Automatic transmissions cut rather deeply into performance and mileage, but the 323's acceleration and economy are impressive with the 5-speed manual shift. The only way to drive the 323 with automatic is to keep your foot to the floorboard much of the time. Even though you have to rev the engine for all it's worth, the 323 gives good fuel economy, but engine and road noise can grow annoying at highway speeds. For a subcompact, the 323 offers nimble handling and a stable ride. However, the small tires and short wheelbase do little for cornering power, and the tall hatchback leans over heavily in tight bends. Small size really pays off in around-town driving, of course, where the 323 feels capable and agile. Interior room is impressive up front, with plenty of head and leg space. The back seat is short of both, and hard to get into. Luggage space is of decent size, and the split rear seats fold down to increase cargo capacity.

Value for the Money
All told, Mazda's smallest model ranks as a solid entry in the competitive econocar category. Before buying, though, be sure to check out the Toyota Tercel, Honda Civic, Geo Prizm, and Nissan Sentra, among other subcompacts.