The average price of a new car sold in America has risen to $48,000. The figure has skyrocketed over the last three years, primarily because of parts shortages due to supply chain issues during the worst COVID-19 pandemic. Some months, car prices were among the items with the largest year-over-year price increases in the CPI. Used car prices rose as people looked for cheaper vehicles. This made many used cars expensive as well.
People have found that keeping their current vehicles is one way to dodge car price increases. The average car on the American road is over 12 years old. Part of the reason people can keep cars this long, one theory says, is that they are better built than cars were previous to 2000.
No new cars are priced below $20,000 today—only a handful sell for under $25,000. The cheapest new car in the US is the Nissan Versa, which has a sticker price of $20,763.
The Versa is what Nissan calls a subcompact car. Without features beyond the base model, the lowest-priced version costs $16.130. The Versa has a tiny 122 HP, 4-cylinder engine. In highway driving, it averages 44 MPG. Despite its small size, the trunk had 15 square feet of storage. With additional options, the price of the Versa can rise as high as $25,000.
The Versa gets mostly mediocre reviews. Edmunds gives it a rating of 7.4 out of 10. Consumer Reports was more damning. It wrote: “But the Versa is no joy to drive, with its stiff ride, dull handling, and droning engine.” US News criticized its “underpowered engine.” It is, however, not one of America’s least reliable cars.
Potential buyers of the Versa should ask themselves a question. What do they expect from a new car priced at less than half the national average? Does it have an engine, four wheels, seats, windows, and basic operating features? Why should people expect more for their money?
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