At the writing of this piece, there are currently no brand-new cars for sale that are under $20,000. Ford used to be the go-to econo buyer, but they’re cars starting in the thirties now. Additionally, there are only a handful of those that are under $25,000. The funny thing is, consumers don’t really ask for much. Apple CarPlay and Android Auto, a worthwhile warranty, and maybe a few safety tech features.
All of those features are so inexpensive to manufacture at this point that it doesn’t make any sense as to why American automakers keep punishing their consumers. Additionally, the “cheapest” has always been the subtext for something so bare-bones you wouldn’t even want to drive it. There is, however, one small SUV that is leading the budget pack. If you guessed it was not American made, you would be right.
Front three-quarters driving photo of the Slate Auto electric pickup truckSlate Auto
At this point, the bottom line is what manufacturers are after. Entry-level cars keep dying because where automakers make their most money is in trucks and family crossovers. There are new automakers on the horizon, like SLATE. They originally promised a $20,000 pick-up truck. Unfortunately, the market has shifted. This is thanks to the current administration’s quick dissolving of the $7,500 EV tax credit.
As a result, this new truck is going to be somewhere near the $27,000 mark. By now, we’ve also all seen the famous headline stating that the average cost of a new car in the United States is around $50,000. This headline mostly pertains to three-row midsize family SUVs. These SUVs, however, are the headline because they are the most bought vehicles in the market. Americans deserve a reasonably priced car, and it doesn’t seem like anybody can deliver them.
The Cheapest Cars In America Are Gone
2025 Nissan Versa front 3/4 exterior shot parkedNissan
The two cheapest cars that were left in America were, in fact, sedans and hatchbacks. First, the Mitsubishi Mirage was canceled with the final year being 2024. Then, in tandem with the Mirage, the long-standing Nissan Versa received the proverbial ax. Were they thunderous in power, prestige, and features? Of course not. Could you get a brand-new car that only cost between $15,000 and $18,000? Absolutely.
They came with what people wanted, though. The Nissan Versa was optionally available with a 360-degree camera and push-to-start. The Mitsubishi Mirage, on the other hand, came with Android Auto and Apple CarPlay, plus an automatic climate control system. People now assume that the Chevrolet Trax has taken the throne as America’s newest budget buy. While this is an incredibly handsome first-time buyer vehicle, there’s actually one more out there that is at least $1,100 cheaper than the Trax.
Used Cars Aren’t Any Better
2026 Chevrolet Trax front side driving viewChevrolet
There also used to be a time when, even if the newest car was out of budget, you could still find something used for slightly less. While there are plenty of cars out there that cost between $5,000 and $10,000, if you’re not maintenance minded, they could be a money pit or a hassle to own. According to We Buy Any Car, the average used car was around $26,342 last month, which is up three percent since over a year ago. That actually ends up being more than what this article intends to suggest for a brand-new car. Again, we call on basic economics to inform you that most people are trying to buy used cars, which creates a higher demand and a smaller inventory. Therefore, prices increase.
Smart Budget Buying
Slate Auto Fastback side shotSlate Auto
Smart budget buying, while difficult, is still possible. It’s not necessarily what you can get for your money, but instead, it is what it’s going to cost you later and how reliable it will be down the road, literally and figuratively. There are certain things that you can expect from any new vehicle at this point: phone mirroring, air conditioning, power windows (except, of course, for SLATE), and maybe even a scant few safety features.
Standard Safety
2026 Kia Seltos Assistive safety featureKia
According to the Department of Transportation, there are only a few safety features that are actually mandated. Those safety features are: a backup camera, electronic stability control, anti-lock brakes, seatbelts, front and side airbags, a tire pressure monitoring system, and LATCH child safety harnesses. Therefore, automakers should still be able to provide customers with the bare minimum at a lower cost.
While lawmakers are pushing for even more safety equipment like AI cabin camera tracking systems, you still don’t necessarily have to have a blind spot monitoring system standard in your brand-new car. Thankfully, as we stated previously, most automakers have made other features like automatic emergency braking and adaptive cruise control as standard, sadly at the cost of the MSRP sticker.
Warranties That Matter Most
A front end 3/4 shot of a Yellow 2024 Mitsubishi MirageMitsubishi
Coverage with a robust warranty is incredibly important so that you are protected in case of a catastrophic failure. There are some that families can keep long after the warranty’s over. Most of the time, manufacturer warranties are automakers betting on their own cars’ reliability. Most warranties that are offered by automakers are just “OK.” They typically run anywhere between three and five years and 30,000 and 50,000 miles, whichever comes first. After that, it might be time to dump whatever car you’re driving and think about something else.
The 2026 Hyundai Venue Is The Affordable Option
A front 3/4 shot of a red 2026 Hyundai Venue at a parking spotHyundai
The cheapest car in America currently is the 2026 Hyundai Venue. While it has not received a redesign here in the States, it has actually received a second-generation model for India. The Hyundai Venue came out for the 2020 model year, hasn’t even received a facelift since its debut, and is currently the cheapest car in the United States at $20,550 MSRP. It’s not that the Venue actually got cheaper; it’s just that cars like the Mitsubishi Mirage and the Nissan Versa fell off the playing field.
What $20,000 Gets You
2026 Hyundai Venue front seatsHyundai
An interior shot of the 2026 Hyundai Venue rear seatsHyundai
As far as new cars go, the Hyundai Venue is still a pretty reasonably priced car with a handsome number of options. For the standard SE model (there are only two trims), you do get wireless Apple CarPlay and Android Auto, forward collision avoidance assist, and lane keep assist.
This is all standard. For $2,000 more, you can opt for the SEL. The SEL moniker is Hyundai’s typical mid-trim offering, which accurately reflects where the Venue sits in the lineup. It comes with nicer features like a chrome-style grill, 17-inch wheels, heated front seats, a wireless phone charging pad, a dual-zone automatic climate control system, and even a sunroof.
That’s a lot of car for $24,000. Even by most modern standards, this is pretty well outfitted. Lease deals are pretty reasonable as well. According to Hyundai’s website, you can lease an SE for $3,500 down and $249 a month, or an SEL for $3,500 down and $269 a month. They are practically giving these away because their cheapest Elantra sedan isn’t even that inexpensive for lease deals.
Hyundai’s Warranty — Best On The Market
A detail shot of the 2026 Hyundai Venue engineHyundai
We’ve given praise to these warranties before, but it’s worth mentioning again. The headline of these warranties is that Hyundai offers a 10-year, 100,000-mile powertrain warranty, which is double the norm given out by other automakers. Even the bumper-to-bumper warranty is class-leading, with five years and 60,000 miles to speak of. This kind of warranty alone removes the scariest part about owning a new vehicle or a car in general — the maintenance. Even though the Hyundai Venue has a relatively small engine, it’s still worthwhile.
The Venue Is The Most Important Car Right Now
A look at the rear profile of a red 2026 Hyundai VenueHyundai
Where the Venue is important isn’t necessarily in the powertrain. It is powered by a naturally aspirated 1.6-liter inline four-cylinder engine that only makes a scant 121 horsepower. It’s also one of the few SUVs left that doesn’t come with an all-wheel-drive option, as it’s only front-wheel drive. It’s connected to a CVT, but it does come with a snow mode, according to Hyundai. Where it is important is in this current economy and the state of affordability in general. Cheap is good, but cheap with leverage is even better. If you can believe it, there’s even a discount window that’s probably going to come up.
New 2027 Models Mean 2026 Discounts
2026 Hyundai Venue side shotHyundai
Because markets like India have already received the second generation redesigned Venue, it’s been rumored that the 2027 model for America will feature a redesign. Therefore, you can always predict what a dealership is probably going to do with their 2026 stock. You can also use this as negotiation ammunition because they’re going to be dying to get the 2026 models out the door.
To bring it back to compromises, the 0-to-60 time is only 8.6 seconds. However, this is still technically faster than the second-cheapest car on the market, the Chevrolet Trax. Because it’s a cheaper vehicle, it probably isn’t going to have the best noise and vibration cancellation. What it does have going for it, however, is the fact that it’s an SUV and is slightly taller than a regular sedan. Of course, what has more going for it than anything is the fact that it is the smartest budget SUV in the United States currently.
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