In today’s market, the average new car price has soared well beyond reach for many buyers, making affordable options harder than ever to find. But one model still stands as a reminder that value and practicality can coexist, even in 2025. It’s the last new car in America you can buy for under $20,000, a rare find in an era of rising prices and disappearing budget-friendly vehicles.
This compact sedan offers more than just affordability. With solid fuel efficiency, modern tech, and everyday usability, it manages to deliver real-world value without feeling stripped down. It’s proof that a low price tag doesn’t have to mean compromising on quality or comfort.
As automakers continue to phase out entry-level models, this lone survivor fills an important gap in the market, catering to first-time buyers, commuters, and anyone who still believes a new car shouldn’t break the bank.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites and other authoritative sources, including TopSpeed and the EPA.
The automotive market has been on a push to deliver bigger and better cars. Over time, this has slowly meant that small affordable cars have been discontinued. Now, there is only one option that you can buy brand new with a budget of $20k, and that’s Nissan’s subcompact sedan, the Versa.
Nissan hasn’t made any major changes to the Versa for the 2025 model year. The only big difference is that every model now comes equipped with LED headlights as standard. The Japanese brand has also improved their after-sales support, now offering a better complimentary maintenance plan included with your purchase.
Model
Starting MSRP
S
$17,190
SV
$20,490
SR
$21,190
With a starting price of around $17,000, the Versa is now quite easily the cheapest car in America. It stands alone in its segment, with all its competitors having been discontinued. Up until recently, Nissan’s little sedan had a rival in the form of the Mitsubishi Mirage, but it wasn’t very good, and it has since been pulled from the market. Not that long ago, Kia also offered the Rio hatchback, which gave the Versa a run for its money. Now, however, this is your sole choice, and if you’re on a tight budget, it isn’t a bad one.
The Versa comes in three different trims and there is merit to choosing any of them. The S is spartan, but if you’re looking for the most affordable car possible, there is literally no competition. The SV adds a standard automatic transmission, Apple CarPlay and Android Auto, and blind spot warning. The SR adds passive entry, remote start, and a leather-wrapped steering wheel as well as some stylish 17-inch wheels.
Nissan’s warranty package is about average compared to what is on offer from other automakers. The powertrain and bumper-to-bumper coverage won’t blow you away, but it will give you some peace of mind on such a budget-oriented vehicle. New for this year, Nissan also offers three free oil changes within your first two years or 24,000 miles of ownership.
We often highlight sporty agility and a luxurious ride as some of the indicators of a car’s success. However, when you’re wanting to buy something for under $20,000, those aren’t really the things you’re looking for. The Versa isn’t going to make you fall in love, but it will get you where you need to go without much fuss, and it won’t burn that much fuel in the process.
Engine
1.6-Liter Naturally Aspirated Inline-Four
Transmission
5-Speed Manual or CVT
Horsepower
122 HP
Torque
114 LB-FT
Driveline
FWD
0-60 MPH
9.5 Seconds
Top Speed
115 MPH
Under the hood of every new Versa is a small four-cylinder engine that produces a notably humble amount of power. Front-wheel drive is the only setup available here. The Versa is the only new car left in America that offers a five-speed manual, and it’s one of the only cars that offers a manual transmission for the sake of cost saving rather than for a sportier driving feel.
Nissan’s affordable little car isn’t quick pulling off from a stop and merging into highway traffic isn’t going to be the easiest task in the world. We think the Versa is best suited for someone who mostly drives in urban areas. It is worth noting, though, that the current iteration of the Versa is a whole second quicker to 60 miles an hour than its predecessor.
In terms of comfort, the Japanese sedan performs pretty well. It isn’t plush by any means, but for its price it does a pretty good job of absorbing any of the imperfections in the road.
Model
City
Highway
Combined
CVT
32 MPG
40 MPG
35 MPG
Manual
27 MPG
35 MPG
30 MPG
While the manual transmission is a nice cost saver, fuel economy is a big reason to instead opt for the CVT. The base model might come standard with the manual, but you can upgrade to the CVT for an additional $1,800. While the fuel economy of the manual isn’t bad, the CVT sits among the most efficient gas-only models that you can buy in the U.S. right now. This is another way that Nissan’s small sedan can save you an extra bit of cash.
For the price you pay, the Versa comes with a pretty comprehensive list of safety equipment. Front and rear automated emergency braking are included on every model, as are automatic high-beams and a lane-departure warning. Things like blind-spot monitoring and a rear cross-traffic alert are available as options, as is adaptive cruise control.
Back in 2019, before the Versa was redone, the interior was atrocious. It was cheap and plasticy, and it was not a place that you wanted to be for extended periods of time. While you can still tell that this is a budget-minded car, Nissan has definitely upped its game, with their small sedan now feeling comfortable and practical.
Front Row Headroom
39.5 Inches
Front Row Legroom
44.5 Inches
Second Row Headroom
36.3 Inches
Second Row Legroom
31 Inches
Cargo Capacity
14.7 Cubic Feet
As you’d expect from a car so small, the back seats in the Versa a relatively cramped. However, adjust the front seats, and you can pretty easily fit another two adults in the back when you need to. There are nice storage cubbies throughout the cabin which add some level of practicality and the cargo area is reasonably sized. The back seats can also be folded flat for when you have larger cargo to haul.
While still obviously a cheap car, Nissan has managed to include a number of nice materials throughout the cabin, with a couple of soft-touch panels on the doors and dashboard to elevate things a bit. If you climb the trim ladder, things like heated seats, automatic climate control, and remote start are available. However, every model still comes with cloth seats and manually adjustable seats.
The most affordable Vera models come fitted with a seven-inch infotainment screen, with the SR instead getting an eight-inch unit. There are a number of physical buttons and shortcuts for those who don’t like searching through menus on the touchscreen. Apple CarPlay and Android Auto are standard on the SV and SR trims, but optional on the S. Every model except for the S gets a small display in the gauge cluster as well.
All models come equipped with a couple of USB ports, but you’ll need to climb the trim ladder for a wireless smartphone charging pad. The sound system in every model is passable but isn’t going to impress any audiophiles. Only the top trim comes equipped with SiriusXM satellite radio.
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