One Of The Best Cars For Retirees Is A 2025 Honda Under $25,000

For at least the last two decades, Honda and Toyota have been the two most affordable, dependable car brands, consistently ranking highly on customer satisfaction and reliability charts. Going by Consumer Reports, both Japanese marques almost always appear among the top brands for reliability in both new and used car studies. Additionally, the 2025 J.D. Power Vehicle Dependability Study finds Toyota among the leading mass-market brands for dependability, with Honda routinely not far behind. 

The two brands might be similar, but one thing that sets Honda apart from its alternative rival is that it usually gives you more "car" for the same price tag. In practice, that means a roomier cabin, a quieter ride, and more standard features in base trims. If you're a retiree looking to stretch your budget without settling for a stripped-down vehicle, a brand-new base Honda car might be the best choice.

In 2024, it was the Honda Accord, but for 2025 models, the Honda Civic LX is the car for retirees. With a starting MSRP of $24,250, it falls just under the $25,000 mark while still offering the comfort, dependability, and efficiency Honda is known for. Additionally, it's about $3,000 cheaper than the competing 2024 Toyota Camry, which is also a good pick for retirees.

Compact sedans like the Honda Civic generally fall on the lower end of insurance costs compared to SUVs or trucks. According to findings from MoneyGeek, the average yearly cost to insure an SUV in 2025 is around $2,175 per year for full coverage and $974 per year for the minimum. A Honda Civic averages about $1,423 per year ($119 per month) and $628 per year. That means you'd be saving roughly $752 each year on full coverage or about $346 on minimum coverage simply by choosing a Civic over the average SUV. Over five years of ownership, that difference can add up to nearly $3,800 in savings on insurance alone.

Honda has also built a reputation for durability and low repair costs; you could get similar savings in maintenance and repairs. The average annual repair costs for a Honda Civic are about $368, compared to an industry average of $652 across all cars, per RepairPal. Parts are widely available, and most mechanics are familiar with Honda models, which keeps service bills reasonable and avoids expensive specialty repairs. J.D. Power gives the 2025 Honda Civic model 82 out of 100 for quality and reliability and ranks it second overall in the 2025 best compact car category. 

As a retiree, you're likely earning a fixed income, so shaving off unnecessary spending on gas can go a long way in pushing that monthly budget. The Civic LX offers that option with Environmental Protection Agency (EPA) ratings of 32 miles per gallon (mpg) in the city, 41 mpg on the highway, and 36 mpg combined. For contrast, according to the EPA, the average mpg of 2023 cars is 27.1. If you drive mainly around town with the occasional longer trip, this could translate into a predictable and relatively lower monthly expense on gas — you could even save more with the right gas-saving habits.

For retirees worried about space, comfort, and safety, this car offers acceptable solutions. The Civic LX has 42.3 inches of front legroom and 37.4 inches in the rear, more than adequate for taller drivers and passengers, and slightly more spacious than the 2025 Corolla LE and Mazda3 Sedan, both in the same price range. The 14.8 cubic-foot trunk is also bigger than the Corolla and Mazda's, providing enough space for groceries, luggage, or golf clubs, which can save the money you would have spent on a larger, more expensive vehicle. Despite being a base model, the Civic LX also comes with the Honda Sensing suite. It's a series of safety and automated systems, including features like adaptive cruise control, lane keeping assist, and automatic emergency braking, which makes driving much easier for seniors.