A 25mph school zone? That seems fast. 15mph would be more the norm, which is in line with the 17mph the car believed itself to be traveling.

FYI, unless you are a commerical truck, a cop, or a racer, your speedometer will read slightly fast, sometimes as much as 5 to 10%. This is normal practice for cars as it limits manufacturer liability. You can check this using independant gps, ie not an in-dash unit. (Just imagine the court cases if a speedo read slower than the actual speed and you can understand why this started.)