Car prices have spiked over the past few years, with the average transaction price of a new car being $48,937 in September, up from just under $40,000 in early 2020.
Paying this much for a new car is out of reach for budget-conscious car buyers. Thankfully, plenty of cheaper options are still available, including a handful that start at $25,000. As a bonus for all you penny-pinchers, three vehicles on the list below have some of the cheapest car insurance rates. Here are the models that still look like a good deal.
1. Honda HR-V
Starting price: $25,400
Hondas are well-known for their reliability and ability to hold their value, which is why buying this subcompact SUV for just $25,400 could be a great decision. The HR-V packs a lot into its relatively small profile, including Apple CarPlay® and a 7-inch touchscreen display.
Safety buffs will love that the base LX trim comes standard with Honda Sensing technology, which includes forward collision warning and lane-keep assist. Rounding out the HR-V’s safety credentials is its Top Safety Pick+ designation from the Insurance Institute of Highway Safety (IIHS), the organization’s highest rating. CNN has also ranked the HR-V as one of the cheapest vehicles to insure.
Fun fact: The type of car you drive can affect your insurance costs. Click here to find the best car insurance for your needs.
2. Hyundai Kona
Starting price: $24,350
Another stellar option for budget-conscious buyers is the 2025 Kona, which starts at just $24,350. That may seem like a shockingly low price for a new car, but don’t worry, this subcompact SUV is still loaded with goodies.
The base SE trim comes with a 12.3-inch touchscreen display, 17-inch rims, and Apple CarPlay. You’ll zip by gas stations, too, considering the 147 horsepower 2.0-liter engine gets an EPA-estimated combined (highway and city) 31 mpg. Upgrade to the SEL trim (still under $26,000), and you’ll get a leather-wrapped steering wheel power, power driver’s seat, and large 18-inch wheels. To top it all off, the Kona is also an IIHS Top Safety Pick+.
3. Chevrolet Trailblazer
Starting price: $24,790
The newest Trailblazer looks like a downright bargain with a starting price that’s just $24,790. You’ll get a 1.2-liter turbocharged engine at the price and a slew of safety features, like automatic emergency braking, pedestrian detection, and lane-keep assist.
Add the all-wheel-drive option to the LS trim for an extra $1,605, and you’ll also get the upgraded 1.3-liter turbo engine with 155 horsepower vs. the smaller engine’s 137 horses. Either way, you’ll ride on 17-inch rims and change your tunes on the 11-inch touchscreen. As a bonus, the Trailblazer also ranks near the top for cheapest cars to insure.
4. Toyota Corolla
Starting price: $22,175
A staple in any list of affordable cars is the prolific Toyota Corolla. While the Corolla’s styling isn’t a head-turner, its starting price of just $22,175 certainly is.
The compact sedan sports a 2.0-liter 169-horsepower engine that boasts an estimated combined 35 mpg. You won’t find all the bells and whistles of more expensive models, but it has it where it counts in the safety department. A pedestrian detection system and lane departure alert with steering assist are standard on the base LE model, as is an 8-inch touchscreen display.
5. Subaru Crosstrek
Starting price: $25,195
If you’re the outdoorsy type who’s always up for adventure but not up for busting your budget, look no further than the Subaru Crosstrek. With standard all-wheel drive and 8.7 inches of ground clearance, even the base model Crosstrek is ready to go anywhere.
You’ll get a 2.0-liter 152 horsepower engine with an estimated 34 mpg on the highway and standard safety features, including automatic emergency steering and pre-collision braking support. According to CNN, the Crosstrek also earned a spot as one of the cheapest vehicles to insure.
With car prices increasing significantly over the past few years, it’s good to know that some new vehicles have a relatively low price tag. And if you choose one with below-average insurance costs, keeping your total vehicle costs well within your budget will be a breeze.
