New cars under $20,000

[daisylu]

There are only 3. link

There are only three new cars under the magic $20,000 price limit currently for sale in the United States. Those three vehicles are the Nissan Versa with a starting price of $16,925 (all prices here include destination fee), the Kia Rio at $17,390 and the Mitsubishi Mirage at $17,650. Should push come to shove, so to speak, we'd probably pick the Nissan as our top choice among those three due to its practicality, comfort and overall polish when compared to its similarly priced peers. But really, as we've suggested before, there are better options.



DD and I were binging "Beat Shazam" last night. Jamie Foxx, the host, made a comment about $98,000 being "life changing money" to a contestant. DD commented that she does not see how. It might help you get out debt, buy a car, or put a down payment on a house but it will quickly disappear taking care of those things.

[movingforward]

I would definitely go with the Nissan over the other two. I have a Hyundai Kona which I absolutely love. It's the basic model and was around $23K.

$98K hasn't been life changing money in several decades in my opinion.

[chiver78]

I'd probably pick the Mitsu, I actually had the Mirage on my list of options for new cars when I bought one as a fresh college grad.

I've driven a lot of different cars in my time helping my dad's BFF move used cars for his wholesale car sales business, and I can honestly say that I hate Nissans from entry level to top of the line. 

my Mazda is a 2014, purchased at the end of the model year in Feb 2015. it's the fully loaded 3 hatchback, and it was about $23k. 

[Opti]

I would definitely not choose the Versa. I rented one when my car was in the shop longer than expected. I loved the gas mileage, but the seating was real painful for me. Even for a short under 5 mile commute one way. A coworker has a Rio and I have been in the passenger side so I personally would look at that one. I would check out the Mirage as well.

$98K is life changing for many people under moderate income. Many will stop working without that much in savings, etc. It would be life changing for me. It would be life changing for me right now. I could buy something outright, lease and try, or in any event more than half of that could be saved or invested. 

[movingforward]

I have had 2 Mitsubishi Eclipse. I love the body style but had problems with both of them. I swore off Mitsubishi after that experience. I have never personally had a Nissan but grew up with them. That's all my parents ever bought.

I am now a big fan of Hyundai. I have owned a Tuscan and now a Kona. Both have been great cars.

[NastyWoman]

I had the Versa for 11 years until I got sandwiched in May 2019. Really nice (though basic) car. In those years I only had to change the oil, got new tires, and that was it! No other maintenance cost at all. It even held up very well in that crash from a safety POV, as the car that rammed me as well as the car I was pushed into (only the ramming car was moving but was doing so at highway speed) were both midsize sedans and I walked away with only a seatbelt bruise. 
All that to say I would not hesitate to buy the Nissan. I still miss my little red car at times.

[daisylu]

I have only ever bought 1 car brand new, a manual 2001 Saturn LS. Just over $10,000 in 2001. Drove it until it died in 2014. All my other vehicles have been gently used.

Mom bought a brand new Mitsubishi Mirage in 1993. Had nothing but trouble with it. Dealer finally took it back after dad threatened to contact a lawyer about the lemon law.

[daisylu]

May 3, 2023 10:50:24 GMT -5 Opti said:

I would definitely not choose the Versa. I rented one when my car was in the shop longer than expected. I loved the gas mileage, but the seating was real painful for me. Even for a short under 5 mile commute one way. A coworker has a Rio and I have been in the passenger side so I personally would look at that one. I would check out the Mirage as well.

$98K is life changing for many people under moderate income. Many will stop working without that much in savings, etc. It would be life changing for me. It would be life changing for me right now. I could buy something outright, lease and try, or in any event more than half of that could be saved or invested. 

I guess it depends on your definition of life changing. IMO, unless other things change it would be a short term relief. If you (collective) don't increase your wages or lower expenses you will end up right back where you are.

[Opti]

May 3, 2023 11:07:59 GMT -5 daisylu said:

May 3, 2023 10:50:24 GMT -5 Opti said:

I would definitely not choose the Versa. I rented one when my car was in the shop longer than expected. I loved the gas mileage, but the seating was real painful for me. Even for a short under 5 mile commute one way. A coworker has a Rio and I have been in the passenger side so I personally would look at that one. I would check out the Mirage as well.

$98K is life changing for many people under moderate income. Many will stop working without that much in savings, etc. It would be life changing for me. It would be life changing for me right now. I could buy something outright, lease and try, or in any event more than half of that could be saved or invested. 

I guess it depends on your definition of life changing. IMO, unless other things change it would be a short term relief. If you (collective) don't increase your wages or lower expenses you will end up right back where you are.

You don't know that. I am 63. I will claim SS at 70. I have small money that will kick in at 65 from my first employer.
People move, households downsize. I could write a best selling book and become well off. The future is unknown.

Right now in NYC, the tenants of rent stabilized apartments are staring down a potential rent increase of 2 to 5% for a 1 year lease and 4 to 7% for a two year one. I had a rent increase of 10% last year due to no fault of my own. I got this years knocked down to 5%. The real estate market has gone insane since WFH. Those on the margins are usually not working from home. They have no input on whether the store closes, the restaurant industry is down for the count for months or even in my case working exposed to Covid without adequate protection.

Sometimes you just got to roll with it. Maybe you live in a state or area which is relatively stable. Where I am is not it. But like NYC, if you can make/survive here you can make it anywhere. Housing prices will crash here. Its just a matter of time. How old are you? How many mergers, buyouts and acquistions of your employer have you dealt with?

[minnesotapaintlady]

May 3, 2023 11:21:33 GMT -5 Opti said:

You don't know that. I am 63. I will claim SS at 70.

Waiting until 70 has it's perks for sure, but in your situation where you're struggling just to pay the bills I would seriously consider drawing earlier. 

[daisylu]

May 3, 2023 11:21:33 GMT -5 Opti said:

May 3, 2023 11:07:59 GMT -5 daisylu said:

I guess it depends on your definition of life changing. IMO, unless other things change it would be a short term relief. If you (collective) don't increase your wages or lower expenses you will end up right back where you are.

You don't know that. I am 63. I will claim SS at 70. I have small money that will kick in at 65 from my first employer.
People move, households downsize. I could write a best selling book and become well off. The future is unknown.

Right now in NYC, the tenants of rent stabilized apartments are staring down a potential rent increase of 2 to 5% for a 1 year lease and 4 to 7% for a two year one. I had a rent increase of 10% last year due to no fault of my own. I got this years knocked down to 5%. The real estate market has gone insane since WFH. Those on the margins are usually not working from home. They have no input on whether the store closes, the restaurant industry is down for the count for months or even in my case working exposed to Covid without adequate protection.

Sometimes you just got to roll with it. Maybe you live in a state or area which is relatively stable. Where I am is not it. But like NYC, if you can make/survive here you can make it anywhere. Housing prices will crash here. Its just a matter of time. How old are you? How many mergers, buyouts and acquistions of your employer have you dealt with?

I did note that it was a collective you.

I should not address this, but I will. I will be 48 next month. I have been through 2 mergers and 1 buyout with former employers. I have been on unemployment 3 times. Before I got married, I was raising 2 kids on my own (my choices led to this and I own that), had a mortgage ($336/month) that I could afford, a payment that was $238/month for a very basic car, an $800/month daycare bill (more than 2x my mortgage), and normal household expenses, while making $12/hour.  I hated driving 45 minutes to work, but we needed to eat so I got housing that I could afford. I worked overtime as much as I could and sometimes took a second job, often late nights when the kids were sleeping. It was not ideal, but my kids were taken care of which is what mattered to me at the time. After I got married I sold my house and invested that money, because DH also owned a home with more land and a better school system.

I am helping DD look at apartments now, and it is outrageous here now (NOVA). $1500 - $2000/month for 1 bedrooms in "decent" neighborhoods, in an area where the average income is under $50,000. She is looking at other solutions since it is just her, like efficiencies and some less than desirable areas. 

You (collective, again) do what you have to to survive, and hopefully learn from some of it so that you can THRIVE in the future. 

To you specifically, I get that you are having a hard time right now, but you should still own that your choices have helped put you there. You still have options, like moving to a lower cost area.

And until this post, I was not judging you but you had no issue questioning my life experiences - which are really NOYB, just know that I left out a whole slew of hardships that I have worked to overcome.

[geenamercile]

Mitsubishi Mirage for me, it is my current care and the one before this one.  I took the last one on the cross country trip from VA to MT and back, yes there were times I slept in the back seat just fine.  MPG  was great.  So when an 18 wheeler backed into that one, I most certainly looked for another.   

[azucena]

Saw some of these staggering stats the other day...

www.bankrate.com/loans/auto-loans/average-monthly-car-payment/#stats

as of April 2023

Average                 New cars     Used cars

Monthly payment $716             $526

Loan amount         $41,445         $27,786

Interest rate             6.07%         10.26%

Loan term             69.44 months 68.01 months

[NomoreDramaQ1015]

I am so relieved DH and I bought our cars in 2019.  At first I was pissed both our older cars died at the same time but looking at prices now it couldn't have been better timing.  I have a 2012 Impala and he has a 2012 Nissan.  My loan will be done in September and his will be early next year.  No way I would have gotten the Impala for $12k today.

We plan on driving both into the ground.

If I had to pick I would go with the Nissan.  DH's car has some features I don't particular like and the battery for it is stupid fucking expensive compared to my Impala but it is a solid car and it is one that is easy to find parts for around here.

$98,000 might not be immediate life changing money but I could pay off my debts and still have plenty to invest.  For me it may not be immediate but putting $75k or so straight into my 401(k) could over time mean I get to retire earlier if I play my cards right.

It also means I don't have to fret quite as much if DH or I lost our job.

So no it's not quit my job today and move to Aruba money but if handled smartly a sudden cash influx of $98k can make a difference.

[steph08]

Out of those three, I'd go Kia, Nissan, Mitsubishi. 

Kia has one of the best warranties in the automobile business, plus they pack a lot of standard features into a low price point. 

Nissan is half decent. 

I don't like Mitsubishi. I drove an Outlander as a rental, and it was horrible. 


We have two late-model cars with the corresponding payments, but our interest rates are 0% and 1.9%. 

[Cookies Galore]

May 3, 2023 13:11:09 GMT -5 NomoreDramaQ1015 said:

I am so relieved DH and I bought our cars in 2019.  At first I was pissed both our older cars died at the same time but looking at prices now it couldn't have been better timing.  I have a 2012 Impala and he has a 2012 Nissan.  My loan will be done in September and his will be early next year.  No way I would have gotten the Impala for $12k today.

We plan on driving both into the ground.

If I had to pick I would go with the Nissan.  DH's car has some features I don't particular like and the battery for it is stupid fucking expensive compared to my Impala but it is a solid car and it is one that is easy to find parts for around here.

$98,000 might not be immediate life changing money but I could pay off my debts and still have plenty to invest.  For me it may not be immediate but putting $75k or so straight into my 401(k) could over time mean I get to retire earlier if I play my cards right.

It also means I don't have to fret quite as much if DH or I lost our job.

So no it's not quit my job today and move to Aruba money but if handled smartly a sudden cash influx of $98k can make a difference.

That is literally my plan in life! Get some stupid money and buy a condo in my happy place of Aruba. But $98k would go to our mudroom demo/rebuild project, not Aruba. Boo.

[Cookies Galore]

May 3, 2023 13:22:08 GMT -5 steph08 said:

Out of those three, I'd go Kia, Nissan, Mitsubishi. 

Kia has one of the best warranties in the automobile business, plus they pack a lot of standard features into a low price point. 

Nissan is half decent. 

I don't like Mitsubishi. I drove an Outlander as a rental, and it was horrible. 


We have two late-model cars with the corresponding payments, but our interest rates are 0% and 1.9%. 

This is the order I'd go as well. Kia have gotten better over the years and I know a number of happy owners. Nissan is just a solidly decent maker. Will not touch a Mitsubishi; my mom has a Mirage and it was just junk.

We're a Honda family; I have a 2013 Fit and husband has a 2018 Fit (I swear it wasn't planned). We just paid off his car last week. We had a five-year, 0.9% loan with a $285 payment. Those days are long gone, so our cars need to last a good, long while!

[Deleted]

I can see where $98,000 could be life-changing in a longer-term perspective.  If a younger person used it to jump start their retirement savings and routinely added from wages, that's a big boost over a lifetime.  If someone used $98,000 to eliminate CC or SL debt and re-directed current payments to savings, big change.  What about paying off a mortgage and redirecting those $$ to savings?  I guess it's a matter of perspective, but $98 K is HUGE to me.  

[movingforward]

Yes, it is definitely a matter of perspective and where you are currently in life. I turned 50 a couple of weeks ago. Don't get me wrong, I would LOVE to have 98K in snowflake money but that would maybe allow me to stop working 2 yrs earlier than originally planned. That would be super nice. Not sure I can put it in the category of life changing.

[minnesotapaintlady]

May 3, 2023 15:37:31 GMT -5 movingforward said:

Yes, it is definitely a matter of perspective and where you are currently in life. I turned 50 a couple of weeks ago. Don't get me wrong, I would LOVE to have 98K in snowflake money but that would maybe allow me to stop working 2 yrs earlier than originally planned. That would be super nice. Not sure I can put it in the category of life changing.

But, that's kind of life changing no?  2 years of not having to work is pretty big in my book!

[movingforward]

May 3, 2023 15:38:21 GMT -5 minnesotapaintlady said:

May 3, 2023 15:37:31 GMT -5 movingforward said:

Yes, it is definitely a matter of perspective and where you are currently in life. I turned 50 a couple of weeks ago. Don't get me wrong, I would LOVE to have 98K in snowflake money but that would maybe allow me to stop working 2 yrs earlier than originally planned. That would be super nice. Not sure I can put it in the category of life changing.

But, that's kind of life changing no?  2 years of not having to work is pretty big in my book!

Maybe...I like my job so working an additional 2 years wouldn't necessarily be a huge deal for me. Though I guess that could change anytime (you never know). For me, life changing would probably be $200K. With that I could completely payoff my mortgage. I know that's not the YM way, but not having a mortgage would definitely change my life.

[grumpyhermit]

The Kia site lists 3 cars under 20k, the Soul, the Rio, and the Forte.

As someone who loves my base 2016 Mazda 3 hatchback (18k new)- I would go with whatever allowed me to get a five-door. 

[grumpyhermit]

May 3, 2023 12:54:13 GMT -5 azucena said:

Saw some of these staggering stats the other day...

www.bankrate.com/loans/auto-loans/average-monthly-car-payment/#stats

as of April 2023

Average                 New cars     Used cars

Monthly payment $716             $526

Loan amount         $41,445         $27,786

Interest rate             6.07%         10.26%

Loan term             69.44 months 68.01 months

Everything about this gives me hives. I am going to struggle with my next car purchase as I have a hard mental limit around not paying more then $250ish a month for no more than 48 months. I did it with my last car, but had to put almost 50% down. Interest at the time was around 3% I think, and I thought that was bad enough. 

[Cookies Galore]

May 3, 2023 18:22:45 GMT -5 grumpyhermit said:

The Kia site lists 3 cars under 20k, the Soul, the Rio, and the Forte.

As someone who loves my base 2016 Mazda 3 hatchback (18k new)- I would go with whatever allowed me to get a five-door. 

I'm also a hatchback for life person. Since the Fit is no longer being made for the North American market I might go Subaru. But again, I'm hoping for a good long while before I get a new car.

[TheOtherMe]

May 3, 2023 19:36:05 GMT -5 Cookies Galore said:

May 3, 2023 18:22:45 GMT -5 grumpyhermit said:

The Kia site lists 3 cars under 20k, the Soul, the Rio, and the Forte.

As someone who loves my base 2016 Mazda 3 hatchback (18k new)- I would go with whatever allowed me to get a five-door. 

I'm also a hatchback for life person. Since the Fit is no longer being made for the North American market I might go Subaru. But again, I'm hoping for a good long while before I get a new car.

That is why I moved to Subaru.  Needed my hatchback.  

I'm hoping this is my last car and I paid $23,000 after trade-in

[Pink Cashmere]

May 3, 2023 13:35:23 GMT -5 Cookies Galore said:

May 3, 2023 13:22:08 GMT -5 steph08 said:

Out of those three, I'd go Kia, Nissan, Mitsubishi. 

Kia has one of the best warranties in the automobile business, plus they pack a lot of standard features into a low price point. 

Nissan is half decent. 

I don't like Mitsubishi. I drove an Outlander as a rental, and it was horrible. 


We have two late-model cars with the corresponding payments, but our interest rates are 0% and 1.9%. 

This is the order I'd go as well. Kia have gotten better over the years and I know a number of happy owners. Nissan is just a solidly decent maker. Will not touch a Mitsubishi; my mom has a Mirage and it was just junk.

We're a Honda family; I have a 2013 Fit and husband has a 2018 Fit (I swear it wasn't planned). We just paid off his car last week. We had a five-year, 0.9% loan with a $285 payment. Those days are long gone, so our cars need to last a good, long while!

This October will be 20 years since I bought my Honda new, and she is still going strong. She has over 200k miles on her.

Buying her was one of the best bad financial decisions I’ve ever made lol. It wasn’t until I found you all that I understood I’d bought more car than I could really afford, but by then, I was close to paying the loan off and it didn’t make sense to get rid of her and buy something else. But what I learned from you all still made a huge difference, because I still have her after all these years, when before, I traded cars in for something new, before I even paid them off. I am very grateful that a bad decision ended up serving me well overall, because by now I think I’ve probably gotten more than my money’s worth out of her after all these years with minimal issues. The fact that I still enjoy driving her and she still has some get up and go, is a bonus.

[giramomma]

No.  98K is not likely life changing. I think unless you have nothing and make the federal minimum wage. 

But it was enough for us to having options.

And to be able to deal with life changing events without being backed in a corner.

The older I get, the less I care about moving up the socio economic ladder.

I care about having the options that having some money like that affords me.

[Pink Cashmere]

I am a car person, but I fight my new car wants by paying attention to the prices. Cars cost too much these days. So Imma drive what I have for as long as I can. I’m spoiled by not having had a car payment for 15 years, and since sliding my debit card for more than $1k at once makes me feel like my heart is going to jump out my chest, trying to pay cash for a new car might kill me for real.

[grumpyhermit]

When I bought my car in 2016, the plan was to keep it ten years, and then start looking. It will be seven this year, and only has around 32k miles, as I lived super close to work the first six years of it's life. 

The new plan is to hold on to it for as long as it's sound. Besides the costs, it's also a manual, and those are getting harder and harder to find, and I'm not sure I want to make the transition back to automatic just yet. 

[countrygirl2]

I thought near $50k for hubs truck was awful, now that won't even buy most new.
They are pricing people out of the market for vehilces. If you don't have a vehicle in this country you are in bad shape quick.