The cheapest new car in America is more reliable than a Corolla
Buyers looking for an affordable new car in 2025 don’t have many options left, making the country’s cheapest new model stand out even more. While most automakers have abandoned the entry-level segment, this economy compact remains one of the last real bargains on the market, and it’s not just cheap. It offers everyday durability and reliability that rivals, and in some cases surpasses, more established nameplates.
What surprises many buyers is how consistently this low-cost car performs well during long-term ownership. Homeowners report fewer unexpected repairs, solid build quality, and running costs well below the national average. It’s a reminder that affordability doesn’t have to mean compromise, especially when the competition includes icons known for rock-solid reliability.
In this article, we explain why America’s most affordable new car has become an exceptional value. From real-world reliability to ownership costs and overall longevity, it proves that you don’t need a big budget to get a reliable daily driver that outperforms even some of the most reliable compact sedans in the industry.
To provide you with the most current and accurate information possible, the data used to compile this article comes from various manufacturer websites and other authoritative sources, including the EPA, JD Power, Consumer Reports, CarEdge, and RepairPal.
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The 2025 Nissan Versa can be purchased for less than $20,000
While the Versa once had a few cars competing for the most affordable new car spot, it now stands alone. There is no other new car on the market in 2025 that can be purchased for less than $20,000. What’s even more impressive is how the Versa will keep a number of your other ownership costs low. It achieves this through flawless reliability, impressive efficiency and slow depreciation.
Versions and prices of the 2025 Nissan Versa
|
Model |
Starting MSRP |
|---|---|
|
S |
$17,390 |
|
SV |
$20,690 |
|
RS |
$21,390 |
Nissan hasn’t made many changes to the Versa for the 2025 model year. The only thing the latest model gets is a new plan that includes the first three oil changes for free, within two years or 24,000 miles. Other than that, Nissan’s cheapest car remains intact.
We think you should go for the top-of-the-line SR model. Yes, it’s the most expensive version, but at $21,390, it’s still one of the most affordable new cars on the market. It also comes with plenty of desirable features, including passive entry, remote start, and an upgraded infotainment system with Apple CarPlay and Android Auto. You can also add the convenience package, which adds heated front seats.
Reliability and maintenance costs
- Reliability score: 87/100
- Average annual maintenance costs: $456 (Repairer)
- Average maintenance costs over ten years: $5,785 (CarEdge)
- Limited Warranty: Three years or 36,000 miles
- Powertrain warranty: Five years or 60,000 miles
The Versa is a pretty simple car, which is a big part of why it’s so reliable. The 2025 Toyota Corolla, for comparison, scores 79 out of 100. Although Nissan had some issues with their CVTs in the past, giving them a bad reputation, they have since fixed their issues.
Nissan offers a fairly standard warranty package, matching that offered by its closest rivals. You also get the new two-year, 24,000-mile maintenance package. After that, maintenance costs are more than reasonable, with CarEdge and RepairPal placing costs at the lower end of the market.
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Nissan’s cheapest car will also save you a lot of gas
If you’re spending less than $20,000 on a new car, we hope you’re not expecting the acceleration of a sports car or the comfort of a luxury car. That being said, the Versa outperforms its price in many ways. More importantly, the reliable Japanese sedan is quite efficient for a car that doesn’t come with a hybrid powertrain.
Nissan Versa Performance Specs
|
Engine |
1.6-liter naturally aspirated inline-four |
|---|---|
|
Transmission |
5-speed manual or CVT |
|
Power |
122 hp |
|
Couple |
114 LB-PI |
|
Transmission |
FWD |
|
0-60 mph |
9.5 seconds |
|
Maximum speed |
115 mph |
Under the hood of every Versa is a nice, stoic 1.6-liter four-pot. It doesn’t produce a lot of power, but it will get you where you need to go without any complaints. Front-wheel drive is the only configuration here. The most affordable version comes standard with a five-speed manual, with the CVT an additional extra. All other trims get the CVT as standard.
The Versa isn’t a particularly fast car. In fact, it’s one of the slowest new cars, up to 60 miles per hour. Although it’s still busy enough to keep up with the traffic in the city. Improvements to things like steering and brake feel have also made it an overall more enjoyable car to drive than it was. Its ride quality is also much better than you would expect for a car this cheap.
Energy efficiency
|
Model |
City |
Highway |
Combined |
|---|---|---|---|
|
CVT |
32 mpg |
40 mpg |
35 mpg |
|
5-speed manual |
27 mpg |
37 mpg |
30 MPG |
The CVT is a bit more efficient than models equipped with the standard five-speed manual. That’s, in our mind, a big enough deal to spend the extra money and spring on an automatic transmission model. In either case, though, the Versa is pretty fuel efficient for an ICE car. Get the model with the CVT and the EPA estimates you’ll save about $1,500 in fuel costs over five years compared to the average new car.
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Inside, the Versa is pretty basic but relatively comfortable
Obviously, something has to give for Nissan to be able to offer this sedan at such an affordable price. Step inside the cabin and you’ll instantly notice the money-saving methods used. Despite some low-rent materials and missing features, the Versa still feels pretty solid. If you’re looking for something cheap and cheerful, we don’t think you’ll be disappointed.
Interior dimensions and comfort
|
Headroom in the first row |
39.5 inches |
|---|---|
|
Front row legroom |
44.5 inches |
|
Second Row Head Room |
36.3 inches |
|
Second row legroom |
31 inches |
|
Loading capacity |
14.7 cubic feet |
The Versa is a nice little car, one of the smallest new cars you can buy. While space in the two front seats is quite generous, the rear seat is more than cramped. With some seat adjustments, you should be able to accommodate four adults, but it will be difficult. Cargo capacity is quite generous for this segment, however, and there are a number of very useful storage compartments throughout the cabin.
While it’s easy to tell the Versa is an economy car from its interior, it’s much nicer than it was. We also think it’s better than we would expect for the price you pay. Soft-touch materials are available on most surfaces, and upper trims come with niceties like automatic climate control.
Infotainment and technology
As standard, the Versa comes with a seven-inch infotainment screen integrated into the middle of the dashboard. There are plenty of physical shortcuts on either side of the screen. More expensive versions come with an eight-inch unit instead. Apple CarPlay and Android Auto are standard on SR and SV trims, but optional on the more affordable S models. The system may seem a little slow, but using phone mirroring definitely improves the experience.
There are three USB-C ports in the Versa, with an optional wireless smartphone charger. The gauges are analog, but some models have a small digital screen as part of the cluster.
