Best Affordable Cars of 2025

Car prices have seen a noticeable climb in recent years. According to Edmunds, the average transaction price for a new car in the U.S. reached $48,759 in August 2023 — a figure driven up by supply shortages and rising interest rates. For budget-conscious buyers, this upward trend has made finding value more important than ever.

Whether you’re a student buying your first vehicle, a growing family looking to save on transport, or simply someone hoping to avoid overpaying, affordable new cars in 2025 offer a practical solution. Luckily, the latest car models continue to offer solid safety features.

These features include dependable fuel economy,super impressive tech, and a wallet-friendly price point.

In this guide to the best affordable cars of 2025, we’ve rounded up top choices that deliver strong value without compromising on reliability or quality. If you’re wondering where to begin, or how upcoming trade policies could impact what you pay, check out our guide on how tariffs will affect car prices for a full breakdown.

Key Takeaways

• Car prices remain high, making affordable options essential for budget-focused buyers.
• The best cheap cars of 2025 balance value, fuel efficiency, and standard safety features.
• Compact sedans, hatchbacks, and small SUVs continue to offer the best mix of affordability and practicality.
• Sherpa Auto Transport can help you move your new car safely and affordably anywhere in the U.S.

In This Guide:

• Best Cheap Cars of 2025
• How to Choose an Affordable Car
• Cheap Car FAQ’s

Best Cheap Cars of 2025

Consumers now are considering the cheapest new car options or searching for the best cheap car in today’s market. This is primarily because of the rising living costs, higher interest rates, and ongoing vehicle supply challenges.

It means finding a budget-friendly vehicle isn’t just about saving money, it’s about smart financial planning. Whether you’re after a reliable commuter car, a first-time vehicle, or an affordable family option, here are our top picks for 2025.

1. 2025 Hyundai Venue

Description

A compact SUV that punches above its weight in both value and personality. The Hyundai Venue delivers an upscale feel for an entry-level price, with a practical, easy-to-drive nature ideal for urban driving.

Key Features

• Standard 8-inch touchscreen infotainment system with intuitive controls.
• Wireless Apple CarPlay and Android Auto for seamless smartphone integration.
• Impressive fuel economy for a subcompact crossover, averaging around 31 mpg combined.

Pros

• Low starting price makes it one of the best entry-level SUVs on the market.
• High safety ratings with advanced driver-assistance features like lane-keeping assist and forward collision-avoidance.
• Great warranty coverage, including a 10-year/100,000-mile powertrain warranty.

Cons

• Modest horsepower may feel underwhelming on highways or steep inclines.
• Smaller cargo capacity compared to some rivals in the crossover class.

Average Cost: $21,000

Additional Information: It is perfect for city dwellers or first-time car buyers seeking an affordable, reliable crossover with modern technology.

2. 2025 Kia Rio

Description

Kia Rio is a dependable subcompact car that remains one of the cheapest new cars in the U.S. for 2025. It’s fuel-efficient, practical, and comes with one of the longest warranties in the industry.

Key Features

• Fuel-efficient 1.6L four-cylinder engine offering up to 41 mpg on the highway.
• 8-inch touchscreen with smartphone integration and Bluetooth connectivity.
• Available driver-assistance technologies like forward collision avoidance.

Pros

• Excellent fuel economy makes it ideal for commuters and budget-conscious drivers.
• Affordable maintenance costs and strong reliability ratings over the years.
• Kia’s 10-year/100,000-mile powertrain warranty adds long-term peace of mind.

Cons

• Basic interior styling with hard plastics and minimal luxury touches.
• Limited standard safety features compared to some newer competitors.

Average Cost: $18,900

Additional Information: Great for students and first-time buyers seeking no-fuss, dependable transportation with low ownership costs.

3. 2025 Nissan Versa

Description

The Nissan Versa continues to surprise buyers with its roomy cabin, smooth ride, and a suite of safety features rarely seen at this price point.

Key Features

• Standard Nissan Safety Shield 360, including automatic emergency braking and blind-spot monitoring.
• Great fuel economy, achieving up to 40 mpg on the highway.
• User-friendly infotainment system with available Apple CarPlay and Android Auto.

Pros

• Budget-friendly price tag makes it one of the best affordable cars for first-time buyers.
• Strong safety technology is standard, a rare bonus in this segment.
• Surprisingly spacious interior for its compact size.

Cons

• Limited engine power may leave drivers wanting more on fast roads.
• No available all-wheel-drive option.

Average Cost: $17,500

Additional Information: A perfect pick for budget buyers prioritizing safety, fuel efficiency, and surprising interior space at a wallet-friendly price.

4. 2025 Toyota Corolla

Description

A perennial favorite in the compact car class, the Corolla offers a well-balanced mix of efficiency, safety, and reliability with every model year.

Key Features

• Toyota Safety Sense 3.0 driver-assistance suite, including adaptive cruise control and lane-tracing assist.
• Standard wireless Apple CarPlay and Android Auto for seamless connectivity.
• Hybrid variant available for even better fuel efficiency.

Pros

• Superb reliability record, consistently ranking among the most dependable compact cars.
• High resale value, making it a smart long-term investment.
• Comfortable ride with a well-insulated, quiet cabin.

Cons

• Higher starting price than some other compact sedans on this list.
• Base engine feels average compared to turbocharged rivals.

Average Cost: $23,500

Additional Information: One of the most dependable compact sedans with strong resale value — a smart long-term purchase for everyday use. Check out our guide to best resale value cars.

5. 2025 Honda Civic

Description

The Civic continues to impress in 2025, blending sporty driving dynamics with daily practicality. It remains one of the best cheap cars for those who want a reliable and engaging ride.

Key Features

• Spacious and well-appointed interior with quality materials.
• Honda Sensing safety suite standard, including collision mitigation braking and road departure mitigation.
• Available turbocharged engine option for added performance.

Pros

• Great fuel efficiency, with up to 42 mpg on the highway in certain trims.
• Well-equipped base model includes modern infotainment and safety tech.
• Sharp handling and refined ride, giving it a sportier feel than many budget options.

Cons

• Above-average starting price for the compact segment.
• Some advanced features reserved for higher trims.

Average Cost: $24,500

Additional Information: A favorite for drivers who want reliable daily transport with sporty handling and premium-feeling cabin finishes.

6. 2025 Mitsubishi Mirage

Description

The Mirage remains one of the cheapest new cars in the U.S., offering basic, reliable transport with excellent fuel efficiency for drivers prioritizing affordability.

Key Features

• Fuel-sipping 1.2L three-cylinder engine achieving up to 43 mpg highway.
• 7-inch touchscreen infotainment with smartphone connectivity.
• Forward collision mitigation standard.

Pros

• Extremely low starting price makes it one of the most budget-friendly options.
• Outstanding fuel economy — ideal for city commuters.
• Easy to park and manoeuvre in tight spaces.

Cons

• Modest power output and limited acceleration.
• Interior materials and tech features feel dated.

Average Cost: $17,000

Additional Information: The most budget-friendly new car on the market, perfect for city commutes and drivers prioritizing fuel economy.

7. 2025 Chevrolet Trax

Description

Completely redesigned for 2025, the Chevrolet Trax, an American made car, now offers compact SUV practicality with an affordable price and a modern feature list.

Key Features

• Standard 8-inch infotainment display with wireless Apple CarPlay and Android Auto.
• Chevy Safety Assist package, including lane keep assist and automatic emergency braking.
• Up to 32 mpg highway.

Pros

• Attractive new styling and improved cabin quality.
• Affordable small SUV with ample passenger space.
• Great standard safety technology for the price.

Cons

• No all-wheel-drive option.
• Smaller cargo space than some competitors.

Average Cost: $21,500

Additional Information: A stylish, newly redesigned small SUV offering strong value, modern safety features, and room for small families.

8. 2025 Mazda3

Description

For those seeking a little extra driving enjoyment, the Mazda3 offers sharp handling, a premium interior feel, and excellent reliability.

Key Features

• 8.8-inch infotainment display with Apple CarPlay and Android Auto.
• Available all-wheel drive.
• Mazda’s i-Activsense safety suite standard.

Pros

• Class-leading interior materials and build quality.
• Sporty driving dynamics are rare in this price range.
• Solid fuel efficiency, with up to 37 mpg highway.

Cons

• Base model starts slightly higher than some budget rivals.
• Limited rear seat space in hatchback models.

Average Cost: $24,000

Additional Information: An excellent choice for drivers who appreciate premium interiors, sporty handling, and everyday practicality in one affordable package.

9. 2025 Subaru Impreza

Description

A reliable compact car with standard all-wheel drive — a rare feature in the best budget cars category.

Key Features

• Symmetrical All-Wheel Drive standard.
• EyeSight Driver Assist Technology, including adaptive cruise control and lane departure warning.
• Available in sedan and hatchback variants.

Pros

• Excellent traction in wet or snowy conditions.
• Comprehensive safety technology included.
• Practical cargo space in hatchback trim.

Cons

• Modest engine performance.
• Interior design remains relatively plain compared to newer rivals.

Average Cost: $23,000

Additional Information: The only car in its class with standard all-wheel drive — a smart option for drivers in regions with harsh weather.

10. 2025 Volkswagen Jetta

Description

A refined and spacious compact sedan offering smooth performance, impressive fuel efficiency, and solid standard features.

Key Features

• Turbocharged 1.5L engine delivering up to 42 mpg highway.
• 8-inch digital cockpit display.
• VW IQ.Drive driver-assistance suite available.

Pros

• Smooth, composed ride quality.
• Spacious rear seat for passengers.
• Strong fuel economy and attractive pricing.

Cons

• Some rivals offer more advanced tech as standard.
• Base trim lacks some desirable features found in higher trims.

Average Cost: $23,500

Additional Information: A well-rounded compact sedan delivering a smooth ride, roomy interior, and turbocharged efficiency at a sensible price point.

How to Choose an Affordable Car

When searching for the best budget cars, it’s essential to look beyond the sticker price. An affordable car should deliver lasting value over years of ownership — balancing reliability, running costs, and resale value.

Here are the most important factors to weigh before you decide:

Total Cost of Ownership

Don’t judge a car’s affordability by its purchase price alone. Consider the total cost of ownership, which includes expenses like insurance premiums, annual registration fees, regular maintenance, and fuel costs.

Some cars may be cheap to buy but expensive to insure or maintain, so always research typical upkeep costs for your shortlisted models. Kelley Blue Book is an excellent resource for evaluating accurate pricing for a vehicle.

Safety Ratings

Affordability shouldn’t come at the expense of safety. Prioritize cars with high crash-test ratings from organizations like the National Highway Traffic Safety Administration (NHTSA) or the Insurance Institute for Highway Safety (IIHS).

Look for vehicles equipped with modern driver-assistance features such as automatic emergency braking, blind-spot monitoring, and lane departure warnings — many best affordable cars now include these systems as standard.

Warranty Coverage

A solid factory warranty can save you considerable money in repair costs, especially for major components like the engine and transmission. Look for manufacturers offering extended powertrain warranties — brands like Hyundai, Kia, and Mitsubishi lead the market with warranties of 10 years or 100,000 miles on select models.

This coverage offers valuable peace of mind and reduces long-term ownership expenses. See if you can buy a car directly from the manufacturer. 

Resale Value

Some cars hold their value better than others. A higher resale value means you’ll recoup more money when it’s time to sell or trade your car in the future. Typically, brands like Toyota, Honda, and Subaru top resale value rankings thanks to their reputation for reliability and durability. 

Additional Considerations

• Fuel Efficiency: Look for vehicles offering strong miles per gallon (mpg) ratings, especially if you drive frequently. Hybrid and smaller engine options can offer long-term fuel savings.
• Interior Comfort and Tech: Budget cars today often come with surprising standard tech, including touchscreen infotainment, smartphone connectivity, and advanced safety features.
• Availability of Financing or Lease Deals: Special financing rates or lease offers can make a slightly more expensive car fit within your budget.

If you’re open to pre-owned options, check out our best used car sites guide for trusted platforms where you can find quality used vehicles at competitive prices.

Cheap Car FAQ’s