Budget-Friendly New Cars Under $25,000: Your Guide to the Cheapest Options

Looking to purchase a new vehicle without breaking the bank? You’re not alone. Finding cheap new cars that deliver both reliability and value is a top priority for many American drivers. Before you start shopping, remember one key financial principle: your total car expenses should not exceed more than 10% of your monthly income.

GOBankingRates analyzed multiple affordability rankings from leading automotive sources to identify six quality vehicles priced under $25,000 that deserve your consideration. Whether you prioritize fuel economy, interior space, or safety features, there’s a budget-friendly option for every driver type.

The Ultra-Affordable Entry: Mitsubishi Mirage Leads the Market

Starting at just $18,015, the 2024 Mitsubishi Mirage claims the top spot among cheap new cars under $25,000. According to Car and Driver and Kelley Blue Book’s 2024-2025 rankings of the most inexpensive vehicles, the Mirage consistently ranks among the lowest-priced new cars available today.

Available in both hatchback and sedan configurations, this model excels in fuel efficiency—a major advantage for budget-conscious drivers. The primary trade-off is performance; the Mirage accelerates more slowly than many competitors. However, its compact size and nimble handling make it particularly attractive for city dwellers who prioritize maneuverability and fuel savings over raw power.

Mid-Range Budget Cars: Solid Value Between $21,000 and $22,000

Kia Forte: Style Meets Value

The 2024 Kia Forte represents the sweet spot in the sub-$22,000 range, starting at $21,145. This cheap new car ranked third in KBB’s cheapest 2024-2025 vehicle listings. While it may not turn heads on the street, the Forte delivers impressive interior quality for its price point. Inside, drivers enjoy generous cabin space and a stylish dashboard design that feels more premium than the price tag suggests.

Nissan Sentra: Comfort and Features on a Budget

At $21,725 for 2024 models (with 2025 pricing at $22,730), the Nissan Sentra packs excellent value into an affordable package. This budget vehicle offers a surprisingly spacious cabin, comfortable seats for extended drives, respectable fuel economy, and an abundance of safety technologies. For drivers seeking a practical, well-equipped cheap car, the Sentra delivers reliability without compromise.

Premium Budget Options: $22,000 to $25,000

Hyundai Elantra: First-Time Buyer Friendly

Starting at $22,775, the 2024 Hyundai Elantra earns high marks as an affordable compact sedan. Car and Driver recommends it specifically for first-time vehicle buyers. Beyond its attractive pricing, buyers appreciate the Elantra’s fuel efficiency, sleek exterior styling, and surprisingly roomy interior space—proving that cheap new cars don’t have to sacrifice comfort or aesthetics.

Toyota Corolla: Affordability Meets Reliability

For drivers who want reliability combined with budget pricing, the 2024 Toyota Corolla at $23,185 is hard to beat. This practical vehicle suits everyone from young professionals to families. The Corolla includes modern safety technology like LED headlights and wireless smartphone integration, ensuring that this cheap new car keeps protection at the forefront without inflating the price.

Volkswagen Jetta: Maximum Value at the $25,000 Mark

Rounding out our list is the 2025 Volkswagen Jetta, priced just under $25,000 at $23,220. Kelley Blue Book ranked it as one of 2026’s cheapest new cars available. The Jetta delivers strong value with its spacious interior, competitive fuel economy, and Volkswagen’s IQ.Drive driver-assistance suite. According to Car and Driver, the 2025 model actually costs slightly less than its 2024 predecessor—making it an even more attractive budget option for value-seekers.

Choosing Your Cheap New Car: Final Recommendations

Finding the right budget vehicle depends on your specific priorities. If you’re looking for absolute rock-bottom pricing, the Mitsubishi Mirage can’t be beaten at $18,015. For those willing to spend slightly more, the mid-range options like the Kia Forte and Nissan Sentra offer markedly improved interior quality and features while still maintaining excellent affordability.

When shopping for cheap new cars, balance your monthly budget constraints with your lifestyle needs. All six vehicles listed above provide genuine value—each has earned its place through a combination of affordability, reliability, and buyer satisfaction. Whether you choose an ultra-cheap entry-level model or one of the higher-end budget options approaching $25,000, you’ll find a capable vehicle that won’t drain your finances.