The era of the most affordable new car in the United States has officially come to an end.

Nissan revealed to the Daily Mail that it has ceased production of the Versa sedan, marking the end of the last new vehicle in the U.S. market with a starting price under $20,000.

This decision occurs during a period when the nation faces a significant affordability challenge in the automotive sector, with the average cost of a new vehicle surpassing the $50,000 mark.

The rising prices have contributed to the total U.S. auto loan debt reaching $1.66 trillion, a 20 percent increase since 2020. This debt now exceeds both federal student loans and credit card debts.

Despite the increasing debt levels and record numbers of delinquencies and repossessions, consumers continue to prefer higher-priced SUVs, prompting automakers like Nissan to discontinue smaller, more budget-friendly models.

The Versa, known as Nissan’s smallest offering, was a favored choice for rental companies, frequently seen as an economical option in the fleets of Enterprise, Hertz, and Avis.

The sedan featured a small four–cylinder engine that car reviewers thought was too slow –– it took over nine seconds to jump from standing to 60 mph highway speeds. 

Inside, it had a basic interior. Seats were cloth, and the dash had a seven–inch touchscreen that supported wireless phone mirroring systems like Apple CarPlay and Android Auto. 

The Nissan Versa, a tiny sedan that was commonly used by rental car companies, is officially dead for 2026

But that mix of low prices and modest features wasn’t bringing as many customers to Nissan dealerships as it had in the past. 

US sales peaked in 2016, when more than 16,000 customers drove new Versas home each month. This year, Nissan is selling an average of 4,600 per month.

‘In line with Nissan’s product strategy, the Nissan Versa ended production in December 2025 for the US market,’ a spokesperson for the automaker told the Daily Mail. 

‘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.’ 

The Japanese automaker still has two of America’s lowest–cost vehicles sitting on dealership lots for 2026.  

Now, Nissan’s Sentra sedan, with a base price of $24,000, and Kicks SUV, starting at $23,000, will be among the cheapest cars on the US market. 

The only other cars on the US market with a sub–$25,000 starting price are the Kia K4 sedan, Hyundai Venue SUV, and Chevy Trax SUV. 

‘The industry is already staring down an affordability problem,’ Erin Keating, an analyst at Cox Automotive, previously told the Daily Mail. 

The Sentra, Nissan’s other small sedan, is suddenly the car company’s lowest–price sedan

Nissan is giving the Sentra a design reboot for the new year, including a modernized trunk

‘Affordable new vehicles are already few and far between. There were only 27 vehicles available with prices starting below $30,000 in 2025.’ 

Part of the affordability problem in the US has been the list of cars that have headed for the cemetery. 

Mitsubishi killed the Mirage, America’s cheapest car before the Sentra, at the end of 2024. 

Ford discontinued its two small cars — the Focus in 2018 and the Fusion in 2020. Only the high–powered Mustang remains amid a lineup of all SUVs and trucks. 

Chevy also nixed the Malibu and Camaro in 2024. Subaru axed the Legacy the same year. 

Now, only Toyota, Honda, Hyundai, and Kia offer sub–$30,000 sedans in the US.