Is this is the end of the $20K car? Analysts think so

If you’re looking for a new car under $20,000… there’s only one choice.

It’s the Mitsubishi Mirage. It costs less than half of what the average new car does, some selling locally as low as $17,800.

That average new car in the U.S. is now just above $48,000 according to Kelly Blue Book – 25% more than before the pandemic struck three years ago.

But why are prices so high? There are fewer small cars on the market with more people turning to bigger trucks and SUVs. That’s driving up the price of the average car with manufacturer’s shying away from making compact cars.

Overall inventory issues and an increase in costs are contributing too.

“A typical new car for us has gone up about $1,500,” Lou Tilahun, General Manager of Mitsubishi of Orange Park, said. “The reason I think is that there’s not enough parts and the cost to ship them is what’s making the price go up.”

Tilahun said they’re selling more Mirage models now than they have in the past, selling five over the weekend. He thinks it has to do with affordability and customers being able to get a low payment.

Analysts at Cox Automotive say a $20,000 car will soon be a thing of the past. You might not even be able to find a Mitsubishi Mirage at all in the next few years. Mitsubishi says on their website that production of the Mirage is ending soon.

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