Buying a new car can be incredibly exciting and offers a lot of opportunities for improving your life on the road. Whether you want to have the latest safety features, the most up-to-date tech, or you simply want a change when you get behind the wheel, a new car can have a lot to offer. However, you may be a little overwhelmed with the MSRPs when looking at the current crop of new vehicles. New vehicle costs have increased over the last few years due to supply chain issues and labor expenses, and for budget-minded drivers, it might seem like options are limited.

While new cars are more expensive than they used to be, there are several affordable options on the market. Some of these budget-friendly new cars have all the latest tech and amenities that you are looking for, as well as a focus on efficiency. If you are looking to save some money on your next car purchase, there are all kinds of choices available. Find out the budget-friendly new cars of 2025 so you can make a smart decision and drive away happy with your purchase.

What Makes a Car Budget-Friendly?

While the sticker price of a vehicle is important when it comes to its affordability, it is important to remember that there are other factors at play. The overall cost of ownership for a vehicle contributes to its value just as much as what you pay at the dealership. When shopping for an affordable vehicle, be sure to consider all the other expenses that come with owning it.

One of the most important things to think about is fuel efficiency. The cost of gasoline is constantly in flux, and you never know when the price will go up. Having a vehicle that uses as little fuel as possible will help you control your spending on gas, no matter how expensive it gets.

Reliability is another important factor to consider when looking at budget-friendly new vehicle rankings. Maintenance and repair costs can add up on a year-by-year basis, and if you are having to make expensive repairs more often than you otherwise would, it doesn’t matter how cheap the car was when it was new. The better shape a vehicle stays in, the more it will retain its long-term value, and you can save as much money as possible through the years.

Benefits of Buying Cheap Cars

Affordable cars can take a lot of expenses off your plate, both in the short term and the long term. The lower the sticker price is on a vehicle, the lower your monthly payments and down payment will be. If you are looking to save some money on your overall living expenses, finding a vehicle that has a low MSRP should be your first step. In general, any new car below $25,000 is considered inexpensive, and that price tag will translate to incredibly manageable payments up front as well as monthly.

The less expensive your car is to buy, the less money it will cost to insure it. Insurance can be a big expense for any car owner, especially if you live in a state that has stringent insurance requirements. When you pay less for a vehicle at the dealership, though, you can expect your insurance premium to be relatively low since the provider will not have to pay as much should the vehicle be declared a total loss. Your expenses start with the sticker price of the vehicle, and the lower that is, the less the car will cost to own in the long run.

The Most Affordable New Cars in 2025

2025 Nissan Versa

When it comes to affordable sedans with a lot to offer, the Nissan Versa is going to be your best bet. With a starting price of $18,330, it is a great option for anyone looking to save a little money on their automotive expenses. It features a 122-horsepower four-cylinder engine with front-wheel drive for excellent efficiency and low maintenance costs. With an EPA-estimated fuel economy rating of 32 mpg in the city and 40 mpg on the highway, the Versa is a solid choice for long-term savings.

2025 Hyundai Elantra

You might think that because you are working with a small budget, your vehicle choices won’t have any style or interesting aesthetics. The 2025 Hyundai Elantra, though, is one of the most unique vehicles on the market and one of the most affordable. With a starting price of $23,025, the Elantra comes with a 2.0-liter four-cylinder engine putting out 147 horsepower. Plus, its stylish, modern exterior design makes it a great choice for anyone who wants to get behind the wheel of something different.

2025 Kia K4

Sporty-looking vehicles are not known for being affordable but the 2025 Kia K4 is a rare exception. The 2025 K4’s starting price is $23,145, making it one of the cheapest new cars currently on the market. Its sleek exterior and 147-horsepower 2.0-liter four-cylinder engine make it a good option for anyone who prizes efficiency as well as excitement.

2025 Volkswagen Jetta

When you think about affordable, compact cars, you probably think about the Volkswagen Jetta first. The base model of the 2025 Jetta comes with a turbo 1.5-liter four-cylinder engine generating 158 horsepower, and the entry-level model starts at just $23,220. If you are looking for decent power and a compact design, the Jetta is your best bet. There is a reason it is one of the most popular and best cars on the market and continues to be a favorite of people who prize efficiency and economy in their vehicles.

2025 Toyota Corolla

In the world of reliable vehicles, the Toyota Corolla has long been at the top of the heap. Toyota’s legendary reliability makes the 2025 Corolla an excellent choice for budget-minded drivers. The Corolla has a base price of $23,310 and comes with a 169-horsepower 2.0-liter four-cylinder that delivers 41 mpg highway, making it one of the best vehicles for those who value fuel efficiency and dependability.

2025 Subaru Impreza

Most of the time, if you want to save money on your vehicle, you will have to settle for front-wheel drive. The 2025 Subaru Impreza, though, offers all-wheel drive for a starting price of $24,665. This, plus the sporty hatchback design, gives it a different feel from all the other affordable new vehicle choices. Its 2.0-liter four-cylinder engine generates 152 horsepower, and with the AWD configuration, it feels responsive and athletic in the corners.

Protecting Your Investment with an Extended Warranty

No matter how much you pay for your vehicle, it is important that you do everything you can to protect it. When you buy a new car off the lot, it will almost always come with a factory warranty that is provided by the manufacturer. This is usually valid for somewhere between three years or 36,000 miles and five years or 60,000 miles, depending on the automaker.

Once the factory warranty is over, you can extend your coverage with an extended warranty from a third-party provider. An extended warranty, which is more accurately called a vehicle service contract or auto protection plan, is a great way to give yourself peace of mind whenever you are on the road.

Extended car warranties come in many different levels of coverage, and you can choose anything from the most basic powertrain protection up to near bumper-to-bumper coverage that will protect nearly every part of the vehicle. When you want to save money in the long run, an extended warranty is your best option. With an auto protection plan in place, you can get the repairs you need without having to dip into your savings or deplete your emergency fund.

Protect Your New Car or Used Car With Endurance

Saving money on a new car purchase is easy if you know what to look for. Keeping your expenses low is a little more difficult. Endurance offers some of the best auto protection plans, also known as extended warranties, on the market. Endurance offers customized plans for vehicles of all kinds, from high-mileage cars to top-of-the-line luxury and exotic vehicles. Plus, Endurance even covers cars that other providers won’t, such as Canadian Gray Market cars, vehicles with a rebuilt or salvage title, and cars that are used for commercial or commuting purposes, like for Uber or Lyft.

In addition to excellent coverage, Endurance plans also come with a range of extra benefits, including 24/7 roadside assistance and towing, rental car coverage, and travel interruption coverage. Plus, for a small activation fee, customers get Endurance’s Elite Benefits, which include tire repair or replacement, key fob replacement, collision discounts, and more.*

If you are ready for the best coverage for your vehicle, no matter the model year, get in touch with our award-winning customer service team at (800) 253-8203 for a FREE quote. You can also shop online to see an instant price preview.

For more auto expert resources on other models from Chevy, Honda, Ford, and more, be sure to check out the Endurance Warranty blog. There, you will find helpful articles including provider comparisons, DIY tips, MBI information for California drivers, and frequently asked questions.