The cheapest new car in America is more reliable than a Corolla

Tyler began his love for the automotive world from in front of a television screen, playing games like Gran Turismo and Need For Speed. While cars have always been his passion, he pivoted towards studying the English language and working as an academic editor. He decided to return to what he loved, putting his love for cars and technology out there for the world to see, writing about everything automotive. He is a proud life-long learner, looking for any opportunity to grow his knowledge base and expand his horizons.

Shoppers looking for an affordable new car in 2025 don’t have many options left, which makes the country’s cheapest new model stand out even more. While most automakers have abandoned the entry-level segment, this budget-friendly compact remains one of the last true bargains on the market, and it’s not just inexpensive. It offers durability and day-to-day dependability that rival, and in some cases surpass, more established nameplates.

What surprises many buyers is how consistently this low-cost car performs in long-term ownership. Owners report fewer unexpected repairs, solid build quality, and running costs that stay far below the national average. It’s a reminder that affordability doesn’t have to mean compromise, especially when the competition includes icons known for bulletproof reliability.

In this article, we break down why America’s most affordable new car has become a standout value. From real-world reliability to ownership costs and overall longevity, it proves you don’t need a big budget to get a dependable daily driver that outshines even some of the industry’s most trusted compact sedans.

The 2025 Nissan Versa can be had for less than $20,000

While the Versa used to have a couple cars competing for the spot of most affordable new car, it now sits alone. There is no other new car on the market in 2025 that can be had for less than $20,000. What is even more impressive is how the Versa will keep a number of your other ownership costs low. It manages this through stalwart reliability, impressive efficiency, and slow depreciation.

2025 Nissan Versa trims and pricing

Nissan hasn’t made very many changes to the Versa for the 2025 model year. The only thing that the latest model benefits from is a new plan that includes the first three oil changes, within two years or 24,000 miles, for free. Other than that, Nissan’s cheapest car remains untouched.

We think that you should spring for the top-of-the-line SR model. Yes, it is the most expensive trim, but at $21,390 it is still one of the most affordable new cars out there. 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 tack on the Convencience Package, which adds heated front seats.

Reliability and maintenance costs

• Reliability score: 87/100
• Average annual maintenance costs: $456 (RepairPal)
• Average ten-year maintenance costs: $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 is so reliable. The 2025 Toyota Corolla, for comparison, manages a score of 79 out of 100. While Nissan has had some issues with its CVTs in the past, which is what garnered it a rocky reputation, they have since fixed their issues.

Nissan offers a pretty standard warranty package, one that matches what is on offer from their closest rivals. You also benefit from the new two-year, 24,000-mile maintenance package. After that, maintenance costs are more than reasonable, with both CarEdge and RepairPal putting the costs on the lower side of the market.

Nissan’s cheapest car will also save you plenty on gas

If you’re spending less than $20,000 on a new car, we would hope that you’re not expecting sports car acceleration or luxury car comfort. That being said, the Versa outperforms its price tag in a lot of ways. More importantly, though, the reliable Japanese sedan is pretty efficient for a car that doesn’t come with a hybrid powertrain.

Nissan Versa performance specs

Under the hood of every Versa sits a pretty stoic 1.6-liter four-pot. It doesn’t produce a ton of power, but it’ll get you where you need to go without any complaints. Front-wheel drive is the only setup here. The most affordable trim comes standard with a five-speed manual, with the CVT being an additional extra. Every other trim gets the CVT as standard.

The Versa isn’t a particularly quick car. In fact, it is one of the slowest new cars up to 60 miles per hour. Though it’s still peppy enough to keep up with traffic in the city. Improvements to things like steering and brake feel have also made it an overall nicer car to drive than it used to be. Its ride quality is also much better than you’d expect for a car so cheap.

Fuel efficiency

The CVT is quite a bit more efficient than models equipped with the standard five-speed manual. This makes a big enough case, in our minds, to spend the extra cash and spring for a model with the automatic transmission. In either case, though, the Versa is pretty light on fuel for an ICE car. Get the model with the CVT and the EPA estimates that you’ll save around $1,500 in fuel over five years compared to the average new car.

Inside, the Versa is pretty basic but relatively comfortable

Obviously, something has to give in order for Nissan to offer this sedan at such an affordable price. Climb inside the cabin, and you’ll instantly notice the cost-saving savings methods employed. Despite some low-rent materials and absent 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

The Versa is a pretty small car, one of the smallest new cars that you can buy. While space in the front two seats is pretty generous, the back seat is more than cramped. With some adjusting of seats, you should be able to fit four adults in, but it’ll be a squeeze. Cargo capacity is pretty generous for this segment, though, and there are a number of really useful storage compartments throughout the cabin.

While it is easy to tell that the Versa is a budget car from its interior, it is much nicer than what it used to be. We also feel that it is nicer than we’d expect for the price that you pay. Soft-touch materials are available on most surfaces and top trims come with niceties such as automatic climate control.

Infotainment and technology

As standard, the Versa comes equipped with a seven-inch infotainment screen which is embedded into the middle of the dashboard. There are plenty of physical shortcuts on either side of the screen. More expensive trims come equipped with an eight-inch unit instead. Apple CarPlay and Android Auto are standard on the SR and the SV trims, but optional on the most affordable S models. The system can feel a little sluggish, but using phone mirroring definitely improves the experience.

There are three USB-C ports in the Versa, with a wireless smartphone charging pad being an optional extra. Gauges are analog, but some models get a small digital screen as part of the cluster.