Economy Cars

Evaluating government fuel-economy estimates

We've included EPA fuel-mileage estimates for each compact car as one comparative measure of value. Real-world driving almost always results in lower mileage figures than the EPA estimates (which are based on hypothetical driving conditions and mathematics). The numbers are revealing in comparison, however. To find out more about these government estimates, see http://www.fueleconomy.gov. Note that this site now has reports from real car owners and drivers about their actual mileage, not just the EPA estimates.

The EPA is reevaluating its fuel economy calculations. Recent legislation introduced in Congress requires changes to the EPA's test methods. This is a response to challenges from the Automobile Association of America (AAA) and other consumer groups. Representatives from AAA claim real-world conditions lead to substantial differences between the EPA's ratings and what a consumer may really expect to get in regular driving. This assertion is disputed by almost no one. Even so, EPA mileage numbers are helpful when comparing vehicles, since they are based on uniform criteria. New EPA calculations may be available for 2008 models.

Some reviewers publish actual gas mileage for tested cars. While these figures are admittedly unscientific, they can help give you an idea of what you could realistically expect. Consumer Guide notes tested fuel economy figures. Unfortunately, they really bury that information, and it's a little hard to find (it's on the road-test page for each model).

The class of "compact cars" or "economy cars" is a little hard to pin down, but for the purposes of our report, we're considering a sticker price of about $20,000 or less as the cutoff for an economy car. Most compact economy cars start at a bare-bones price of about $13,500, with very few options.

Economy cars are generally best for first-time buyers, singles or couples. Because they don't have as much interior space as midsized sedans, they aren't as comfortable for families. ConsumerSearch has a separate report on family sedans , many of which have starting prices not far from that of economy cars. If fuel economy and the environment are your primary criteria, you might also be interested in our report on hybrid cars .

Best economy cars

The Honda Civic (*est. $14,800 to $23,250) , which was completely redesigned for the 2006 model year, is again a top pick in reviews. The Honda Civic is available as a coupe, sedan or hybrid car (which is covered in our other report on hybrid cars ). The majority of reviews favor the Civic Si trim level, which is a higher-priced Civic with sport suspension and a 2.0-liter 4-cylinder engine and six-speed manual transmission. Less expensive trim levels include the DX, LX and EX Civics with a 1.8-liter 4-cylinder engine. All trim levels come in either a two-door coupe or four-door sedan. According to Edmunds.com, the Civic is a "Fun to drive budget sports car." Edmunds names the 2007 Honda Civic its "Most Wanted" car under $20,000, specifically citing the sporty Civic Si sedan (*est. $21,300 to $23,250) . CNet.com calls the Civic Si a "performance bargain."

We found high ratings for the lesser trim levels as well. One of many titles claimed by the Honda Civic this year was the "Best Compact Car Under $15,000" according to editors of Kelley Blue Book; editors refer to the Honda Civic as "the standard by which all other compacts are measured," and refer to the handling of the Civic as "world-class." Reviews say emergency handling is solid and predictable. Though the non-Si Civics are refined, they just don't feel very sporty. Editors at Automobile magazine put it best, saying the four-door Civic sedans are "excellent but never exciting." Even so, the Honda Civic sedans are noted for their generous headroom, commodious rear legroom and supportive seats. A GPS navigation system is an option on EX and Si Civics -- something that's not available on some other economy cars like the Nissan Sentra or Honda Fit. Trim levels LX and higher have an auxiliary audio jack for plugging in an MP3 player.

The Honda Civic comes standard with six airbags as well as ABS (antilock brakes). In addition, the new body structure of the Civic was created to improve vehicle-to-vehicle crash safety and collision energy management, according to Cars.com. Other issues covered in reviews include the prominent placement of the tachometer, which seems to cause a division among critics -- some like it while others question the unusual placement. EPA fuel-economy estimates for the 2007 Honda Civic range from 23 mpg/city, 32 mpg/hwy for the Civic Si. The non-sport Civic models, with their 1.8-liter engine, do better, with estimates of about 30 mpg/city and 39 mpg/hwy. At Consumer Guide, editors got an average of about 26 mpg in mixed driving with the Honda Civic EX.

The Honda Civic is a mature car. Reviews say it balances interior comfort, reliability, good ride quality and economy. The Civic Si sedan and coupe are more exciting, and reviews say they are a great value -- sort of a budget sports car. But the Civic Si models cost more than $20,000, and are only available with a six-speed manual transmission.

The Honda Civic is a true compact car, but Honda has also made a big splash with its new subcompact, the Honda Fit (*est. $13,850 to $15,170) . The Honda Fit hatchback is just over 19 inches shorter than the Honda Civic sedan, yet according to Consumer Guide, it has the same amount of interior passenger room, and actually has more cargo space. The Honda Fit gets great reviews for its nifty folding seats. Both front and rear seats can be folded flat, and the rear seats can flip up -- creating a tall space for big items. A CD/MP3 player and audio jack for MP3 players is standard on the Sport model (*est. $15,200 to $16,000). GPS navigation and satellite radio aren't options on any of the Fit hatchbacks.

The Honda Fit took first place out of seven vehicles tested by the staff of Car and Driver. According to the review, the Honda Fit has great handling for the price: "…not a pretense of handling but the real deal, with springs and struts that allowed one gentle rebound and no more, the only car here that felt happy storming the switchbacks." In addition, the reviewers were impressed with the interior, the fuel economy and the comfort of the vehicle. Only the rear visibility presented any type of issue for the reviewers of the Honda Fit. According to Money Magazine, the Fit is poised to be one of the most reliable cars on the market in testing by Consumer Reports. Real-world fuel economy is great. Both CNet.com and Consumer Guide tested the Honda Fit, and got an average of about 35 miles per gallon in mixed driving -- that's right in line with EPA estimates of 33 mpg/city and 38 mpg/hwy. The Honda Fit comes equipped standard with antilock brakes, as well as six airbags: two front center, two front side and two side curtain. On the downside, in crash testing at the Insurance Institute for Highway Safety, the Fit gets scores of "good" for front and side impacts, but a score of "poor" in rear impacts.

If there's anything that dampens reviewer enthusiasm for the Honda Fit it's the engine -- the only engine option is a 1.5-liter 4-cylinder with 109 horsepower -- pretty underpowered compared to the 140-horse generated by the Honda Civic's 1.8-liter engine or the 2.0-liter, 197-hp engine on the Civic Si. While reviews say the Honda Fit is zippy in city driving, the Fit isn't the best choice for hills or highways. According to a review at CNet.com, the "puny" engine "choked uphill and when trying to pass on the freeway." So the Honda Fit makes a great commuter car, but if your commute involves highway driving or you live in San Francisco (where CNet is headquartered), you might prefer something more powerful like the Civic.

If you're stuck trying to choose between the Honda Civic and the Honda Fit, the value leader is the Fit, and popular opinion is that it also beats the Civic in terms of storage/versatility. In addition, the Fit has slightly better fuel efficiency than the Civic. However, the style of the Civic gains more favorable reviews, and it is a little longer and wider than the Fit. The Civic has more available options than the Fit, and according to reviews seems to be a slightly higher-quality vehicle in terms of interior build. The Fit comes standard with AM/FM/CD, while radio is an option for the Civic; however, the Civic has the option of satellite radio and a navigation system, which aren't offered at all on the Honda Fit. Finally, the Civic's engine -- even on the DX, LX and EX models -- easily outclasses the tiny 1.5-liter engine on the Fit.

The third economy car to garner a lot of attention is the 2007 Toyota Corolla (*est. $14,205 to $15,415) . The Corolla may be the odd man out in the listing of top compact cars. While the Civic and Fit are notable not only for their zippy performance but for their stylish exterior, the Corolla delivers a less exciting ride and a more conservative appearance. What it lacks in terms of style it makes up for in dependability, offering one of the best track records in the business.

In addition to being noted as the most fuel-efficient non-hybrid small car by the Environmental Protection Agency, the Toyota Corolla was also noted as being one of the most reliable vehicles at Money Magazine and a close runner-up for the best compact car under $15,000 at Kelley Blue Book. The review at KBB.com refers to the Corolla as "a joy to drive," but notes that the Toyota is not a sporty car, and that potential drivers should not expect more than they pay for in terms of acceleration. In many ways, the Corolla sits between the Honda Civic and Honda Fit. Power-wise, it's right in the middle with a 1.8-liter, 4-cylinder, 126-horsepower engine. Price-wise, it's also right in the middle. The Corolla doesn't offer a lot of options -- there's no option for an auxiliary audio jack, GPS navigation system or satellite radio.

Optional safety features include side impact and side curtain airbags, as well as antilock brakes and an electronic stability system -- none of these come standard. Reviews agree that the Corolla isn't a particularly exciting car. But Corolla doesn't need to rely on flashy styling to attract customers; instead, Toyota relies on a history of reliability and a solid vehicle.

If price matters to you more than any other factor, the Hyundai Accent (*est. $10,415 to $13,915) has the lowest possible starting price. While inexpensive used to carry a stigma of mediocrity, it seems that Hyundai is bringing an impressive vehicle to the table at a reasonable price, as the Accent has been the recipient of numerous honors, including a slot in the Editors' Most Wanted list at Edmunds.com for sedans under $15,000. The base model is the Accent GS, a two-door hatchback. Although at the base price you don't get many convenience features (no radio, no power locks or windows, no ABS), it does come with dual front airbags, front side airbags and curtain side airbags standard. And even the base model has a 60/40 split folding rear seat.

In a Car and Driver comparison of compact vehicles, the Accent beat out both the Suzuki Reno (*est. $13,499 to $15,499) and the Dodge Caliber (*est. $13,575 to $19,670) . In testing, ride quality was the Accent's main highlight; the smooth, quiet ride is noted in other reviews as well. On the downside are power and shifting, but according to Edmunds.com, "Quickness is not within a lower-end economy car’s grasp." Reviews say rear-seat room is tight for both the Accent hatchback and the Accent four-door sedan. A downside is crash-testing. According the Insurance Institute for Highway Safety, the Accent achieved only adequate scores for front crashes, and scores of "poor" in both side and rear impacts.

In terms of technical specs, the Accent is fairly average, with a 110-hp, 1.6-liter I-4. Fuel economy estimates for the small engine are about 30 mpg/city and 36 mpg/hwy, according to the EPA. In real-world driving, editors at Consumer Guide report mileage of about 34 mpg in mixed driving for the manual gearbox. ABS is no longer standard, but optional on the sedan version. Another option in this price range is the Kia Rio (*est. $10,770 to $13,495) , discussed below. The Rio is the least expensive sedan, while the Hyundai Accent is the least expensive hatchback.

Honorable mention among compact cars

Aside from the Honda Fit, two more 2007 subcompact cars have entered the market, the 2007 Toyota Yaris and the Nissan Versa. Neither receives the same great reviews at this point. When it comes to crash testing, the Insurance Institute for Highway Safety recently concluded that such subcompact cars are at a disadvantage. Only the Nissan Versa attained ratings of "good" in all three crash positions (front, side and rear). IIHS directors suspect this is due to the Versa's larger overall size compared to the Fit and the Yaris.

The Toyota Yaris (*est. $11,050 to $14,150) comes in as a replacement for the now-defunct Toyota Echo. According to EPA estimates, the Yaris should average 34 mpg/city and 40 mpg/hwy; a review in Car and Driver notes that road testers got 36 mpg from the Yaris when running errands, a figure also supported at Consumer Guide. Fold-down seats can open up approximately 14 cubic feet of storage space. The light weight of the car is a strength in terms of fuel economy, but also a weakness -- if the wind blows hard on the highway, you'll feel it. Reviewers across the board disliked the gauges on the Yaris, which are centered in the dash rather than positioned in front of the driver. Also, the 106-hp, 1.5-liter, 4-cylinder engine is lamented by some for being too small. Editors at CNet.com say the Yaris isn't as "peppy" as the Honda Fit, which has a similar engine.

Safety features are mostly optional. Only front airbags are included; side airbags are options. On the Honda Fit, side airbags come standard. Antilock brakes (ABS) are standard on the Honda Fit. ABS isn't even an option on the Yaris. According to the IIHS, the Yaris gets high ratings of "good" in front and side impacts when optioned with side airbags. Scores for a rear crash were deemed "marginal."

The Nissan Versa (*est. $12,550 to $14,550) was released later than its two competitors, so it doesn't yet have as many reviews. On the plus side, six airbags are standard, with ABS a $250 option. Furthermore, the Versa gets the highest scores among the three in crash tests. A review at Edmunds.com compliments the Versa's roomy interior (something that's highlighted in its advertising), especially its rear-seat legroom. Although the Versa comes with a 1.8-liter 122-hp engine, the review says it actually isn't any more powerful than the Honda Fit due to the Versa's extra 255-pound weight over the Fit -- the extra weight also contributes to its better crash-test scores, however Editors at Edmunds.com also say the engine isn't as refined or smooth as the Honda Fit's 1.5-liter engine.

Most compact cars are longer and wider than the Honda Fit, Nissan Versa and Toyota Yaris. In reviews for the Ford Focus (*est. $13,480 to $17,550) , there is one word that every reviewer repeats: Fun. Edmunds.com, Cars.com and Car and Driver all remark on this aspect. However, some reviewers say that the car feels cheap compared to other cars and that the Focus can feel a little cramped. Although the Ford Focus was redesigned in 2005 in order to have a wider appeal, it is apparent that the vehicle is still being marketed towards younger drivers. When it comes to mileage, the EPA says that the automatic Focus will get around 26 mpg/city and 32 mpg/hwy, with a manual transmission boosting those numbers a bit. The mileage is average, and the car has a few flaws, yet reviews still say the Ford Focus is enjoyable to own and drive. Another plus is its above average reliability, as noted by Money Magazine's article based on Consumer Reports testing.

The Chrysler PT Cruiser (*est. $14,560 to $29,185) crosses a lot of categories, sitting somewhere between a station wagon and an SUV. The weak point of the PT Cruiser is power, and it gets punished for this weakness in every review (the Cruiser has a 2.4-liter engine, but only 150 horsepower). Bonuses include a lot of storage space, a nice ride quality and a very stylish body. Unfortunately for the Cruiser, it does not have the best fuel-efficiency ratings. According to the EPA, the PT Cruiser generally gets around 21 mpg/city and 28 mpg/hwy. In real-world mixed driving at Consumer Guide, the PT Cruiser gets disappointingly low mileage of about 18 to 23 miles per gallon. While the PT Cruiser has more personality than many other cars on the road today, it's not enough to make up for the combination of poor fuel efficiency and acceleration issues.

Redesigned for 2007 is the Chevrolet Aveo (*est. $12,010 to $13,510) . While it was one of the least expensive vehicles for 2006, a price change has put it right in the middle of the compact car market. Somewhat surprisingly for the price, the Aveo includes front- and side-impact airbags standard and optional antilock brakes. The Aveo's main weakness is its 103-hp, 1.6-liter 4-cylinder engine. According to Motor Trend, "The Aveo provides basic transportation. Period. It's designed to get from Point A to Point B as cheaply as possible, and fun isn't part of the equation." The Aveo isn't a poor car, but according to reviews there are other comparably priced compacts that work just as well. In terms of mileage, the Chevrolet Aveo gets 24 mpg/city and 34 mpg/hwy according to the EPA. Consumer Guide's testers saw mixed-driving mileage of about 29 mpg. A downside is the Aveo's low rating for long-term reliability. Along with the Chevy Cobalt, Volkswagen Jetta and 2006 Nissan Sentra, it gets some of the lowest scores.

The Hyundai Elantra (*est. $13,395 to $16,695) is an option for those wanting a compact car with a classier, more distinguished feel. The 2007 Elantra is larger than its 2006 counterpart, and is being considered a midsized sedan by some estimates. The Elantra does have one of the best warranties, with a five-year, 60,000-mile warranty and a ten-year, 100,000-mile powertrain warranty as well. In fuel efficiency, the Elantra is fairly standard among economy cars, ranking at about 24 mpg/city and 32 mpg/hwy.

Another vehicle with an excellent warranty is the Kia Rio (*est. $10,770 to $13,495) , which was completely redesigned for 2006. The Rio is slightly wider and longer than in past years, but is still a compact economy car. In addition, safety has been improved on the new Rio with standard side curtain airbags and optional ABS. Reviews for the vehicle have been excellent to date, with the only negatives coming in the form of lackluster material quality and a somewhat cramped interior. The EPA mileage estimates for the Kia Rio break down to 30 mpg/city and 36 mpg/hwy.

Introduced in 1998, the Volkswagen New Beetle (*est. $17,180 to $22,120) is still on the market, although several reviewers and analysts believe that the New Beetle may be on the way out. In order to remedy lagging sales in the past few years, the 2006 New Beetle received its first true changes in eight years. Changes for 2007 include new exterior colors and the lack of a diesel engine option. While the Beetle is still a unique car with positive feedback, many reviews find the styling dated. The EPA mileage for the 2007 VW New Beetle is 23 mpg/city and 32 mpg/hwy.

The Volkswagen Rabbit (*est. $14,990 to $16,990) is the rehashed moniker for the now-defunct VW Golf. The Rabbit has a larger engine and interior than its predecessor. In addition, the Rabbit comes with a large list of standard features, not the least of which is an auxiliary audio port and many more available for a nominal fee. The Rabbit is the big winner in a six-car roundup at Car and Driver. Editors say that it's overpriced, but is "easy to love" with good suspension, strong road grip and cornering, and a nice-looking interior. The Rabbit has a 150-hp, 5-cylinder engine, and comes standard with ABS, traction control, front side and curtain side airbags -- a good list of standard safety features for the price. Fuel mileage is slightly below the class average, with an estimated 22 mpg/city and 30 mpg/hwy, according to the EPA. In their tests, Consumer Guide got about 25 mpg in mixed driving.

The third and most expensive compact hatchback coming from Volkswagen is the Volkswagen GTI (*est. $22,100 to $23,675) . The GTI is a performance vehicle; what the vehicle delivers is a 200-hp engine and an excellent, sporty performance according to the major reviews. The car receives positive marks for its performance although it takes some hits for price and comfort, specifically on uneven roads. The GTI has the usual array of VW options, and comes standard with airbags, a tire-pressure monitoring system and an auxiliary audio input jack. Fuel mileage estimates are average at about 24 mpg/city and 32 mpg/hwy, according to EPA estimates.

The Audi A3 (*est. $25,340 to $33,980) comes in at the higher end of the compact car market. It receives favorable reviews and was voted the best sports compact car of 2006 by Car and Driver. According to the review, "The tallish profile makes it easy to use the rear doors, two adults can sit in the rear seats without much cooperation from the folks up front, the hatchback lends cargo versatility, and the whole package feels as solid as something machined from billet." With the exception of new options, there have not been any real changes to the vehicle for 2007. EPA fuel-efficiency estimates for the Audi A3 are 25 mpg/city and 31 mpg/hwy. The vehicle is well built, but expensive for a compact car.

Important Features: Economy cars

Economy cars have come a long way in the last few years. Here are some things that the experts say to consider:

• Compact cars should not feel too cramped. Get in and test out the space of any compact you are considering. In theory, a compact car should be able to fit four average-sized adults without any sort of major problems. They may not all be extremely comfortable, but they should fit. Economy cars are geared more toward driver and front-passenger comfort than rear-passenger comfort.

• Watch the options. Most economy cars are sold to younger drivers and first-time buyers, lured in with the prospect of interesting options. But options costs can quickly add up, boosting price into the midsized range. It's a good idea to have an idea of your essential options before you start shopping.

• Consider safety equipment. More manufacturers are standardizing safety equipment, but not all compact cars are made equal. Look at the safety specs of the vehicle to see if side air bags and ABS are included.

• Some midsized sedans or station wagons may be a better fit than a compact economy car. Take a look at our reports on station wagons and family sedans , both of which include cars starting at about $16,000. Sedans and station wagons are more comfortable for families, and many get very good gas mileage.

Our Consensus Report shows how many times products are top-ranked by reviewers included in our
All The Reviews Reviewed chart.

# of Picks	Model (With Retailer Links)	Details from Edmunds.com
5	Honda Civic (*est. $14,800 to $23,250)	detail
5	Honda Fit (*est. $13,850 to $15,170)	detail
3	Toyota Corolla (*est. $14,205 to $15,415)	detail
1 each	Hyundai Accent , Kia Rio , Subaru Impreza , Volkswagen Rabbit , Volkswagen GTI , Mini Cooper , Chevrolet Aveo , Mazda3 Touring , Mazda6 , Toyota Camry , Toyota Yaris , Chevrolet HHR , Nissan Sentra

Two Honda compacts, the Honda Civic sedan and the Honda Fit hatchback, get the best reviews for the 2007 model year. The Toyota Corolla fits somewhere between those two cars. The Corolla isn't as fun or forward-looking as the Civic and Fit, but its reliability record is one of the best in the business.

Very inexpensive cars like the Chevrolet Aveo and Cobalt don't win any big awards, but if price is your main consideration, they are the least expensive cars out there. But according to reviewers, the Aveo and Cobalt have a poor track record for long-term reliability, so you may end up with higher-than-average repair costs down the road.

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