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Cheap Cars Disappear, Relegating Entry-Level Buyers to Used

  • Companies can’t justify investing in sedans with thin margins
  • First-time customers opt for trucks, sport-utility vehicles
2020 Hyundai Accent
2020 Hyundai AccentSource: Hyundai

Automakers have a message for entry-level buyers: Head to the used-car lot.

Honda Motor Co. became the latest manufacturer to abandon subcompacts last month when it announced plans to discontinue its low-end Fit hatchback in the U.S. General Motors Co. has dropped the Chevrolet Sonic, and Toyota Motor Corp. said it will stop U.S. sales of its Yaris. All three of these vehicles’ base models carry sticker prices less than $20,000 -- among the most affordable new cars.