Nissan isn’t trying to reinvent the automobile with the all-new 2020 Nissan Versa. Instead, this budget-minded sedan is merely trying to elbow its way right into the middle of the field.

Now in its third generation, the Versa—once the most inexpensive car on the market with an MSRP under $10,000—is flaunting a makeover that vastly improved its value proposition in every way. The new Versa is bigger, bolder, and feels much less like a bottom feeder. At 177 inches long, it’s no longer truly a subcompact, though it still competes primarily with the smallest and cheapest cars on the market.

Nissan Versa all new
The new Versa also offers a steady ride, precise steering and effective braking. Nissan

The Versa is equipped with a new 1.6-liter four-cylinder engine that delivers 122 horsepower and 116 pound-feet of torque. It still lacks an outgoing on-road personality and gets winded quickly. Acceleration is poor and merging into traffic at highway speeds is a bit challenging. A five-speed manual is standard for the base trim, but the top two get a continuously variable transmission, which can be a bit buzzy under pressure.

The Versa isn’t the most exciting small car, but it is impressively equipped. The cabin is a massive improvement over the previous model. The outgoing Versa was notably spacious, and that’s about it. The updated version loses some rear legroom, though the overall ambiance is miles better than the plasticky Versa cabin of yesteryear.

The all-new Versa features an improved interior, though back seat passengers will find space a little scarce. Nissan

A 7-inch touchscreen is standard across the board, and while the built-in infotainment system is slow to respond, the mid-range SV trim offers Apple CarPlay and Android Auto compatibility, which works as expected. All trims have Google Assistant Voice Recognition, hands-free text messaging and three USB ports.

On the road, the Versa is a perfectly capable little sedan. Its compact size makes it easy to park and squeeze into city traffic. The handling is perfectly acceptable but becomes a slightly numb when pushing the modest performance envelope. On the highway and at a steady cruise, the Versa is a willing and able partner that returns solid fuel economy, even among the fuel-sipping small car field. Unlike previous Versas, the 2020 model doesn’t always feel like a car built to low price point. 

Nissan Versa compact car
The Versa is stuffed with advanced driver-assistance safety tech (not always found on more expensive cars) making it a solid choice for young drivers. Nissan

That holds true when browsing the list of standard features that come with the Versa. This includes the slew of standard driver assistance features, including lane departure warning, automatic emergency braking with pedestrian detection, rearview monitor with automatic braking and high beam assist. Upgrading to the SV adds blind spot monitoring, rear cross traffic alert and rear seat reminder. The top SR trim adds sport cloth seats, rear spoiler and 17-inch wheels (a first for a Versa). It’s worth spending slightly more, especially if optimizing value is a goal.

Does the Versa deliver a knockout punch to its rivals or take on cars in the compact class directly? No, but it definitely deserves to be cross-shopped with some of the best in the small car field, such as the Honda Fit, Kia Rio, Chevrolet Sonic and Toyota Yaris. The final choice comes down to which model serves up the better deal. While the outgoing Versa was notable only for its ultra-low entry fee, the latest model earns recognition based on merit.