Buying a new car can be a significant expense for families, and finding a good new car priced below $25,000 is not an easy task. However, there are still some highly attractive options in the market. So, which car models offer great value for their price tag?
According to the car trading website Edmunds, the average transaction price (ATP) for new cars in 2025 reached $48,402, compared to $37,310 in 2019. This means that six years ago, the price of a new car that was affordable now requires an additional $11,000, representing a 30% increase.
To purchase a new car priced below $25,000, thorough research is essential. If you are open to considering compact cars, there are still some good options on the market. This price range also offers a variety of models for those who value fuel efficiency.
“U.S. News & World Report” has selected a list of economical new cars that excel in both performance and value, all priced below $25,000. This list focuses on compact cars, many of which not only have stylish exteriors and enjoyable driving experiences but also offer more spacious interiors than expected. Additionally, there are some eye-catching crossover vehicles that are suitable for daily commuting while also providing enough space for weekend getaways.
This ranking considers factors such as the safety, comfort, and reliability of each model. In cases where two cars have the same rating, the one with the lower price wins.
Here are the top ten best new cars priced below $25,000. The Honda Civic continues to top the list, while the Toyota Corolla barely squeezes into the top ten.
“U.S. News & World Report” Rating: 9.4/10
Price: $24,695
Combined fuel efficiency: 36 mpg
The Honda Civic ranks at the top of the compact sedan list this year and is considered one of the top models to consider regardless of budget. While only the base LX sedan version of the Civic is priced just below $25,000, it offers great value and is suitable for consumers of all ages. The Civic is a wise choice for young buyers looking for a reliable and fuel-efficient ride.
The Civic received the highest five-star rating in overall safety from the National Highway Traffic Safety Administration (NHTSA). Although the Insurance Institute for Highway Safety (IIHS) has not yet rated the 2026 model, the 2025 model was honored with the “Top Safety Pick” title, one of the highest awards given by the institute.
In the list, it shares the best fuel efficiency with the Hyundai Elantra, achieving a combined fuel efficiency of 36 mpg in city and highway conditions.
The design of the Honda Civic was first introduced in 2022, underwent a facelift last year, and the 2026 model has largely continued the original design.
“U.S. News & World Report” Rating: 9.3/10
Starting Price: $24,650
Combined fuel efficiency: 30 mpg
The Mazda 3 is considered the most stylish model on this list. With its sleek body lines, striking front and rear lights, and elegant profile, the Mazda 3 looks much more expensive than its actual price. However, the rear passenger space is relatively tight, and the interior technology features are in need of an upgrade.
Like the Honda Civic, the Mazda 3 offers an enjoyable driving experience. The car is equipped with a 2.5-liter naturally aspirated four-cylinder engine, which provides sufficient performance for daily needs with good fuel efficiency of 27 mpg in the city and 36 mpg on the highway. “U.S. News & World Report” particularly recommends the sedan version of this car model, as the hatchback version’s starting price has exceeded $25,000, with the higher trim levels priced over $30,000.
“U.S. News & World Report” Rating: 8.5/10
Price: $17,390
Combined fuel efficiency: 35 mpg
The Nissan Versa is set to be discontinued, meaning that Nissan will have only one subcompact car model left on the market, with no new car priced below $20,000 available. However, Nissan is still selling the 2025 models. As dealers clear out the remaining Versa inventory, buyers may find good purchase deals at dealerships.
“U.S. News & World Report” senior car reviewer John M. Vincent praised the interior of the Versa as “surprisingly refined” and commended the driving dynamics of this small sedan. The Versa also demonstrates excellent reliability, receiving a score of 87 in J.D. Power’s scoring system, placing it among the top models in the list.
The Versa is powered by a small-displacement four-cylinder engine.
“U.S. News & World Report” Rating: 9.0/10
Price: $22,825
Combined fuel efficiency: 36 mpg
With a combined fuel efficiency of 36 mpg, the Hyundai Elantra ties with the Honda Civic as the most fuel-efficient model on the list. The Elantra’s sharp lines and stylish wheels give this compact sedan a sporty look; however, its interior is plain and practical, and the performance of the base engine is suitable for drivers not in a hurry.
Additionally, the Elantra boasts good expected reliability ratings and excellent safety ratings.
“U.S. News & World Report” Rating: 9.1/10
Starting Price: $22,290
Combined fuel efficiency: 33 mpg
As a highly stylish model, the Kia K4 has attracted attention since its 2025 release. The entry-level LX version starts at $22,290, making it one of the high-value models on the list.
The K4 was initially introduced as a sedan, but Kia subsequently added a hatchback option in the 2026 model year. Both models have attractive exteriors and offer rich standard configurations at competitive prices. However, excellent fuel efficiency often comes with mediocre power performance, and the K4 is no exception. The base model features a four-cylinder engine paired with a CVT gearbox tuned more for fuel efficiency than acceleration.
“U.S. News & World Report” Rating: 8.9/10
Price: $22,600
Combined fuel efficiency: 33 mpg
The 2026 Nissan Sentra is a highly acclaimed sedan that boasts a charming exterior design, rich technological features, and spacious interior space compared to other models in its class. As a redesigned model, the Sentra offers excellent value for its price; in terms of reliability, it shares the top spot with the Chevrolet Trailblazer. The Sentra retains the previous generation’s four-cylinder engine and CVT gearbox.
Nissan has targeted the Sentra at young families, empty nesters after their children leave home, and any consumers seeking a reasonably priced and reliable ride. While its price is higher than the soon-to-be-discontinued Versa, the Sentra is undoubtedly a more upscale model.
“U.S. News & World Report” Rating: 8.9/10
Price: $23,790
Combined fuel efficiency: 31 mpg
The Kia Seltos has re-entered the list due to its versatility, high value, and spacious interior. For crossover buyers looking for an easy driving experience and ample interior space, it is a wise choice; the class-leading warranty policy further enhances its overall value.
Although the 2027 model has been completely redesigned and exceeds the $25,000 limit when including shipping fees, “U.S. News & World Report” recommends the 2026 model for another reason. While it is no longer possible to order a 2026 model directly from Kia, dealerships still have a significant inventory to sell, providing buyers with the opportunity to negotiate a good price.
The starting price of the LX configuration model is below the $25,000 threshold; however, if the budget allows, choosing the S configuration model (priced at $25,490) is more cost-effective, as it comes equipped with a larger infotainment and navigation system.
“U.S. News & World Report” Rating: 8.7/10
Starting Price: $22,730
Combined fuel efficiency: 31 mpg
Senior editor Tony Markovich of the magazine mentioned that the Nissan Kicks is an excellent choice for car buyers of all kinds, offering more than just a “cheerful exterior and practical interior.” Compared to the brand’s previous subcompact SUVs, this model has made significant improvements in quality and features a wide array of user-friendly tech configurations.
Nissan only offers one powertrain option for the Kicks: a four-cylinder engine paired with a continuously variable transmission (CVT). Front-wheel drive is standard, but all trim levels can be equipped with an all-wheel-drive system. Markovich noted that the Kicks’ performance is relatively weak, a reasonable trade-off as the main focus of this model is on affordability and fuel efficiency.
“U.S. News & World Report” Rating: 8.6/10
Price: $21,700
Combined fuel efficiency: 30 mpg
General Motors (GM) has a strong lineup of small crossovers, with the Chevrolet Trax being one of its key models; positioned as an entry-level product, it aims to attract new buyers.
The Trax demonstrates many advantages in the market competition, including spacious interior space, sporty exterior design, and fuel efficiency of 28 mpg in city driving and 32 mpg on the highway. The base LS configuration model comes standard with wireless Apple CarPlay, automatic emergency braking system, and an 8-inch touchscreen.
All Trax models are equipped with a turbocharged three-cylinder engine and a six-speed automatic transmission.
“U.S. News & World Report” Rating: 8.6/10
Price: $23,125
Combined fuel efficiency: 35 mpg
The Toyota Corolla has always been known for its high value, and the 2026 model not only offers spacious room but also excellent fuel efficiency. The LE and SE hatchback versions have city/highway fuel efficiencies of 32 and 41 mpg, respectively. For buyers who prioritize fuel efficiency, the Corolla is an excellent choice.
Equipped with a 2.0-liter four-cylinder engine, the Corolla can output 169 horsepower and 151 pound-feet of torque; while these numbers outperform some competitors on the list, the driving experience does not deliver an exhilarating performance.