Cheapest new cars for 2025 cost less than $25,000

Mark the 2025 model year as the end of an era. The budget car era of new cars costing less than $20,000 ended with the discontinuation of the Nissan Versa, Kia Rio, and Mitsubishi Mirage. Fret not: the new era of budget cars are way better, and can be had for less than $25,000. 

We can site 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 Chevrolet Trax crossover

2025 Kia Soul hatchback

2025 Nissan Sentra sedan

2025 Toyota Corolla lineup

2025 Toyota Corolla sedan and hatchback

• 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

2024 Toyota Corolla Hybrid sedan

• Price range and trims: 2024 Corolla Hybrid is sold in base LE ($24,635), SE ($27,075), Nightshade ($28,075), and top XLE ($28,425)
• 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: 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

2025 Nissan Kicks

2025 Nissan Kicks crossover

2025 Hyundai Elantra

2025 Hyundai Elantra sedan

2025 Buick Envista crossover