Least Expensive Cars of 2008

Yep, the cheapest car in America is American -- sort of. The Aveo5 is actually a naturalized citizen, designed and built by Daewoo in South Korea. Bear in mind, however, that eleven grand gets you the basics: No power accessories, no air conditioning, a manual transmission and an AM/FM radio (read: no CD player). Note that the cheapest price applies only to the Aveo5 hatchback; the Aveo sedan, which got a host of cosmetic and interior updates in 2007 and includes air conditioning, is priced at $12,120. Chevrolet is planning to give the Aveo5 a similar going-over -- and a similar price increase -- for 2009.

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Chevrolet Aveo5 test drive (current model)
2009 Chevrolet Aveo5 test drive
Chevrolet Aveo sedan test drive

Hyundai has long been known for offering good value, but that doesn't extend to the Accent. The Accent GS hatchback is decent to drive but poorly equipped, with six airbags and a long warranty but little else. Adding air conditioning and a stereo raises the price to $12,995 -- $785 more than a Toyota Yaris. The GLS sedan isn't a much better buy; at $13,795 it includes A/C, but it's still $245 more than a Nissan Versa sedan, which comes with more stuff. And the SE Hatch is a lot of fun, but a lot more expensive. Factor in the Accent's mediocre Insurance Institute for Highway Safety (IIHS) crash-test scores and poor resale value, and this is one case of a cheap car that isn't a very good deal.

Related: Hyundai Accent SE hatchback test drive

The Kia Rio is actually a close relative of the Hyundai Accent; Kia is owned by Hyundai and both cars share the same platform. The Kia Rio can lay claim to the title of cheapest four-door in America, undercutting the Chevrolet Aveo sedan by $1,290 and the Accent GLS sedan by $2,255. But once again, numbers don't tell the whole story. The base-model Rio comes with six airbags but little in the way of creature comforts. If you want access to options like antilock brakes or power windows, you'll have to step up to the $13,465 Rio LX. And like the Hyundai Accent, the Kia fared OK in the government's crash tests but not particularly well in the more realistic IIHS crash tests.

It's no surprise that the smallest car in America is also one of the least expensive, but the cheapest version of the Smart is pretty sparsely equipped -- no power windows or mirrors, no air conditioning, no sunroof, not even a stereo. That said, the Smart Fortwo Pure does include an automatic transmission and lots of safety gear, including side airbags, antilock brakes, and electronic stability control. And the creature comforts missing in the Fortwo Pure come standard in the Fortwo Passion, which costs only $2,000 more.

Read more: Smart Fortwo test drive

There are lots of reasons to like the Yaris Liftback besides its low price. The three-door Yaris is good looking, fits into tiny parking spaces, and gets great gas mileage. Though the cheapest Toyota is fairly rudimentary in terms of features -- crank-down windows and no radio -- it does come with air conditioning, power steering, and a peppy 106 horsepower engine. If you need more space, the Yaris is available as a 4-door sedan for $13,085 -- and at that price, they even throw in a stereo with a CD player.

Read more: 2008 Toyota Yaris Liftback test drive

Related: Toyota Yaris S Sedan test drive

The Versa is my favorite cheap car for two reasons. One, it offers more interior room than any car on this list (the EPA, which classifies cars based on interior volume, considers the Versa a mid-size). Two, it's well equipped: A/C, CD stereo, and six airbags are all included in the sedan's base price. (The hatchback costs just $100 more.) Options are cheap, too -- add antilock brakes, power windows and locks, remote keyless entry, cruise control, and an automatic transmission, and the price stays under $15,500. But here's the best part: The Versa was originally designed as a small luxury car for the Japanese market, so its interor trim is a half-step above most of its cheap-car rivals.

Read more: Nissan Versa Sedan test drive

When the Reno first came out in 2005, my feelings about it were luke-warm; it was dull to look at, dull to drive, and only a so-so value. Since then, Suzuki has put the Reno on permanent mark-down, and it's now a much better deal: Power windows, locks and mirrors, remote keyless entry, air conditioning, and a surprisingly good stereo, all for just over 14 grand. It's still dull to drive and a bit outdated on the safety front, but if you're looking to get maximum metal for your money, you could do worse than the Suzuki Reno.

Read more: Suzuki Reno test drive

The Fit is the most expensive subcompact on this list, but there's more to the story than the sticker price. Consider everything you get for $14.5k: Air conditioning, power windows, mirrors and locks, six airbags, antilock brakes, and a CD player. Add all that equipment to a Chevrolet Aveo5 (less side airbags, which the Chevy doesn't offer) and its price is only $755 lower than the Fit. But wait, there's more! Honda's strong resale values and last-forever build quality make the Fit an even better buy whether you plan to keep it for two years or twenty. Now how much would you pay? (Note: Honda has a revised Fit on the way for 2009. Pricing will start at $15,220.)

Read more: Honda Fit Base test drive

Up to this point, every car on the list except the Suzuki Reno can be considered a subcompact; the handsome Lancer is the least-expensive compact sedan from a mainstream manufacturer. (How's that for a claim to fame?) At just over $14.5k, the entry-level DE model is not too shabbily equipped: Power windows and mirrors, CD player, and seven airbags (including one for the driver's knees, a rare find in such an inexpensive car). So what's the catch? Air conditioning and antilock brakes are optional, and only available with an automatic transmission. Adding these three items raises the price to $16,640, same neighborhood as the Nissan Sentra and the Honda Civic -- both cars I'd choose over the Lancer.

Read more: Mitsubishi Lancer test drive

I was really surprised (and pleased!) to find that the Mazda3 had a place on this list. Mazda's zippy compact sedan has always had a reputation as the car of choice for people who love to drive, though buying the entry-level 3i Sport model means taking a back-to-basics approach to motoring: Power windows and locks aren't available, and safety features like side airbags and antilock brakes are extra-cost options, as is air conditioning. Mazda reportedly has a new version of the Mazda3 waiting in the wings for 2009. It will have more power and more aggressive looks, but whether it'll have such an affordable price tag remains to be seen.

Read more: Mazda 3 test drive

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