Regardless of where you look and who you associate with, you likely hear gripes about how expensive things are nowadays. Well, they’re not wrong. Whether it be groceries, restaurants, services, utilities, or vehicles, you should (unfortunately) expect to spend a bit more for things in 2024. Tragically, the supply of cheap new cars is also dwindling at an alarming rate. Frankly, with the departure of affordable subcompact models like the Mitsubishi Mirage, the days of the sub-$20,000 new car might be numbered for good. 

By 2026, would-be car buyers might be out of sub-$20,000 cheap new car options

Earlier this year, I had the opportunity to review the 2024 Nissan Versa SR. Now, while the SR is the range-topping offering in the Versa lineup, it represents something important. Specifically, the Versa is the most affordable car in the country and one of the few cheap new cars with a base model that starts beneath the $20,000 mark. 

Unfortunately, Nissan may discontinue the Versa after the 2025 model year. As a result, the landscape of vehicles under $20,000 will shrink that much more. While that’s bad news by itself, the Versa has the potential to be the final sub-$20,000 cheap new car option for American buyers. 

See, Mitsubishi is discontinuing the Mirage hatchback and G4 sedan before the 2025 model year. The Mirage, while a bit out-classed by the Versa and the pricier Kia Forte, was the only other cheap new car under $20,000. Now, with both the Mirage and the Versa on the way out, the cheapest cars buyers can expect to access in 2026 may be around $21,500 or so. 

Of course, used cars are an option for buyers. Frankly, most manufacturers have adopted the industry-standard three-year, 36,000-mile basic warranty. As a result, a late-model pre-owned ride may carry some of the same coverage as a newer car. Still, after 2025, a used car might be the only option for shoppers looking to spend less than $20,000 on a new vehicle (not counting fees, of course).