain the gold standard for pure, affordable driving pleasure.

Why It’s So Fun: It’s all about the balance. With a low center of gravity from the boxer engine, rear-wheel drive, and a featherlight curb weight, these cars communicate everything the front tires are doing directly to your fingertips and backside. They are a masterclass in handling and driver engagement.

Twin Differences: The differences are minimal. The GR86 has a slightly more aggressive front bumper, while the BRZ often has a slightly more refined interior. Our take? Get whichever you can find at the best price or prefer the look of.

• Pros: Superb, communicative chassis; perfect weight distribution; attractive styling; surprisingly practical rear seats.
• Cons: Engine power is adequate but not explosive; interior is functional but basic; tracked cars have had warranty considerations in the past.

2. Mazda MX-5 Miata: The Unbeatable Roadster

The answer is always Miata. For over three decades, this iconic roadster has defined what it means to be a fun, lightweight, and open-top sports car. The 2025 ND3 model brings welcome updates.

Why It’s So Fun: With nearly 500 pounds less weight than a GR86, the Miata feels like a rocket ship even with less power. The joy comes from revving out the eager engine, nailing perfect shifts, and carving corners with razor-sharp responses. The 2025 update includes a new, more responsive steering rack and a modernized infotainment system.

• Pros: Lightest car on this list; near-perfect weight distribution; retractable soft top; unbeatable reliability and low running costs.
• Cons: Very limited storage; not for tall drivers; can feel underpowered on long highway stretches.

3. Mini Cooper John Cooper Works (JCW): The British Bulldog

The Mini JCW packs a massive personality into a small, stylish package. It’s a front-wheel-drive hot hatch that feels uniquely special and brimming with character.

Why It’s So Fun: The Mini’s fun factor comes from its “go-kart” feel. The front axle is incredibly responsive, making it feel like it pivots from the middle of the car. The steering is quick, the ride is firm, and the turbocharged engine provides a strong, punchy thrust. It’s a style statement and a thrill ride in one.

• Pros: Lots of personality and customizability; sharp handling; high-quality, unique interior.
• Cons: Can get expensive with options; ride can be very firm; this outgoing model marks an end-of-era before a new generation.

4. Volkswagen Golf GTI: The All-Rounder Hot Hatch

The GTI is the original hot hatch, refined over generations into the perfect daily driver that hasn’t forgotten its fun-to-drive roots. For 2025, it gets a crucial interior update.

Why It’s So Fun: The GTI isn’t the sharpest tool in the shed, but it’s arguably the most usable. It masterfully blends sporty performance with everyday comfort. The 2024 model finally replaces frustrating capacitive touch steering wheel buttons with physical ones, fixing a major gripe. It’s quick, practical, and still smiles on a backroad.

• Pros: Excellent blend of comfort and performance; spacious hatchback practicality; supportive classic seating options.
• Cons: Less raw than some rivals; front-wheel-drive torque steer can be present under hard acceleration.

5. Hyundai Elantra N: The Korean Powerhouse

Don’t let the sedan body fool you—the Elantra N is a full-blown performance machine that punches far above its weight class. It’s one of the most surprising and thrilling cars on the market.

Why It’s So Fun: With 276 horsepower, it’s a straight-line rocket. But the real magic is in its chassis tuning. The suspension, steering, and limited-slip differential create a car that is brutally quick and incredibly balanced in corners. Its raucous exhaust and aggressive styling only add to the experience.

• Pros: Massive power for the price; playful chassis and steering; engaging exhaust; great transmission choices.
• Cons: Polarizing styling; interior materials feel a bit cheap in places.

6. Chevrolet Camaro 1LT: The American Athlete

The Camaro is on its way out, but it’s leaving as one of the best-handling sports cars you can buy. Even the V6 model offers a world-class driving experience.

Why It’s So Fun: It’s all about the chassis. The Camaro’s Alpha platform offers telepathic steering feedback, incredible body control, and a poised, confidence-inspiring demeanor. You buy it for the way it makes you feel on a winding road.

Note: For under $40,000 you may find a base V8 LT1 model near the top of the budget — the engine is the highlight, though base models are sparse on creature comforts.

• Pros: World-class chassis; powerful and smooth V6; aggressive styling; available 1LE handling package.
• Cons: Poor visibility; claustrophobic cabin; cheap interior plastics on base trims.

7. Toyota GR Corolla: The Rally-Bred Hot Hatch

Born from the legendary GR Yaris, the GR Corolla is a no-compromise, all-wheel-drive hot hatch built for adrenaline. It’s a unicorn in the modern era.

Why It’s So Fun: It’s a rally car for the road. The potent three-cylinder engine, the engaging manual-only transmission, and the clever GR-FOUR AWD system that can send up to 70% of power to the rear make it an absolute weapon. It’s exclusive and brutally effective.

• Pros: Unique turbo three-cylinder; advanced AWD; manual-only (enthusiast favorite); highly desirable.
• Cons: Dealer markups and availability; firm ride for daily use.

8. Jeep Wrangler: The Off-Road Adventure Machine

The Wrangler is on this list for a different kind of fun. It’s not about lap times; it’s about adventure, freedom, and the mechanical joy of going anywhere.

Why It’s So Fun: The fun is an event. Remove the doors, fold the windshield, and the Wrangler transforms a commute into a safari. Factory off-road capability encourages exploration of trails most cars can’t manage.

• Pros: Open-air freedom; legendary off-road capability; huge aftermarket support; strong resale value.
• Cons: Poor on-road handling and body roll; noisy and unrefined on highways; low fuel economy.

9. Subaru WRX: The All-Weather Warrior

The Subaru WRX is an icon. It’s the only car in its class that offers a turbocharged engine, a manual transmission, and standard all-wheel drive for under $35,000.

Why It’s So Fun: A genuine performance car that works in any climate. Symmetrical AWD provides grip and confidence whether launching from a stoplight or carving a wet, twisty road. Practical and quick with a strong community.

• Pros: Standard AWD; potent turbo boxer engine; spacious trunk and practical sedan layout; strong aftermarket support.
• Cons: Controversial fender cladding; interior quality lags peers; base manual can feel notchy.

10. Subaru BRZ

The Subaru BRZ is the twin to the Toyota GR86. See entry #1 for full details — it shares the same 2.4L boxer engine, chassis balance, and driver-focused setup.

Comparison Table: 10 Fun Cars Under $40,000

Frequently Asked Questions (FAQs)

1. Are there really no fun new cars under $30,000 anymore?

It’s extremely difficult. The market has shifted significantly. While a base Subaru BRZ or Mazda Miata gets very close, expanding the budget to $40,000 opens up a world of much more powerful and capable performance cars.

2. Which car is the most practical on this list?

The Volkswagen Golf GTI and the Hyundai Elantra N (in sedan form) are the most practical, offering a great blend of performance, passenger space, and cargo room. The Subaru WRX is also a very practical sedan.