Last remaining new car below $20,000 in U.S. to disappear by end of summer
The Mitsubishi Mirage — a five-seat hatchback sedan — sells for an average of $18,484. The model was discontinued in June, and inventory is rapidly dwindling, with less than 1,700 vehicles available across the U.S., according to Kelley Blue Book, a vehicle valuation and research company.
Now, the country's last sub-$20,000 vehicle will likely be gone by the end of the summer.
As of April, the average new car sold in the U.S. for $48,422, while the average used car sold for $25,373, according to vehicle research site Edmunds.
While car prices are negotiated between dealers and sellers, manufacturers give recommended prices, known as the 'manufacturers' suggested retail price,' or MSRP. The average MSRP in April was $50,408 for a new car, Edmunds reports.
The average new car owner pays $742 monthly at an interest rate of 6.35 percent, with a loan term of five-and-a-half years, consumer credit company Experian reports.
Car prices are expected to rise due to President Donald Trump 's tariffs, which tax imported cars and auto parts at 25 percent. While prices have remained in check since Trump issued his wide-reaching tariffs in April, experts say prices are expected to spike in the coming months, CNN reports.
'I still think we're still going to prices start to take off in two to three months,' Ivan Drury, director of insights at Edmunds, told CNN.
Prices have largely stayed the same because car dealerships are still working through their pre-tariff inventory. Consumers have also stayed away from big purchases over tariff fears, and the demand for cars has fallen.
Drury also told CNN that current steady car prices could encourage consumers to buy more cars soon, which would in turn drive prices up later this year.
Adam Jonas, auto analyst at Bank of America, told CNN the biggest price hike will come as dealers start to announce their 2026 models.
'I think with the changeover to 2026 models, [that] will be the opportunity for companies to raise prices on new vehicles so they don't enrage certain folks that might come down on them for raising prices,' Jonas said.
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