The cheapest new cars now cost over $22,000 as automakers abandon entry-level sedans
It’s time to call it. The sub-$20,000 car officially died in America today, December 23, 2025. Nissan has quietly ended production of the 2025 Versa for the US market, eliminating the last remaining vehicle that offered genuinely entry-level pricing.
According to Nissan, the decision is part of a broader product strategy shift rather than a sudden surprise.
More: Nissan’s 2027 Versa Looks Sharper Than Expected In New Leak
“In line with Nissan’s product strategy, the Nissan Versa ended production in December 2025 for the U.S. market,” a company spokesperson told Carscoops. “Nissan remains committed to offering affordable and stylish vehicles in the sedan segment with models like Sentra and Altima, while also offering strong value in the compact SUV segment with the Kicks.”
The writing has been on the wall for years. Reports as far back as 2023 suggested both the Versa and Altima were living on borrowed time, and while the Altima managed to surprise us by limping into 2026, the Versa didn’t.
No More Budget Champion
With the Versa, which started at just $17,390, now gone and the Mitsubishi Mirage having bowed out earlier, the sub-$20,000 new car segment is truly dead. Nissan’s least expensive option is now the Kicks Play ($22,910), a holdover of the previous generation that could die soon, too.
More: Only One New Car Left Under $20K And Time Is Running Out Fast
Buyers looking for a sedan now have to step up to the Sentra at $23,845, while the latest-generation Kicks SUV starts at $23,925. Across the industry, the situation isn’t much better.
The cheapest new vehicle currently on sale in America is the 2026 Hyundai Venue at $22,150, while the least expensive new sedan is the Kia K4 at $23,385. In other words, the price floor for new cars has risen by several thousand dollars in just a few short years.
The Versa Lives On, Just Not Here
What makes the timing especially notable is that Nissan isn’t done with the Versa globally. As we’ve reported these past few weeks, a next-generation Versa has already popped up and appears destined for Latin American markets where affordable sedans still make sense.
Also: America Just Lost Its Last 5-Speed Manual Gearbox Car
For now, though, American buyers are officially priced out of the truly cheap new car market, and there’s no clear sign it’s coming back anytime soon.
One of the main reasons, or possibly the only real reason, we’re not getting it comes down to tariffs. Both the outgoing model and the redesigned 2026 Versa are built at Nissan’s plants in Mexico, making them subject to import tariffs that would push the sticker price well beyond what the budget market can bear.
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