What's new for the 2007 Toyota Yaris: New model.
What's new for the 2008 Toyota Yaris: The Yaris hatchback gets an uplevel S trim line, matching the Yaris sedan.

Given that Japan's automakers founded their reputations on micro-sized, economy-minded sedans, it's amazing how the species has nearly gone extinct. Sure, Civics, Corollas, and Sentras are still around, but compared to their predecessors, they've gotten a too bit liberal with their size, price, and fuel consumption.

Consider the Toyota Yaris Japan's last defender of the small car old school. You want small? The Yaris sedan measures 169 inches short (the hatchback, 151). Among every car imported from the Asian continent, the Yaris also has the smallest engine -- and that engine's driving the lightest car. Consequently, the Yaris returns a supremely frugal 33 MPG, earning it bragging rights for the best real-world mileage of any gas-powered, non-hybrid car in America (though the Smart ForTwo's at a virtual tie).

The Yaris also drives small, with easy steering and a very short turning circle. It's a little noisy, and passing power can feel weak on the freeway, but the Yaris mostly feels adequately quick and refined. Its real weakness is on the inside, where Toyota has senselessly stashed the instrument panel right in the middle of the dashboard, way off from the driver's natural line of sight (a dumb idea recycled from the Yaris's predecessor, the Echo). At least the front seats are comfortable, and the rears are tolerable provided the trip isn't too long.

But while the Yaris makes a fairly strong case, it's not exactly a shoe-in compared to its peers. The Hyundai Accent and Kia Rio might trail the Yaris in some detail areas, but Toyota's precious pricing puts it more than $2,000 north of either (more than $17,000 for a loaded model). The Yaris also takes lumps from the Honda Fit, a car blessed with better seats and controls, a more fun-to-drive demeanor, and a hatchback body that can fit a ton more stuff.

The Yaris should hold the strongest appeal among those who'd rather pay extra for Japanese efficiency and quality, yet prefer the conventional look of a sedan. That probably explains why it's the best-seller in its segment.

Find out more about the 2008 Toyota Yaris