The era of the truly budget-friendly new car in the United States has reached its end. Nissan has confirmed to the Daily Mail that production of the Versa sedan, the last new vehicle available in America with a starting price tag below $20,000, has ceased.
The End of an Era for Affordable Motoring
This move comes as the American automotive industry grapples with a profound affordability crisis. The average price for a new vehicle has now surged past the $50,000 mark. This relentless price inflation has contributed to a staggering $1.66 trillion in total US auto loan debt, a figure that has grown by 20% since 2020 and now exceeds both federal student loan and credit card debt.
Despite record levels of delinquencies and vehicle repossessions, consumer preference continues to lean heavily towards more expensive SUVs and trucks. This market shift has prompted manufacturers like Nissan to eliminate smaller, more economical models from their line-ups.
The Versa's Modest Legacy
The Nissan Versa was the brand's smallest and most affordable offering. A staple on rental lots for companies like Enterprise, Hertz, and Avis, it was known for its basic functionality. Under the bonnet, a modest four-cylinder engine delivered what critics deemed sluggish performance, taking over nine seconds to accelerate from 0 to 60 mph.
Its interior was straightforward, featuring cloth seats and a seven-inch touchscreen that supported Apple CarPlay and Android Auto for smartphone integration. However, this combination of low cost and simple features failed to attract buyers in sufficient numbers in recent years.
Sales peaked in 2016, with over 16,000 units sold monthly. This year, Nissan has been moving an average of just 4,600 Versas per month.
'In line with Nissan's product strategy, the Nissan Versa ended production in December 2025 for the US market,' a company spokesperson stated. 'Nissan remains committed to offering affordable and stylish vehicles in the sedan segment with models like Sentra and Altima, while also offering strong value in the compact SUV segment with the Kicks.'
A Barren Landscape for Budget Buyers
With the Versa's departure, the title of Nissan's most affordable car passes to the Sentra sedan, with a base price of $24,000, and the Kicks SUV, starting at $23,000. They join a rapidly shrinking club of sub-$25,000 vehicles, which includes the Kia K4, Hyundai Venue, and Chevy Trax.
The affordability crunch has been exacerbated by a wave of discontinuations. Mitsubishi killed the Mirage in late 2024. Ford dropped the Focus and Fusion, while Chevrolet ended production of the Malibu and Camaro. Subaru axed the Legacy in the same period.
Analyst Erin Keating of Cox Automotive summarised the stark reality: 'The industry is already staring down an affordability problem. Affordable new vehicles are already few and far between. There were only 27 vehicles available with prices starting below $30,000 in 2025.'
Today, only Toyota, Honda, Hyundai, and Kia continue to offer new sedans in the United States for under $30,000, marking a fundamental and expensive shift in the landscape of American personal transport.
