Only One New Car Available Below $20K and Time is Quickly Running Out | Carscoops

      As the most budget-friendly model fades from the scene, the average transaction prices for new cars in the US rose in June.

      The Mitsubishi Mirage’s average price reached $18,484 in June, making it the least expensive new vehicle available. The Nissan Versa, however, no longer meets the criteria for a sub-$20K vehicle after alterations to its trim options. The industry’s average transaction price in June climbed to $48,907, reflecting a slight increase from May.

      The conclusion of an era in the automotive industry is nearing: by the end of this summer, purchasing a new car in the United States for under $20,000 will cease to be an option. With the cost of living currently at a peak, this news is troubling for consumers nationwide and may lead many to consider the used car market as an alternative.

      Recent sales figures underscore how imminent this change is. In June, the new Mitsubishi Mirage had an average transaction price of $18,484. Production of the Mirage ceased last year, and the company has been depleting its remaining stock. Reports indicate that fewer than 1,700 units are left at dealerships across the US, and once these are sold, the Mirage will officially leave the new car market.

      According to Cox Automotive, the Mirage is currently the last new vehicle being sold for an average price under $20,000. Until recently, it was also possible to purchase a new Nissan Versa for less than $20,000; however, in late May, Nissan eliminated the budget-friendly five-speed manual base option. The most affordable Versa now is the CVT-equipped S, priced at an MSRP of $18,990, which increases to $20,130 once a shipping and handling fee of $1,140 is added.

      Consumers have been quickly purchasing the Mirage before it becomes unavailable. Last year, the Mirage was Mitsubishi's second-best-selling car in the US, with 22,766 units sold—a 125 percent increase compared to 2023.

      Average transaction prices are on the rise as well. In June, the average transaction price (ATP) for new vehicles increased to $48,907, up by 0.4 percent from the adjusted figure in May.

      Several automotive groups saw small ATP gains last month, although a few experienced declines. The Geely Auto Group, encompassing the Polestar and Volvo brands, noted the most significant increase in June, with ATPs rising by 1.7 percent from $58,900 to $59,927. General Motors also reported a 1.6 percent rise in ATPs, moving from $54,051 to $54,909. In contrast, Tata Motors (which includes Land Rover) experienced a decrease of 7.7 percent, alongside Tesla (down 0.5 percent) and VW (down 3.3 percent).

      In terms of brands, Chrysler recorded the highest monthly increase at 3.4 percent, with Mitsubishi following closely behind at 3.5 percent. MINI, Buick, and Chevrolet also saw moderate gains. On the other hand, Land Rover experienced a decline of 7.9 percent month-over-month, while Lincoln and Ram faced drops of 2.9 and 2.1 percent, respectively.

      The following charts provide a comprehensive overview of ATP changes by brand, highlighting shifts on both a monthly and yearly basis.

      Average Transaction Price By Brand

      Average Transaction Price By Group