Itâs no secret that the price of just about everything is on the up. This includes cars. Where there was once a time when buying a new Corolla or Civic was something just about anyone could afford. Times have changed, though, and buying a brand-new car is becoming harder and harder as time marches forward.
However, there is still hope. Plenty of automakers out there understand the desire and the need for small vehicles that are affordable to buy and affordable to run. While looking at used cars is a great way to go, there are still plenty of options for those shopping at and below the $25,000 mark, whether youâre looking for a sedan, hatchback, or SUV.
Weâve trawled through all the vehicles on the market that cost less than $25,000 to start. Weâve looked at a mix of both cars and SUVs to give you a diversity of options. We highlight their individual strengths, some of their base features, and what kind of powertrain you can expect to find under their hoods.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturers and other authoritative sources. Vehicles are listed from lowest to highest starting MSRP.
Competition when it comes to new cars below $20,000 is dwindling quickly. The Kia Rio and the Mitsubishi Mirage are both soon to be discontinued, leaving the Versa as the last car standing. The Nissan, while being the cheapest new car in 2024, is somehow more refined than its direct rivals. It's economical, feels good to drive, and actually looks pretty good too.
Engine | 1.6-Liter Naturally Aspirated Inline-Four |
Transmission | 5-Speed Manual or CVT |
Horsepower | 122 HP |
Torque | 114 LB-FT |
Driveline | FWD |
0-60 MPH | 9.5 Seconds |
Top Speed | 115 MPH |
Every Versa comes with a small 122 horsepower engine under the hood and features front-wheel drive. A five-speed manual is standard on the base models, but a CVT can be optioned on the S trim. The higher SV and SR trims come standard with the CVT .
It's become evident that subcompact SUVs are quickly replacing hatchbacks in the U.S. A perfect example of this is the super affordable Chevrolet Trax. The Chevy may not have the most impressive powertrain, but its super attractive starting price and its long list of standard features make it one of the most alluring options for buyers on a budget.
Engine | 1.2-Liter Turbocharged Inline-Three |
Transmission | 6-Speed Automatic |
Horsepower | 137 HP |
Torque | 162 LB-FT |
Driveline | FWD |
0-60 MPH | 8.8 Seconds |
Top Speed | 115 MPH |
A humble 137-horsepower turbocharged three-cylinder powers every Trax. Unlike some other super cheap vehicles, the Trax comes standard with an automatic transmission. Front-wheel drive is your only choice, with all-wheel drive not even being an option. e
Hyundai has always been fantastic at offering some of the best value cars in each segment they compete in. The Elantra is their compact offering and goes head-to-head with the likes of the Volkswagen Jetta and the Honda Civic. It is much more affordable than both and comes loaded with a brilliant suite of driver assist tech as well as a high ceiling for comfort. The Korean automaker promises that things will get even better for the 2025 model year.
Engine | 2.0-Liter Naturally Aspirated Inline-Four |
Transmission | CVT |
Horsepower | 147 HP |
Torque | 132 LB-FT |
Driveline | FWD |
0-60 MPH | 8.1 Seconds |
Top Speed | 124 MPH |
While most Elantras that leave the dealership floor will feature a two-liter four-cylinder and a CVT, the sportier N-Line gets a different setup. Opt for the more interesting model and you'll get a 1.6-liter turbocharged engine that comes with a seven-speed DCT. This engine produces 201 horsepower and 195 pound-feet of torque.
Nissan's subcompact SUV has been completely redesigned for the 2025 model year. The Kicks has gotten a little bigger and a little more mature. It hasn't completely abandoned its fun, cheap, and cheerful persona yet, though. The Nissan comes with a great suite of standard tech and has a spacious interior that will comfortably fit the whole family.
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Engine | 2.0-Liter Naturally Aspirated Inline-Four |
Transmission | CVT |
Horsepower | 141 HP |
Torque | 140 LB-FT |
Driveline | FWD or AWD |
0-60 MPH | 9.5 Seconds |
Top Speed | 110 MPH |
The Kicks gets a brand-new engine for the 2024 model year, ditching the 1.6-liter in favor of a more powerful two-liter unit. For the first time ever, Nissan has allowed buyers the option to equip the little SUV with all-wheel drive instead of the standard front-wheel drive.
Volkswagen has always been renowned for producing no-nonsense, affordable vehicles. The Jetta is the perfect example of this, featuring a simple interior layout that prioritizes function over form. It has been refreshed for the 2025 model year, with the more affordable models getting more value in the form of a new infotainment screen and a touch climate control panel.
Engine | 1.5-Liter Turbocharged Inline-Four |
Transmission | 8-Speed Automatic |
Horsepower | 158 HP |
Torque | 184 LB-FT |
Driveline | FWD |
0-60 MPH | 7.1 Seconds |
Top Speed | 126 MPH |
Gone is the standard manual transmission, with even the most affordable models now featuring the eight-speed auto. Every Jetta, bar the performance GLI, features a fairly peppy turbocharged engine. It's much quicker than most of the other cars on this list thanks to its decent amount of torque.
If you took a look at the Envista, we wouldn't blame you for thinking that it cost a decent amount more than $25,000. Buick has pretty successfully merged an upscale design with budget-oriented interior and mechanical bits to create a fairly unique competitor in the subcompact SUV segment. They've also added remote start and rear parking assist on all models for the 2025 model year to increase its value.
Engine | 1.2-Liter Turbocharged Inline-Three |
Transmission | 6-Speed Automatic |
Horsepower | 137 HP |
Torque | 162 LB-FT |
Driveline | FWD |
0-60 MPH | 9.3 Seconds |
Top Speed | 112 MPH |
Every Envista comes with a small turbocharged engine, front-wheel drive, and a six-speed automatic. While it takes some patience to get up to 60 miles per hour, the Envista gets to 50 miles per hour at a reasonable pace thanks to its turbocharger.
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The Mazda 3 is a criminally underrated compact car. Base models come with many more features than you would expect, given its price tag, and higher trim levels exude luxury that allows this little car to punch well above its weight. Offered as either a sedan or a hatchback, this is a car that every budget buyer should at least consider.
Engine | 2.5-Liter Naturally Aspirated Inline-Four |
Transmission | 6-Speed Manual or 6-Speed Automatic |
Horsepower | 191 HP |
Torque | 186 LB-FT |
Driveline | FWD or AWD |
0-60 MPH | 7 Seconds |
Top Speed | 134 MPH |
The base powertrain offered in the Mazda 3 is a naturally aspirated four-cylinder that features front-wheel drive and a choice of either a manual or automatic transmission. For those looking for a little more sportiness, Mazda offers a 250 horsepower turbocharged variant that comes with all-wheel drive.
Volkswagen successfully takes all the best bits of the Golf hatchback and the Tiguan SUV and merges them into a mini-SUV that exudes value. Just like the Jetta, which we talked about earlier in this list, the Taos focuses on providing a refined and utility-driven experience, leaving all gimmicks at the door.
Engine | 1.5-Liter Turbocharged Inline-Four |
Transmission | 8-Speed Automatic or 7-Speed Automatic |
Horsepower | 158 HP |
Torque | 184 LB-FT |
Driveline | FWD or AWD |
0-60 MPH | 7.4 Seconds |
Top Speed | 125 MPH |
The Taos is powered by the same powertrain that you would find in a Jetta. This means that acceleration to 60 miles per hour is actually pretty decent. Front-wheel drive models come with an eight-speed automatic, while all-wheel drive 4MOTION models feature a seven-speed dual-clutch transmission.
The Civic has always been regarded as a top choice when looking for a car on a budget. While its starting price has definitely inflated over the years, there is no doubt that it is still one of the highest value-for-money options on the market today. It is the perfect balance of practicality, affordability, and fun.
Engine | 2.0-Liter Naturally Aspirated Inline-Four |
Transmission | CVT |
Horsepower | 150 HP |
Torque | 133 LB-FT |
Driveline | FWD |
0-60 MPH | 8.8 Seconds |
Top Speed | 114 MPH |
The most affordable variants of the 2025 Civic come with a 150-horsepower inline-four. While it won't win any awards for being quick, its sporty handling and brilliant steering feedback just about make up for it. A 200-horsepower hybrid version is also available.
Mazda is clearly aiming to be an entry-level premium brand and escape its reputation for being mainstream. This is evident with the CX-30. If you're looking for a subcompact SUV with an upscale interior filled with high-quality materials, it's hard to beat the CX-30, especially at its price point. A new navigation system and Alexa capability debut for the 2025 model.
Engine | 2.5-Liter Naturally Aspirated Inline-Four |
Transmission | 6-Speed Automatic |
Horsepower | 191 HP |
Torque | 186 LB-FT |
Driveline | AWD |
0-60 MPH | 8.1 Seconds |
Top Speed | 128 MPH |
While models with the base naturally aspirated inline-four aren't the quickest in their class, turbocharged 250 horsepower models are pretty peppy, making the zero to 60 run in less than six seconds. All-wheel drive is standard across the board. If you're a fan of how fun the Mazda 3 is to drive, you'll find the CX-30 is just as athletic.