Economy class: small sedans: the redesigned Civic fares well against some capable rivals.(Product/Service Evaluation)

At one time, small cars were often classified as low-end models that traded refinement and luxury for frugality. However, the Honda Civic and the Volkswagen Jetta have always defied that notion by offering a stylish interior, and ride and handling, often associated with more-expensive vehicles. By virtue of its standard all-wheel drive, the Subaru Impreza also resides in this niche.

Both the Honda Civic and Volkswagen Jetta recently have been thoroughly redesigned. We chose those two models, along with the freshened 2006 Subaru Impreza. We included three versions of the Civic, two of the Jetta, and two of the Impreza. We have also reprised our December 2002 test by comparing the new versions of the Honda Civic Hybrid and Volkswagen Jetta Diesel. In this test, prices ranged from $18,810 for the Civic EX (manual) to $24,580 for the diesel-powered Jetta, positioning them nearer to family-sedan prices than the budget-minded side of the class, around $15,000.

The redesigned Honda Civic is a major improvement over the previous generation, and it is now our top-rated small sedan. Exterior and interior styling depart from the conservative look of the old model, with a steeply raked windshield and two-tier instrument panel that takes some getting used to. A refined and economical 1.8-liter, four-cylinder engine powers the nonhybrid Civic sedans. Paired with the responsive automatic transmission, the Civic returned 28 mpg, and 31 mpg with the five-speed manual. The Hybrid returned 37 mpg overall. Although it costs nearly $3,000 more than the EX, federal and state tax incentives can help recover some of that premium. Honda significantly improved the ride and handling of the Civic, though it isn't quite as agile as the Ford Focus or the Mazda3. Road noise is still evident. Crash-test results from the Insurance Institute for Highway Safety (IIHS) are impressive. Reliability of the previous generation was excellent, and we expect it to continue.

The Jetta has grown in size and price, and it now competes with some family sedans. The 2.5-liter, five-cylinder engine with a six-speed automatic transmission is quicker than the tepid base powertrain of the previous generation, yet it doesn't consume more fuel. The Jetta TDI is powered by a 1.9-liter diesel engine mated to a new six-speed automated manual gearbox (see CloseUp, below). The diesel is slower than its gas-powered sibling, but fuel economy is its strength. We achieved 34 mpg overall--an improvement over the previous TDI. Both cars have a roomy and quiet interior, improved handling, and commendable fit and finish. IIHS crash-test results are impressive. Reliability is still unknown for the new models.

The Impreza was freshened for 2006, with more horsepower and revised exterior. The sporty WRX got a bigger engine, but handling became less forgiving at the limits. The Impreza is an agile, comfortable-riding sedan that features standard AWD. However, the weight of the AWD system takes a toll on acceleration and fuel economy. The interior is cramped, particularly in the rear seat. The fixed rear seatbacks do not fold. Interior materials are unimpressive. Reliability has been excellent.

CR Quick Recommendations

The top-rated cars in this category prove that small doesn't have to feel cheap. The Honda Civic, Mazda3, Toyota Prius, Toyota Corolla, and Volkswagen Jetta all offer solid interiors that feel like more-upscale cars. All but the Jetta are Recommended. The Civic and Corolla (equipped with optional curtain air bags) get our highest Recommendation for their superior crash-test scores. The Jetta also has impressive crash-test results, but it is too new to have reliability data and therefore not recommended.