Navigating the Budget: The 14 Relatively Cheap New Cars in America

Buying a new car has become an increasingly daunting task for budget-conscious consumers in the US. The landscape has shifted dramatically over the past few years, making it feel nearly impossible to find a vehicle priced under $20,000. While auto shoppers in 2018 enjoyed a range of options, today only the Mitsubishi Mirage stands as the lone new car available under this price point. The Mirage, a modest vehicle that has been on the market for a decade, was recently reported to have an average sale price of $19,205, according to Cox Automotive. This price is notably less than half of what the average new vehicle costs today, which exceeds $48,000—an increase of 25% since the pandemic.

The problem extends beyond just limited availability; it’s amplified by rising prices for both new and used cars, driven in part by changing consumer preferences that favor SUVs and trucks over smaller, economical vehicles. Analyst Michelle Krebs from Cox Automotive mentions, “I can’t imagine that unless a Chinese automaker came in and sold cheap,” indicating that the return of the $20,000 new car is not likely in the near future.

Despite these challenges, there are still some affordable options available to consumers. The automotive industry is seeing a slight price drop as production ramps up, and this may provide opportunities for discounts. However, the notion of what constitutes a “cheap” car has evolved significantly, leaving many to wonder where they can find reliable vehicles that won’t break the bank.

For those looking to navigate the tricky waters of car buying on a budget, understanding the current market landscape is crucial. With inflation affecting prices and interest rates climbing, shoppers are faced with significant financial decisions. It’s more important than ever to consider the total cost of ownership, including maintenance, insurance, and fuel efficiency.

So, what are the most affordable new cars for those looking to stay around or below the $25,000 mark? According to data from Cox Automotive, here’s a closer look at the 14 cheapest new vehicles you can buy in the US today:

1. **2024 Nissan Versa: $17,820**

The budget-friendly Nissan Versa claims the title of the cheapest car in America. While the price is low, it offers a wealth of features. The base model comes standard with a 5-speed manual transmission, but for an added cost of $1,670, you can upgrade to a continuously variable automatic transmission (CVT), bringing the total to $19,490. The Versa boasts a spacious interior and decent fuel economy, making it an excellent option for those on a tight budget.

2. **2024 Mitsubishi Mirage: $17,840/Mirage G4: $18,940**

Following closely behind is the Mitsubishi Mirage, also available in a sedan version known as the Mirage G4. Unlike the Versa, this vehicle comes standard with a CVT, although it has less power with only 78 horsepower. The Mirage serves as a fantastic choice for city driving, especially for those seeking a small, efficient, and affordable vehicle.

3. **2024 Kia Forte: $21,145**

As we cross the $20,000 threshold, the Kia Forte presents a notable upgrade in both design and features. While the base engine may leave something to be desired, the Forte offers an attractive alternative to more expensive models like the Toyota Corolla and Honda Civic, combining affordability with style and functionality.

4. **2024 Hyundai Venue: $21,295**

Next in line is the Hyundai Venue, recognized as the most affordable crossover SUV on the market. This vehicle not only has a wallet-friendly purchase price but also boasts impressive fuel efficiency and comes with a commendable warranty. The Venue has even earned accolades for having the Lowest 5-Year Cost to Own, making it an excellent choice for budget-minded buyers.

5. **2025 Chevrolet Trax: $21,495**

Finally, the Chevrolet Trax rounds out our list of most affordable new cars. With a fresh design and updated technology, the Trax features standard Chevy Safety Assist and wireless smartphone integration, catering to modern consumer needs. Its compact size and efficient design make it an appealing option for those seeking a new vehicle without exceeding their budget.

6. **2025 Kia Soul: $21,665**

Not to be overlooked, the 2025 Kia Soul stands out with its boxy yet charming design. Despite its compact size, it offers a surprising amount of interior space, accommodating up to 62.1 cubic feet of cargo behind the first row. This unique vehicle excels in efficiency and practicality, making it a great choice for those who need room without compromising on budget. Additionally, it comes equipped with standard smartphone integration, ensuring you stay connected while on the go.

7. **2024 Nissan Sentra: $22,320**

Offering a comfortable ride and ample space, the 2024 Nissan Sentra is a step up from entry-level models. With its standard Zero Gravity seats and impressive fuel economy of up to 40 mpg on the highway, it’s tailored for long drives and commuters alike. While it may not have the sporty edge of some competitors, its reliability and enhanced features make it a solid option for those seeking value in a compact car.

8. **2024 Hyundai Elantra: $22,775**

The 2024 Hyundai Elantra combines affordability with a spacious interior and a plethora of standard safety features. Its generous tech offerings include wireless smartphone integration right from the base model, providing an impressive value for money. With sleek styling and a reputation for reliability, the Elantra stands out as a smart choice for budget-conscious buyers who don’t want to sacrifice quality for price.

9. **2024 Toyota Corolla: $23,185**

A staple in the compact car segment, the 2024 Toyota Corolla continues to uphold its reputation for reliability and affordability. This model offers a comfortable ride, competitive fuel efficiency, and a suite of standard safety features, thanks to Toyota Safety Sense 3.0. While it may be slightly above budget for some, the Corolla’s resale value and dependability make it a worthy investment for those looking for a long-term vehicle.

10. **2025 Volkswagen Jetta: $23,220**

The 2025 Volkswagen Jetta is synonymous with style and performance within the compact sedan class. It boasts a redesigned look, improved safety features, and impressive fuel economy, making it competitive in the market. While it comes in just above the $23,000 mark, its generous interior space and tech-savvy features offer significant value for the price, ensuring it remains a popular choice among consumers.

11. **2024 Honda Civic: $25,045**

Finally, the iconic Honda Civic remains a top contender in the budget-friendly segment. Known for its exceptional safety ratings and dependable performance, the 2024 model offers a solid choice for those who prioritize reliability without overspending. Although it’s on the higher end of the budget spectrum, its long-term value and low cost of ownership make it a smart choice for many car buyers looking to invest in a new vehicle.

12. **2024 Subaru Impreza: $24,115**

For those who value all-wheel drive, the 2024 Subaru Impreza offers a unique advantage in a segment that often lacks this feature. Its practical design and solid build quality make it a reliable option for drivers in varying conditions. With a spacious interior and commendable fuel economy, the Impreza is worth considering for those living in areas where traction and stability are crucial.

13. **2024 Mazda 3: $25,335**

A slightly more upscale option, the 2024 Mazda 3 combines style with substance. While it pushes the budget limits, its sleek design, engaging driving dynamics, and premium interior materials justify the price tag. The Mazda 3 offers a spirited driving experience that makes it a joy for those who appreciate performance without compromising on comfort and style.

14. **2024 Honda HR-V: $25,000 (approx.)**

Transitioning into the compact SUV segment, the 2024 Honda HR-V is a versatile option that balances price and utility. Known for its spacious interior and configurable cargo space, the HR-V is ideal for those who need more than just passenger room. Its reliability and strong resale value enhance its appeal for budget-conscious shoppers looking for an affordable SUV.

15. **Conclusion**

Navigating the automotive market can be challenging, especially for those constrained by a budget. However, the vehicles highlighted above demonstrate that affordability is still attainable, even in a landscape dominated by rising prices. Whether you’re drawn to the compact nature of sedans or the versatility of an SUV, these options provide a variety of choices that cater to different lifestyles and preferences. As you embark on your car-buying journey, staying informed and proactive can help you find not just a vehicle that fits your budget, but one that also meets your needs for years to come.

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