New Cars for Sale Under $20,000 Are About to ‘Go Extinct’

The era of affordable new cars under $20,000 is coming to an end, with the subcompact Mitsubishi Mirage being the only remaining model at that price point. However, the Mirage has been discontinued in the U.S., with the 2024 model being the final edition. According to a Kelley Blue Book report, there are fewer than 1,700 new Mirages still available for sale nationwide, and only 691 under-$20,000 Mirages were listed as of Wednesday.

This shift marks a significant change from just a few years ago when popular models like the Honda Civic and Toyota Corolla were available for under $20,000. Budget-conscious car shoppers are now facing limited options and may need to consider alternative transportation solutions.

The Mirage itself has received criticism from car review experts, with Consumer Reports describing it as a “primitive Asia-market car” with lackluster performance and features. Despite its affordability, the model has struggled to attract buyers, with sales averaging just over 1,000 units per month.

With the disappearance of the sub-$20,000 car, consumers on a budget may need to explore used car options or consider higher-priced models that offer more features and safety. While a few other models like the Kia K4, Kia Soul, and Nissan Versa are occasionally listed below $20,000, their average transaction prices still exceed that threshold.

The trend of discontinuing affordable subcompact models reflects changing consumer preferences for larger vehicles with more amenities. The demand for features like remote start and ventilated seats has driven up the average transaction prices of new cars, making it difficult for manufacturers to justify producing budget-friendly models.

Despite the dwindling availability of sub-$20,000 cars, there are still options in the under-$30,000 price range, such as the Nissan Sentra and Volkswagen Jetta. However, the demise of the budget-friendly car segment has left a void for consumers who value affordability and simplicity in their vehicles.

While the future of the sub-$20,000 car remains uncertain, there is a possibility for a comeback if a startup or foreign brand decides to pursue this market niche. As the automotive industry continues to evolve, it will be interesting to see if more affordable options emerge to cater to budget-conscious consumers.