The era of truly affordable new cars in the United States has ended. On December 23, 2025, Nissan ceased production of the Versa model for the American market, finally eliminating the last car with a starting price below $20,000.
The Company’s Strategic Decision
According to Nissan representatives, this decision is part of a broader strategy to refresh the product lineup, not a sudden change.
In line with Nissan’s product strategy, production of the Nissan Versa for the U.S. market ended in December 2025. Nissan remains committed to the idea of offering affordable and stylish cars in the sedan segment, such as the Sentra and Altima, and also offers excellent value in the compact SUV segment with the Kicks model.
Harbingers of this event have appeared over the past few years. As far back as 2023, reports emerged about the possible discontinuation of both the Versa and the Altima. While the Altima unexpectedly survived until the 2026 model year, the Versa was not so fortunate.
The End of the Budget Car Era
With the disappearance of the Versa, which started at $17,390, and following the earlier departure of the Mitsubishi Mirage, the segment of new cars cheaper than $20,000 has officially ceased to exist. The most affordable option at Nissan is now the Kicks Play ($22,910) — a previous-generation model that may also soon disappear.
Buyers looking for a sedan are now forced to consider the Sentra starting at $23,845, while the new generation Kicks SUV starts at $23,925. The situation in the automotive industry as a whole is not much better.
The cheapest new car currently sold in America is the 2026 Hyundai Venue at $22,150, and the most affordable new sedan is the Kia K4 at $23,385. In other words, the lower price threshold for new cars has risen by several thousand dollars in just a few years.
The Model’s Future on the Global Market
This step is particularly notable because Nissan is not abandoning the Versa model globally. As reported in recent weeks, the next generation Versa has already appeared on the radar and seems destined for markets in Latin America, where affordable sedans are still in demand.
For now, American buyers have officially lost access to the market for truly cheap new cars, and there are no signs it will return anytime soon.
One of the main reasons, and perhaps the only real reason, why the new Versa will not make it to the U.S. is tariffs. Both the outgoing model and the updated 2026 Versa are produced at Nissan plants in Mexico, making them subject to import duties that would push the retail price far beyond what the budget market can bear.
This market shift reflects a broader trend in the automotive industry, where manufacturers are focusing on more profitable segments such as SUVs and electric vehicles, often at the expense of traditional affordable models. The departure of the Versa leaves a significant gap for first-time car buyers, those striving for minimalism, or simply for anyone looking for basic transportation without a financial burden. Perhaps this niche will be partially filled by used cars, but the era of new cars with a price tag starting with a five-digit number beginning with ‘one’ for the U.S. seems to have irrevocably passed.