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Best small cars to buy in Canada

The 10 best compact cars you can buy right now.

Small cars are popular for a reason. They’re economical, reliable and easier to maneuver than their larger counterparts. So if you’re in the market for a compact car, these are the 10 best small cars to add to your test-drive list.

Vehicle prices

Prices listed below are the MSRP for each model in the base trim.

Best overall small car: Honda Civic

The Honda Civic has long been a favourite among Canadian buyers, and it’s easy to see why. The standard trim of this compact sedan comes with a 2-litre, 4-cylinder engine with 150hp. A 200hp hybrid version is also available. Step inside the Civic and you’ll find a comfortable and spacious cabin with your choice of four drive modes as well as support for Apple CarPlay and Android Auto.

Price: $27,540

Why it’s one of the best

It wasn’t all that long ago that the Civic celebrated 20 consecutive years as Canada’s best-selling car, and it topped the Q1 car sales charts again in 2024. Boasting a five-star NHTSA safety rating, the Civic delivers excellent fuel economy, good looks and a refined cabin. With a string of awards to its name—the Civic was named Edmunds 2023 Top Rated Car, Best Compact Car in the AutoTrader Awards and it was featured in Car and Driver’s list of the 10 Best Cars for 2024—there are lots of good reasons why it’s worth checking out.

Downsides

  • Some of its competitors are cheaper
  • No manual transmission in the sedan

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Best safe small car: Hyundai Elantra

The Hyundai Elantra is a small sedan that offers great value for your money. It’s powered by a 2-litre, 147hp engine as standard, but it’s also available with a 1.6L turbocharged engine on the N Line model or with a hybrid drivetrain. The Elantra delivers an excellent combined fuel economy of 6.5 litres per 100km, has a comfortable and well-appointed cabin and boasts a user-friendly infotainment system.

Price: $21,999

Why it’s one of the best

If safety is your number-one priority on the road, you’ll be pleased to know that the Elantra gets a five-star NHTSA safety rating and has earned Top Safety Pick status from the IIHS. It also features Hyundai SmartSense safety tech like Forward Collision-Avoidance Assist, Adaptive Cruise Control and Blind Spot Collision-Avoidance Assist. And you get all that in a car with a very wallet-friendly base MSRP of just $21,999, making the Elantra an excellent value proposition.

Downsides

  • Slow acceleration
  • Cabin feels a little cheap

Other top safe small cars

  • Acura Integra
  • Mazda 3
  • Subaru Impreza
  • Toyota Prius

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Best hybrid small car: Toyota Prius

The Prius is the car many of us think of when picturing a hybrid vehicle, and this famous model offers plenty of features for modern buyers. It features a standard electric all-wheel-drive system, 196hp and impressive fuel economy. And with Toyota Safety Sense 3.0 tech also included, it helps keep you and your loved ones safe on the road.

Price: $37,650

Why it’s one of the best

The Prius delivers fuel efficiency of 4.8 litres per 100km in the city and 4.7 litres per 100km on the highway. It also has a five-star NHTSA safety rating and a Top Safety Pick+ award from the IIHS. Finally, it was named 2024 Canadian Car of the Year by the Automobile Journalists Association of Canada—if that doesn’t get your attention, nothing will.

Downsides

  • Rear seat headroom could be improved
  • Not as much cargo space as the previous model

Other top hybrid small cars

  • Toyota Corolla
  • Honda Civic

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Best small electric car: Chevrolet Bolt EUV

The pint-sized Chevrolet Bolt EUV is an affordable electric car with a long list of features. It delivers an estimated range of nearly 400km, a long list of tech features, punchy acceleration and a roomy interior. And you get all of that at a very competitive starting price.

Price: $40,548

Why it’s one of the best

The Chevy Bolt EUV is the highest-rated vehicle in the Small Electric Cars category of J.D. Power’s Consumer Verified Ratings, scoring 81/100. A comfortable interior and advanced safety tech in the form of Chevrolet Safety Assist are just a few of the reasons why the Bolt EUV is worth a closer look.

Downsides

  • Limited cargo space
  • Interior is a little bland

Other top small electric cars

  • Fiat 500e
  • All-Electric Mini Cooper
  • Hyundai Kona Electric
  • BMW i4

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Best small SUV: Honda CR-V

If you’re in the market for a compact SUV, it’s hard to go past the Honda CR-V. This popular model features a 1.5-litre turbocharged 4-cylinder engine that produces 190 horsepower, but there are 11 different trims available, including a hybrid drivetrain. It features a choice of four drive modes, flexible cargo space and plenty of safety tech for added peace of mind.

Price: $35,725

Why it’s one of the best

The CR-V features a suite of Honda Sensing Technologies that, along with this model’s performance in crash tests, earns it a five-star NHTSA safety rating and a Top Safety Pick award from the IIHS. It also delivers impressive fuel economy, boasts a practical interior and is featured in Car and Driver’s 2024 list of the 10 Best Trucks and SUVs.

Downsides

  • Rear-seat headroom could be improved
  • Some rivals are cheaper

Other top small SUVs

  • Hyundai Kona
  • Kia Seltos
  • Mazda CX-30
  • Buick Encore

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Best cheap small car: Nissan Versa

If you’re in the market for a small car that won’t break the bank, add the Nissan Versa to your test-drive list. This small sedan features a 1.6-litre, 4-cylinder engine, a continuously variable transmission and driver assistance technologies such as Automatic Emergency Braking.

Price: $20,498

Why it’s one of the best

With its wallet-friendly price tag, the Nissan Versa will immediately attract the attention of budget-conscious buyers. They’ll also be impressed by its combined fuel economy figure of 6.7 litres per 100km plus its decent cargo space and comfy interior. With a five-star NHTSA safety rating, the Versa offers plenty of bang for your buck.

Downsides

  • Not a rapid accelerator
  • Some cabin noise

Other top cheap small cars

  • Hyundai Elantra
  • Kia Forte
  • Chevrolet Trax

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Best small hatchback: Mazda 3 Sport

The Mazda 3 Sport is a stylish hatch powered by a 191 horsepower, 2.5-litre engine in the standard trim. All-wheel drive is available with select trims, and this compact hatchback is a fuel-efficient performer on the road. It also boasts active safety tech, a comfortable interior and an 8-speaker sound system.

Price: $24,950

Why it’s one of the best

The Mazda 3 Sport has a five-star NHTSA safety rating and a Top Safety Pick+ award from the IIHS. It also has a premium interior and impressive handling, so it’s well worth a look if you want your next car to be a hatchback.

Downsides

  • Some buyers might want a roomier back seat
  • Some competitors have more cargo space

Other top small hatchbacks

  • Toyota Corolla
  • Acura Integra
  • Honda Civic
  • Kia Forte5
  • Volkswagen Golf
  • Subaru Impreza

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Best small car for reliability: Toyota Corolla

The Corolla is one of those cars that needs no introduction. Available as a sedan or hatch, this popular small car features a 2-litre engine and a choice of four hybrid models. It’s also loaded with active safety tech and comes backed by Toyota’s well-earned reputation for reliability.

Price: $23,490

Why it’s one of the best

In J.D. Power’s 2023 Dependability ratings, the 2020 Toyota Corolla scored an impressive 85/100 for Quality & Reliability. The Corolla also has a five-star car safety rating from the NHTSA and a Top Safety Pick award from the IIHS. With Kelley Blue Book in the USA naming Toyota the best car brand for resale values in 2024—for the seventh time in eight years—the Corolla is a wise choice.

Downsides

  • Not the fastest
  • Headroom could be improved

Other top reliable small cars

  • Honda Civic
  • Toyota Prius
  • Mazda 3
  • Kia Forte

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Best luxury small car: Acura Integra

The Integra is a premium sport compact with a 200hp turbocharged engine and a 6-speed manual transmission. It features a spacious and easy-to-load cargo area, three driving modes (thanks to an Integrated Dynamics System) and a premium interior with plenty of tech features.

Price: $39,875

Why it’s one of the best

The Acura Integra has earned a Top Safety Pick+ award from the IIHS and a five-star NHTSA safety rating. It’s a fuel-efficient performer on the road, offers plenty of safety aids and boasts a spacious and comfortable interior. That’s why it’s well worth a look if you want a small luxury car.

Downsides

  • Some buyers might prefer a model from one of Acura’s Euro rivals
  • Some problems with road noise

Other top luxury small cars

  • Genesis GV60
  • Lexus RZ
  • Audi A4
  • BMW 3 Series

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Best small car for performance: Volkswagen Golf GTI

The Golf GTI is a sporty performer designed to suit any keen driver. It features a 241hp engine and your choice of a manual or automatic transmission, along with driver assistance technology such as Autonomous Emergency Braking and the Side Assist lane change system. It’s backed by a 4-year, 80,000km warranty.

Price: $34,795

Why it’s one of the best

Volkswagen’s Golf GTI and R models are long-standing fan favourites in the hot hatch category. In J.D. Power’s Consumer Ratings, the GTI scores an impressive 83/100 for Driving Experience. It also features in Car and Driver’s 2024 Editor’s Choice Awards in the Sport Compact Car category, so check it out if you enjoy an exciting driving experience.

Downsides

  • Infotainment system could be improved
  • Not as sporty as some competitors

Other top small cars for performance

  • Volkswagen Golf R
  • Honda Civic Type R
  • Hyundai Elantra N
  • Toyota GR Corolla

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How we chose the best small cars in Canada

We chose the best cars in this guide based on vehicles available in Canada. These vehicles are not representative of the entire market. When choosing our picks for the best small cars in Canada, we considered price, safety, unique features, awards, ratings and sales volume. No single car will be the best choice for everyone, so compare your options to find the best fit for your situation.

Why buy a small car?

Buying a small car comes with several benefits, especially when you take your budget into consideration:

  • Cheaper to buy upfront. Half the cars featured on our list have an MSRP of less than $30K.
  • Less money spent at the pump. You’ll save hundreds of dollars a year by opting for a smaller car instead of a gas-guzzling truck or SUV.
  • Easier to get financing. If you don’t have a great credit score, you may only get approved for a small car loan amount. So if you’re relying on financing to purchase a car, your options might be limited to small cars as opposed to more expensive SUVs or trucks.
  • Fewer greenhouse gas emissions. You can check your car’s emissions on Natural Resources Canada search tool, but the concept is simple: The smaller your engine, the less carbon dioxide and other greenhouse gasses your car will produce. That’s why driving a small car a good choice for your wallet and your environmental conscience.
  • Easier to drive and park. If you live in a crowded city or take frequent road trips, a small car—especially a compact car—makes it much easier to navigate and park in cramped spaces.

How to choose the best small car for you

Keep the following factors in mind when choosing a small car.

Your vehicle needs

Think about all the key features you want in a car. How many seats do you need? How much cargo space? How much driving will you do? Do you want a car that offers impressive on-road performance, or are factors like fuel economy and safety more important?

Once you have a checklist of your must-haves, it’s time to start comparing suitable vehicles.

Price

Next, set your budget. Whether you’re buying upfront, taking out a car loan or leasing, decide how much you can afford to spend. If you’ll be paying for the car in installments, use a car loan calculator to work out an affordable monthly payment.

Gas or electric or hybrid

There are now multiple powertrain options available when choosing a car. As well as traditional gasoline-powered vehicles, you can also choose from:

  • Hybrid electric vehicles (HEVs), which have both an internal combustion engine and an electric motor. Hybrid batteries are charged by driving the vehicle.
  • Plug-in hybrid electric vehicles (PHEVs), which are hybrids with batteries that can be charged by plugging into a power source.
  • Battery electric vehicles (BEVs) feature electric motors powered by rechargeable batteries.

Find out more in our guide on buying and financing an electric vehicle.

Safety

Check what standard active and passive safety tech each vehicle offers and how cars perform in crash tests. The easiest way to do this is to check a vehicle’s safety rating from the Insurance Institute for Highway Safety (IIHS) and the US Government’s National Highway Traffic Safety Administration (NHTSA). Learn more about the safest cars in Canada.

Running costs

Don’t just consider the upfront price when buying a car—you also need to think out how much it costs to own. Fuel economy, licensing and registration costs, maintenance and servicing can make some vehicles much cheaper to run than others. Use the Canadian Automobile Association’s Driving Costs Calculator to get an idea of how much specific models cost to own.

Resale value

New car values go down 20% to 30% in the first year. While depreciation is unavoidable, it’s worth noting that some makes and models hold value better than others. Choosing a car with a high resale value means you’ll be in a stronger financial position when it comes time to buy your next vehicle. Use online tools from providers like CARFAX, AutoTrader and Kelley Blue Book to check average resale values.

4 tips for buying a small car

Use these tips to help you get a good deal when buying a small car:

  1. Get pre-approved. Getting pre-approved for a car loan from a few banks or third-party lenders can give you more bargaining power when you hit the dealership.
  2. Check manufacturer incentives. If you decide to buy or lease a new car, check the manufacturer’s website to see if it has any special deals or incentives available. This might include 0% APR financing, no money down or cash back to help offset the price of the car.
  3. Schedule multiple test-drives. Once you’ve narrowed down your options to two or three models, schedule test-drives for each one. This is especially important if you’re buying used, since it gives you a chance to check for any damage or potential issues.
  4. Prepare to negotiate. When you’re ready to buy, remember to negotiate the price of the car, not the monthly payment. If you plan to finance through a dealership, bring along your most competitive pre-approval offer to see if the salesperson is willing to offer a lower rate. Get more tips for negotiating with a car dealer in our guide.

Bottom line

There are many great options to choose from if you’re shopping for a small car. Make sure you have a clear picture of what you need in a vehicle before you start shopping, and test-drive multiple cars back to back before deciding the right one for you. If you need financing, compare car loans to find the best rate.

Frequently asked questions

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To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.
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Written by

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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