In today’s market, finding new cars under $25,000 can be a bit challenging, and with increasing average prices of vehicles, it’s more difficult. According to Cox Automotive, this January, the average cost of a car in the U.S. has hit $47,218, a figure that’s hard to call affordable.
However, despite the increased price of cars, we have still picked up some great, affordable 2025 new cars for you. We have picked the top vehicles, keeping in mind all kinds of car lovers.
In this blog, we will talk about the best new cars under $25,000 in 2025. Not only that, if you’re looking for something even more budget-friendly, say under $20,000, you’re really lucky because there is only one new car left under this price range.
Let’s dive in.
What You Can Expect in This Price Range?
When you’re looking for vehicles at affordable rates, you’re expecting to get a good balance between price and features, but you shouldn’t expect high-end luxury or bigger powertrains.
At present, the American automotive has a variety of options under $25,000 price range, and in them you can expect good power, decent fuel economy, stylish design, and roomy cabin as well as cargo space.
Here are some listed features you can expect in all the cars listed here:
- Fuel Efficiency: All the vehicles here come with decent fuel economy for their price range. No matter which vehicle you choose, you will get at least 30 mpg combined, which is great for everyday commutes and long drives.
- Safety Features: Many rides come with top driver-assistant features like lane-keeping assist, automatic emergency braking, and rear-view cameras as standard, ensuring your safety on a pro level.
- Comfortable Interiors: Cloth upholstery, adjustable seats, and enough space in the back for passengers is a given. While the quality may seem a little dull compared to the high-end models like the Tesla Cybertruck, you are still getting a good deal for your money at $25k.
- Decent Power: For such a pocket-friendly price, you will get smaller engines, but do not be disappointed, as they are capable of delivering decent power, ensuring you have no problem getting around.
Our Top 11 Picks of New Cars Under $25000 in 2025
Various car brands have launched amazing varieties of affordable automobiles this year. Whether you are looking for something great on gas, bold and aggressive in terms of looks, or something that’s perfect for your family, there’s certainly enough to choose from for under $25,000.
Let’s explore the top 10 best new cars for under $25k that you can buy this year. These best cars for money boast cool, modern designs and features that car buyers crave these days.
To make it easy for you to differentiate, we have listed all the vehicles in decreasing order of their base prices. You will not believe how affordable the vehicle listed at the last is.
Note To The Reader: All the prices mentioned here excludes destination and handling charges, taxes, title, license, options, and dealer charges.
1. Toyota Corolla Hatchback

- Price: $23,780
- Horsepower: 169 hp
- Engine: 2.0 L 4-cylinder
- Transmission: CVT
- Torque: 151 lb-ft
- Fuel Economy (city/hwy/combined): 32/41/35 mpg
The powerful Toyota Corolla comes at a starting price of $23,780. Along with the great reputation of the Japanese automaker for reliability, it offers a great combined fuel economy of 35 mpg. It also has a monstrous, powerful engine with 169 horsepower from a 2.0-liter four-pot, making it one of the most powerful cars on the list.
This compact hatchback offers strong daily driving abilities in both scenarios. It lacks excitement but comes overloaded with practicality thanks to its low price point, high fuel mileage, good value proportion, comfortable ride, and lots of standard features.
2. Buick Envista

- Price: $23,700
- Horsepower: 137 hp
- Engine: 1.2-liter turbocharged I-3
- Transmission: 6-speed automatic
- Torque: 162 lb-ft
- Fuel Economy (city/hwy/combined): 28/32/30 mpg
The Buick Envista has a great design and looks, with a starting price of $23,495. It is powered by a small 1.2-liter turbocharged engine that comes paired with the traditional 6-speed automatic transmission, producing 137 hp. This subcompact SUV is sleek, stylish, and available in three trim levels, with only two falling under the radar of $25k.
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It has a sloping roofline, which does not affect the front row but crimps the area a little as we move towards the cargo space in the back. However, this ride makes up for it through its high-tech touches, including an 11-inch screen, LED headlights, and a digital dashboard. It is a perfect choice for anyone who wants modern touches but cannot go all in on premium models.
3. Subaru Impreza

- Price: $23,610
- Horsepower: 152 to 182 Hp
- Engine: 2.0 L 4-cylinder, 2.5 L 4-cylinder
- Transmission: CVT
- Torque: 145 lb-ft
- Fuel Economy(city/highway): 17/34 mpg
Redesigned in 2024, the Subaru Impreza is an impressive compact car that has a lot to offer. It comes with a practical yet roomy cabin with one of the best cargo spaces in its segment, great handling (thanks to the standard all-wheel drive), and two engine options, producing up to 182 hp.
The 2025 Impreza even holds a five-star overall safety rating from NHTSA with its standard driver-assistance features, including adaptive cruise control, forward automatic emergency braking, and lane-keep assist having a huge role in this achievement.
4. Chevrolet Trailblazer

- Price: $23,100
- Horsepower: 137 to 155 Hp
- Engine: 1.2 L 3-cylinder, 1.3 L 3-cylinder
- Transmission: 9-speed automatic, Continuous variable transmission
- Torque: 162 lb-ft
- Fuel Economy (city/highway): 30/31 mpg
The all-new Chevy Trailblazer is an aggressive, sharp-looking subcompact SUV with a boxy design whose two trim levels fall under the budget radar of $25,000.
This ride offers a spacious interior, attractive styling, and an intuitive infotainment system, featuring an 11-inch touchscreen, an 8-inch digital instrument display, and wireless Apple CarPlay and wireless Android Auto as standard.
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However, if you are seeking performance, this ride disappoints with its sluggish performance and uninspired handling dynamics.
5. Kia K4

- Price: $21,990
- Horsepower: 147 to 190 hp
- Engine: 1.6 L 4-cylinder,2.0 L 4-cylinder
- Transmission: CVT
- Torque: 132 lb-ft
- Fuel Economy (city/hwy/combined): 29-30/39-40/33-34 mpg
Kia K4 is a redesigned version of the popular Kia Forte, marketed only in North America. This new ride has an assertive design with angular LED headlights and a wide lower grille. It is also longer and wider than the Forte, offering more interior space for passengers.
It boasts two engine and transmission options: a 2-liter naturally aspirated motor and a 1.6 L turbocharged motor, producing up to 190 hp. You also get a 12.3-inch center touchscreen and elevated safety features, such as a driver attention monitor, keeping you and your loved ones safe.
The all-new Kia K4 starts at $23,145, which is $2,000 more than the outgoing Forte, but worth it given the features, quality, and a 10-year/100,000-mile powertrain warranty.
6. Nissan Kicks

- Price: $21,830
- Horsepower: 141 Hp
- Engine: 2.0 L 4-cylinder
- Transmission: CVT
- Torque: 141 lb-ft
- Fuel Economy (city/highway/combined): 28/35/31 mpg
The latest Kicks is a versatile, value-packed subcompact SUV that comes with one of the lowest price points for 2025. For a starting price of $21,830, you get a comfortable, well-built cabin, great fuel economy, and plenty of standard features to make your every single drive comfortable.
Fully redesigned for model year 2025, the Nissan Kicks delivers good overall handling dynamics thanks to its balanced and light steering. It has an above-average value rating for its class and has a predicted reliability score of 83 out of 100 from J.D. Power, ensuring its quality and reliability.
7. Nissan Sentra

- Price: $21,590
- Horsepower: 149 Hp
- Engine: 2.0 L 4-cylinder
- Transmission: CVT
- Torque: 146 lb-ft
- Fuel Economy (city/highway/combined): 30/40/34 mpg
Another latest lineup that falls under your car-buying limit of $25k is the Nissan Sentra. This compact car features a sporty look, a stylish interior that is of good quality and ergonomically and visually pleasing, comfortable seats, and impressive fuel economy.
There is plenty of legroom and headroom throughout two rows, making even tall passengers like it. The standard 2-liter four-cylinder engine paired with a continuously variable automatic transmission (CVT) limits the overall fun factor, but still it is ideal for everyday driving and young or teenage drivers.
Overall, the Nissan Sentra is not ideally polished but is a better alternative to the pricier Honda Civic and Toyota Corolla.
8. Kia Soul

- Price: $20,490
- Horsepower: 147 Hp
- Engine: 2.0 L 4-cylinder
- Transmission: CVT
- Torque: 132 lb-ft
- Fuel Economy (city/highway/combined): 29/35/30 mpg
Another affordable compact car that you can buy this year is the latest Kia Soul. This boxy car is available in four trim levels, ranging from $20,490 to $24,790, making the entire lineup under your budget. This vehicle stands out as a top-value ride for offering a spacious, comfortable interior and a generous list of standard features for a budget-friendly price.
You get features like a digital gauge cluster, Apple CarPlay, Android Auto, a six-speaker stereo, remote keyless entry, cyclist detection, driver-attention monitoring, forward collision warning with pedestrian detection, and more as standard. The engine in this ride may not be the most powerful one, but it provides enough efficiency for Soul to be an excellent on-road partner.
9. Chevrolet Trax

- Price: $20,400
- Horsepower: 137 hp
- Engine: 1.2-liter turbocharged I-3
- Transmission: 6-speed automatic
- Torque: 162 lb-ft
- Fuel Economy (city/hwy/combined): 28/31-32/29-30 mpg
The all-new Trax offers exceptional value for money in 2025. It comes with a starting price of $20,400 and offers five trim levels, with the price for the top-tier model going to $24,300 only, keeping the entire lineup under your radar of affordability.
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This subcompact SUV is affordable, practical, and nice-looking, with a spacious interior and generous cargo room. An 8-inch touchscreen, wireless Apple CarPlay and Android Auto, remote keyless entry, forward collision warning, pedestrian detection, and forward automatic emergency braking as standard just sweeten the deal further.
10. Hyundai Venue

- Price: $20,100
- Horsepower: 121 hp
- Engine: 1.6-liter I-4
- Transmission: CVT
- Torque: 113 lb-ft
- Fuel Economy (city/hwy/combined): 29/33/31 mpg
The 2025 Venue is a high-value subcompact SUV that comes with a spacious interior, comfortable seating, and good fuel economy. There are plenty of standard user-friendly tech features, like an 8-inch touchscreen, HD Radio, Bluetooth, remote keyless entry, automatic high-beam headlights, driver-attention monitoring, and more.
This South Korean ride has limited highway performance and lacks all-wheel drive, but its effortless handling in tight streets and parking spots makes it most suitable for city driving. In addition, this ride has also received a four-star overall safety rating from NHTSA, ensuring its strong safety prowess.
The Last New Car You Can Buy Under $20,000 Is The 2025 Nissan Versa

- Price: $17,190
- Horsepower: 122 hp
- Engine: 1.6 L 4-cylinder
- Transmission: Continuous variable transmission, 5-speed manual
- Torque: 114 lb-ft
- Fuel Economy (city/hwy/combined): 32/40/35 mpg
The most affordable brand-new vehicle you can buy in 2025 is the Nissan Versa, which comes with a base price of $17,190. If you are under an extreme budget crunch and can compromise on power and ride quality, this new car under $20,000 is the best deal you can get.
You should think of grabbing this opportunity, as 2025 is going to be the final model year for this ride. You will get good build quality, many standard features, good fuel economy, and lots of space to put all your family’s stuff away.
Related FAQ’s
It’s pretty tough to find a new sports car with a price under $25,000, but you can grab some really fun options in that price range in the pre-owned car market. Models like the Mazda MX-5 Miata, Subaru BRZ, and Toyota GR86 promise fun without burning a hole in your pocket.
Their brand-new variants are not that expensive either, but for people on a tight budget, their used variants are the perfect alternatives. Please understand that for such a low price, you cannot expect high-end luxury, but you will surely get class and thrill for the price.
Cars in 10 years might look pretty much like cars today. But the differences inside will leave you speechless. They might have advanced driver assistance, auto-parking, and other features, such as greener options like pure electric vehicles.
They will be time-saving and safer and bring excitement to your driving. Better manufacturing techniques also mean that the cars will become lighter, tougher, and are full of some high-tech surprises.
Most brand new cars can last for 200,000 miles easily with regular maintenance. Some models can even go up to 300,000 miles or more if you take good care of them.
The average age of cars on the road in the U.S. is about 12 years, which is a testament to how long modern vehicles can last. A little TLC really keeps your car running for the long haul.
In conclusion, finding the best new cars under 25,000 in 2025 may seem tough as car prices continue to soar, but it doesn’t mean you cannot find a great one to spend your money on.
Compact SUVs such as Hyundai Venue and Chevrolet Trax and reliable sedans such as Toyota Corolla and Nissan Sentra give you some of the most stylish designs, decent power, decent fuel efficiency, and modern features, all within budget.
From the city commute to the road trip and budget-friendly option of the Nissan Versa for under $20,000, there is something for everyone. These vehicles show that affordability does not have to compromise on quality.