Car prices have soared in recent years, with the average transaction price of a new car at $48,937 in September, up from just under $40,000 at the start of 2020.

Paying that much for a new car is out of reach for budget-conscious car buyers. Fortunately, many cheaper options are still available, including a handful starting at $25,000. As a bonus for all those on a budget, three vehicles from the list below benefit from the cheapest car insurance rates. Here are the models that still seem like a good deal.

1. Honda HR-V

Initial price: $25,400

Hondas are well known for their reliability and ability to hold their value, which is why buying this subcompact SUV for just $25,400 could be a great decision. The HR-V packs a lot into its relatively small profile, including Apple CarPlay® and a 7-inch touchscreen.

Safety enthusiasts will love that the base LX trim comes standard with Honda Sensing technology, which includes forward collision warning and lane keep assist. The HR-V’s safety credentials are complemented by its Top Safety Pick+ designation from the Insurance Institute of Highway Safety (IIHS), the organization’s highest rating. CNN also ranked the HR-V as one of the cheapest vehicles to insure.

Fun fact: The type of car you drive can affect your insurance costs. Click here to find the best car insurance for your needs.

2. Hyundai Kona

Initial price: $24,350

Another great option for budget-conscious buyers is the 2025 Kona, which starts at just $24,350. That may seem like a surprisingly low price for a new car, but don’t worry, this subcompact SUV is still packed with goodies.

The base SE trim comes with a 12.3-inch touchscreen, 17-inch wheels, and Apple CarPlay. You’ll also pass gas stations, as the 147-horsepower 2.0-liter engine gets an EPA-estimated 31 mpg combined (highway and city). Step up to the SEL trim (still under $26,000) and you’ll get a leather-wrapped power steering wheel, a power driver’s seat, and large 18-inch wheels. To top it all off, the Kona is also an IIHS Top Safety Pick+.

3. Chevrolet Pioneer

Initial price: $24,790

The all-new Trailblazer looks like a real bargain with a starting price of just $24,790. You’ll get a 1.2-liter turbocharged engine at this price and plenty of safety features, like automatic emergency braking, pedestrian detection, and lane-keep assist.

Add the all-wheel-drive option to the LS trim for $1,605 more, and you’ll also get the upgraded 1.3-liter turbo engine rated at 155 horsepower versus the smaller engine’s 137 horsepower. Either way, you’ll be riding on 17-inch rims and changing music on the 11-inch touchscreen. As a bonus, the Trailblazer also ranks among the cheapest cars to insure.

4. Toyota Corolla

Initial price: $22,175

The prolific Toyota Corolla is a must-have on any affordable car list. Even if the Corolla’s styling isn’t a head-turner, its starting price of just $22,175 certainly is.

The compact sedan sports a 169-horsepower 2.0-liter engine that has an estimated combined fuel economy of 35 mpg. You won’t find all the features of more expensive models, but it has them where it counts in the safety department. A pedestrian detection system and lane departure alert with steering assist are standard on the base LE model, as is an 8-inch touchscreen.

5. Subaru Crosstrek

Initial price: $25,195

If you’re the type who loves the outdoors and is always up for an adventure, but aren’t ready to stretch your budget, look no further than the Subaru Crosstrek. With standard all-wheel drive and 8.7 inches of ground clearance, even the base Crosstrek model is ready to go anywhere.

You’ll get a 152-horsepower 2.0-liter engine with an estimated 34 mpg highway and standard safety features including automatic emergency steering and pre-collision brake assist. According to CNN, the Crosstrek has also emerged as one of the cheapest vehicles to insure.

With car prices rising significantly in recent years, it’s good to know that some new vehicles are relatively low priced. And if you choose one with lower-than-average insurance costs, it’ll be easy to keep the total cost of your vehicle within your budget.