As car features go, Canadians greatly value all-wheel drive systems (AWD). It can be very important for getting moving in icy or slippery conditions, a state the vast majority of this country is in for a significant part of the year. Not everyone wants a truck or a crossover, though, especially people who live in cities or prioritize handling performance. If that describes you, rest assured there are car-based AWD automotive options out there.
But what defines cheap, exactly? And why is AWD so expensive? Adding AWD means tacking on a whole lot of extra components to power your vehicle’s second axle. When you consider the added cost of drivelines, differentials, and other parts, it makes sense the average AWD upgrade can cost $2,500 to $4,000 or more.
Here’s a look at the eight cheapest all-wheel-drive cars you can buy new in Canada in 2024. To keep these affordable and at the best price, we’ve aimed to cap our budget at $40,000. That may still feel high to some readers, but it’s well below the current national average price paid for a new vehicle, which currently sits at well over $50,000. Staying within this price range keeps the list focused on reasonable alternatives to subcompact SUVs. However, our tighter budget excludes luxury brands like Audi, BMW, Mercedes-Benz, Lexus, Genesis, and Acura, Honda’s premium division. Chevrolet, Mitsubishi, Hyundai and Ford don’t currently offer AWD sedans or hatchbacks. Even the Subaru Legacy has dropped off this list for 2024 with a manufacturer’s suggested retail price (MSRP) with fees of more than $45,000 for the GT, this year’s sole trim.
Prices include destination charges and dealer fees but exclude sales taxes. They’re subject to change and should be independently verified. Don’t forget that winter tires can be just as important, if not more so, than an AWD system for having optimal traction in winter weather!
The Eight Cheapest AWD Cars in Canada
- Subaru Impreza
- Toyota Corolla Hybrid
- Kia K5
- Mazda3
- Nissan Altima
- Subaru WRX
- Toyota Camry
- Toyota Prius
Subaru Impreza (from $29,167)
Subaru has built its brand on making all-wheel-drive vehicles nearly by default. It’s therefore no surprise to see the 2024 Subaru Impreza kick off this list as Canada’s most affordable new car available with AWD. The 2024 model year represents a complete redesign for this AWD compact sedan along with its sibling, the 2024 Subaru Crosstrek. With this comes one significant change: the Impreza is no longer available with a manual transmission. This is so that Subaru can equip its EyeSight suite of safety features and driver assistance technologies on more vehicles. The Impreza is also now exclusively a hatchback as the sedan body style has been dropped. This means you’ll have a continuously variable transmission (CVT) to pair with either of the engine options. A 2.0-litre engine with four horizontally opposed cylinders makes 152 hp and 145 lb-ft of torque, while the available 2.5-litre boxer four-cylinder produces 182 hp and 178 lb-ft. Pricing on the 2024 Subaru Impreza starts in Canada at $29,167.
Toyota Corolla Hybrid (from $31,205)
As of 2023, the Toyota Corolla became available with both AWD and a hybrid powertrain at the same time. This is a fantastic and frugal combination of functionality and fuel economy. Three different trim levels are available in Canada with this combination, and all of them fall within our $40,000 budget. You’ll get a 1.8-litre four-cylinder engine with a hybrid drive system and an electronically controlled CVT. Power figures come in at 138 hp and 156 lb-ft of torque. The 2024 Toyota Corolla Hybrid AWD starts in Canada at a price of $31,205.
Kia K5 (from $33,083)
Here’s a midsize sedan you might not have expected to see on this list. The Kia K5, which rebranded from the nameplate Kia Optima a couple of years ago, is sold in Canada with standard AWD on every grade except the more sports car-like GT. What’s more, all three of those trims slide in underneath our $40,000 budget. This offers affordable access to plenty of cargo space along with some desirable features like heated rear seats, ventilated front seats, and a driver memory function. All three of the AWD grades come with a 1.6-litre turbocharged four-cylinder engine producing 180 hp and 195 lb-ft of torque, coupled with an eight-speed automatic transmission. The 2024 Kia K5 carries a starting price in Canada of $33,083.
Mazda3 (from $33,653)
Mazda continues to cater to driving enthusiasts, whether by stubbornly hanging onto manual transmissions (which we sincerely appreciate) or adding unusual features. In this case, the Mazda3 compact sedan and hatchback are both available with Mazda’s i-Activ AWD. Both have optional power to all four wheels beginning at the GS grade. To get it, you’ll need to choose the six-speed automatic transmission and the 2.5-litre four-cylinder engine without turbocharging. Here, this engine produces 186 hp ad 186 lb-ft of torque. The most affordable version of the Mazda3 with AWD starts in Canada at a price of $33,653.
Nissan Altima (from $34,383)
Nissan made waves when it announced the Altima midsize sedan would be offered in Canada with standard AWD, a feature that remains a differentiator to this day. Three of the four variants of Altima fall below our $40,000 margin, which leaves buyers with plenty of options. The one option we don’t have in Canada is the front-wheel-drive (FWD)-only VC-Turbo, a variable-compression turbocharged engine that’s available in the U.S. but isn’t offered here. Instead, Canada gets the standard 2.5-litre four-cylinder engine making 182 hp and 178 lb-ft of torque, paired with a CVT. The 2024 Nissan Altima has a Canadian starting price of $34,383.
Subaru WRX (from $34,852)
It seems we’ll have to live without its STI form for now, but buyers still appreciate the Subaru WRX for being a higher-powered version of a Subaru compact off-road performance car. Packaged with standard AWD as is the case with most Subarus, the 2024 WRX is powered by a 2.4-litre turbo boxer-four engine that makes 271 hp and 258 lb-ft of torque. You can also still choose a six-speed manual transmission here, or you can opt for what Subaru calls its performance transmission, which is essentially a high-torque CVT. In Canada, the 2024 Subaru WRX starts at a price of $34,852.
Toyota Camry (from $36,005)
We’ll round out our AWD under $40,000 list with a pair of Toyotas. For those seeking a midsize AWD sedan, the Toyota Camry has been a go-to option for years. Toyota’s reputation for bulletproof reliability and high resale value makes it a desirable pick. Two Camry AWD trims are offered in Canada, but only the SE comes in below our $40,000 threshold. The same engine is equipped in both, a 2.5-litre four-cylinder, though the SE’s single exhaust brings the power output down slightly to 202 hp and 182 lb-ft, routing to both axles via an eight-speed automatic. Fuel efficiency is impressive, running as low as 4.9 L/100 km in combined driving. The 2024 Toyota Camry SE AWD has a Canadian starting price of $36,005.
Toyota Prius (from $40,365)
We said we would cap our list at $40,000, but we’ve let the Toyota Prius sneak in just above the limit. There’s a gap of a few thousand dollars from here to where the most affordable AWD luxury cars begin, so it makes sense. Plus, the Prius was completely redesigned for 2023, and the new version is much more impressive than any Prius you’ll find on the used car market. Only the base XLE grade falls within our $40,000 budget, but fortunately, it comes well-equipped including with a touchscreen infotainment system with wireless Apple CarPlay and Android Auto. And with a huge power boost from a larger 2.0-litre engine and updated hybrid system, net horsepower is up to 196 hp and maximum torque to 139 lb-ft, increases of 60% and almost 16% respectively. With smart coupe styling and even a bit of sporty attitude, we won’t be surprised if the new Prius suddenly brings enough cool cachet that we see a lot more of them on our roads. In Canada, the 2024 Toyota Prius XLE with AWD starts at a price of $40,365.