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The $20,000 New Car Is Gone From the U.S. Market

Automakers are prioritizing higher‑margin models, pushing the entry point for new‑car buyers closer to $30,000.

Overview

  • Nissan’s decision to end U.S. production of the Versa, following the Kia Rio and Mitsubishi Mirage exits, leaves no mainstream models under $20,000, according to Kelley Blue Book.
  • U.S. buyers paid an average of $49,191 for a new vehicle in January, a 2.2% dip from December’s record but still near historic highs.
  • Compact SUVs are now the top sellers, averaging $36,414 in January, reflecting the industry’s shift toward higher-priced segments.
  • Households earning $150,000 or more account for 43% of new‑car purchases, up from about one‑third in 2019, signaling a wealthier buyer base.
  • Industry voices now describe sub‑$30,000 as the practical affordability threshold, with models like the Chevrolet Trax ($21,700) and Ford Maverick ($28,145) filling the gap.