This Is the Cheapest Car for 2025: The Nissan Versa and Affordable Alternatives

Why Affordable Cars Matter in 2025

The rising cost of new vehicles, driven by inflation, advanced technology, and market shifts, has made budget cars a shrinking segment. In 2025, the discontinuation of models like the Mitsubishi Mirage and Kia Rio has left the Nissan Versa as the only new car under $20,000 with a manual transmission. A 2025 report from Kelley Blue Book notes that affordable cars now come with better safety features, fuel efficiency, and technology than ever before, making them viable for cost-conscious buyers who still want reliability and modern amenities. For those juggling expenses—like gym memberships, healthy meal plans, or fitness gear—choosing a low-cost car like the Versa aligns with a frugal, goal-oriented lifestyle. Below, we dive into the Nissan Versa and nine alternatives, followed by strategies to optimize your car-buying experience.

The Cheapest Car: 2025 Nissan Versa

The 2025 Nissan Versa S, priced at $17,190 with a 5-speed manual transmission, is the cheapest new car in America, with the automatic CVT version starting at $20,130.

Key Features

Engine: 1.6-liter inline-4, 122 horsepower.
Fuel Economy: 35 mpg combined (32 city/40 highway with CVT).
Safety: Standard Nissan Safety Shield 360, including automatic emergency braking, lane departure warning, and pedestrian detection.
Technology: 7-inch touchscreen, Apple CarPlay, Android Auto, and LED headlights (new for 2025).
Warranty: 3 years/36,000 miles basic; 5 years/60,000 miles powertrain.
Maintenance: Nissan Maintenance Care (three oil changes in 2 years/24,000 miles).

Pros

Affordability: At $17,190, it’s nearly 33% below the average used car price, per Consumer Reports.
Fuel Efficiency: 35 mpg combined saves on gas, ideal for commuters or those funding fitness-focused lifestyles.
Safety: Earns praise for standard safety features, including automatic emergency braking and forward collision warning.
Comfort: Car and Driver notes the Versa’s interior feels “nicer than expected” for its price, especially in the SR trim.
Reliability: High predicted reliability score of 87/100 from U.S. News.

Cons

Performance: Consumer Reports highlights sluggish acceleration, especially uphill or during highway merging.
Ride Quality: A bumpy ride on rough roads due to its lightweight build.
Rear Space: Tight rear seating, less ideal for families.
Potential Discontinuation: Reports suggest the Versa may be phased out after 2025, which could affect resale value.

Why It’s the Cheapest

The Versa’s low price stems from its simple design, manual transmission option, and focus on essential features. Its subcompact size reduces production costs, and Nissan’s Maintenance Care program lowers ownership expenses. For buyers prioritizing cost over performance, the Versa delivers reliable transportation with modern safety and tech, making it a practical choice for those balancing budgets with goals like fitness or weight loss.

Nine Budget-Friendly Alternatives Under $25,000

While the Versa is the cheapest, other vehicles under $25,000 offer compelling value, space, or features. Below are nine alternatives, all including destination charges, based on 2025 pricing from Kelley Blue Book, Cars.com, and MotorTrend.

1. Hyundai Venue SE ($21,650)

Type: Subcompact SUV.
Key Features: 1.6-liter 4-cylinder, 121 hp, 34 mpg combined, 8-inch touchscreen, wireless Apple CarPlay/Android Auto, Hyundai SmartSense safety suite.
Pros: Lowest 5-Year Cost to Own award, great warranty (10 years/100,000 miles powertrain), fuel-efficient.
Cons: No all-wheel drive, limited cargo space.
Why Consider: Ideal for buyers wanting SUV-like styling and low maintenance costs.

2. Kia Soul LX ($21,885)

Type: Hatchback.
Key Features: 2.0-liter 4-cylinder, 147 hp, 31 mpg combined, 8-inch touchscreen, lane-keeping assist, 10-year/100,000-mile warranty.
Pros: Spacious cargo (62.1 cubic feet), quirky design, strong safety features.
Cons: No all-wheel drive, lower fuel economy than Versa.
Why Consider: Great for those needing cargo space for gym gear or groceries.

3. Chevrolet Trax LS ($21,895)

Type: Subcompact SUV.
Key Features: 1.2-liter turbo-3, 137 hp, 30 mpg combined, 8-inch touchscreen, Chevy Safety Assist.
Pros: Spacious interior, sharp styling, good value.
Cons: No all-wheel drive, noisy cabin, sluggish engine.
Why Consider: A budget SUV with modern tech for urban drivers.

4. Nissan Sentra S ($22,730)

Type: Compact Sedan.
Key Features: 2.0-liter 4-cylinder, 149 hp, 34 mpg combined, Zero Gravity seats, Nissan Safety Shield 360.
Pros: More spacious and comfortable than Versa, 40 mpg highway.
Cons: Underwhelming handling, cramped rear.
Why Consider: A step up from the Versa for commuters seeking comfort.

5. Nissan Kicks Play S ($22,910)

Type: Subcompact SUV.
Key Features: 1.6-liter 4-cylinder, 122 hp, 33 mpg combined, 7-inch touchscreen, safety suite.
Pros: Stylish, decent fuel economy, affordable insurance.
Cons: Underpowered, no all-wheel drive.
Why Consider: A trendy SUV option for young buyers.

6. Kia K4 LX ($23,165)

Type: Compact Sedan.
Key Features: 2.0-liter 4-cylinder, 147 hp, 34 mpg combined, wireless smartphone integration, 10-year/100,000-mile warranty.
Pros: Spacious interior, modern tech, bold design.
Cons: Less dynamic than competitors like Honda Civic.
Why Consider: Replaces the Forte with fresh styling and value.

7. Hyundai Elantra SE ($23,320)

Type: Compact Sedan.
Key Features: 2.0-liter 4-cylinder, 147 hp, 36 mpg combined, 8-inch touchscreen, Top Safety Pick+ rating.
Pros: Spacious, fuel-efficient, strong safety scores.
Cons: Base engine lacks punch, some rivals offer better handling.
Why Consider: A reliable sedan with hybrid options for eco-conscious buyers.

8. Toyota Corolla LE ($23,605)

Type: Compact Sedan.
Key Features: 2.0-liter 4-cylinder, 169 hp, 35 mpg combined, Toyota Safety Sense 3.0, 8-inch touchscreen.
Pros: Elite reliability, good resale value, hybrid option (47 mpg).
Cons: Less exciting to drive, higher starting price.
Why Consider: A trusted choice for long-term ownership.

9. Volkswagen Jetta S ($23,795)

Type: Compact Sedan.
Key Features: 1.5-liter turbo-4, 158 hp, 34 mpg combined, 8-inch digital display, IQ.Drive safety suite.
Pros: Roomy, smooth ride, premium feel.
Cons: Less competitive pricing, lackluster dynamics.
Why Consider: A German sedan with modern tech for budget buyers.

30 Strategies to Maximize Affordability in Car Ownership

To make the most of a budget car like the Versa or its alternatives, consider these 30 strategies, grouped into key areas, to save money and enhance value.

Buying Smart

Shop in Low-Tax States: Buy in states like Oregon or New Hampshire with no sales tax to save thousands.
Negotiate Price: Research MSRP and invoice prices to haggle below sticker price.
Look for Incentives: Check for lease or finance deals on budget cars.
Buy at Year-End: Shop in December for end-of-year discounts.
Consider Used Models: A 2023–2024 Versa or similar model can save thousands with minimal differences.
Compare Trims: Stick to base trims like Versa S or Venue SE to avoid costly upgrades.

Financing and Insurance

Get Pre-Approved: Secure a low-interest loan from a credit union before visiting dealers.
Choose Low-Insurance Cars: The Versa, Venue, and Kona have low insurance costs due to safety ratings and low repair costs.
Bundle Insurance: Combine auto and home insurance for discounts.
Pay in Full: If possible, pay cash to avoid interest on loans.
Check Credit: Improve your credit score for better loan rates.

Maintenance and Fuel Savings

Follow Maintenance Schedules: Use Nissan’s Maintenance Care or similar programs to keep costs low.
Learn Basic Repairs: Change oil or tires yourself, as suggested on Reddit forums.
Buy Reliable Parts: Choose affordable, widely available parts for cars like the Versa or Corolla.
Drive Efficiently: Avoid aggressive driving to maximize the Versa’s 35 mpg.
Use Regular Gas: The Versa and most budget cars run on regular unleaded, saving on fuel costs.
Carpool or Combine Trips: Reduce mileage to save on gas and wear.

Lifestyle Integration

Prioritize Needs: Choose a car that fits your budget, leaving room for fitness or health expenses.
Sell Unused Vehicles: If replacing an old car, sell it to offset costs.
Plan Commutes: Use the Versa’s fuel efficiency for cost-effective trips to the gym or grocery store.
Track Expenses: Budget for car costs alongside fitness goals using apps like Mint.
Stay Local: Shop at nearby dealers to avoid travel costs.

Long-Term Value

Maintain Resale Value: Keep the car clean and serviced to maximize trade-in value.
Choose Reliable Brands: Toyota, Hyundai, and Nissan offer high reliability, per U.S. News.
Avoid Modifications: Skip aftermarket upgrades that reduce resale value.
Extend Warranty: Consider extended warranties for peace of mind on budget cars.
Monitor Market Trends: Be aware of potential discontinuations (e.g., Versa post-2025) to plan future purchases.

Community and Resources

Join Car Forums: Engage with Reddit’s r/askcarguys for tips on budget cars.
Follow Experts: Check Kelley Blue Book or Car and Driver for deals and reviews.
Seek Community Support: Ask local mechanics or parts stores for advice on affordable models.

Practical Tips for Buying the Cheapest Car

1. Research Thoroughly

Use resources like Kelley Blue Book, Cars.com, and Car and Driver to compare prices and features.

2. Test Drive

Drive the Versa and alternatives to ensure comfort and handling meet your needs.

3. Check Total Costs

Factor in insurance, maintenance, and fuel costs. The Versa’s low insurance premiums and 35 mpg make it a standout.

4. Shop Strategically

Visit dealers in low-tax states or during holiday sales for the best deals.

5. Stay Informed

Follow automotive news on platforms like X for updates on budget cars or new models, though avoid unverified claims like the Tesla Model Q under $15,000, which lacks credible backing.

The Science Behind Affordable Cars

Budget cars like the Versa succeed by balancing cost, reliability, and essential features. A 2025 Cars.com report highlights that subcompact cars are the cheapest segment due to lower production costs and simpler designs. Fuel efficiency, driven by lightweight builds and smaller engines, reduces ownership costs, while standard safety features lower insurance premiums. The Versa’s 35 mpg and high safety ratings exemplify this balance, making it a practical choice for budget buyers. Over 3–5 years, low-cost cars with strong warranties (e.g., Hyundai, Kia) minimize total ownership costs, aligning with financial goals like fitness or wellness investments.

Bringing Your Budget Car Purchase to Life

The 2025 Nissan Versa, starting at $17,190, is the cheapest new car in America, offering unmatched affordability, decent fuel economy, and modern safety features. For those seeking alternatives, the Hyundai Venue, Kia Soul, and others under $25,000 provide additional space or style while remaining budget-friendly. By applying the 30 strategies—such as shopping in low-tax states, choosing low-insurance models, and maintaining fuel efficiency—you can maximize value and integrate car ownership into a cost-conscious lifestyle. For further guidance, explore resources like Kelley Blue Book or join automotive communities on Reddit. In 2025, the Versa proves that affordable, reliable transportation is still within reach, leaving room in your budget for fitness goals, healthy eating, or other priorities.