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Home»Economic News»These Are America’s Cheapest New Cars
Economic News

These Are America’s Cheapest New Cars

June 17, 2025No Comments2 Mins Read
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  • It is becoming increasingly challenging to find a new car for under $20,000 in the current market, with only three models falling below this price point.

  • The average price of a new car in the United States is approximately $48,000.

Car prices have seen a significant rise in the U.S. post the COVID-19 pandemic, making it tough for budget-conscious buyers. As we move into 2025, the situation is becoming even more daunting, with just three models starting below the $20,000 mark when brand new.

To assist you in your search for your next vehicle, Visual Capitalist’s Marcus Lu has compiled a list of America’s cheapest new cars available in the market today.

Data & Discussion

The data utilized for this visualization is sourced from Car and Driver. The list showcases the ten cheapest new sedans or hatchbacks in America based on their starting MSRP, all of which are from Asian and European automakers.

Sub-$20K Cars Are Rare

Currently, only three vehicles – two variants of the Mitsubishi Mirage and the Nissan Versa – are priced below $20,000.

If considering a Mirage, it’s important to note that both models have received low ratings from Car and Driver (2.5 to 3 out of 10) due to their unimpressive powertrains and basic interiors.

The Mitsubishi Mirage boasts a great warranty and commendable fuel efficiency, despite feeling cheaper than its price tag suggests.

It’s worth mentioning that the Mirage has been discontinued in the U.S., but dealers are anticipated to have remaining stock until the end of summer 2025.

Asian Automakers Lead the Way

Out of the ten cheapest models, nine are from Japanese or South Korean brands, showcasing their ability to produce affordable, value-driven vehicles.

However, U.S. auto tariffs may pose challenges for these brands in the future. Estimates from Goldman Sachs indicate that Mazda could face a substantial 59% profit decrease due to these tariffs, while Nissan might see a 56% decline.

Toyota and Honda, two of the top automakers in the U.S. market share, are likely to withstand most of the impact due to their well-established manufacturing bases in the country.

If you found this article informative, be sure to check out The Most Reliable Car Brands of 2025 on Voronoi, the latest app from Visual Capitalist.

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