After the pandemic cut into 2020 car sales, automakers have been bouncing back in 2021. However, this recovery might be short-lived as a worldwide microchip shortage is threatening to curb manufacturers’ abilities to make new cars.
This impending shortage, coupled with renewed demand, is already driving up prices. J.D. Power and LMC Automotive reported that the average new vehicle purchased in June cost over $40,000, breaking the previous record set in May. Still, not all new cars have to break the bank. There are 25 different 2021 models with asking prices of less than $23,000.
To determine the 25 cheapest cars you can buy, 24/7 Wall St. reviewed Kelley Blue Book’s list of the least expensive 2021 model year vehicles, including fees like destination charges. Car sales figures came from GoodCarBadCar. Only cars with sales over 5,000 in 2020 were considered.
Virtually every one of the 25 cheapest cars in America fits into one of two categories — compact or crossover/small SUV. Compact cars are, as the name suggests, small, and they have fewer capabilities than larger, more powerful vehicles, resulting in a lower price tag.
Compacts are starting to be replaced in dealer showrooms by crossovers and small SUVs, which offer more cargo room and power with only slightly higher price points. This blend of size and capability has made crossovers the most popular segment in the U.S. auto market — so much so that dealers are sometimes struggling to keep them on their lots. These are the fastest selling cars in America.
Hyundai offers the widest range of inexpensive vehicles, with five of its cars starting at under $23,000. Chevrolet, Nissan, and Kia all feature on the list three times. Honda, Mazda, Mitsubishi, and Toyota each have two vehicles on the list.