These Are America’s Cheapest New Cars

• Finding a new car for under $20,000 is becoming increasingly difficult, with only 3 models below the threshold

• The average price of a new car in the U.S. is around $48,000

Car prices in the U.S. have increased significantly since the COVID-19 pandemic, squeezing budget-conscious buyers. In 2025, things are getting even tougher, with only three models starting below $20,000 when new.

To help you find your next vehicle, Visual Capitalist’s Marcus Lu has highlighted America’s cheapest new cars that are available today.

Data & Discussion

The data for this visualization comes from Car and Driver. It highlights the 10 cheapest new sedans or hatchbacks in America by their starting MSRP, all of which come from Asian and European automakers.

Sub-$20K Cars Are Nearly Extinct

Only three vehicles—two versions of the Mitsubishi Mirage and the Nissan Versa—are priced under $20,000.

Buyers looking at a Mirage should be aware that both models are ranked very poorly by Car and Driver (2.5 to 3 out of 10) due to their unrefined powertrains and cheap interiors.

The Mitsubishi Mirage offers an impressive warranty and surprising fuel efficiency, even if it somehow feels even cheaper than its low price suggests.

Note that the Mirage has been discontinued in the U.S., though dealers are expected to have stock until the end of summer 2025.

Asian Brands Dominate the List

Nine of the 10 cheapest models come from Japanese or South Korean brands, reflecting their ability to produce cheaper, value-driven vehicles.

U.S. auto tariffs, however, are going to make it harder for these brands to succeed. Estimates from Goldman Sachs predict that Mazda could see a massive 59% profit reduction due to the tariffs, while Nissan could see a 56% drop.

Toyota and Honda, two of America’s top automakers by market share, will avoid most of the damage due to their well-established U.S. manufacturing bases.

If you enjoyed today’s post, check out The Most Reliable Car Brands of 2025 on Voronoi, the new app from Visual Capitalist.