A New Car for Under $20,000? That’s So 2025

We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. Learn more. Economy and Politics Auto Industry Share Share Close Mail Page URL https://money.com/new-car-prices-2026/ Link copied! A New Car for Under $20,000? That's So 2025 By: Adam Hardy Adam Hardy Lead data journalist | Joined October 2021 Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and many other outlets. Has also written: Social Security Trust Fund to Run Out of Money in 2032, a Year Sooner Than Expected Here's How to Track Your Tax Refund This Year Most Taxpayers Qualify for IRS Free File. Here’s How to Use It Grocery Prices Are Finally Expected to Cool This Year. Just Not for These Staples Trump Accounts for Kids: Who Qualifies for the 'Free Money' and How to Sign Up See full bio Editor: Katherine Peach Katherine Peach Associate Editor | Joined January 2025 Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. Has also written: Stamp Prices Won't Rise This Month, but These USPS Shipping Costs Will Debit Card Fraud Is on the Rise. Here's What I Did When It Happened to Me New Bill Aims to 'Actually' End Taxes on Social Security Inflation's Silver Lining: The Social Security COLA Estimate for 2026 Is Up Social Security Recipients Are on Track for a 2.5% Raise Next Year See full bio Published: Feb 19, 2026 8:30 a.m. EST 3 min read Money; Getty Images As the economy car market shrinks, it’s becoming impossible to find a new vehicle for less than $20,000. In January, the average sales price of a new car was more than double that: $49,191, according to the latest transaction data from Cox Automotive, the publisher of the Kelley Blue Book report. Average new car prices last month were higher than any January on record, the auto group said. Ads by Money. We may be compensated if you click this ad.AdCompanyDescriptionGet QuoteMORELESSBy using our website, you agree that you have read Money’s Terms of Use and Privacy Notice and consent to both the processing of your personal information and the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. “We hit a new January high even as prices naturally pulled back from December’s luxury-heavy finish,” Erin Keating, an executive analyst at Cox Automotive, said in a news release. Average car prices tend to spike in December, led by year-end sales of luxury cars, which result in pushing up the average. Usually, at the start of the year, prices retreat following the holiday buzz, although they remain uncomfortably close to the $50,000 mark. A lot of what’s pushing prices up, Keating noted, is the types of cars people are buying: larger and more luxurious models. She said there are still “plenty of options” for sale at lower-than-average prices. Where are the affordable vehicles? As manufacturers — and drivers — switch to large, luxury vehicles, budget-friendly models start to disappear. “The U.S. market no longer has a new vehicle with an average [retail price] below $20,000,” the Cox report said. For a while, the Mitsubishi Mirage was holding the line. A no-frills subcompact car, the Mirage was the cheapest new vehicle on the market, with an average price of about $19,000. Mitsubishi discontinued the model in 2024, and the last batch of new models was largely sold out by last summer.

The Nissan Versa then took up the mantle as the most affordable new car, with a sales price right around $20,000. But the run was short-lived. Nissan ended production of the Versa in December. Mitsubishi and Nissan remain the most affordable carmakers, with average sale prices across all models at $31,600 and $34,700, respectively, according to Cox data. But without the Mirage or Versa, what's left? According to prices from Cars.com, there are several new models of sedans and SUVs starting at $25,000 or less. Price Type 2026 Hyundai Venue SE $22,150 SUV 2026 Chevrolet Trax LS $23,495 SUV 2026 Kia K4 LX $23,535 Compact sedan or hatchback 2026 Nissan Sentra S $23,845 Compact sedan 2026 Hyundai Elantra SE $23,870 Sedan 2026 Toyota Corolla LE $24,120 Compact sedan Adam Hardy for Money.com; Cars.com A few other models barely miss that cut-off, including the Volkswagen Jetta S ($25,270), the Mazda3 2.5S ($25,785), the Honda Civic LX ($25,890) and the Buick Envista Preferred ($26,495). Ads by Money. We may be compensated if you click this ad.AdDon't overpay for Car Insurance. Compare rates today!Save up to $793 a yearGet Started More from Money: The 50 Best New Cars and Trucks 5 Best Auto Refinance Companies of 2026 More Americans Than Ever Are Stuck With $1,000-Plus Car Payments SHOWHIDEAds by Money. We may be compensated if you click this ad.AdProtect your vehicle with affordable Car Insurance.View Rates