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As of 2025, finding a brand-new car in Canada priced under $20,000 CAD has become increasingly challenging due to rising production costs and the discontinuation of several budget-friendly models. However, for car enthusiasts seeking affordable options, the used car market offers a variety of vehicles that combine performance, reliability, and value. Below is a curated list of some of the best budget-friendly used cars available in Canada for under $20,000 CAD.

1. 2020 Ford Mustang EcoBoost

Engine: 2.3L Turbocharged I4

Horsepower: 310 hp

Transmission: 6-speed manual or 10-speed automatic

Fuel Economy: Approximately 10.2 L/100 km combined

Highlights: Offers classic muscle car aesthetics with modern turbocharged efficiency. The EcoBoost variant provides ample power and a sporty driving experience, making it a favorite among enthusiasts.

2. 2018 Mazda MX-5 Miata

Engine: 2.0L I4

Horsepower: 155 hp

Transmission: 6-speed manual or automatic

Fuel Economy: Approximately 8.1 L/100 km combined

Highlights: Renowned for its lightweight design and exceptional handling, the Miata offers a pure driving experience. Its convertible top adds to the fun, making it ideal for spirited drives

3. 2019 Volkswagen GTI

Engine: 2.0L Turbocharged I4

Horsepower: 228 hp

Transmission: 6-speed manual or 7-speed DSG automatic

Fuel Economy: Approximately 8.4 L/100 km combined

Highlights: A blend of performance and practicality, the GTI offers sharp handling, a refined interior, and hatchback versatility.

4. 2017 Subaru WRX

Engine: 2.0L Turbocharged H4

Horsepower: 268 hp

Transmission: 6-speed manual or CVT

Fuel Economy: Approximately 10.3 L/100 km combined

Highlights: With its rally heritage, the WRX delivers all-wheel-drive performance and robust turbocharged power, suitable for various driving conditions.

5. 2018 Honda Civic Si

Engine: 1.5L Turbocharged I4

Horsepower: 205 hp

Transmission: 6-speed manual

Fuel Economy: Approximately 7.4 L/100 km combined

Highlights: The Civic Si combines everyday usability with sporty performance, featuring precise handling and a well-appointed interior.

While the new car market in Canada offers limited options under $20,000 CAD as of 2025, the used car market presents a wealth of opportunities for enthusiasts seeking performance and value. Models like the Ford Mustang EcoBoost, Mazda MX-5 Miata, and Volkswagen GTI provide engaging driving experiences without breaking the bank. It’s essential to conduct thorough inspections and consider vehicle history reports when purchasing used vehicles to ensure reliability and satisfaction.