The Best New Cars Under $20,000 in 2025

Finding a new car for under $20,000 used to be pretty easy. These days, it's a pretty big ask. You can, however, find a few good cars on a strict budget. Just keep in mind that a lower sticker price tends to come with a sacrifice in style or certain features you may desire in your vehicle.

While your choice of cars may be limited, your choice of car insurance policies is likely quite extensive. You'll need some help finding the right policy for the right price, so working with an independent insurance agent in your area is your best bet. Local agents can work with multiple highly rated insurance companies to help you get the best coverage for your needs and budget. Until then, here are your options for some of the most affordable new vehicles this year.

The 5 Best New Cars Under $20,000 in 2025

We compiled this list primarily based on budgetary concerns. These vehicles won't provide you with the best overall options for a new ride this year in terms of safety, tech, features, etc. But if you're looking for a car under or around $20,000, here are your best, and likely only, options. 

2024 Mitsubishi Mirage

Starting price: $16,695

The Mitsubishi Mirage is one of the cheapest new cars you can buy in 2025. However, it's important to keep its mediocre crash-test scores in mind before choosing this vehicle. If budget is your top concern, though, the Mirage does have a few redeeming factors.

Notable features:

• Available as a hatchback and a sedan, and several trim levels 
• 78-horsepower engine is standard 
• Standard infotainment system with a 7-inch touch screen, Android Auto, and Apple CarPlay 
• Standard rearview camera, forward collision warning, forward automatic emergency braking, and pedestrian detection 

2025 Nissan Versa

Starting price: $17,190

The Nissan Versa is a great value vehicle for those with a tight budget. It scores highly in the affordable subcompact category and is praised for its comfortable cabin and easy-to-use technology. However, it's underpowered and is likely best only used for city driving.

Notable features: 

• Refreshed styling and an updated list of standard and optional features 
• Upgraded infotainment system
• Efficient 122-horsepower, four-cylinder engine 
• Standard five-speed manual transmission, with a continuously variable automatic transmission (CVT) available
• Standard 7-inch touch screen, rearview camera, forward and reverse collision warning, forward and reverse automatic emergency braking, pedestrian detection, and lane-departure warning

2025 Hyundai Venue

Starting price: $20,200

Though it slightly edges past the $20,000 budget, the Hyundai Venue crossover offers you another highly affordable option for a new vehicle this year. While this car offers a great overall value, consider that it comes with less cargo space than you'd likely expect from this type of model.

Notable features: 

• Agile handling and good fuel economy ratings
• Standard 121-horsepower, four-cylinder engine paired with a CVT
• 18.7 cubic feet cargo capacity beneath the rear liftgate
• Standard 8-inch touch screen, Android Auto and Apple CarPlay, rearview camera, forward collision warning, pedestrian detection, and forward automatic emergency braking

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2025 Kia Soul

Starting price: $20,490

Yes, the new Kia Soul is also a little bit above the $20k budget, but it's well worth it for many shoppers. The Soul offers a smooth ride and a spacious interior with plenty of cargo space. It also comes packed with plenty of modern features to keep most drivers happy.

Notable features: 

• Abundant interior space 
• 24.2 cubic feet of cargo space
• Standard 147-horsepower, 2.0-liter four-cylinder engine with a CVT
• Front-wheel drive with no all-wheel drive option
• Standard 8-inch touch screen, Apple CarPlay, and Android Auto
• Standard rearview camera, forward collision warning, forward automatic emergency braking, lane-keep assist, and driver-attention monitoring 

2025 Chevrolet Trax

Starting Price: $20,500

We know, it's a third entry that's a few hundred dollars above the $20,000 limit. But, options are tight for such a limited budget in 2025. And the Chevy Trax has plenty to offer that can make up for the sticker price, like its great tech and safety features. The Trax also provides an ideal combination of passenger space and cargo space on the inside. 

Notable features:

• Fuel-efficient turbocharged three-cylinder engine
• 8-inch touch screen
• Pedestrian detection
• Forward automatic emergency braking
• Wireless Apple CarPlay and Android Auto
• General Motors' Teen Driver safety settings system for new drivers

How Can an Independent Insurance Agent Help Me Protect My New Car? 

If you're in the market for a new car, one of the most important areas to research is car insurance. Not only will the type of car you purchase influence what you pay for car insurance, but it's important to add your insurance costs to your overall budget before you choose a vehicle. 

An independent insurance agent in your area can help. Local agents can get car insurance quotes from multiple insurance companies, so you can get the coverage you need at a price you can afford. And down the road, your agent can help you update your coverage as necessary and even file car insurance claims for you.