Budget-Friendly New Cheap Cars for Smart Shoppers

Looking to purchase new cheap cars without breaking the bank? Finding a reliable vehicle that fits your budget is entirely possible if you know where to look. As a general financing guideline, remember that monthly car expenses should not exceed 10% of your income. To help you navigate the options, we’ve identified six exceptional vehicles all priced under $25,000 that combine affordability with dependable performance.

Entry-Level Values: Under $20,000

Mitsubishi Mirage - Starting at $18,015

Leading our selection of affordable new cars is the 2024 Mitsubishi Mirage, which represents the lowest entry point for budget-conscious buyers. According to Kelley Blue Book’s ranking of 2024-2025 cheapest models, the Mirage secured second place for affordability. This hatchback and sedan option delivers exceptional fuel economy, making it particularly attractive for urban drivers who prioritize efficiency and maneuverability. While critics note that the Mirage’s acceleration isn’t class-leading, its compact size and operating costs make it an ideal choice for city living. The real appeal lies in getting reliable transportation at an unbeatable price point.

Mid-Range Sweet Spot: $21,000-$23,000

Kia Forte - Starting at $21,145

If you’re willing to step up slightly from the Mirage, the 2024 Kia Forte offers impressive value for money. Ranking third in Kelley Blue Book’s cheapest new cars list, the Forte might not turn heads on the highway, but its interior quality and cabin comfort exceed expectations at this price level. You get a stylish design, ample interior space, and solid build quality—all hallmarks of smart shopping for cheap cars without sacrificing quality.

Nissan Sentra - Starting at $21,725

The 2024 Nissan Sentra brings several compelling advantages to the affordable segment. Buyers appreciate its spacious cabin, comfortable seating arrangements, reliable fuel economy, and comprehensive safety technologies. The $21,725 starting price for 2024 models and $22,730 for 2025 editions represent fair values for what you receive. This sedan balances practicality with affordability, serving both daily commuters and families equally well.

Hyundai Elantra - Starting at $22,775

For first-time car buyers or anyone seeking excellent value, the 2024 Hyundai Elantra deserves serious consideration. Car and Driver highlighted this compact sedan as a particularly smart choice for new drivers, thanks to its inexpensive pricing combined with strong fuel efficiency. The sleek exterior, roomy interior, and straightforward controls make the Elantra an approachable option for budget shoppers seeking new cheap cars.

Premium Budget Picks: $23,000-$25,000

Toyota Corolla - Starting at $23,185

Blending affordability with Toyota’s renowned reliability, the 2024 Toyota Corolla stands as a practical investment whether you’re building a young family or managing a professional lifestyle. Modern features like LED headlights and wireless smartphone integration enhance safety and convenience without significant cost premiums. The Corolla exemplifies how to find new cheap cars that won’t compromise on essential features or long-term dependability.

Volkswagen Jetta - Starting at $23,220

Rounding out our selection is the 2025 Volkswagen Jetta, priced just under the $25,000 ceiling. Volkswagen’s compact sedan earned 10th place in Kelley Blue Book’s cheapest car rankings, offering notable value for the investment. The Jetta provides a spacious interior, respectable fuel economy, and Volkswagen’s IQ.Drive driver-assist suite. Interestingly, the 2025 model carries a slightly lower price tag than its 2024 counterpart, making it an especially smart choice for budget-minded buyers.

Making Your Decision

Shopping for affordable new cheap cars requires balancing multiple priorities: upfront cost, fuel efficiency, interior comfort, safety features, and long-term reliability. Each of these six vehicles succeeds in different ways. Budget shoppers under $20,000 should focus on the Mirage for maximum savings, while those with slightly more flexibility can explore the Forte and Sentra for enhanced comfort. If reliability ranks high on your priority list, the Corolla and Jetta justify their positions in the upper range of affordable new cars. Consider your daily driving patterns, family size, and planned ownership duration when selecting from these budget-friendly options.