- The average new car buyer paid $49,191 in January.
- That reflects a normal seasonal drop from December, but is still higher than last year.
- Analysts believe the sub-$20,000 car is likely gone, with few, if any, left on sales lots.
The average new car buyer paid $49,191 in January, down 2.2% from December’s all-time record but still nearly 2% higher than a year ago.
A price drop is normal in January. Americans typically buy more luxury cars in December than in any other month, giving it the year’s highest prices.
Related: Is Now the Time to Buy, Sell, or Trade-In a Car?
Automakers dialed back discounts in January. Dealers sold the average car at a 6.5% discount, down from 7.5% last month.
The $20,000 Car May Be Gone
- Every automaker has ended production of every car priced under $20,000.
- The last one may have rolled off a sales lot recently.
There may not be a new vehicle left for sale in America for under $20,000.
Automakers have ended production of every car marketed for under $20,000. Mitsubishi canceled the next-to-last, the Mirage, in late 2024. Dealers still had leftover Mirages on sales lots as recently as last month. But the company tells Kelley Blue Book parent company Cox Automotive that the last new Mirage has been sold.
The base model of the Nissan Versa debuted at just under $20,000 for 2025. But Nissan manufactured very few of the base model S trim. Because most buyers opted for better-equipped trim levels, the average Versa sold for $22,315 last month.
Nissan has now ended Versa production altogether. It remains possible that a few dealers have a lingering Versa S listed for under $20,000. But, given the base trim’s rarity, we believe the last sub-$20,000 may have already been sold.
You Don’t Have to Pay The Average Price
- Consumer choice plays a significant role in prices.
- The average compact SUV sold for well under the price of the average new vehicle last month.
While the headline is negative for shoppers, plenty of Americans bought a new car for under the $49,191 average last month.
“Consumers are still finding plenty of options below the industry average, especially in core segments like best-selling compact SUVs,” explains Cox Automotive Executive Analyst Erin Keating, “but the disappearance of true entry-level vehicles continues to lift the floor higher. At the same time, strong sales of full-size pickups and large, luxury SUVs keep pulling the averages up, proving that demand for high-priced models remains incredibly resilient.”
Compact SUVs remain the best-selling type of car in America. The average compact SUV sold for $36,414 in January. Compact SUVs have grown to proportions similar to those of midsize vehicles a decade ago.
Popular full-size trucks pull the average price higher. The average full-size truck buyer paid more than $70,000 last month.
