There are all kind of $25K possibilites, including a late model WRX or Forester, either of which gives AWD, but not as good fuel economy as the Matrix, but surprisingly close to the Mazda3.
When we were shopping recently, there also seemed to be no shortage of used Matrices, including quite a few 2004 models with 15-20K on them. They seemed to be asking about $18-19K, but there seemed to be some decent room. I figured we could have picked up a 2004 XR we saw with AT and 18K-km's for about $17K all in. That's a pretty hefty savings over a 2005. There does not seem to be a good selection of used Mazda3's on the market.
Personally, we're really pleased with our Subarus and highly recommend them. Our Forester gets about 10.0L/100km's in stop and go winter driving and can carry a ton of stuff. AWD is nice, and it's got four wheel discs, ABS, heated seats/mirrors/wiper-park and a nice in-dash 6-disc. If you're looking for family utility without a big at-the-pump or insurance (it's a "stationwagon") bills, it's nice. Downside is the not razor sharp handling. But, a WRX...
