With the price of everything seeming to be on the rise – and rapidly so – while gas prices soar to near 1980s energy crisis levels, buying a new car is a daunting process. Not only is it a big investment upfront, but the cost of ownership is a serious concern, too. Thus, trying to find new cars for under $20,000 is a common occurrence. Sadly, there aren't any – at least not technically speaking for 2026 models. Luckily, the 2025 Nissan Versa is still available for sale, and it is the only car in the States that fits this bill.That's not to say there aren't any other cheap cars to consider, and some of these new cars around $20k come extremely close to that threshold. In this article, we will be taking a look at exactly what you get when you spend less than $20,000 on a new car, then perusing the runners-up to see if a little extra investment might not be worth it in the long run.All specs and pricing is correct at the time of writing; manufacturers may change or update information at any time. At the time of writing in mid 2026, the 2025 Nissan Versa is still on sale as the cheapest new car under $20k. We list runners-up by price, from most to least expensive. Best Cars for Under $20k: There's Only One Option...For Now 2025 Nissan Versa: MSRP $17,390 2025 Nissan Nissan VersaTechnically, there's just one car that fits on this list as every other mainstream car on sale brand-new in the USA right now costs over $20k - but, the 2025 Nissan Versa still exists, and is still on sale for a short time. This model has long been regarded as one of the most affordable cars on the market, and while it wasn't always a winner in the best cars under $20K category in the past, it definitely is now – but by default. So what exactly does twenty grand get you in 2026?The base specs are definitely not too impressive, with meager engine outputs, meaning your morning commutes won't be overly quick. However, they will definitely be affordable, as even the base-model Versa with the manual transmission gets very respectable fuel-economy figures. Some will even enjoy that it has a little extra engagement with the stick-shift, but alas, there is no fun to be found in this cheap sedan. A little extra spending will get you the continuously variable transmission (CVT), and while we have many things to say about such gearboxes, we can't refute that it does wonders for fuel economy. Fortunately, it will only set you back $1,800 more than the manual-equipped S trim, so you can enjoy the fuel savings while still staying under budget.However, if we are going to look beyond the base-model Versa, then it would behoove us to examine all the options.S FWD ($17,390): The only trim to get the manual transmission is also the cheapest by a fair margin. It gets the smallest 15-inch wheels, cloth upholstery, and manual air conditioning. There is no configurable driver-information display, but you get a seven-inch touchscreen for the infotainment, four speakers, and Bluetooth. S CVT FWD ($19,190): The main change here is the CVT, which significantly boosts fuel economy. In pretty much every other regard, the S CVT FWD is identical to the base model. However, it doesn't have to stay that way, as it offers some options not available to its cheaper sibling. These include Apple CarPlay and Android Auto, along with 60:40 split-folding rear seats. SV FWD ($20,690): The penultimate trim in the Versa lineup is only a smidge more expensive than our first runner-up that doesn't quite qualify for the best cars under $20k, and it adds some features that help it contend with these slightly more expensive options. These include standard smartphone integration, a seven-inch multi-function information display, blind-spot warning, and a driver-alertness monitor. SR FWD ($21,390): Even in its most expensive form, the Versa manages to undercut almost all the competition. At this level, the sport cloth seats and automatic climate control make the interior far easier to live with, while convenience features like remote engine start take some of the stress out of beginning the morning commute. The infotainment gets some meaningful upgrades, too, with a larger eight-inch screen, two extra speakers, and Wi-Fi hotspot capability. All in all, the Nissan Versa is a well-put-together package, especially at the top end of the lineup, with almost all the features most people will need during their daily routine. Being a subcompact, it's not really designed with a big family in mind, as there is just 31 inches of legroom in the back, but the front is eminently spacious, and there is enough cargo space – between 14.7 and 15 cubic feet, depending on trim – for most people to do their shopping or pack a few bags for a weekend work trip. Is it the best cheap car on the market? Arguably not. However, it is the cheapest car, and it's not a bad one by any stretch.Best Cars Around $20k: The Runners-UpSadly, there are no other new cars for under $20,000, but there are a few that come so close we just can't go without mentioning them. And it is certainly worth comparing them to the Nissan Versa to see if you are actually shooting yourself in the foot by tightening the purse strings a little too much. These five cars are the next cheapest options for those buyers willing to break that $20k glass ceiling. 2026 Hyundai Venue: MSRP $20,550 2026 Hyundai VenueThe 2026 Venue is the only model that manages to eke in under the top-trim Versa, and it is so close to $20,000 that it may as well classify as one. It's a solid package that offers a large eight-inch touchscreen, wireless smartphone integration, and even HD radio at the base level, along with good rear passenger room for budding families, and up to 31.9 cubic feet of cargo space with the back seats down when the standard 18.7 cubic feet just isn't enough. A crossover offering this much at such a low price is definitely a bargain. 2026 Chevrolet Trax: MSRP $21,700 2024 - 2026 Chevrolet Trax 2nd Gen (23)The only model on this list not built by brands from far east, the 2026 Trax is an American subcompact crossover SUV that comes off as slightly more rugged than its rivals. It's no off-roader, though, with just 7.3 inches of ground clearance. However, it is quite practical, boasting a 25.6-cubic-foot trunk with all the seats up. It's a bit light on features to start, but the safety suite is strong, and fuel economy is respectable. The Trax is also a bit punchier than most of the other options on this list. 2026 Nissan Sentra: MSRP $22,600 2026 Nissan SentraUnsurprisingly, Nissan has other cheap models on offer besides the Versa, with its slightly larger sedan sibling, the 2026 Sentra, coming in third in the list of runners-up. With a considerably higher asking price, it also brings a lot more room, and massive improvements in features, such as the 12.3-inch infotainment system, wireless smartphone integration, and a much more family-friendly interior dimensions. While the trunk may be a tad smaller, the larger sedan can almost match the Versa in fuel economy."The Sentra is an entry-level car that doesn't want to be something the owner has to endure until they can afford to upgrade and, at face value, it succeeds brilliantly."- Ian Wright, Senior Road Tester, CarBuzz 2026 Hyundai Elantra: MSRP $22,625 2025 Hyundai ElantraNot to be outdone by its Japanese rival, Hyundai also has a compact sedan to offer, in the form of the 2026 Elantra. This is not just a cheap option for a new car, but also one of the best, having nabbed the second spot in our list of the best sedans for 2026, narrowly losing to its big brother, the Sonata. Naturally, this makes it one of the best-equipped cheap sedans out there, with a great safety suite and generous convenience tech, all integrated into a car with top-notch build quality and reliability. 2026 Nissan Kicks: MSRP $22,730 2026 Nissan Kicks heroThe last entry on our list just goes to prove that Nissan seems to love making highly affordable vehicles. The 2026 Kicks is a subcompact crossover SUV with some delightfully chunky design elements. It has better ground clearance than the Trax above, at 8.4 inches, so it can handle rough terrain more easily, but off-roading is not its forte. Instead, it is a practical urban runabout, with good passenger and cargo space, high safety specs, and a pretty expansive infotainment suite. It can also be had with all-wheel drive, unlike its American rival. Other Money-Saving Options While these are definitely the cheapest cars on sale in the USA right now, that doesn't mean they are necessarily the only (or smartest) buys. Now more than ever, hybrids are really capturing the automotive zeitgeist. They often offer better performance than their ICE counterparts, and almost always trounce them in terms of fuel economy. Of course, this comes at a higher initial purchase price, but if you are willing to consider the 2025 Versa, a now-year-old car, then maybe going back an extra year or two and purchasing a used hybrid could save you a lot more money in the long term.
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