Here Are the Only 3 Cars You Can Buy New for $20,000 or Less

If it seems like it's getting increasingly more difficult to find a good deal on a vehicle, that's because it is. 

Over the past several years, production has been slashed due to supply chain quagmires during the pandemic. JP Morgan (JPM) data estimates car prices are up at least 30% from pre-pandemic levels, and in January 2023, car prices rose over 4% year-over-year. For reference, if you bought a new car in 2009, the average price was around $30,000. 

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Now, a new car runs you, on average, over $48,000 -- and that's before all the add-on fees.

Both new and used cars are pricier than ever before. Pair this with surging gasoline prices thanks to geopolitical factors -- including an ongoing war between Russia and Ukraine -- and driving becomes just plain expensive. Especially if you're in the market for a new car. 

Even used cars are more expensive than they were before covid.

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Only 3 Cars Are Under $20,000 Now

While car buying is definitely an expensive business, there are glimmers of hope. As of March 2023, the average price Americans paid for a new car finally dropped below MSRP for the first time in nearly 3 years. 

"Most non-luxury brands – including Chevrolet, Chrysler, Dodge, Ford, Hyundai, Kia, Nissan and Volkswagen – saw ATP declines between 0.2% to 3.8% month over month in March," Kelley Blue Book findings show. "This correlates with higher incentives helping to push prices down. Honda and Kia showed the most price strength in the non-luxury market, transacting between 3% and 6% over sticker price in March."

Still, it's not as if you're likely to get a deal when you walk into a dealership. As of May 2023, there are only three new vehicles that cost $20,000 or less.

They are:

• Kia Rio subcompact sedan: starting at $17,875
• Mitsubishi Mirage hatchback: starting at $17,340
• Nissan Versa sedan: starting at $16,925

All three of these cars are small sedans with minimal cargo space and efficient gas mileage. The Kia Rio gets about 36 mpg, the Mirage gets 36 around town, and the Nissan Versa gets about 30 mpg.