The sub-$20,000 new car has disappeared from the American market, with Nissan ending production of the 2025 Versa in December 2025. This marks the final exit of a vehicle that once represented the most accessible entry point into new car ownership.
The End of an Era
Nissan confirmed the decision as part of a broader shift in its product strategy. According to a company spokesperson, the Versa’s discontinuation is not a sudden move but a planned outcome. The Versa, which started at just $17,390, was the last remaining option for buyers seeking genuinely affordable new transportation.
The death of the Versa follows the earlier departure of the Mitsubishi Mirage, leaving a void in the budget car segment. Nissan’s current least expensive option is now the Kicks Play at $22,910, though its future is also uncertain.
Rising Prices Across the Board
The elimination of the Versa means that buyers now face higher price floors for new vehicles. The cheapest new car currently available in the U.S. is the 2026 Hyundai Venue at $22,150, while the least expensive sedan is the Kia K4 at $23,385. These figures represent a significant increase of several thousand dollars in just a few years.
This trend reflects broader economic factors affecting the automotive industry. Rising production costs, inflation, and supply chain disruptions have all contributed to higher vehicle prices.
Global Markets vs. U.S. Tariffs
Notably, Nissan continues to produce the Versa for other markets, with a next-generation model already appearing for Latin American sales. The difference lies in tariffs. Both the outgoing and redesigned Versa are built in Nissan’s Mexican plants, making them subject to import tariffs that inflate prices beyond the reach of budget-conscious American buyers.
This situation underscores the impact of trade policies on consumer access to affordable goods. Without tariff adjustments, the U.S. market will likely remain priced out of the ultra-low-cost new car segment.
Conclusion
The disappearance of the sub-$20,000 new car in America is a clear sign of shifting economic realities. With rising prices and trade barriers in place, affordable transportation options are becoming increasingly scarce for many buyers. The Versa’s exit is not just the end of a single model, but the close of an era for budget-friendly new vehicle purchases.
