Mark the 2025 model year as the end of an era. The budget car era of new cars costing less than $20,000 nearly ended with the discontinuation of the Kia Rio, Mitsubishi Mirage, and the rumored end of the Nissan Versa. Nissan announced on Sept. 20 that the Versa would carry on for at least one more year.
The new era of budget cars are way better than their predecessors, and can be had for less than $25,000. The 2025 Versa is the only new car that can be purchased for less than $20,000, including the destination fee.
We can cite inflationary pressure, greedy corporations, tumultuous economic and political headwinds for this change, but that’s complicating the change. This is what we as car shoppers wanted. We’re paying just under $45,000 for every new car, which is down from a record high of more than $49,000 late in 2022. That never has been and should never be budget car territory, until cars fly themselves.
Compounding things, the market doesn’t really want compact cars anymore. Through the first seven months of 2024, compact cars accounted for 6.7% of new cars sold (617,576 units). In 2021, compact cars made up 8.2% of the market, according to GoodCarBadCar. New car shoppers want crossover SUVs, even if they’re mere hatchbacks marketed as the most popular segment that accounts for nearly half of all new car sales.
Yet there remains a strong demand for affordable new cars, which is why we’re here. New budget cars have evolved from once-impressive standard features such as power windows and locks, air conditioning, and cruise control into new cars loaded with touchscreens and smartphone compatibility, USB ports, a robust suite of crash-avoiding safety features, and even automatic transmissions. We take for granted how much more connected and convenient new cars have become. These things cost money.
Just as we won’t be going back to the V-8 engine, the manual transmission, and the vent window, new cars won’t be going back in time to be offered with roll-up windows, AM radio, or a cigarette lighter. Those cars are out there, just not on new car lots. Instead, we have the best new budget cars money can buy in terms of style, safety, spaciousness, and screens, for better or worse.
Here are the most affordable—or cheapest—new cars you can buy for 2025 for under $25,000. All prices listed include the ever-increasing destination fee. Every new car listed has automatic emergency braking.
2025 Nissan Versa sedan ($18,330)
- Price range and trims: Nissan Versa sold in S ($18,330), SV ($21,630), and SR ($22,330)
- Powertrain: 122-hp 1.6-liter inline-4 with a 5-speed manual transmission and front-wheel drive; the CVT brings the base S to $20,130
- Standard standout features: 35 mpg combined, standard safety features, only new car priced under $20,000
2025 Chevrolet Trax crossover ($21,495)
- Price range and trims: Chevy Trax sold in LS, 1RS, LT, 2RS, Activ; ranging from $21,495 to $25,395
- Powertrain: 137-hp 1.2-liter turbo-3 with a 6-speed automatic and front-wheel drive
- Standard standout features: 8.0-inch touchscreen with wireless ACP/AA, 17-inch wheels, sharp styling
2025 Kia Soul hatchback ($21,665)
- Price range and trims: Kia Soul LX costs $21,665; offered in LX, S, GT-Line, and EX for $25,965
- Powertrain: 147-hp 2.0-liter inline-4 with a CVT and front-wheel drive
- Standard standout features: 8.0-inch touchscreen, Apple CarPlay (ACP) and Android Auto (AA), keyless entry, 5-year/60,000-mile warranty
2025 Nissan Sentra sedan ($22,730)
- Price range and trims: Base Nissan Sentra S costs $22,730; offered in S, SV, and SR for $25,730
- Powertrain: 149-hp 2.0-liter 4-cylinder with a CVT and front-wheel drive
- Standard standout features: 7.0-inch touchscreen with ACP/AA, blind-spot monitors
2025 Toyota Corolla lineup
2025 Toyota Corolla sedan ($23,185) and hatchback ($24,640)
- Price range and trims: Corolla sedan ranges from $23,185 to $28,285; Corolla hatchback priced from $24,640 to $27,940
- Powertrain: 169-hp 2.0-liter inline-4 with a CVT and front-wheel drive
- Standard standout features: 8.0-inch touchscreen with wireless ACP/AA, adaptive cruise control, blind-spot monitors
2025 Subaru Impreza
2025 Subaru Impreza ($24,655)
- Price range and trims: $24,655 base, $26,665 Sport, $29,555 RS
- Powertrain: 151-hp 2.0-liter flat-4 with a CVT and all-wheel drive; RS models have a 182-hp 2.5-liter flat-4
- Standard standout features: Standard AWD, good safety features, rally-car fun
2025 Toyota Corolla Hybrid sedan ($24,760)
- Price range and trims: 2024 Corolla Hybrid is sold in base LE ($24,760), SE ($27,200), and top XLE ($29,125)
- Powertrain: 138-hp 1.8-liter inline-4 with two electric motors and front-wheel drive or available all-wheel drive with a third motor powering the rear axle for an extra $1,400
- Standard standout features: Cheapest new hybrid; 53 mpg city, 46 highway, and 50 combined; Corolla Hybrid AWD rated at 51/44/48 mpg. It has the same standard features as the gas-only model above.
2024 Toyota Corolla Cross
2024 Toyota Corolla Cross crossover ($24,745)
- Price range and trims: Corolla Cross sold in L, LE, XLE from $24,745 to $28,970; AWD adds $1,300
- Powertrain: 169-hp 2.0-liter inline-4 with a CVT and front-wheel drive; available all-wheel drive
- Standard standout features: 8.0-inch touchscreen with wireless ACP/AA, adaptive cruise control, blind-spot monitors; available hybrid option
2025 Kia K4 sedan ($23,145)
- Price range and trims: Kia K4 (formerly known as Forte) sold in LX, LXS, EX, GT-Line, GT-Line Turbo; from $23,145 to $29,245
- Powertrain: 147-hp 2.0-liter inline-4 with a CVT and front-wheel drive; GT-Line Turbo has a 190-hp 1.6-liter turbo-4
- Standard standout features: 12.3-inch touchscreen with wireless ACP/AA, adaptive cruise control, 5-year/60,000-mile warranty
2025 Nissan Kicks
2025 Nissan Kicks crossover ($23,220)
- Price range and trims: Redesigned Nissan Kicks S costs $23,220; sold in S, SV, and SR for $27,560 (AWD adds $1,500)
- Powertrain: 141-hp 2.0-liter 4-cylinder with a CVT and front-wheel drive or available all-wheel drive
- Standard standout features: two 7.0-inch screens, one USB-A port, 2-years/24,000-miles scheduled maintenance
2025 Volkswagen Jetta sedan ($23,295)
- Price range and trims: VW Jetta sold in S, Sport, SE, and SEL, or sportier GLI; priced from $23,295 to nearly $30,000 for GLI
- Powertrain: 158-hp 1.4-liter turbo-4 with an 8-speed automatic and FWD; GLI gets a 228-hp 2.0-liter turbo-4 with a 6-speed manual or 7-speed dual-clutch automatic
- Standard standout features: 8.0-inch touchscreen with ACP/AA, adaptive cruise control, 4-year/50,000-mile warranty with two years of maintenance
2025 Hyundai Elantra
2025 Hyundai Elantra sedan
- Price range and trims: Hyundai Elantra sold in SE, SEL Sport, Limited, N Line, Hybrid Blue, Elantra N; expect $24,000 for the base SE; $27,000 for the Hybrid; $35,000 for the performance
- Powertrain: 141-hp 2.0-liter 4-cylinder with a CVT and front-wheel drive or available all-wheel drive
- Standard standout features: 8.0-inch touchscreen with wireless ACP/AA, 5-year/60,000-mile warranty, available Hybrid with 54 mpg
2025 Buick Envista crossover ($24,490)
- Price range and trims: Buick Envista sold in Preferred, Sport Touring, Avenir; ranging from $24,490 to $30,790
- Powertrain: Mechanically related to the Trax with a 137-hp 1.2-liter turbo-3 with a 6-speed automatic and front-wheel drive
- Standard standout features: 11.0-inch touchscreen with wireless ACP/AA, active noise cancellation, sharp styling
