America's Final New Car Priced Under $20,000 Has Disappeared, and Nissan Was Responsible for Its Demise | Carscoops

      The most affordable new cars now exceed $22,000 as manufacturers move away from entry-level sedans.

      With the end of Versa production, America has lost its last car priced below $20,000.

      Currently, the cheapest new car starts at over $22,000 nationwide.

      While the next-generation Versa may continue to be available internationally, the U.S. market has been left behind.

      It’s official: the under-$20,000 car has officially disappeared from America as of December 23, 2025, with Nissan quietly ceasing production of the 2025 Versa for the U.S. market, marking the end of the last vehicle that previously offered true entry-level pricing.

      Nissan indicated that this decision is part of a larger strategic shift rather than an unexpected turn of events.

      “In line with Nissan’s product strategy, production of the Nissan Versa concluded in December 2025 for the U.S. market,” a representative for the company informed Carscoops. “Nissan remains dedicated to providing affordable and stylish options in the sedan category with models such as the Sentra and Altima, while also delivering strong value in the compact SUV segment with the Kicks.”

      The signs have been evident for years. Reports dating back to 2023 hinted that both the Versa and Altima were on borrowed time; while the Altima managed to surprise us by making it into 2026, the Versa did not.

      No More Budget Option

      With the departure of the Versa, which had a starting price of just $17,390, and the earlier exit of the Mitsubishi Mirage, the sub-$20,000 new car market is effectively finished. Nissan's least expensive vehicle now is the Kicks Play ($22,910), an older model that may soon face the same fate.

      Buyers in search of a sedan must now opt for the Sentra at $23,845, while the new Kicks SUV begins at $23,925. The overall industry situation isn't any better.

      The least expensive new vehicle currently available in the U.S. is the 2026 Hyundai Venue, priced at $22,150, while the most affordable new sedan is the Kia K4 at $23,385. This means the entry price for new cars has surged by several thousand dollars in just a few years.

      The Versa Continues Elsewhere

      What’s particularly noteworthy is that Nissan is not done with the Versa globally. As reported recently, a next-generation Versa has emerged and seems destined for Latin American markets where affordable sedans are still viable.

      For now, though, American consumers are officially out of the affordable new car market, and there are no clear indications it will return anytime soon.

      One of the primary reasons, or perhaps the sole reason, for the absence of such models in the U.S. relates to tariffs. Both the outgoing model and the revamped 2026 Versa are manufactured at Nissan's facilities in Mexico, making them subject to import tariffs that would elevate their prices well beyond what the budget-friendly market can support.

      Source: Nissan, Motor1