The last cheap new car is gone in the US: buyers are left with loans and used vehicles
In the US, the era of new cars under USD 20,000 has effectively ended. The Nissan Versa, the last model with that kind of price tag, has been pulled from production for the American market. The reason isn't only weak demand: according to industry sources, tariffs would push the car's price too high for its actual buyers.
The Versa with a manual gearbox started at USD 17,190. The closest affordable option is now the Kia K4 LX at USD 23,535 including delivery. Next come the Nissan Sentra S at USD 23,845 and the Hyundai Elantra SE at USD 23,870. The gap may look small in market terms, but for a buyer on a tight budget that already means a different payment tier.
The problem is that the average price of a new car in the US has crept close to USD 50,000. According to Kelley Blue Book, the market is sitting near record levels, while J.D. Power puts the average car loan at USD 806 a month. More and more buyers are paying over USD 1,000 and stretching loans out to 84 months.
From here on, affordable models could thin out further. The Donald Trump administration is reviewing the USMCA agreement, which had allowed many low-cost vehicles from Mexico to enter the US without duties. If the terms change, base trims could simply lose their purpose: localising them in the US is expensive, while bringing them in under tariffs would push prices above the psychological threshold.
The risk zone now includes models such as the Chevrolet Trax, Buick Encore GX, Mazda CX-30, Nissan Sentra and Kicks, Hyundai Elantra, Kia K3 and K4. The Ford Maverick will probably stay, but its price could also climb sharply.
For buyers, that means an unpleasant choice: take a used car, sign up for a large loan, or wait for discounts. The new car as a simple, affordable purchase is fading faster than the market has had time to get used to.