In 2025, finding an affordable new car in the United States is tougher than ever. With the average price of a new vehicle hovering around $48,000, budget-conscious buyers are feeling the squeeze. Inflation, rising production costs, and shifting market demands have pushed many new car prices out of reach for the average consumer. However, there are still a handful of vehicles that offer solid value, modern features, and reliability without breaking the bank. This blog post explores the cheapest new cars for 2025, focusing on models priced under $25,000, based on data from trusted sources like Kelley Blue Book, Car and Driver, and MotorTrend. We’ll highlight their key features, pros, cons, and why they’re worth considering for cost-conscious shoppers.
Why Are Affordable Cars Harder to Find?
Before diving into the list, it’s worth understanding why cheap cars are becoming scarce. The automotive industry has shifted toward SUVs, crossovers, and trucks, which dominate sales and often carry higher price tags. Compact and subcompact sedans, once the go-to for budget buyers, are fading from the market. The discontinuation of models like the Mitsubishi Mirage and Kia Rio has left only a few options under $20,000. Additionally, inflationary pressures and supply chain challenges since the COVID-19 pandemic have driven up production costs, making even entry-level models pricier. Despite this, automakers like Nissan, Hyundai, Kia, and Chevrolet continue to offer affordable options packed with modern tech and safety features.
Below, we’ve compiled a list of the top 10 cheapest new cars for 2025, ordered by their starting MSRP (including destination fees) with automatic transmissions, as most buyers prefer automatics. Each entry includes key specs, standout features, and considerations to help you decide which vehicle fits your needs.
1. Nissan Versa S – $20,130
The 2025 Nissan Versa S is the cheapest new car in America, with a starting price of $20,130 for the model equipped with a continuously variable transmission (CVT). For those willing to drive a manual, the base price drops to $18,330, making it the only new car under $20,000. Powered by a 1.6-liter four-cylinder engine producing 122 horsepower, the Versa prioritizes fuel efficiency (35 mpg combined) over performance. It’s a practical subcompact sedan with a surprisingly spacious trunk (14.7–15 cubic feet) and a decent backseat for its class.
Standout Features:
- Standard safety tech: Automatic emergency braking with pedestrian detection, lane departure warning, and rear automatic braking.
- 7-inch touchscreen with optional Apple CarPlay and Android Auto on higher trims.
- Comfortable ride for daily commuting and easy parking.
Pros:
- Lowest price point for a new car.
- Excellent fuel economy.
- Decent trunk space for a subcompact sedan.
Cons:
- Sluggish acceleration, especially on highways.
- Basic interior materials.
- Manual transmission required for the absolute lowest price.
Why Consider It? The Versa is ideal for first-time buyers or commuters seeking basic, reliable transportation with low running costs. Its safety features and fuel efficiency make it a practical choice, though it lacks the refinement of pricier rivals.
2. Hyundai Venue SE – $21,695
The 2025 Hyundai Venue SE is the cheapest crossover SUV in the U.S., starting at $21,695. This subcompact crossover offers SUV-like styling without all-wheel drive, powered by a 1.6-liter four-cylinder engine with 121 horsepower and a CVT. It boasts 31 mpg combined and Hyundai’s impressive 5-year/60,000-mile warranty. The Venue’s compact size makes it perfect for urban environments, and it’s earned Kelley Blue Book’s Lowest 5-Year Cost to Own award for its class.
Standout Features:
- 8-inch touchscreen with wireless Apple CarPlay and Android Auto.
- Hyundai SmartSense safety suite: Automatic emergency braking, lane-keeping assist, and driver attention warning.
- Spacious interior for passengers, though cargo space is limited.
Pros:
- Affordable SUV styling.
- Strong warranty and low ownership costs.
- Modern tech for the price.
Cons:
- No all-wheel drive option.
- Limited cargo space (18.7 cubic feet).
- Underpowered engine for highway driving.
Why Consider It? The Venue is a great pick for buyers wanting SUV aesthetics on a budget. Its tech and warranty make it a value-packed option for city dwellers.
3. Kia Soul LX – $21,885
The 2025 Kia Soul LX, priced at $21,885, is a boxy hatchback with crossover appeal. Its 2.0-liter four-cylinder engine delivers 147 horsepower, paired with a CVT, and achieves 30 mpg combined. The Soul offers 24.2 cubic feet of cargo space behind the second row, expanding to 62.1 cubic feet with seats folded, making it one of the most space-efficient vehicles on this list. It also comes with Kia’s 10-year/100,000-mile powertrain warranty.
Standout Features:
- 8-inch touchscreen with Apple CarPlay and Android Auto.
- Standard safety features: Automatic emergency braking, lane departure warning, and rear occupant alert.
- Quirky, distinctive design.
Pros:
- Spacious and versatile cargo area.
- Long warranty.
- Fun, unique styling.
Cons:
- No all-wheel drive.
- Average fuel economy for its class.
- Base model lacks some premium features.
Why Consider It? The Soul is perfect for buyers who want a practical, roomy vehicle with personality. Its warranty and cargo space make it a standout for budget shoppers.
4. Chevrolet Trax LS – $21,895
Starting at $21,895, the 2025 Chevrolet Trax LS is a stylish subcompact SUV with a 1.2-liter turbo three-cylinder engine producing 137 horsepower. It offers 30 mpg combined and a sleek, modern design. The Trax includes an 8-inch touchscreen with wireless Apple CarPlay and Android Auto, plus Chevy Safety Assist features like automatic emergency braking and lane-keeping assist.
Standout Features:
- Sharp exterior styling with LED lighting.
- Spacious interior for a subcompact SUV.
- Standard wireless smartphone integration.
Pros:
- Attractive design for the price.
- Good tech and safety features.
- Decent passenger space.
Cons:
- No all-wheel drive option.
- Fuel economy lags behind some competitors.
- Three-cylinder engine feels underpowered.
Why Consider It? The Trax is a strong choice for buyers seeking an affordable SUV with modern looks and tech, ideal for urban commuting.
5. Nissan Sentra S – $22,730
The 2025 Nissan Sentra S, priced at $22,730, is a compact sedan with a 2.0-liter four-cylinder engine delivering 149 horsepower and 40 mpg on the highway. It features Nissan’s Zero Gravity seats for comfort and the Safety Shield 360 suite, including automatic emergency braking and blind-spot monitoring.
Standout Features:
- 7-inch touchscreen with Apple CarPlay and Android Auto.
- Comfortable seats for long drives.
- Upscale styling for a budget sedan.
Pros:
- Excellent fuel economy.
- Comfortable ride.
- Good safety features.
Cons:
- Mediocre handling.
- Tight rear legroom.
- Underwhelming safety ratings compared to rivals.
Why Consider It? The Sentra offers a refined ride and great fuel economy, making it a solid choice for commuters who value comfort over sportiness.
6. Nissan Kicks Play S – $22,910
The 2025 Nissan Kicks Play S starts at $22,910 and is a subcompact crossover with a 1.6-liter four-cylinder engine producing 122 horsepower. It achieves 33 mpg combined and offers optional all-wheel drive, a rarity in this price range. The Kicks features a modern design and a 7-inch touchscreen with smartphone integration.
Standout Features:
- Optional all-wheel drive.
- Spacious cabin and cargo area.
- Standard safety tech: Automatic emergency braking and lane departure warning.
Pros:
- Stylish and practical.
- Good resale value.
- All-wheel drive option.
Cons:
- Slow acceleration.
- Noisy at highway speeds.
- Base trim lacks premium features.
Why Consider It? The Kicks is a versatile choice for buyers wanting a budget-friendly crossover with the option for all-wheel drive.
7. Kia K4 LX – $23,165
The 2025 Kia K4 LX, starting at $23,165, replaces the Forte with a sleek design and a 2.0-liter four-cylinder engine producing 147 horsepower. It offers 31 mpg combined and includes a 10-year/100,000-mile powertrain warranty. The K4’s tech-heavy interior features an 8-inch touchscreen and wireless smartphone integration.
Standout Features:
- Modern, upscale design.
- Standard safety features: Automatic emergency braking and lane-keeping assist.
- Spacious interior.
Pros:
- Stylish looks.
- Long warranty.
- Good value for tech and space.
Cons:
- Base engine lacks excitement.
- First-year model may have higher depreciation.
- No hybrid option at base trim.
Why Consider It? The K4 is a fresh, tech-forward sedan for buyers seeking style and reliability on a budget.
8. Hyundai Elantra SE – $23,370
The 2025 Hyundai Elantra SE starts at $23,370 and offers a 2.0-liter four-cylinder engine with 147 horsepower and 36 mpg combined. It’s a compact sedan with a spacious cabin, an 8-inch touchscreen, and Hyundai SmartSense safety features like adaptive cruise control and lane-keeping assist.
Standout Features:
- Fuel-efficient hybrid option available.
- 10-year/100,000-mile powertrain warranty.
- Roomy interior and intuitive controls.
Pros:
- Excellent fuel economy.
- Strong warranty.
- Comfortable and spacious.
Cons:
- Base model lacks sporty handling.
- Some rivals offer more cargo space.
- Hybrid option increases price.
Why Consider It? The Elantra is a well-rounded compact sedan with great value, fuel efficiency, and a long warranty, perfect for families or commuters.
9. Toyota Corolla LE – $23,520
The 2025 Toyota Corolla LE, priced at $23,520, is a compact sedan with a 2.0-liter four-cylinder engine delivering 169 horsepower and 32 mpg combined. It includes Toyota Safety Sense 3.0, with features like adaptive cruise control and lane-keeping assist, plus an 8-inch touchscreen with wireless smartphone integration.
Standout Features:
- Reliable reputation and strong resale value.
- Standard safety and tech features.
- Available hybrid option (47 mpg combined).
Pros:
- Proven reliability.
- Good tech for the price.
- Comfortable ride.
Cons:
- Tight rear legroom.
- Base model lacks premium flair.
- Hybrid costs extra.
Why Consider It? The Corolla is a safe, reliable choice for buyers prioritizing longevity and low maintenance costs.
10. Volkswagen Jetta S – $23,720
The 2025 Volkswagen Jetta S starts at $23,720 and features a 1.5-liter turbo four-cylinder engine with 158 horsepower and 42 mpg on the highway. It offers VW’s IQ.Drive safety suite, including adaptive cruise control and blind-spot monitoring, plus an 8-inch touchscreen with wireless Apple CarPlay and Android Auto.
Standout Features:
- Premium cabin feel for the price.
- Excellent highway fuel economy.
- Solid handling and ride quality.
Pros:
- Refined driving experience.
- High-quality interior.
- Advanced safety tech.
Cons:
- Higher starting price than some rivals.
- Smaller trunk than competitors.
- No hybrid option.
Why Consider It? The Jetta offers a near-premium experience at a budget price, ideal for buyers wanting a touch of sophistication.
Key Trends and Considerations
The 2025 lineup of affordable cars reflects a market shift toward crossovers and SUVs, with sedans like the Nissan Versa and Sentra holding strong for traditionalists. Most vehicles on this list offer standard safety features like automatic emergency braking and smartphone integration, a significant improvement over budget cars of the past. However, the era of sub-$20,000 cars is nearly over, with only the manual Versa fitting that bracket. Buyers should also consider long-term costs: models like the Hyundai Venue and Kia Soul offer excellent warranties, while the Toyota Corolla and Nissan Versa provide strong resale value.
When shopping, check for incentives and compare used models, as low-mileage used cars may offer similar value due to inventory shortages. Always test-drive to ensure the vehicle meets your needs, and consider fuel efficiency and insurance costs, especially for subcompact SUVs like the Trax and Venue.
Conclusion
The cheapest new cars for 2025 prove that affordability doesn’t mean sacrificing modern features or reliability. From the budget-friendly Nissan Versa to the tech-savvy Kia K4 and fuel-efficient Hyundai Elantra, there’s something for every budget-conscious buyer. Whether you prioritize fuel economy, cargo space, or safety, these vehicles deliver impressive value in a high-priced market. Visit dealerships, explore financing options, and check sites like Kelley Blue Book or Cars.com for the latest deals to make your purchase even more affordable. Happy car shopping
