The $20,000 new car has nearly disappeared as SUVs and higher trims dominate the market
By
Mike Winters
Summary
The $20,000 new vehicle has nearly vanished from the U.S. market, accounting for just 0.2% of new-vehicle sales in 2025, down from a time when budget-friendly cars were common. According to Edmunds data, the share of vehicles selling for under $30,000 has also plummeted from 40% in 2019 to just 15% in 2025. While inflation plays a role, the primary drivers are shifting consumer preferences toward SUVs and pickups, along with a trend toward higher trim levels. Budget-conscious buyers now face a much narrower field of affordable options.
Source
bskyThe $20,000 new car has nearly disappeared as SUVs and higher trims dominate the marketcnbc.comKey quotes
· 4 pulledThe $20,000 new vehicle has all but disappeared, accounting for just 0.2% of new-vehicle sales in 2025, according to Edmunds.
The share selling for less than $30,000 also fell sharply, from 40% in 2019 to just 15%.
Inflation is only part of the story, says Ivan Drury, director of insights at automotive research firm Edmunds.
New-car buyers have increasingly favored SUVs and pickups, along with higher trim levels that offer...
You might also wanna read
Tesla's U.S. EV Market Share Drops to 38% in August, Lowest Since 2017
Tesla's U.S. electric vehicle market share dropped to 38% in August 2023, marking its lowest level since October 2017 and falling below 40%
reuters.com·9mo ago
Tesla Reports 9% Sales Decline in 2025, Second Consecutive Yearly Drop
Tesla reported a significant decline in sales for 2025, with a 9% year-over-year drop representing 153,097 fewer vehicles sold compared to 2
arstechnica.com·6mo ago
Budget Car Buyers Prefer Simpler Vehicles Over High-Tech Features
New research from AutoPacific reveals that budget-conscious car buyers prefer simpler, less gadget-laden vehicles under $35,000 to reduce co
thedrive.com·11mo ago
New Vehicle Average Transaction Price Hits Record $50,000 in September
The average transaction price for new vehicles in the U.S. reached a record high in September, surpassing $50,000 for the first time ever. T
coxautoinc.com·8mo ago
Tesla Used Car Prices Fall Below Market Average
Tesla used car prices are declining significantly, now costing less than the average used car, despite Tesla being a premium brand. This tre
electrek.co·11mo ago
UK new car market rebounds 24% in April as two-millionth electric vehicle is registered
The UK new car market grew 24% in April to 149,247 registrations, marking the best April since 2019. The rebound follows a weak April last y
SMMT·2mo ago
Comments
Sign in to join the conversation.
No comments yet. Be the first.