This crowded segment is best represented by two exceptional cars--one a Best Buy and the other a Recommended. Our Best Buy is the Honda Civic, which offers a wide range of bodystyles, engines, and equipment levels. Civic is a solid car that has good performance, a nice ride, and is very civilized.
Topping the Recommended list are the Volkswagen Golf and Jetta. They easily could be Best Buys as they are better than the Civic in many ways. However, they are also the most expensive cars in this segment. Other Recommended choices include the no-frills Chevrolet Cavalier and Dodge Neon, the slightly-upscale Chevy Prizm and clone Toyota Corolla, and the roomy Mazda Protege.
If you are looking for a Budget Buy we recommend you stay away from the Hyundai or Daewoo models and take a look at the Ford Escort.

The only news about the smallest, least expensive Daewoo involves the possible addition of a sporty trim package or two. That's understandable, because Lanos is a fairly new design and Daewoo is still building a U.S. presence after its ill-fated attempt at selling cars through college students and a handful of company-owned dealers. Also, Daewoo Motors in South Korea is struggling to dig out from under a mountain of debt while desperately seeking a friendly buyout. Right now it looks like General Motors may come to the rescue.
One trade weekly has suggested that the Lanos may get a smaller, less expensive linemate. Called Matiz, it's a pint-sized front-drive 4-door hatchback that's been selling well in both Korea and Europe for the past few years. But with only an 800cc 3-cylinder engine and a typical 0-60 mph time of 17 seconds, the Matiz would be way too slow for U.S. buyers and driving conditions. Daewoo has a more suitable 1.2-liter 4-cylinder that will fit, but there's still the problem of vehicle size. The Matiz is a short, tall, narrow box with limited space for four adults, and most Americans would probably find it unacceptably small. Also, the minimalist design might have trouble meeting U.S. crash standards. With all this, the Matiz is a very unlikely prospect, yet it's been tipped as coming here. If it does, the starting price could be as low as $5000, a real eye-opener. Then again, as the old maxim says, you get what you pay for.