Canadian drivers tend to appreciate all-wheel drive systems (AWD). We can thank our frigid climate for this. AWD helps cars gain momentum in slippery or icy conditions, which is what most of us find ourselves in for roughly six months of the year. If you want AWD, you might assume you also need an SUV or a truck, but this isn’t the case. There are some cars on the market that offer AWD, and there are good reasons to choose them. They handle better and are more efficient than their SUV/crossover equivalents. If you live in a city or suburb and don’t have as much need for the extra ground clearance provided by SUVs and trucks, one of the market’s cheapest AWD cars may be the way to go.
Below, you’ll find a list of the eight cheapest all-wheel-drive cars in Canada that you can buy new in 2025. We’re hovering our target price at roughly $40,000 including fees for this list to highlight the most budget-friendly models possible. (That might feel high if you haven’t shopped for a car in a while, but the average price for a new vehicle in Canada currently sits just under $50,000.) This allows us to stay within a price range that competes with subcompact SUVs. It does mean we’ve left some luxury brands off this list such as Lexus, Audi, BMW, and Mercedes-Benz.
There are some brands that don’t offer AWD sedans or hatchbacks. These include Chevrolet, Ford, Honda, Hyundai, Kia, and Mitsubishi. Several models that previously qualified have been discontinued, such as the Subaru Legacy and Kia K5.
Prices shown include manufacturer’s suggested retail price (MSRP) plus destination charges and dealer fees but exclude options and sales taxes. While accurate at time of publication, prices are subject to change. 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
- Mazda3
- Nissan Altima
- Subaru WRX
- Hyundai Sonata
- Toyota Camry
- Toyota Prius
Subaru Impreza (from $30,270)
Subaru has built its brand on making all-wheel-drive vehicles nearly by default. It’s therefore no surprise to see the 2025 Subaru Impreza kick off this list as Canada’s most affordable AWD new car. The Impreza was completely redesigned for the 2024 model year along with its sibling, the Subaru Crosstrek. With this came 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. 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. The Impreza is also now exclusively a hatchback as the sedan body style has been dropped. Pricing on the 2025 Subaru Impreza starts in Canada at $30,270.
Toyota Corolla Hybrid (from $31,485)
In 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 efficiency. 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 2025 Toyota Corolla Hybrid AWD starts in Canada at a price of $31,485..
Mazda3 (from $34,787)
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 $34,787.
Nissan Altima (from $34,585)
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 $34,585.
Subaru WRX (from $36,174 (2024))
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 $36,174. (2025 pricing was not yet available at publication time.)
Hyundai Sonata ($37,935)
The Hyundai Sonata’s 2024 model year brought two significant changes in Canada as part of its mid-cycle refresh. The mid-size sedan’s hybrid powertrain was dropped from the line-up, and in exchange the Sonata picked up an AWD option. It’s offered only on the base Preferred-Trend trim, where it adds $2,000 to the price. The Sonata’s 2.5-litre four-cylinder engine produces 191 hp and 181 lb-ft of torque, which feeds to both axles through an eight-speed automatic transmission. It comes with a solid set of standard safety features including blind spot monitoring, rear cross-traffic alert, lane keep assist, lane follow assist, safe exit warning, and a driver attention monitor. While the Sonata can’t beat the Camry on rear-seat space, it has the more spacious front row of the two models. The Sonata also has a slightly larger cargo space at 441 litres versus the Camry’s 428 litres. The 2025 Hyundai Sonata has a starting price in Canada of $37,935 in its Preferred-Trend trim with the AWD option.
Toyota Camry (from $40,945)
We’ll round out our list with a pair of Toyotas. Both of these are priced starting just a tick over $40,000, but they’re close enough for us to include them for your consideration. The Toyota Camry has been a go-to midsize sedan for years. A new generation launches for 2025 offered exclusively with a hybrid powertrain. Its 2.5-litre four-cylinder engine and hybrid power system generates a total system output of 225 hp with FWD and 232 hp with AWD, which is the default drivetrain for three of the four grades sold in Canada. With AWD, fuel economy averages between 5.1 and 5.3 litres per 100 kilometres combined, which is an excellent figure for any AWD vehicle. The Camry has more rear-seat headroom and legroom than the Sonata, though Hyundai’s midsize sedan has more front-seat space. The 2025 Toyota Camry Hybrid SE Upgrade, the base AWD model, has a Canadian starting price of $40,945.
Toyota Prius (from $41,160)
The Toyota Prius was completely redesigned for 2023, and the new version is much more impressive than the one that preceded it. The base XLE grade falls closest to our $40,000 budget, but fortunately it comes well-equipped, including standard AWD and a touchscreen infotainment system with wireless Apple CarPlay and Android Auto. From its 2.0-litre four-cylinder engine and updated hybrid system, net horsepower in the Prius is up to 196 hp and maximum torque to 139 lb-ft, increases of 60% and almost 16% respectively over the previous generation. With smart coupe styling and even a bit of sporty attitude, the new Prius adds some cool cachet to the hybrid set. In Canada, the 2024 Toyota Prius XLE with AWD starts at a price of $41,160.