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With the Federal Reserve recently cutting interest rates for the first time in four years, new car prices continuing to drop and incentives back in fashion, the next 12 to 15 months could conceivably be the best time to buy a car in a very long time.
This is great news for Americans who are keen to save money. According to Edmunds’ latest “Car Shopper Expectations vs. Market Realities” report, more than 73% of respondents said they’ve postponed buying a new vehicle due to high vehicle prices, and more than 62% have held off because of high interest rates.
If you’re looking to land a bargain on a 2024 model, now is the time to buy, as manufacturers and dealers are aggressively moving inventory before the year runs its course. However, buyers eyeing 2025’s new cars and SUVs will need to be more selective if they want to spend less.
Per Cox Automotive Industry Insights data, sales of cars priced under $25,000 have dropped by 78% in the last five years, as manufacturers continue to focus on electric vehicle production and build more expensive cars.
Still, there are several great options if you’re looking for a budget-friendly new car. Take a closer look at our list and see if one of these 10 new cars and SUVs under $25,000 should be on your radar, starting with the cheapest car in the 2025 lineup.
Nissan Versa
- Estimated 2025 Base MSRP: $18,330
With Mitsubishi discontinuing the Mirage hatchback and sedan at the end of the year, the Versa subcompact sedan is the cheapest car available in the U.S. and the only car that will sell for under $20,000 in 2025.
Chevrolet Trax
- Estimated 2025 Base MSRP: $21,495
The price is right, and the Trax provides great value for money. A host of features and ample interior space are its strengths.
Kia Soul
- Estimated 2025 Base MSRP: $21,665
What the Soul lacks in performance, it makes up for in easy access, personality and versatility. In a world of cookie-cutter car style, the Soul stands apart.
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Hyundai Venue
- Estimated 2025 Base MSRP: $22,000
The 2025 Venue will compete admirably against many of the vehicles listed here, but Kelley Blue Book (KBB) has rated the subcompact SUV the “Lowest Cost to Own” multiple times. Moreover, few brands can compete with Hyundai as far as warranties are concerned.
Nissan Sentra
- Estimated 2025 Base MSRP: $22,730
The Nissan Sentra offers a good mix of features, comfortable interior space and solid fuel economy, making it a great option for those on a budget.
Toyota Corolla/Corolla Hybrid
- Estimated 2025 Base MSRP: $23,000/$24,000
Legendary reliability, fuel efficiency and second-to-none safety features come with all Corollas. In 2025, it will continue to offer a blend of practicality and affordability. Edmunds estimates the price for both the base Corolla and its Hybrid version to come in under $25,000.
Nissan Kicks
- Estimated 2025 Base MSRP: $23,220
According to TrueCar, Nissan’s entry-level SUV has upped the 2025 model’s game, adding “interior space, [a] more powerful engine and available all-wheel drive (that) will help it compete favorably against higher-end SUVs.”
Buick Envista
- Estimated 2025 Base MSRP: $23,995
MotorTrend called the Envista one of the most stylish models of the affordable 2025 cars. It also raves about its “enjoyable handling, good ride and spunky three-cylinder engine,” (but regrets its lack of an all-wheel drive option).
Subaru Impreza
- Estimated 2025 Base MSRP: $24,000
While the sedan and the manual transmission Impreza are no longer available, the automatic 5-door hatchback still has plenty to offer. The Impreza is Subaru’s oldest model. Upgrades for this year include a revamped infotainment system and a refreshed exterior and cabin.
Chevrolet Trailblazer
- Estimated 2025 Base MSRP: $24,395
Redesigned in 2024, there’s not a lot new with the Trailblazer besides some cosmetic options and a calibration of its standard engine to make it E-85 gas compatible, per Car and Driver.
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