Best new cars and SUVs under $25,000

When searching for the best new cars and SUVs for under $25,000, you're most likely going to be looking at the lower trim levels of compact sedans and hatchbacks, as well as the lower trim levels of subcompact and midcompact SUVs. This list will focus on those (plus a new compact pickup), but if you're more interested in maximizing feature content for your money, you could easily consider the better-equipped upper trim levels of our choices in our best cars for under $20,000 list.

Note that all the cars we've chosen have prices that start under $25,000 when the mandatory destination charge is included. It's always left out of the MSRP, effectively making the car in question seem cheaper than it actually is. We've also considered equipment levels and whether you'd actually want a particular car at that trim/price level. There's no point in recommending something if it's really only appealing with $6,000 worth of options and therefore pricier than $25,000.

Best new cars under $25,000

Honda Civic

Why it stands out: Attractive and well-made cabin; sharp driving manners; excellent engines; ample space; sedan and hatchback body styles
Could be better: Infotainment system not as good as Hyundai's

Read our 2022 Honda Civic Review

The Civic was completely redesigned for 2022, taking everything that worked so well for its revolutionary predecessor (ample interior space, sharp driving dynamics, efficient engines) and amplifying with a more grown-up appearance, a slick new cabin, superior technology and general refinements everywhere you look. The Civic is just a terrific car. And the great thing is, it's still a terrific car when priced under $25,000. The car pictured above is the Sport trim level, which starts at $24,095. It looks great and is nicely equipped. Now, the Sport Hatchback is just a hair over $25,000, but it's close enough to tout the Civic as offering both sedan and hatchback body styles. Both are also available in base LX trim levels. We may be doing this list alphabetically, but we'd probably start our search in this price range with the Civic anyway.

Hyundai Elantra

Why it stands out: Hybrid option; very well equipped for under $25,000; excellent tech; outlandish styling
Could be better: Outlandish styling inherently not for everyone; not as good to drive as Civic or Mazda 3

Read our most recent Hyundai Elantra Review

If you're looking to get a lot of bang for your buck (and when talking a price tag under $25,000 these days, you probably are), the Hyundai Elantra has always been a great choice. And it's not just a matter of its generous features list and warranty coverage, the Elantra's outlandish exterior styling and strikingly modern interior prove that you don't have to drive something bland and characterless just because you don't have a ton of money to spend. True, the Elantra isn't as characterful to drive as our previous selection or the next, but as a commuter car, it brings more driver connection than a Corolla or Sentra, for instance. There's also the Elantra N Line, which brings more verve and is just a little bit over our price threshold here but still packed with fun-for-you-money value. Ultimately, though, our powertrain choice is the Elantra Hybrid. It gets exceptional fuel economy in a package that's more stylish and refined than Hyundai's dedicated hybrid, the Ioniq, while being cheaper than a Prius or Honda Insight.

Mazda3

Why it stands out: High-quality and high-fashion interior; beautiful styling; fun to drive; two body styles
Could be better: Back seat space; hatchback rear visibility; some may not like lack of a touchscreen

Read our most recent Mazda 3 Review

This is perhaps the best proof yet that you don't have to drive a car that screams "economy car" when paying less than $25,000. Even at this price point, the Mazda3 interior could make a play at the entry-level luxury segment with its handsome minimalist design, high-quality switchgear and convincing faux leather that covers the seats, dash and doors. Driving the Mazda3 offers a similar high-end experience, as its responses to driver inputs through the steering, throttle and transmission are so exceptional that we once again must roll out the descriptor of "budget Porsche" when referring to driving a Mazda. It really is that good. We're also quite fond of the two body styles: the stylish sedan that boasts a surprisingly large trunk (it can actually hold more than the mechanically related CX-30 SUV) and the Mazda3 Hatchback that really turns up the style dial, albeit at the expense of rear visibility. This is a great car, regardless of price.

Best new SUVs under $25,000

Hyundai Kona

Why it stands out: Fun to drive for a subcompact SUV; stylish exterior and interior; easy-to-use tech
Could be better: Small back seat and trunk even for its segment

Read our most recent Hyundai Kona Review and check out what's in store for the updated 2022 Kona.

The Kona continues to prove that a subcompact SUV can be fun to drive. It's certainly not the most spacious model, but its sharp handling, distinctive styling and attractive cabin with user-friendly tech help it stand out from the crowd. Because of the price point, we must leave out the surprisingly punchy 175-horsepower turbo engine upgrade and the agreeable Kona Electric, but the engine you're left with is surprisingly punchy and delivers better-than-average acceleration. We've now driven a number of Konas at this price point and have consistently been surprised at how fun to drive it remains despite the lack of big power and how compelling the interior is despite a lack of leather or extra-fancy doo-dads.