(TestMiles) – Nissan quietly killed the $18,330 Versa S manual, ending America’s under-$20K new car era. Even the bare-bones budget car is no longer safe with tariffs squeezing margins.

Why does this car matter right now?
Because it’s not just about one cheap car disappearing, it’s about a disappearing category. With the death of the base-model Nissan Versa S, previously the only new car you could buy in the U.S. for under $20,000, the market has officially priced out the budget-conscious buyer. Forget EV incentives or luxury upgrades. If you need a new car that runs, shifts, and doesn’t eat into your rent, the answer used to be simple. It was the Versa.

But no longer.

Nissan has axed the stick-shift version of the Versa S, the only trim that slid under the magic $20K mark with a five-speed manual and no frills. That leaves the cheapest new Versa at $21,130, thanks to a mandatory CVT and inflation-hugging trims. Nissan’s official line? They’re “focusing on the most popular Versa grades that deliver the strongest business performance.” Translation: fewer buyers want to row their gears, and tariffs make cheap cars even harder to justify.

The Versa isn’t dead, yet, but its pricing edge has eroded. The death of the under-$20K new car says more about the state of the industry than it does about one forgotten sedan.

How does it compare to rivals?
It still undercuts them, but not by much.

The Versa now starts at $21,130, which means it’s still the most affordable new car in the U.S. That’s technically true, but not emotionally comforting. Just behind it are the Nissan Sentra ($22,730), Hyundai Venue ($21,650), and Chevrolet Trax ($21,895).

None of them are sedans. That leaves the Versa as the last of its kind, a subcompact four-door car designed for city living, learner’s permits, and ride-share hustles. However, if pricing continues this trend, the category may disappear entirely.

The Mirage? Gone. The Rio? Discontinued. The Yaris? It’s now just a memory and a badge-engineered Mazda in select overseas markets.

Buyers might shrug and turn to compact SUVs, but those bring higher insurance, worse fuel economy, and more weight for the same power. If you value simplicity, the Versa used to make sense. Now it makes compromises.

Who is this for, and who should skip it?
The Versa remains for folks who want a new car without the new car price tag, students, seniors, Uber hopefuls, and anyone who’d rather not deal with Facebook Marketplace haggling or Craigslist roulette. It has a 3-year warranty, modern safety tech, and decent fuel economy.

But make no mistake. The fun is gone. With the manual transmission out, driving engagement is toast. And if you were hoping to dodge that $20K sticker with an entry-level sedan, you’re now officially out of luck.

Enthusiasts can skip it. The CVT saps any hint of driving charm and won’t impress your mates at Cars & Coffee. But if you’re a commuter with an allergy to dealer markup, the Versa is barely your cheapest new option.

What’s the long-term significance?
This isn’t just a trim change, it’s a tipping point.

We see the slow death of the economy car as we know it. Manufacturers can’t afford to build them, and most buyers no longer want them. Add rising tariffs on imported components and tightening safety and emissions regulations, and suddenly, a car like the Versa S manual becomes a business liability.

The average new car transaction price in America now hovers above $47,000. Even the bargain brand Nissan can’t make a sub-$20K new car work anymore. That should concern anyone who thinks mobility shouldn’t require a five-year loan and an 800 credit score.

There was a time when the cheapest car on the lot had a price tag you could actually pay in cash. That time has just ended.