Do you remember when new cars cost less than $20,000? Well, those days are officially behind us. As of November 1st, 2021, there are only seven new cars that you can purchase for under $20,000. And, with used cars appreciating in value, there are even fewer used options below the “magic” $20,000 threshold.
The average new car price now tops $45,000. Finding a new car that is (dare we say) “affordable” is pretty much impossible. During the ongoing chip shortage, automakers cut their production of less expensive and lower margin vehicles. Instead, they allocated supplies towards their higher profit, more expensive vehicles.
As a result we have seen dramatic price increases among sub-compact and compact sedans and SUVs on the used car market. Finding a sub $20,000 new car that is actually in stock is borderline impossible. What under $20,000 cars are there? Let’s break it down.
A base 2022 Kia Rio LX has an MSRP of $17,145. Depending on sales tax and dealer fees, you might be able to get “out the door” for less than $20,000 on a Kia Rio. The challenge will be finding one that’s available and on a dealer’s lot.
I found less than 10 Kia Rios in inventory and for sale in the United States under $20,000. This one for example was listed as available on Kia’s website, but when you ran a YAA analysis report on it it was obviously already sold.
As surprise to some, the Subaru Impreza can be had for less than $20,000! All-in the total price (including dealer fees and taxes) will certainly be above the $20,000 threshold, however the base MSRP is just shy of $20,000.
Another surprise entry in the under $20,000 car category is the base Volkswagen Jetta. The cheapest configuration of the Jetta comes in at $19,990. Good luck finding a Jetta for less than $20,000 in inventory nationwide. During my research I was unable to find a single Jetta in inventory with an MSRP below $20,000.
The Chevrolet Spark sneaks into the under $20,000 car club. During my research, I was able to find two Chevy Sparks for sale under $20,000 that are actually in inventory right now in the entire United States.
If you’re looking for an under $20,000 option, the Chevy Spark is a legitimate option in today’s market.
I was able to find hundreds of Mitsubishi Mirages for sale in the United States for less than $20,000. Crazy enough, used Mirages are actually selling for close to what you can purchase a new one for.
The Mitsubishi Mirage is the used car that has appreciated in value the most so far in 2021 as a used vehicle. Up more than 50% in value.
The Hyundai Venue, which came to market for the 2020 model year, is another under $20,000 options for SUV shoppers. At $19,935, the Venue is an affordable option for consumers.
Sadly, I could not locate a single Hyundai Venue in inventory that was listed for less than $20,000.
Last but not least on the list of under $20,000 you can buy in 2021 … The Nissan Versa. This subcompact is comparable to the Mitsubishi Mirage, and it’s in inventory too!
Let us help you buy your under $20,000 car
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