Cheapest Cars in the Philippines (2025): Budget-Friendly Brand New Cars

Not too long ago, owning a car in the Philippines was considered an affordable step toward greater convenience and freedom. Today, however, it has become more of a necessity than a luxury, especially for families, professionals, and everyday commuters seeking safety, comfort, and time savings. But with car prices rising by over 15% in the past three years due to inflation, higher production costs, and volatile exchange rates, finding a reliable yet budget-friendly vehicle feels more challenging than ever.

Imagine needing a car for daily commutes, family trips, or work, only to realize that even the so-called “budget” models are pushing past your price range. Public transportation remains challenging, and ride-hailing services can be expensive over time. So, where does that leave car buyers looking for the cheapest cars in the Philippines in 2025?

Thankfully, not all hope is lost. The 2025 market is bringing a new wave of affordable yet feature-packed vehicles, proving that budget-friendly options still exist. In this guide, we’ll break down the most affordable cars in the Philippines for 2025, helping you find the best value for your money without sacrificing quality or performance.

If you’re running a small business or side hustle that involves deliveries or hauling goods, the Kaicene Star Truck is a practical and affordable choice. With a starting SRP of just ₱435,000, it’s the cheapest brand-new utility vehicle in the Philippines this 2025. It’s powered by a 1.2L gasoline engine and built with a cab and chassis layout, giving owners the flexibility to customize it according to their needs, whether it’s for cargo, groceries, or even mobile vending.

Best for: Entrepreneurs and small business owners looking for a workhorse on a tight budget
Standout Feature: Impressive payload capacity at a very low price point
Compared with: Suzuki Carry. Kaicene offers a more budget-friendly option with similar utility

The Kaicene Honor S is proof that space and versatility don’t have to come with a big price tag. Starting at just ₱515,000, this ultra-budget MPV/van delivers outstanding value for families and businesses alike. With its 7–8 seater capacity, dual sliding doors, and cargo/passenger configurations, the Honor S adapts to your needs, whether it’s school runs or supply runs.

Despite its affordability, it doesn’t feel stripped down: a 10-inch touchscreen, manual air-conditioning, and second-row captain’s chairs (in passenger variants) provide a surprising level of comfort. Its 1.5L, 104 hp engine ensures it’s more than capable of hauling both passengers and cargo.

Best for: Budget-conscious families or small enterprises needing flexible space
Standout Feature: Dual sliding doors with an 8-seater option at a rock-bottom price
Compared with: Toyota Lite Ace. Kaicene wins on price and cabin features

The Foton Gratour is a jack-of-all-trades in the light commercial vehicle segment. Priced from ₱570,000, it comes in multiple configurations, from dropside pickup to MPV to panel van, making it one of the most versatile and affordable cars in the Philippines this 2025. Whether you’re hauling cargo or transporting up to 8 passengers, the Gratour adapts to your everyday needs.

Its 1.5L gasoline engine delivers enough power for business operations or family use, and the long wheelbase ensures a roomy cabin. The Gratour has gained a loyal following among entrepreneurs looking for a reliable workhorse without the heavy investment.

Best for: Entrepreneurs and operators needing a dual-purpose vehicle
Standout Feature: Available in multiple body styles with seating for up to 8
Compared with: Kaicene Honor S. Gratour offers more flexibility in configurations

The Suzuki Dzire brings practicality and style together in one of the most affordable cars in the Philippines for sedan lovers. Starting at just ₱609,000, this subcompact is a great pick for first-time car owners, young professionals, or even those eyeing the ride-hailing business. Powered by a fuel-efficient 1.2L engine on Suzuki’s lightweight HEARTECT platform, the Dzire delivers responsive performance with impressive fuel economy.

Despite its budget price, you’ll get a decent feature set, including dual airbags, ABS, and a spacious trunk that’s big enough for groceries, luggage, or delivery packages. Its sleek styling also makes it stand out in a crowd of econoboxes.

Best for: City commuters, students, or Grab/ride-hailing drivers
Standout Feature: Surprisingly large trunk space and ultra-light HEARTECT platform
Compared with: Mitsubishi Mirage G4. Dzire offers better handling and lower fuel consumption

Tried, tested, and trusted. The Suzuki Carry is a no-frills mini-truck built for serious work. Priced from ₱614,000, this compact utility vehicle is a top pick among micro-entrepreneurs, small delivery businesses, and even those converting it into mobile stores or food trucks. Its 1.5L engine delivers 95 horsepower and can handle up to 940 kg of payload, making it one of the most budget-friendly workhorses in the country.

Its narrow frame and small turning radius make navigating tight city streets a breeze, while its modular layout (cab & chassis, pickup, or van) allows for business-specific customizations. It’s low-maintenance, fuel-efficient, and built to last, exactly what every hardworking Pinoy needs.

Best for: Micro-business owners, delivery services, or PUV modern jeepney alternatives
Standout Feature: Almost 1-ton payload capacity in a compact frame
Compared with: Kaicene Star Truck. Suzuki Carry has better and wider parts and service availability nationwide.

Compact, dependable, and extremely fuel-efficient — the Toyota Wigo is a long-time favorite among Filipino city drivers. Starting at ₱615,000, the Wigo is one of the most affordable cars in the Philippines that offers both value and peace of mind. Its 1.0L 3-cylinder engine sips fuel lightly, while its compact frame and tight turning radius make it a joy to drive (and park) in congested Metro streets.

Inside, the Wigo may be small but it packs smart features like a touchscreen audio system, dual airbags, and ABS. Backed by Toyota’s trusted after-sales network and reputation for reliability, it’s no surprise the Wigo is a popular choice for first-time buyers.

Best for: Students, young professionals, or solo commuters needing a nimble city car
Standout Feature: Trusted Toyota reliability with standout fuel efficiency
Compared with: Suzuki S-Presso. Wigo feels more reliable with its stronger dealership network

Funky, fuel-sipping, and city-smart. The Suzuki S-Presso brings SUV vibes to the entry-level hatchback scene. Priced at ₱634,000, this affordable  brand-new car in the Philippines stands out with its 180 mm ground clearance, giving it a mini-crossover feel that’s ideal for uneven roads, potholes, or tall speed bumps common in urban areas.

Its compact frame hides a surprisingly roomy interior, comfortably seating four adults. With its 1.0L engine, the S-Presso excels in fuel economy, making it a top choice for daily commutes. The AGS (Auto Gear Shift) variant even adds Electronic Stability Program and hill-hold assist, rare finds at this price point.

Best for: Daily commuters and young professionals looking for quirky practicality
Standout Feature: SUV-like ground clearance in a small hatch
Compared with: Toyota Wigo. Wigo offers broader dealer coverage, while S-Presso is better for rougher city roads.

Making a strong comeback in a new form, the Toyota Lite Ace Pickup is now one of the most practical budget-friendly light trucks on the market. Starting at ₱651,000, this vehicle brings Toyota’s famed reliability into the realm of small business operations. It’s powered by the same 1.5L engine found in the Vios, giving it the perfect blend of durability, fuel economy, and power.

Built with utility in mind, the Lite Ace comes with dropside panels for effortless cargo loading. Its compact size makes it easy to maneuver, even in narrow barangay roads or crowded wet markets. Whether you’re running deliveries or transporting produce, this truck is a dependable business partner.

Best for: Delivery riders, agri-business owners, or anyone who needs a compact, capable cargo hauler
Standout Feature: Toyota reliability meets customizable cargo space
Compared with: Suzuki Carry. Lite Ace is slightly more expensive, but benefits from a more powerful engine and broader service coverage

The Changan Alsvin is shaking up the subcompact sedan category by offering upmarket looks and surprisingly premium features at a budget-friendly price. Starting at just ₱654,000, the Alsvin comes with a 99 hp 1.4L engine, sleek styling, and a cabin that feels a notch above others in the same price range. Even the base variant includes power amenities, a touchscreen infotainment system, and generous cabin space.

Move up a trim, and you’ll find rare features like a sunroof and leatherette seats, virtually unheard of at this price point. It’s also one of the most affordable cars in the Philippines with an automatic transmission option, making it appealing to first-time buyers who want both comfort and style.

Best for: Style-conscious buyers and first-time owners looking for a budget-friendly option with more features
Standout Feature: Available sunroof and leatherette seats at a bargain
Compared with: Suzuki Dzire. Dzire wins in long-term durability, while Alsvin feels more upscale

Want to go green on a budget? The Wuling Macaron EV is one of the cheapest electric cars in the Philippines and a perfect fit for eco-conscious city dwellers. Priced from just ₱663,000, this fully electric micro-hatch offers a fun, futuristic vibe with its quirky two-door design and minimalist interior. Despite its compact size, it can seat up to four people. Ideal for short trips and urban errands.

Powered by a lithium-ion battery (between 9–14 kWh), the Macaron delivers a driving range of around 120–170 km per charge, which is more than enough for daily commutes within the city. It’s whisper-quiet, easy to park, and incredibly cheap to charge, making it a smart, sustainable alternative to gas-powered hatchbacks.

Best for: Eco-conscious city drivers or students needing a compact, affordable EV
Standout Feature: Fully electric drive with a low daily operating cost
Compared with: Suzuki S-Presso—S-Presso offers a traditional gas setup with wider range, while the Macaron is electric and greener

Looking for something stylish, powerful, and still budget-friendly? The MG 3 fits the bill perfectly. Starting at ₱678,888, this sporty subcompact hatchback delivers more flair and fun than you’d expect from an entry-level car. Its 1.5L engine punches out around 112–118 horsepower, putting it well above most competitors in its class.

Sleek touches like LED daytime running lights, alloy wheels, and a touchscreen infotainment system give it a modern edge, while its compact dimensions make it great for maneuvering through city traffic. Higher variants even offer a hybrid system, helping young, budget-conscious drivers cut fuel costs without cutting style.

Best for: Young professionals or first-time buyers who want more power and flair
Standout Feature: Most powerful engine in its price bracket plus hybrid option
Compared with: Suzuki Dzire or S-Presso. MG 3 offers a more premium, sportier feel with a stronger engine

The Volkswagen Santana proves you don’t need a fat wallet to experience German engineering. Priced at just ₱686,000, this subcompact sedan delivers a composed, comfortable ride with a level of solidity that stands out in the budget category. Powered by a 1.4L MPI engine (89 hp) paired with a 5-speed manual, it’s tuned for smooth, efficient city cruising.

What really sets the Santana apart is its once-a-year maintenance schedule, which significantly lowers long-term ownership costs. The cabin also feels more spacious and refined than expected at this price, offering that European quality feel without the premium price tag.

Best for: Drivers who want Euro-style refinement without the usual costs
Standout Feature: Once-a-year preventive maintenance—rare in this price range
Compared with: Changan Alsvin. Alsvin offers more premium tech; Santana wins on durability and low maintenance

Simple, smooth, and smartly priced. The Kia Soluto is a no-fuss subcompact sedan that delivers on what matters most: comfort, reliability, and peace of mind. With a starting price of ₱698,000, the Soluto packs a 1.4L engine, solid ride quality, and a roomy interior that makes it perfect for both city and out-of-town driving.

What really sweetens the deal is Kia’s 5-year warranty, a standout in this price range. Higher trims come with a 7-inch infotainment system that supports Apple CarPlay and Android Auto, but even the base variant offers a spacious trunk and low running costs. It’s a great pick for those who want a stress-free, long-term daily driver.

Best for: Practical drivers seeking long-term value and minimal upkeep
Standout Feature: 5-year warranty for worry-free ownership
Compared with: VW Santana. Santana wins on maintenance schedule, Soluto has more tech features

If you’re after mid-size sedan space at a subcompact price, the MG 5 is your best bet. Starting at ₱698,888, this subcompact-plus sedan is one of the longest and roomiest in its class, offering near Toyota Corolla Altis dimensions without the hefty price tag. Inside, you’ll find a spacious cabin and trunk that punch well above expectations for the segment.

Under the hood, it packs a 1.5L engine with 112 hp, while even the base model comes loaded with a touchscreen infotainment system, Apple CarPlay/Android Auto, reverse camera, and Electronic Stability Control (ESC), features usually reserved for higher-end cars. Its upscale styling and plush ride make it feel like a luxury sedan for less.

Best for: Families and daily drivers wanting more space and tech without going over budget
Standout Feature: Largest sedan in its price range with advanced safety and infotainment
Compared with: Kia Soluto. Soluto wins with a longer warranty, MG 5 offers more space and features

Sweet, smart, and sustainable. The Jetour Ice Cream EV brings electric driving to the masses in the most fun-sized way possible. Priced at ₱699,000, this quirky micro-EV is perfect for city zipping, mall runs, or even neighborhood errands. With a length under 3 meters and a peppy ~20 kW electric motor, it’s a dream to park and a breeze to drive in tight urban spaces.

Despite its playful vibe, it offers real-world performance: up to 170 km of range per charge and 100 km/h top speed. Its minimalist interior, compact footprint, and cheerful color options make it a favorite among eco-conscious young drivers and urban dwellers looking for an efficient and eye-catching alternative to gas.

Best for: Eco-minded drivers, students, or condo-dwellers needing a city runabout
Standout Feature: Long range for a micro-EV with attention-grabbing style
Compared with: Wuling Macaron EV. Jetour offers slightly more range and a bigger motor for just a bit more money

Looking for the best budget-friendly car in the Philippines doesn’t mean settling for less. To make your decision easier, we’ve identified the top performers in key categories that matter most to budget-conscious car buyers, from affordability to long-term cost savings.

Each winner stands out for its price, fuel efficiency, features, or low maintenance costs, giving you the best value possible under ₱700,000.

Why it wins:

At just ₱435,000, the Kaicene Star Truck is the cheapest car in the Philippines for 2025. It’s a functional, no-frills mini pickup designed for entrepreneurs and delivery services. With its compact build and decent payload, it’s the most accessible option for starting a small business on wheels.

Why it wins:

The MG 5 gives you near mid-size sedan space, a 1.5L engine, Apple CarPlay/Android Auto, and Electronic Stability Control, all for just ₱698,888. It’s the best value-for-money car in the Philippines this year, offering more features and size than anything else in its price bracket.

Why it wins:

The Volkswagen Santana stands out with its once-a-year preventive maintenance schedule, significantly lowering long-term costs. At ₱686,000, it also delivers European build quality and a solid, spacious ride, without the usual upkeep headaches of other sedans.

Why it wins:

With an average of 22–26 km/L, the Suzuki S-Presso delivers the best fuel efficiency among budget-friendly cars. Its 1.0L engine, lightweight body, and high ground clearance also make it one of the most practical cars for everyday Metro driving and parking.

Why it wins:

At ₱663,000, the Wuling Macaron EV is one of the cheapest electric cars in the Philippines. It’s ideal for eco-conscious buyers who want a quiet, stylish, and low-cost ride for daily errands,while enjoying zero gas expenses and up to 170 km of range per charge.

Why it wins:

The Foton Gratour offers multiple body styles, MPV, van, dropside pickup—making it perfect for entrepreneurs who need flexibility. At ₱570,000, it blends affordability and function, carrying up to 8 passengers or generous cargo, depending on your configuration.

Buying a brand-new car doesn’t have to drain your bank account. With so many cheap and budget-friendly cars in the Philippines available in 2025, it’s never been easier to find a model that best fits your needs. 

From compact hatchbacks like the Toyota Wigo and Suzuki S-Presso, to versatile workhorses like the Kaicene Star Truck and Suzuki Carry, to innovative electric options like the Wuling Macaron EV, there’s truly a vehicle for every lifestyle and price point. The key is to look beyond the sticker price and consider long-term factors like fuel economy, maintenance, and available features.

Use this guide to weigh your options, calculate your total cost of ownership, and match the right car to your budget.