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What Makes a New Car Cost Less Than $25,000?

Entry-level trims, compact body styles, modest power and front-wheel drive help keep some 2026 new cars below $25,000 before local taxes and other costs.
Entry869 Date Time5 min MechanicCarCody Team
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For the 2026 model year, new cars under $25,000 are possible mainly because buyers are looking at compact sedans and subcompact crossovers in entry-level trims, usually with front-wheel drive and modest power. Cars.com’s April 28, 2026 U.S. comparison lists seven nameplates with at least one trim starting below $25,000 including destination. That is a model-price snapshot, not a guarantee a particular dealer has one available at that price.

Which 2026 new cars start below $25,000?

Cars.com’s April 28, 2026 comparison lists the following entry trims below $25,000 with destination included. Prices and trim availability can change; use them as a starting point for comparison, not as a local dealer quote. Cars.com’s comparison

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Vehicle and qualifying trim Starting price including destination Useful context
Hyundai Venue SE $22,650 Subcompact crossover; FWD only in the qualifying lineup. Cars.com reports 121 hp and 31 mpg combined.
Chevrolet Trax LS $23,495 Subcompact crossover; FWD only. Cars.com reports 137 hp and 29 mpg combined.
Kia K4 LX $23,535 Compact sedan. Cars.com reports 147 hp and 33 mpg combined for the qualifying lower trims.
Nissan Sentra S $23,845 Compact sedan. Nissan’s separate figures are $22,600 MSRP plus $1,245 destination and handling.
Hyundai Elantra SE $23,870 Compact sedan. Cars.com reports 147 hp and 35 mpg combined.
Nissan Kicks S $24,275 Subcompact crossover; the FWD base trim qualifies. Cars.com lists AWD starting at $25,775.
Toyota Corolla LE $24,320 Compact sedan; the LE is the qualifying trim in Cars.com’s comparison.

Other qualifying trims in the comparison range from $24,200 to $24,995, including Venue SEL variants, Sentra SV, Kia K4 LXS, Trax 1RS and LT, and Elantra SEL Sport. Cars.com’s full list has the model-by-model details.

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What keeps the starting price low?

Entry-level equipment and materials

The under-$25,000 figure usually belongs to the least expensive trim, not every version of that vehicle. Premium audio, larger screens, sunroofs, leather-like upholstery, convenience packages, or a more powerful engine can require a higher trim. Cars.com describes hard plastics, basic steering wheels, and lower-cost cloth upholstery as common compromises, though equipment and materials vary by model.

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Compact size, modest power and front-wheel drive

The qualifying group consists of compact sedans and subcompact crossovers rather than larger SUVs or trucks. Their lower-priced versions generally pair modestly powered engines with front-wheel drive and often a continuously variable transmission. Cars.com reports that none of the vehicles in its qualifying list offers AWD below $25,000; the Kicks AWD starts at $25,775 in its comparison.

Moving to a stronger powertrain can change the price substantially. For example, Cars.com says the Kia K4’s 190-hp turbo engine with an eight-speed automatic requires spending close to $30,000. Cars.com’s model comparison

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Basic modern features are still available

A lower price does not automatically mean a bare cabin. Cars.com says common basics include power windows and locks, air conditioning, cruise control, and a touchscreen. Safety aids and phone connectivity differ by vehicle and trim, so check the exact specification sheet rather than assuming every version has the same equipment. Toyota, for example, lists blind-spot monitoring, rear cross-traffic alert, an 8-inch touchscreen, and wireless Apple CarPlay and Android Auto compatibility for the 2026 Corolla. Toyota Corolla

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Why “under $25,000” may not be the amount you pay

Price labels use different conventions. Cars.com’s comparison includes destination. Toyota’s page labels displayed amounts base MSRP, while Nissan’s 2026 Sentra release lists MSRP separately from a $1,245 destination and handling charge. Nissan’s listed MSRPs are $22,600 for the Sentra S, $23,370 for SV, $25,000 for SR, and $27,990 for SL; its release says MSRP excludes destination, taxes, title, license, and options, and that dealers set actual prices. Nissan’s 2026 Sentra pricing release

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To compare offers, distinguish the headline MSRP from the complete price before financing:

  • Base MSRP: Manufacturer’s suggested price; check what the figure excludes.
  • Destination and handling: Often shown separately. Cars.com includes it in its comparison; Nissan separately lists $1,245 for the 2026 Sentra.
  • Dealer-required fees or installed items: These can affect the quote. The FTC’s September 2026 staff FAQs say advertised vehicle prices must include dealer-required fees, except charges the government requires the consumer to pay directly. Optional add-ons must not be presented as required, and a dealer must not charge for options the buyer did not agree to. FTC staff FAQs on vehicle pricing
  • Taxes, title and registration: These depend on the buyer’s state and locality. The FTC defines an out-the-door price as the total before financing, including taxes and fees. FTC consumer advice on dealer ads and promotions
  • Financing and optional products: A monthly payment can hide the sale price and total borrowing cost. Get the full price in writing before discussing financing, then review each proposed add-on and its price.

The FTC advises buyers: “Whether you’re buying or financing the car, ask the dealer to confirm that the vehicle is actually on the lot and to send you the ‘out-the-door’ price — in writing — before you leave home.” FTC consumer advice, July 2022

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How to compare cars within the budget

  1. Choose the exact trim and drivetrain. Confirm the equipment, engine, and whether the price is for FWD or AWD.
  2. Request a written, itemized out-the-door quote. Ask the dealer to confirm that the specific vehicle is in stock. Compare the complete figures from dealers, not one dealer’s MSRP with another’s total quote.
  3. Match the car to your use. Compare passenger and cargo space, body style, fuel economy, engine power, safety equipment, and phone connectivity. Identify whether a feature you want pushes the configuration above the threshold.
  4. Compare fuel economy on the EPA label. Treat mileage as an estimate, not a promise of real-world results; EPA’s February 2026 Automotive Trends Report notes that regulatory test procedures do not fully reflect real-world driving. Compare like-for-like model years and powertrains. EPA Automotive Trends

Toyota lists the 2026 Corolla at $23,125 base MSRP and the Corolla Hybrid at $24,975 base MSRP, with the hybrid rated up to 50 mpg combined by EPA. Because Toyota’s displayed price convention differs from Cars.com’s destination-included comparison, check the current build-and-price page and the actual quote before treating either figure as a total. Toyota Corolla

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There is no universal best choice without knowing your priorities and local price. An AP report carried by Edmunds describes its least-expensive 2026 picks as offering respectable features and fuel economy, while strong acceleration and leather seating are not typical expectations at this price; that is an editorial assessment, not a promise about every trim or an ownership-cost study. Edmunds’ 2026 affordable-car picks

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What the price does—and does not—tell you

These examples show what manufacturers currently offer at a low starting price; they do not quantify how much any particular material, drivetrain, or feature saves in manufacturing cost. The cited comparisons provide model prices and specifications, not a dollar breakdown of factory costs. Nor does a starting price establish the amount a buyer will pay in every market: trim availability, destination conventions, fees, taxes, options, and dealer pricing affect the final figure.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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