28Feb
The automotive industry continues to offer a range of exciting and affordable new cars. In 2025, the average price of a new car is around $49,740, which is significantly higher than a budget of $25,000. However, this doesn't mean it's impossible to find a new car within this range. Not yet, at least.
Many compact cars, entry-level sedans, and some smaller SUVs or electric vehicles can still be found at around $25,000, especially if you explore models with fewer features or consider incentives and discounts. If you're open to alternatives, certified pre-owned vehicles or slightly used cars can offer excellent value while staying within your budget.
The bottom line is with a budget of $25,000, you can still find vehicles with modern features, impressive fuel efficiency, and stylish designs. This guide will walk you through the best new cars under $25,000 in 2025.
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Compact Cars: Efficient and Economical
Compact cars have long been a favorite for those seeking efficient and economical transportation. They are perfect for city dwellers and anyone looking to maximize fuel efficiency without sacrificing comfort.
Honda Civic
- Starting MSRP: $24,250
Photo Credit: Honda.
The starting MSRP for the 2025 Honda Civic LX sedan is $24,250. The Civic is available in sedan and hatchback body styles, and comes in several trim levels. It’s almost unbelievable because this car is full of character and will save you a great deal at the gas pump.
The Civic continues to be a top contender in the compact car segment. Known for its reliability and fuel efficiency, the 2025 model offers a comfortable ride and a host of standard features.
It boasts a 200-hp hybrid powertrain, stellar 83/100 reliability, and up to 50 MPG efficiency. Packed with Honda Sensing® safety tech, it’s a zippy, eco-friendly ride that’s as reliable as your morning coffee.
Toyota Corolla
- Starting MSRP: $22,325
Photo Credit: Toyota.
Another stalwart in the compact car category is the Toyota Corolla, and you can still buy it with a budget under $25,000. The starting MSRP is around $22,325, excluding destination fee.
The 2025 Corolla The 2025 Toyota Corolla dazzles with a sporty grille and a refined interior featuring an 8-inch touchscreen and wireless Apple CarPlay®. Powered by a 169-hp engine, it achieves up to 50 MPG (hybrid).
Toyota Safety Sense™ 3.0 ensures top-notch safety with a suite of driver-assistance features, while its stellar reliability rating keeps drivers smiling. Toyota's reputation for durability is an extra icing on the cake.
SUVs: Versatility and Space
SUVs have become increasingly popular due to their versatility and spacious interiors. If you're in the market for an SUV under $25,000, there are several options worth considering.
Hyundai Kona
- Starting MSRP: $24,550
Photo Credit: Hyundai.
The Hyundai Kona stands out in the subcompact SUV category with its look-at-me styling and peppy performance. The 2025 model starts at $24,550, excluding taxes, title, license fees, or freight charges. That money buys a user-friendly infotainment system, a comfortable interior, and standard safety features.
Flaunting a dynamic, aerodynamic exterior with EV-inspired design, it offers coveted bells and whistles like dual 12.3-inch displays and Digital Key 2.0, including safety techs such as lane-keeping assist and collision avoidance.
The powertrain span gas, hybrid, and EV. Priced so competitively, the Kona makes sense to those who want a new SUV without breaking the bank.
Kia Seltos
- Starting MSRP: $24,690
Photo Credit: Kia.
The Kia Seltos offers a blend of style, comfort, and practicality. The 2025 Seltos is a lovable compact SUV that provides excellent value for money, featuring a bold design with LED headlights, a connected light bar, and beautiful alloy wheels.
Inside, it offers a panoramic sunroof, an 8-inch touchscreen with wireless Apple CarPlay, and advanced safety with Level 2 ADAS. Engine options include 1.5L petrol and diesel variants, paired with manual or automatic transmissions.
With 24 trims and a starting price under $25,000, the new Seltos should be popular among new car buyers.
Sedans: Style and Comfort
Sedans provide a balance of style, comfort, and performance. They often come equipped with more features than their compact counterparts, making them a great choice for those who enjoy a more refined driving experience.
Mazda3
- Starting MSRP: $24,950
Photo Credit: Mazda.
The Mazda3 is known for its upscale interior and engaging driving dynamics. The starting price for the various 2025 models all falls under the $25,000 benchmark, with the Mazda3 sedan starting at $23,950 for the 2.5 S model and $24,950 for the 2.5 S hatchback model.
The new Mazda3 continues the nameplate’s tradition of upscale interior and engaging driving dynamics with an elegant, minimalist design and premium materials.
It offers two powertrains: a 2.5L engine (191 hp) and a turbocharged 2.5L (250 hp), with the fuel economy ranging from 26-31 MPG combined. In other words, the new Mazda3 is one of the best sedans available for under $25,000.
Subaru Impreza
- Starting MSRP: $23,495
Photo Credit: Subaru.
What’s splendid about the 2025 Subaru Impreza’s $23,495 starting MSRP is the many standard features on the base model. The list includes Subaru’s renowned Symmetrical All-Wheel Drive, Subaru EyeSight Driver Assist Technology, dual-zone automatic climate control, and LED headlights.
It features a 7-inch dual touchscreen with Apple CarPlay and Android Auto compatibility, a 60/40 split-folding rear seat, and versatile roof crossbar mounting points for added utility.
None of these are paid options. For those who value all-wheel drive capability, the Subaru Impreza is an excellent option.
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Hatchbacks: Practicality and Fun
Hatchbacks are known for their practicality and fun-to-drive nature. They often provide more cargo space than sedans and are a great option for those who need versatility.
Hyundai Venue
- Starting MSRP: $20,200
Photo Credit: Hyundai.
None of the Venue models have a starting price close to $25,000 and it doesn’t mean the car is wack. It’s an economy car with more than enough bells and whistles to merit the price point. I wish (as I’m sure you do) the Volkswagen Golf is on this list, which makes offerings like the Venue deserving of our appreciation.
The starting MSRP for the 2025 Hyundai Venue SE trim is $20,200, with the SEL trim starting at $22,200 and the Limited trim starting at $23,450.
While this makes it the cheapest car on this list, it boasts an 8-inch touchscreen with Apple CarPlay and Android Auto, Hyundai BlueLink connected tech, and advanced safety systems, including lane-keeping assist. It uses a fuel-efficient 1.6L engine delivering 31 MPG combined (29 MPG in the city and 32 MPG on the highway).
With 18.7 cubic feet of cargo space behind the rear seats and 31.9 cubic feet with the rear seats folded down, the Venue is a practical yet tech-savvy choice for drivers who use it for the daily grind or weekend getaways.
Ford Focus
- Used Pricing: $10,773
2020 Focus ST / Photo Credit: Ford.
The 2025 Ford Focus is not available in the US as Ford has shifted its focus (pun intended) away from sedans and hatchbacks in the American market, prioritizing SUVs, trucks, and EVs instead.
However, the Focus remains available in other regions, like Europe and China. The starting MSRP in the UK goes from £28,500 to £31,500 (around $36,000 to $39,700).
Ford announced the Focus’ withdrawal from America in 2018, and the 2018 model continues to impress with its sporty design and responsive handling.
It has modern tech, a comfortable cabin, and more reasons to be included in this list– a great choice for those who want a fun and practical hatchback under $25,000. According to the KBB, a used 2018 Ford Focus can cost around $10,773 for a 4D hatchback ST model.
Electric and Hybrid Options: Eco-Friendly Choices
As the automotive industry shifts towards sustainability, more affordable electric and hybrid options are becoming available. Unfortunately, you’ll have to wait a bit more to buy a new all-electric car in the US for under $25k.
Jeep Renegade EV
- Estimated MSRP: $25,000
2024 Renegade / Photo Credit: Jeep.
Jeep plans to launch an electric Renegade in the US with a starting price under $25,000. The new EV is part of a larger plan to revamp the Jeep brand in the US.
It will launch by 2027, positioned as an affordable all-electric SUV and probably the first of its kind priced under $25,000. You can expect a rugged design, lithium-iron-phosphate batteries for cost efficiency, and a range of 200-300 miles.
Built on a multi-energy platform, it may share technology with the Citroën e-C3. Jeep plans to assemble it in the U.S. or approved trade regions to qualify for federal tax credits. That should help make it a competitive entry-level EV.
Tesla Model 2
- Estimated Price: $25,000
AI Image.
The Tesla Model 2, slated for release in 2025, would’ve been Tesla's most affordable EV, priced around $25,000. Designed as a compact hatchback, you can expect a minimalist interior, advanced Tesla 3.0 manufacturing technology, and a range of approximately 250 miles.
Tesla would build it on the company’s next-generation platform with the promise of high efficiency and scalability. Production was planned at Tesla's Gigafactories in Texas and Mexico, targeting global markets.
If you’ve sensed the past tenses, that’s because Tesla is rumored to have scrapped plans for the $25,000 Model 2 due to intense competition from China and to focus on autonomous "Robotaxi" vehicles.
However, Elon Musk publicly denied these claims, stating that the reports were false, leaving us in a somewhat “we neither deny nor confirm” situation. This means the Model 2 could show up to compete with rivals like the Chevrolet Bolt and Volkswagen ID.2, a game-changer for affordable EVs stateside.
Making the Right Choice
When it comes to finding the best new cars under $25,000 in 2025, there are plenty of options to suit different needs and preferences. With advancements in technology and design, today's vehicles are more capable and feature-rich than ever before. So, take your time, explore your options, and you'll find the perfect car that fits your budget and meets your needs.
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