What Is The Cheapest Toyota Car You Can Buy In 2025 & How Much Does It Cost?

Along with just about everything else, prices for new cars are on the rise. According to Kelley Blue Book, new cars today leave the dealership with an average transaction price of $48,907 (as of June 2025). That's a 1.2% increase from the previous year, and about $10,000 higher than in June 2020. Frugal shopping is still possible, though, especially if you're willing to consider compact and subcompact offerings from brands like Toyota. Enter the Toyota Corolla, one of the best price-conscious buys available today. 

MSRP for a brand-new 2025 Toyota Corolla LE is $23,520 (including $1,195 destination fee). It's the least-expensive car in Toyota's lineup currently, but keep in mind that's just for the simple four-door Corolla. It will cost you a little bit more to get into the hyper-efficient Corolla Hybrid, the larger Corolla Cross SUV, or the spacious Corolla Hatchback. The Corolla and all of its variants aren't at the top of the list of cheapest new cars in 2025, but the base Corolla certainly competes well amongst other inexpensive vehicles like the excellent-to-drive Honda Civic, the refreshed Ford Maverick, and the affordable Kia Forte — all of which are smart buys too. For the money, the Corolla offers a strong list of standard features, decent power, and plenty of room for adults. 

There are five different trim levels for the 2025 Toyota Corolla: LE, SE, FX, XSE, and the hybrid-only XLE. The base trim level, the LE, comes standard with a 2.0-liter four-cylinder engine and a continuously variable transmission (CVT). It produces 169 hp and 151 lb-ft of torque, which is average for the class and respectable considering the price point. Toyota offers six colors at no added cost: Blueprint, Ice Cap (white), Classic Silver, Celestite, Black, and Underground. For $475 extra, you can get it in Wind Chill or Ruby Flare. 

The LE comes standard with wireless smartphone connectivity, an 8-inch center touchscreen, a six-speaker stereo, four USB-C ports, LED headlights and taillights, adaptive cruise control, lane-departure warning, and the same standard warranty as every other Corolla trim level — 3 years or 36,000 miles. If you want additional creature comforts like heated seats, a larger center touchscreen, or alloy wheels, you'll need to upgrade to one of the other trim levels. We tested the Corolla FX earlier this year and found it a solid choice. But if you're just looking for something that covers all the basics, the LE is a strong choice for the money.

Buying a car you can afford upfront is important, but it's also worth considering just how expensive that car will be over time. That's where fuel economy comes in, and with the Corolla, the hybrid offers a big boost in fuel economy. The standard Corolla is a relatively efficient car; EPA estimates suggest it will return between 34 and 35 mpg combined, depending on the trim level. The Corolla Hybrid, however, can deliver around 44 to 47 mpg combined. Using the most conservative estimates for both models (34 mpg for the standard Corolla and 44 mpg for the Hybrid), the EPA estimates an annual fuel cost of $1,400 for the standard model and $1,050 for the Hybrid. That's $350 savings per year if you drive the 15,000 miles annually that the EPA bases its estimates on.

The base LE trim for the Corolla Hybrid has an MSRP of $25,020 (including $1,195 destination) — $1,500 more than the non-hybrid model. Plug our annual fuel savings number from earlier into the equation, and it'll take just over 4 years for the Corolla Hybrid's added cost to pay off. And the longer you drive it, the more money it will save you. It might not be the cheapest version of the Corolla, but the Hybrid makes more financial sense in the long run.