Even as SUVs dominate the market, small cars still hold their own for their city-friendly size and practicality, as well as prices that can make them more affordable than larger vehicles.
Depending on the car, some may offer all-wheel drive (AWD), or be available with electrified powertrains, including hybrids and plug-in hybrids (PHEVs), and our list includes some of those as well, so there’s something for everyone.
Our team of more than 20 automotive experts from across Canada considered every car in this segment and voted for the best ones, signifying vehicles they can confidently recommend. When voting for the best cars, they are looking for well-rounded vehicles that offer a winning balance of efficiency, value, and practicality.
In alphabetical order, these are the affordable small cars our experts consider best buys for 2025. All prices include the non-negotiable delivery fee.
Honda Civic / Civic Hatchback / Civic Hybrid
The Civic was named the Best Overall Car in our 2025 AutoTrader Awards, after first taking Best Small Car for the fourth time. It also obviously impressed consumers, as it was second only to the CR-V in sales across Honda’s lineup in 2024, and was the best-selling car in Canada last year.
The Civic sedan and hatchback use a 2.0L four-cylinder engine, making 150 horsepower and 133 lb-ft of torque, and with an automatic continuously variable transmission (CVT). For 2025, both models also add a new hybrid that uses a 2.0L engine with self-charging hybrid system, with an electric generator-motor supplying power to the drive battery, and an electric propulsion motor driving the wheels. It produces a combined 200 horsepower and 232 lb-ft of torque, and with a Natural Resources Canada (NRCan) rating of 4.9 L/100 km in combined driving. Our experts were impressed with both Civic variants’ performance, as well as their upscale cabins and easy-to-use controls.
The gas-only Civic sedan comes in LX trim at $29,670, and in Sport trim at $33,530. The hatchback comes solely in Sport, also at $33,530. The hybrid models, in sedan or hatchback, range from $35,430 to $40,830. The Civic also comes in higher-performance Si and Type R trims as well.
Hyundai Elantra / Elantra Hybrid
Hyundai’s compact sedan is primarily sold as a gas-only version, but a hybrid powertrain can be added to one of its trims. Our experts like the Elantra for its roomy and comfortable interior, including considerable rear-seat legroom, numerous features, and user-friendly controls for its functions.
The Elantra in Essential, Preferred, and Luxury trim uses a 2.0L four-cylinder engine, making 147 horsepower and 132 lb-ft of torque. The N Line Ultimate uses a turbocharged 1.6L and makes 201 hp and 195 lb-ft of torque. The hybrid powertrain is an option on the Luxury trim, with an electric-motor hybrid trim mated with a non-turbo 1.6L engine. That system creates a combined 139 hp and 195 lb-ft of torque, with an NRCan rating of 4.7 L/100 km in combined driving. While most hybrids use a CVT, the Elantra hybrid has an automatic six-speed dual-clutch transmission (DCT), which gives it a sportier feel.
The 2.0L-equipped models run from $24,424 to $30,424. The Luxury Hybrid is $32,924, while the N Line Ultimate is $33,524. The Elantra is also available as the 276-hp performance Elantra N, starting at $42,024 and offers a manual transmission for driving enthusiasts.
Mazda3 / Mazda3 Sport
The Mazda3 is a four-door sedan, while the Sport refers to the hatchback version. Our experts like both variants, which come with naturally aspirated or turbocharged engines and with front-wheel drive or AWD. The seats are comfortable and the handsome interior looks better than its price tag might suggest, but where the Mazda3 really impresses is in how it performs. Its steering and handling have always been pretty much the sharpest in the segment, although never so much that it’s a chore to drive. It’s really a pleasure on the daily commute as well as on weekend trips.
The GX, GS, and GT trims use a 2.5L four-cylinder that makes 191 horsepower and 186 lb-ft of torque. The GT can be optioned with a turbocharged 2.5L making 227 hp and 310 lb-ft of torque on regular-grade gasoline, and up to 250 hp and 320 lb-ft of torque if you use premium-grade fuel. Both engines use a six-speed automatic transmission. The plain 2.5L can be optioned with AWD, while the turbocharged engine is AWD-only. The Mazda3 Sport further adds a top turbocharged Suna trim, which adds unique styling cues and colours. NRCan-rated fuel efficiency in combined driving is 7.5 L/100 km for the non-turbo in front-wheel drive (FWD), 7.9 for the AWD model, and 8.8 for turbocharged models.
Pricing starts at $26,255 for the Mazda3 GX, $28,855 for the GS, and $35,055 for the GT. Optional AWD can be added to the GS and GT, and the latter can also have a turbocharged engine added. The Mazda3 Sport adds $750 to those prices, while the top Suna trim is $40,955.
Subaru Impreza
The Subaru Impreza got a redesign and a second engine choice for 2024 and now comes only as a four-door hatchback. It’s mostly unchanged for 2025. Our experts cite the Impreza’s performance, features, and practicality, adding that many buyers won’t feel the need to move up into a larger crossover.
The Impreza comes in four trims, with the Convenience and Touring carrying a 2.0L four-cylinder horizontally-opposed engine making 152 horsepower and 145 lb-ft of torque. The RS and Sport-Tech trade that for a horizontal 2.5L four-cylinder making 182 hp and 178 lb-ft of torque. Both engines use a CVT. All-wheel drive is standard, and while some systems primarily power the front wheels and only fire up the rear ones as needed, the Impreza’s always has at least 40 per cent of engine power at the rear. That can help give it a well-planted and confident feel in all driving situations, not just in nasty weather.
Our experts also note that many of the Impreza’s standard driver-assist features, including adaptive cruise control, emergency front braking, and lane-keep assist, use a camera that looks forward through the windshield. While some systems can shut down if their external sensors get dirty or icy, the wipers keep the Subaru’s vision clear and the system intact. The Convenience trim is $29,890 and the Touring is $32,890, while the more powerful trims are the RS at $34,690 and the Sport-Tech at $37,090.
Toyota Corolla / Corolla Hybrid
Toyota’s compact Corolla has been a familiar sight in Canada right back to its introduction in 1968. The 2025 version comes as a sedan or hatchback, and in sedan configuration, also comes as a hybrid with available AWD. (The Corolla Cross shares its platform with the Corolla, but it’s a compact crossover SUV.) While the Corolla isn’t always as sporty-feeling as some of its competitors, our experts appreciate its functional and comfortable interior, its smooth ride, its standard driver-assist safety features including adaptive cruise control on all trims, and its historically high reliability ratings.
Both the Corolla sedan and hatchback use a 2.0L four-cylinder engine that makes 169 horsepower and 151 lb-ft of torque, and with a CVT. NRCan rates it at 6.7 L/100 km in combined driving. The hybrid uses a 1.8L four-cylinder engine with a self-charging hybrid system and is rated at 4.9 L/100 km combined. Its available AWD system uses a second rear-mounted electric motor to power the rear wheels fuel-free when they’re needed for extra traction.
The Corolla sedan comes in four trim levels ranging from $25,730 to $33,955. The sedan hybrid, which starts one trim level above the non-hybrid, is $28,850 to $38,115. The hatchback is $26,135 to $32,525.
Toyota Prius / Prius Plug-In Hybrid
The Toyota Prius was famously the world’s first mass-produced hybrid, and for 2025, its Prius Prime sibling is renamed the Prius Plug-In Hybrid (PHEV) to better inform buyers of what’s special about it. Both got a makeover for 2023, adding more power without sacrificing fuel efficiency, along with new styling, a redesigned cabin, and standard AWD on the Prius. All of that continues into 2025 and continues to impress our experts.
Both versions use a 2.0L engine with Toyota’s efficient hybrid system. The Prius makes a combined 196 horsepower with NRCan-rated fuel efficiency of 4.8 L/100 km in combined driving, while the PHEV takes that to 220 hp but sips 4.5 L/100 km. The Prius also adds a second rear electric motor that powers the rear wheels fuel-free as needed to provide that AWD, while the PHEV is front-wheel drive (FWD). The PHEV’s claim to fame is that after it’s plugged in and charged – using a regular 120-volt household outlet or a 240-volt home or public charger – it can drive entirely on electricity for up to 72 km. Once that depletes, it reverts to the same self-charging hybrid system as the Prius. Our experts note that many drivers could do most of their daily commutes on electricity alone but can still drive longer distances without “range anxiety,” as the PHEV will drive for as long as there’s gas in its tank.
The Prius comes in two trim levels of XLE at $41,910 and Limited at $46,140. The PHEV comes in three trims, ranging from $41,910 to $50,395.
Volkswagen Jetta
The Volkswagen Jetta gets a subtle redesign for 2025, improving its already-classic styling and updating the interior, including a standard eight-inch touchscreen on all trims. It comes as the regular Jetta or the sportier Jetta GLI, which still offers a manual transmission for those who prefer three pedals.
The Jetta uses a turbocharged 1.5L four-cylinder engine, mated to an eight-speed automatic transmission, making 158 horsepower and 184 lb-ft of torque. The GLI exchanges that for a turbocharged 2.0L four-cylinder making 228 horsepower and 258 lb-ft of torque, and with either a six-speed manual or seven-speed automatic dual-clutch transmission. The GLI includes a sport-tuned suspension and larger brakes, but our experts like the way both Jetta variants drive, with well-weighted steering and tight, well-composed handling. The seats are supportive, the cabin is relatively roomy, and trunk space is generous. NRCan’s rating in combined driving is 7.4 L/100 km for the Jetta, while the GLI is 8.0 for the six-speed and 8.2 for the automatic.
The Jetta comes in three trims of Trendline at $27,845, Comfortline at $30,245, and Highline at $34,245. The GLI comes in a single trim at $37,045, and the price is the same for the automatic or the stick-shift versions.
