Best New Cars Under $25,000

Toyota Yaris iA- $16,835

Although this is the only trim level available for this car, it is well equipped and gives you plenty of bang for your buck. The Yaris iA was once marketed by Toyota as the Scion iA before the company discontinued its small car division in 2016. It is now actually a product of Mazda and is called the Mazda2 in other markets. It is powered by a 1.5-liter four-cylinder engine that generates 106 hp. A six-speed manual transmission comes standard while a six-automatic transmission is optional. Don’t be fooled by the low horsepower number because this car has good acceleration. It also gets 32 city/40 hwy mpg with the automatic transmission. The manual is estimated at a few ticks lower. It has a sport-tuned suspension that provides excellent handling and stability. The interior has upscale styling that you would expect in a more expensive sedan. It also has a beautiful infotainment system and automatic emergency braking. You will have a hard time finding these features on other cars for this price.