New car prices hit an all-time high, and even the most affordable new vehicles have now grown scarce. What you could buy for $20,000 five years ago looks a lot different from what you can buy now for the same price — if you can find it, that is.
Here’s a side-by-side look at what a $20,000 budget could buy in the new-car market in 2021 versus today.
Also see five affordable car brands you won’t regret buying in 2026.
Are Cheap Models Disappearing?
According to Kelley Blue Book (KBB), the average new car price topped $50,000 in December 2025, a record high. KBB also pointed to a recent analysis that found sales of vehicles priced at $25,000 or less have fallen by 78% in just five years. Six years ago, automakers offered 36 models in that price range, but today there are just four.
KBB also noted that automakers have abandoned the inexpensive-car market and are focusing on high-end buyers, while lower-income buyers are turning to the used-car market.
During the pandemic, a chip shortage cut production of new vehicles, limited inventory and pushed prices higher. As supply slowly recovered, prices never fully reset. Instead, manufacturers shifted toward higher-margin models, which we still see today. President Donald Trump’s tariffs on imported cars and auto parts have also increased costs for automakers. While many have eaten the costs, according to CNN, tariffs have likely killed off the more affordable models.
Read More: 3 Car Models Expected To Plummet in Value in 2026 — and 3 To Buy Instead
Check Out: 6 Safe Accounts Proven To Grow Your Money Up To 13x Faster
What $20K Buys You Then vs. Now
According to Ivan Drury, the director of insights at Edmunds, the 2025 Nissan Versa, priced at $18,000 in October, was the last car model to fall under $20,000, CNN reported. Nissan officially discontinued the Versa after the 2025 model.
Car and Driver compiled a list of the cheapest new cars five years ago, with the lowest-priced model priced under $15,000. Here were some of the cheapest cars on the market five years ago, all under $20,000.
- Chevrolet Spark: $14,395
- Mitsubishi Mirage: $15,290
- Nissan Versa: $15,855
- Hyundai Accent: $16,390
- Kia Rio: $17,015
- Kia Soul: $18,610
- Kia Forte: $18,855
- Subaru Impreza: $19,720
- Hyundai Veloster: $19,895
- Hyundai Venue: $19,925
Car and Driver also compiled a list of the most affordable 2026 models, none of which fall under $20,000. Here’s what you can expect to pay today for the most affordable cars.
- Kia K4: $23,535
- Nissan Sentra: $23,845
- Hyundai Elantra: $23,870
- Toyota Corolla: $24,120
- Volkswagen Jetta: $25,270
- Mazda 3: $25,785
- Honda Civic/Civic Hybrid: $25,890
- Mini Cooper: $26,675
- Subaru Impreza: $27,790
More From GOBankingRates
- Mark Cuban Warns 4 Key Industries Could Crumble in the Next Recession
- How Much Groceries Cost Americans 10 Years Ago vs. Today
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and How You Can, Too
- 6 Safe Accounts Proven to Grow Your Money Up to 13x Faster
This article originally appeared on GOBankingRates.com: What $20K Buys You in the Car Market Now vs. 5 Years Ago
