KiaThe price of new vehicles has continued to rise in the United States, reaching an average of $48,855 in July 2026. Americans have felt the weight of this increase, as larger SUVs and pickup trucks dominate the market and automakers drop their affordable compact cars. Finding a 2026 model car under $20,000 is unheard of, but there are still some cost-effective compact car options — the cheapest being the Kia K4. The 2026Kia K4 has an MSRP starting at $22,290 (plus a $1,245 destination fee), making it one of the cheapest new cars you can buy in 2026, period. With a 147-hp 2.0-liter four-cylinder engine, the base K4 is no speed demon, but you'll get 30 miles per gallon in the city and 40 mpg on the highway.Despite its low price, the K4 has a surprising amount of space, tech, and style. The interior features a large infotainment display, plenty of physical buttons, and 22 cubic feet of cargo space with the rear seats up. Our review of the Kia K4 appreciated the compact's price and the fact that it didn't come at the cost of looks, with its sleek aesthetics and stylish daytime running lights.AdvertisementAdvertisementRead more: 7 Reasons Why You Should Avoid A CVT Transmission (According To Drivers)Are there any cheaper new cars in 2026?NissanIf you are willing to expand your criteria slightly to include new subcompact models from 2025 that are still on sale in 2026 (at least, at the time of writing), you can find even cheaper options. The cheapest new car from 2025 is the Nissan Versa, which starts at $17,390 plus a destination fee of $1,245. It has continued to be a popular choice for those on a budget, offering a smooth ride, good mileage (32 mpg in the city and 40 mpg on the highway), and a simple yet useful 7-inch infotainment touchscreen. However, you won't find Versas at Nissan dealerships for much longer. Nissan has discontinued the Versa, putting an end to new cars priced under $20,000 in the United States. Like so many other passenger cars, the Versa became a victim of Nissan's shift toward affordable SUVs. That said, while America's obsession with SUVs is no secret, fuel economy regulations and smaller profit margins have also played a big role in automakers' decision to pull smaller cars from their lineups.Want the latest in tech and auto trends? Subscribe to our free newsletter for the latest headlines, expert guides, and how-to tips, one email at a time. You can also add us as a preferred search source on Google.Read the original article on SlashGear.