5 of the cheapest new cars on the market to make your refund go further
Tax Day is around the corner for American taxpayers. Consequently, tax refunds are on the minds of millions of residents. While the average 2025 tax return of around $2,000 won’t be enough to buy you a new set of wheels, it can go further with any of the cheapest new cars on the market.
Only one of the cheapest new cars on the market starts at under $20,000 in time for your tax refund
The pool of cheap vehicles isn’t getting bigger. Unfortunately, with the departure of the Mitsubishi Mirage, the sub-$20,000 options are limited to just one compact Nissan sedan. However, your refund can go a bit further with some of the cheapest new cars on the market for 2025, like the Hyundai Elantra and Nissan Sentra.
| Make and model (2025) | Starting price |
|---|---|
| Nissan Versa | $18,330 |
| Nissan Sentra | $22,730 |
| Hyundai Elantra | $23,025 |
| Kia K4 | $23,145 |
| Volkswagen Jetta | $23,220 |
The 2025 Nissan Versa is the only new car in America with a starting price tag under $20,000. Nissan’s most affordable car stands alone now that Mitsubishi discontinued the Mirage hatchback and Mirage G4 sedan after the 2024 model year.
However, my time with the Versa revealed one of the few cheap and cheerful holdouts for budget-minded shoppers. The Versa’s larger sibling, the 2025 Nissan Sentra, starts at around $22,730, undercutting the rival 2025 Hyundai Elantra by just $295. Still, you won’t find Hyundai’s 5-year, 60,000-mile basic warranty on either of the wallet-friendly and refund-ready Nissan sedans.
You will, however, find the same lengthy warranty on the 2025 Kia K4. The K4 starts at just $120 more than the comparable Elantra. However, the Elantra offers a fuel-sipping Hybrid Blue trim with as much as 58 mpg highway. The K4, on the other hand, sticks to gas-powered inline-four engines with one turbocharged option in the GT-Line Turbo trim.
Finally, you won’t see a 2025 Volkswagen Jetta with a manual transmission, despite the Jetta’s long history of grab-a-gear options. However, with a starting price of $23,220, the Jetta is among the cheapest new cars on the market. Better yet, the Jetta’s fuel economy keeps in close competition with the Nissan Sentra.
Beyond the top five most affordable nameplates, the 2025 Toyota Corolla starts at $23,310. However, fans of the perennial favorite Honda Civic will have to stretch to $25,135 for a 2025 base model.
