Best Cars Under $25,000: Budget-Friendly & Reliable Options
by AutoExpert | 28 February, 2025
Remember when you could snag a new car for under 15 grand? Yeah, those days are gone (pour one out for the Chevy Spark). These days, anything under $20k is basically the bottom-of-the-barrel entry fee for new car ownership.
We've rounded up the best options if you're shopping with a budget between $15,000 and $25,000 this year. Maybe you're grabbing your first set of wheels, need something that won't terrify your insurance agent for your newly-licensed teen, or just want something new without eating ramen for the next five years, we got you covered.

Don't hold your breath for EVs in this price range (still wayyyy too pricey), but we did manage to spot a hybrid or two that squeezed in under the wire.
1. Honda Civic Sedan (8.6/10)
- Starting at: $24,250
- Engine Options: 2.0L 4-cylinder (150 hp) or 2.0L hybrid (200 hp combined)
The Honda Civic tops our list, though only the bаse LX trim sneaks in under our $25k ceiling. You'll get a 2.0-liter four-cylinder pushing out 150 horsepower аnd 133 lb-ft of torque.
Sure, the bаse model isn't exactly dripping with fаncy features, but Honda doesn't cheap out on safety — you still get collision-mitigation braking, forward collision warning, and lane departure warning standard. The Civic is way more fun to drive than the Corolla and has a surprisingly spacious, well-thought-out interior.

2. Nissan Kicks (8.4/10)
- Starting at: $21,830
- Engine: 2.0-liter inline-four (141 hp)
The 2025 Nissan Kicks isn't just cheap — it actually snаgged CarBuzz's "Best Budget Cаr of the Year" award. Three versions come in under $25k: the Kicks S FWD ($21,830), the SV FWD ($23,680), and the S AWD ($23,330). All rock the sаme 2.0-liter four-cylinder with 141 horses and 140 lb-ft of torque.

3. Toyota Corolla Hatchback (8.4/10)
- Starting at: $23,780
- Engine: 2.0L 4-cylinder (169 hp @ 6,600 rpm)
If you're hunting for something that'll still be running when your unborn children get their licenses, the Toyota Corolla Hatchback is your jam. Two trims slide under our price cap: the SE ($23,780) and the Nightshade ($24,780).
All Corolla Hatchbacks come with front-wheel drive and a decent 2.0-liter four-cylinder pumping out 169 horsepower and 151 lb-ft of torque. The base model isn't loaded with goodies, but you still get solid safety tech like all-speed dynamic cruise control, lane departure assist, and forward collision warning.

4. Buick Envista (8.1/10)
- Starting at: $23,800
- Engine: 1.2L Turbo 3-Cylinder (137 hp)
Let's get real — most cheap cars are about as exciting as watching paint dry. They get you from A to B without breaking down, and that's about all you can ask for. The Buick Envista, though, at least tries to look cool with its swoopy coupe-SUV styling.
The base Preferred trim starts at $23,800, and all versions use a tiny 1.2-liter three-cylinder engine making just 137 hp and 162 lb-ft. With power numbers like that, the Envista is basically one of the slowest new cars you can buy today. That said, it doesn't feel completely hopeless around town.

5. Chevrolet Trax (7.9/10)
- Starting at: $20,400
- Engine: 1.2L Turbo 3-Cylinder (137 hp)
While true $15k cars are as extinct as the dodo, the Chevy Trax gets you pretty close at just $20,400. Being another GM product, it shares the same puny 1.2-liter turbocharged three-cylinder as the Buick (137 hp and 162 lb-ft) but costs a few grand less than its fancier cousin.
It may be cheap and slow, but the Trax is surprisingly practical. You can cram five people inside, and despite being tiny, it somehow offers up to 54.1 cubic feet of cargo space with the back seats folded. Not too shabby!

6. Kia K4 (7.7/10)
- Starting at: $21,190
- Engine Options: 2.0L 4-cylinder (147 hp) or 1.6L Turbo 4-cylinder (190 hp)
The Kia K4 recently kicked the Forte to the curb, but it's basically filling the same role in Kia's lineup. Three trims start under $25k: the LX ($21,990), the LXS ($22,990), and the EX ($23,990).
All but the top-dog K4 use a 2.0-liter four-cylinder making 147 hp and 132 lb-ft. One big change from the Forte: the K4 totally ditches the manual transmission option (sad trombone), replacing it with a CVT on everything except the top model, which gets an eight-speed automatic.

What to Expect from Cars Under $25,000
Budget rides typically share some common traits:
- They won't demolish your wallet to buy or maintain
- They're usually compact and easy to park in tight spots
- They're surprisingly practical for their size
- They include the essentials but few luxuries
- The interior materials won't blow you away (but they're not terrible)
FAQs About Budget-Friendly Cars
What are the best cars for under $25k?
Most are solid daily drivers and commuters, with a few considering family needs too. The Honda Civic is a standout for its spacious interior and good standard features, though it's juuust barely under our price ceiling. The Toyota Corolla deserves a mention too for its bulletproof reliability.
Are cars under $25,000 reliable?
Most automakers know that budget buyers can't afford constant repairs, so they make sure these affordable models won't leave you stranded. Plus, when something does inevitably break, the repairs won't cost an arm and a leg.

Are there any luxury cars for $25k?
While you can add some fancy features to these budget rides, calling any of them true "luxury cars" would be like calling a microwave dinner "gourmet cuisine." Close your eyes and pretend, maybe?
