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    Small Car Buying Guide

    Small Car Buying Guide

    For many people, a small car makes sense if you’re mostly doing simple tasks such as commuting, running errands, and zipping around town. With the ever-increasing demand for SUVs, automakers have taken efforts to maximize interior space and add new technologies to keep shoppers interested in traditional cars. As a result, the latest compact cars today have the rear-seat room and amenities you might have expected in a midsized car only a few years ago.

    In addition to being budget-friendly, many of CR’s tested models return 30-plus mpg overall. That fuel economy is one of the top reasons that buyers choose small cars. As a bonus, their size often contributes to nimble handling. Typical drawbacks are a stiff ride and a noisy cabin. 

    Here are some pros and cons of small cars.

    • They’re among the most fuel-efficient of any car type available.
    • Body styles range from standard four-door sedans to hatchbacks.
    • Hybrid powertrains and all-wheel drive are available.
    • A few still offer manual transmissions.
    • Some can be noisy and have a stiff ride.

    Types

    Once vast, the number of available small cars has shrunk in recent years. However, buyers still have the choice of sedan and hatchback body styles, many of which have tall roofs, providing generous headroom and an airy feel to the cabin. Hatchbacks can be especially practical. Fold down the rear seatbacks and lift the hatch, and you can have interior functionality that’s similar to that of a small SUV.

    When it comes to sporty cars, small is beautiful. Small cars are inherently light and nimble—two qualities that count a lot for spirited driving. Although small cars are commonly front-wheel drive, there are rear-wheel-drive choices that are particularly rewarding to drive. For those faced with winter traction challenges, there are a few models with all-wheel drive, such as the Subaru Impreza and Mazda3.

    If you’re searching for models that are fun to drive, check out the Honda Civic Si, Hyundai Elantra N, or Mini Cooper S.

    Nonturbocharged four-cylinders are the most common engine option. However, a few, like the Toyota Corolla and Hyundai Elantra, offer hybrid engine options for even better fuel economy. Plug-in hybrids, with the ability to drive short distances on electric power only (like the Toyota Prius Prime), and full electric vehicles (EVs)—such as the Chevrolet Bolt and Nissan Leaf—are also available, but shoppers should expect higher prices.

    If fuel economy is your top priority, check out the Hyundai Ioniq and Toyota Prius, which are standouts.

    CVTs (continuously variable transmissions) are quickly becoming the most common transmission available in small cars. They offer fuel-economy benefits and can improve the acceleration performance of small engines. A CVT does not shift gears like a traditional automatic, which can result in a noisier and less satisfying experience. Some CVTs simulate gear changes in an attempt to mask these traits. Traditional automatic transmissions are still available, such as the six-speed automatic in the Mazda3. A few models are still offered with a manual transmission (like the Nissan Versa and Volkswagen Jetta), which may help save money on the purchase price, but they tend not to be more fuel-efficient than CVTs and automatics.

    Prices of small cars can vary widely, from about $17,000 for basic transportation in a subcompact to $35,000 for a high-performance model. EVs can top $40,000. Figure on spending $23,000 to $25,000 for one of our recommended models with popular features.

    2023 Toyota Prius Prime rear
    Toyota Prius

    Photo: Toyota Photo: Toyota

    What Small-Car Buyers Should Consider

    Seating
    Most small cars can comfortably seat two people up front, but rear-seat passengers might get pinched, especially in some of the smaller subcompact models. Some, like the Nissan Sentra, have a rear seat that’s surprisingly roomy. Be sure you know how many people will typically ride in your car when you’re considering one of the smaller models.

    Cargo
    Usually, small-car buyers have to sacrifice size for the relatively low introductory price. Some hatchbacks (like the Kia Soul) can fill cargo-carrying duties, but the rear seats will have to be folded. So you’re carrying either passengers or cargo, but typically not both at once.

    If you ever expect to carry long or bulky cargo, look for a fold-down rear seat with a tall, wide opening to the trunk. Even a small pass-through port can be handy for long, slender items, such as skis.

    Handling
    Some small cars will thrill you with their handling prowess. Sporty models such as the Mini Cooper S and Subaru WRX shine in our handling evaluations. With the focus zeroed in on crisp handling, ride comfort typically suffers as a result of these models’ stiff suspension and low-profile tires. However, other options, such as the Nissan Sentra, still offer commendable small-car handling capability with a more compliant ride. The Honda Civic has nimble and lively handling, but with a stiff and choppy ride.

    Drive Wheels
    The vast majority of small cars use front-wheel drive. This can be more effective and easier to control in slippery conditions compared with rear-wheel drive. A few small cars offer all-wheel drive to provide heightened foul-weather traction. However, expect added cost and slightly reduced fuel economy.

    Towing
    Small cars aren’t designed for towing. Period. If your life requires regular trailer towing, you’ll have to step up to a larger car or an SUV.

    2019 Honda Civic Sedan
    Honda Civic

    Photo: Honda Photo: Honda

    Safety and Advanced Driver Assistance Systems

    Consumer Reports’ safety ratings include assessments of crash-avoidance capabilities and crash-test results, based on tests performed by the federal government and insurance industry. Further, our road tests detail issues regarding child-seat installation and headlight performance.

    Forward collision warning (FCW), automatic emergency braking (AEB) with pedestrian detection, and blind spot warning (BSW) are crash-avoidance technologies that CR believes should be standard on all vehicles. They are offered on most small car models, but be wary of some lower trim levels that may omit them. These should be on the next new or used model you buy.

    FCW technology provides a visual, audible, and/or tactile alert to warn the driver of an impending collision with a car or an object directly in the vehicle’s path. AEB responds to an imminent collision, braking if the driver doesn’t react in time. BSW monitors a vehicle’s flanks, warning the driver that another vehicle is alongside, where it may be difficult to see.

    Other modern safety advances include telematics systems that can alert emergency personnel if an airbag deploys, such as GM’s OnStar service; lane departure warning systems that sound an alert if a driver changes lanes without signaling; lane keeping assist to maintain the vehicle position in the lane if the driver starts to drift; and rear cross traffic alert, which monitors the sides of the vehicle when a driver is backing out of a parking spot and can even apply the brakes if needed. (Learn more about car safety.)

    New vs. Used

    Like with any type of car, the first decision to make in choosing the right one is whether you’ll buy a new or used one.

    New cars have the very latest safety gear and engineering improvements, not to mention a bumper-to-bumper factory warranty. With a new car, you know what you’re getting; you don’t have to worry about potential service problems or concealed collision damage. Further, you can have your choice of color, trim line, and option level. Plus, financing rates are typically lower than for a used vehicle.

    The crucial drawback of buying a new car is rapid depreciation. A new car can shed a third of its value in its first two or three years on the road. If you finance the new car with a low down payment, you can easily find yourself “upside down” on the loan, where you owe more than the car is worth.

    Used cars can be a welcome alternative. The used-car market is about three times the size of the new-car market, so there are certainly plenty of choices. A 2- to a 3-year-old car has already taken its biggest depreciation hit and should have the majority of its useful life ahead of it. Modern cars, if soundly maintained, can run for 200,000 miles or longer. Material and corrosion-resistance improvements mean rust isn’t nearly as big a problem as it was years ago.

    The key to selecting a good used car is to focus on reliability, even when a prospective automobile is still covered by its original factory warranty. Look for a car that has done well in our reliability survey.

    Consumer Reports’ reliability information is no guarantee, of course, but it does carry the weight of probability. If you shop for small cars with top-notch reliability, the odds are more in your favor. Nevertheless, every used car is unique. A careful prepurchase inspection remains a vital part of the process. If you do research and take care in the car selection, a used small car can save you significant money in the end.

    Whether buying new or used, it is important to do research so that you can choose a good model and to follow that up with effective negotiation.

    Browse the Consumer Reports Used Car Marketplace.