As the economy car market shrinks, it’s becoming impossible to find a new vehicle for less than $20,000.
In January, the average sales price of a new car was more than double that: $49,191, according to the latest transaction data from Cox Automotive, the publisher of the Kelley Blue Book report.
Average new car prices last month were higher than any January on record, the auto group said.
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“We hit a new January high even as prices naturally pulled back from December’s luxury-heavy finish,” Erin Keating, an executive analyst at Cox Automotive, said in a news release.
Average car prices tend to spike in December, led by year-end sales of luxury cars, which result in pushing up the average. Usually, at the start of the year, prices retreat following the holiday buzz, although they remain uncomfortably close to the $50,000 mark.
A lot of what’s pushing prices up, Keating noted, is the types of cars people are buying: larger and more luxurious models. She said there are still “plenty of options” for sale at lower-than-average prices.
Where are the affordable vehicles?
As manufacturers — and drivers — switch to large, luxury vehicles, budget-friendly models start to disappear.
“The U.S. market no longer has a new vehicle with an average [retail price] below $20,000,” the Cox report said.
For a while, the Mitsubishi Mirage was holding the line. A no-frills subcompact car, the Mirage was the cheapest new vehicle on the market, with an average price of about $19,000. Mitsubishi discontinued the model in 2024, and the last batch of new models was largely sold out by last summer.
The Nissan Versa then took up the mantle as the most affordable new car, with a sales price right around $20,000. But the run was short-lived. Nissan ended production of the Versa in December.
Mitsubishi and Nissan remain the most affordable carmakers, with average sale prices across all models at $31,600 and $34,700, respectively, according to Cox data.
But without the Mirage or Versa, what's left?
According to prices from Cars.com, there are several new models of sedans and SUVs starting at $25,000 or less.
Price | Type | |
|---|---|---|
2026 Hyundai Venue SE | $22,150 | SUV |
2026 Chevrolet Trax LS | $23,495 | SUV |
2026 Kia K4 LX | $23,535 | Compact sedan or hatchback |
2026 Nissan Sentra S | $23,845 | Compact sedan |
2026 Hyundai Elantra SE | $23,870 | Sedan |
2026 Toyota Corolla LE | $24,120 | Compact sedan |
Adam Hardy for Money.com; Cars.com
A few other models barely miss that cut-off, including the Volkswagen Jetta S ($25,270), the Mazda3 2.5S ($25,785), the Honda Civic LX ($25,890) and the Buick Envista Preferred ($26,495).
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