The Last New Car You Can Buy in America for Under $20,000

In today's market, the average price of a new car has risen so much that it has become out of reach for many buyers, making affordability more difficult than ever. But one model still serves as a reminder that value and practicality can coexist even in 2025. It's the last new car in America that can be had for under $20,000, a rare find in an era of rising prices and disappearing budget cars.

This compact sedan offers more than just affordability. With strong fuel economy, modern technology, and everyday usability, it manages to provide real value without feeling stripped down. This is proof that a low price does not necessarily mean a compromise in quality or comfort.

As automakers continue to phase out entry-level models, this lone survivor fills an important gap in the market, catering to newcomers, commuters, and anyone who still believes a new car doesn't have to break the bank.

To provide you with the most current and accurate information, the data used to compile this article was obtained from various manufacturers' websites and other reputable sources, including TopSpeed ​​and the EPA.

Nissan offers 2025 Versa for under $20,000

The automobile market is striving to produce bigger and better cars. Over time, this gradually led to the production of small, affordable cars being phased out. Right now, there's only one option you can buy brand new on a $20,000 budget, and that's the Nissan Versa subcompact sedan.

Changes for 2025

Nissan hasn't made any major changes to the 2025 Versa. The only big difference is that each model now comes with LED headlights as standard. The Japanese brand has also improved its after-sales support, now offering a better free service plan included with your purchase.

Nissan Versa 2025 price

With a starting price of around $17,000, the Versa is now quite easy to buy. cheapest car in America. It stands alone in its segment; all its competitors have been discontinued. Until recently, Nissan's small sedan had a competitor in the Mitsubishi Mirage, but it wasn't very good and has since been withdrawn from the market. Not too long ago, Kia also offered the Rio hatchback, which gave the Versa a run for its money. However, this is now your only choice and if you are on a budget, this is not a bad option.

The Versa comes in three different trim levels, and it makes sense to choose any one of them. The Model S is spartan, but if you're looking for the most affordable car, there's literally no competition. The SV adds a standard automatic transmission, Apple CarPlay and Android Auto, and a blind spot warning system. The SR adds passive entry, remote start, a leather-wrapped steering wheel, and some stylish 17-inch wheels.

Warranties and service

• Limited Warranty: Three years or 50,000 miles
• Power unit warranty: Five years or 50,000 miles
• Free scheduled maintenance: Two years or 24,000 miles

Nissan's warranty package is about average compared to what other automakers offer. The powertrain and bumper-to-bumper coverage won't blow your mind, but it will give you some peace of mind in such a budget car. New this year, Nissan is also offering three free oil changes during the first two years or 24,000 miles of ownership.

No impressive driving dynamics, just transportation

We often highlight sporty agility and a luxurious ride as some of the indicators of a car's success. However, if you're looking to buy something for under $20,000, this isn't quite what you're looking for. The Versa won't make you fall in love, but it will get you where you need to go without much fuss, and it won't burn as much fuel.

Nissan Versa Specifications

Under the hood of every new Versa is a small four-cylinder engine that produces only modest power. Front-wheel drive is the only setup available here. The Versa is the only new car left in America with a five-speed manual transmission, and it is one of the few cars that offers manual transmission for the sake of saving money, not for a sportier driving experience.

Nissan's affordable small car doesn't get off the ground quickly, and merging into highway traffic won't be the easiest thing in the world. We think the Versa is best suited for those who primarily drive around town. It's worth noting, however, that the current version of the Versa is a full second faster than its predecessor to 60 mph.

In terms of comfort, the Japanese sedan performs well. It's not luxurious by any means, but for the price it does a good job of soaking up any road imperfections.

Fuel economy

While a manual transmission can save money, fuel savings are a big reason to choose a CVT instead. The base model comes standard with a manual, but you can upgrade to a CVT for an additional $1,800. While fuel economy is good with a manual transmission, the CVT is among the most efficient gas-only models you can buy in the US right now. This is another way Nissan's small sedan can save you some extra cash.

Safety and driver assistance features

For the price you pay, the Versa comes with a pretty extensive list of safety equipment. Every model comes with front and rear automatic emergency braking, as well as automatic high beams and lane-departure warning. Options include blind-spot monitoring and rear cross-traffic alert, as well as adaptive cruise control.

The 2025 Nissan Versa's interior is modest but well equipped

Back in 2019, before the Versa was redesigned, the interior was terrible. It was cheap and plastic, and not a place you wanted to be for long periods of time. While you can still say that this is a budget car, Nissan has definitely upped its game with the release of its small sedan. Now I feel comfortable and practical.

Interior dimensions and comfort features

As you'd expect from such a small car, the Versa's rear seats are relatively cramped. However, adjust the front seats and you can easily fit two more adults in the back if necessary. The cabin has useful storage compartments that add practicality, and the cargo area is a reasonable size. The rear seats can also be folded down if you need to carry larger cargo.

Even though the Nissan is still a cheap car, it has managed to use a number of nice materials throughout the cabin, as well as a couple of soft-touch panels on the doors and dashboard to improve things a bit. If you go up the trim ladder, things like heated seats, automatic climate control, and remote start become available. However, every model still comes with cloth and manually adjustable seats.

Infotainment & Technology

The most affordable Vera models come with a seven-inch infotainment screen, while the SR gets an eight-inch screen instead. For those who don't like searching through menus on the touchscreen, there are a number of physical buttons and shortcuts. Apple CarPlay and Android Auto are standard on the SV and SR trims, but optional on the S. Every model except the S also has a small in-dash display.

All models come with a pair of USB ports, but you'll have to climb a flight of stairs to find a wireless smartphone charging pad. The sound system in each model is passable, but won't impress audiophiles. Only the top trim level comes with SiriusXM satellite radio.