# German new car market affordability trends > Live situation record from CLSTR: https://clstr.news/situations/german-new-car-market-affordability-trends > Updated: 2026-09-06T14:30:00.000Z. Sources: 20. Developments: 4. The availability of new vehicles priced under 20,000 euros in the German market has decreased significantly. An ADAC analysis shows that the number of models meeting this price threshold fell from 35 in 2021 to 16 currently. No German or Japanese manufacturers now offer a new model below 20,000 euros. The VW Polo is noted as the most expensive entry-level German option at 20,380 euros, while the Dacia Sandero remains the cheapest available at approximately 13,590 euros. Other models remaining near or within this budget include the Renault Clio, Seat Ibiza, Seat Arona, Skoda Fabia, and Opel Corsa. Experts highlight the Renault Clio Evolution TCe 115 as a strong value proposition due to its equipment and fuel efficiency. Rising costs across the value chain and increased technical requirements mandated by the EU are cited as primary drivers for these price increases. The market for very low-cost vehicles, specifically those under 10,000 euros, is described as “a thing of the past.” Recent projections indicate that the average price for a new small car in Germany is expected to reach 24,117 euros by 2026, an approximately 80% increase from the 2016 average of 13,557 euros. The variety of available models continues to shrink as combustion engine options like the Ford Fiesta, Citroën C1, and Peugeot 108 have left the market. Some manufacturers are also shifting segments, such as Hyundai transitioning the i20 toward a small SUV. To counter rising costs and competition from Chinese manufacturers, some brands are introducing budget-friendly alternatives, such as the Citroën C3 Hybrid, which can be offered below 20,000 euros through promotional deals. ## Timeline ### 2026-09-06: European small car market faces rising prices and shrinking model variety Small car prices in Europe are rising sharply, with German averages expected to hit 24,117 euros by 2026, while combustion engine options decrease and manufacturers shift toward SUVs. 4 sources. https://clstr.news/cluster/european-small-car-market-faces-rising-prices-and-shrinking-model-variety ### 2026-08-24: European car market sees decline in models under 20,000 euros The number of new car models available for under 20,000 euros is shrinking in Europe, with experts highlighting the Renault Clio as a top budget option amidst a dwindling selection. 7 sources. https://clstr.news/cluster/european-car-market-sees-decline-in-models-under-20000-euros ### 2026-08-21: Germany car market sees sharp decline in vehicles under 20,000 euros The number of new cars available in Germany for under 20,000 euros has dropped from 35 models in 2021 to just 16 today, with no German or Japanese manufacturers represented in the budget segment. 10 sources. https://clstr.news/cluster/germany-new-car-market-sees-decline-in-models-under-20000-euros ### 2026-08-10: Automotive market trends show decline in convertibles and shifts in used car demand The used car market shows a decline in convertible popularity, with budget models like Dacia and Toyota remaining recommended for low-cost buyers. 5 sources. https://clstr.news/cluster/automotive-market-trends-show-decline-in-convertibles-and-shifts-in-used-car-demand --- Cite as: German new car market affordability trends. CLSTR, https://clstr.news/situations/german-new-car-market-affordability-trends