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In 1990 I bought a Toyota Paseo for $11,000. The Paseo never sold well, and is now discontinued. It was supposed to be a sporty version of the Corolla, but people passed on it because its small 100 hp engine lacked pep.
As long as I had that car, I got 42 mpg. This was in suburban conditions, no bumper to bumper traffic, but on the other hand, plenty of stoplights. Its 10.6 gallon tank once took me 470 miles before a fill up.
The Paseo is slightly bigger than the Smart Car, but outside the city this was no problem. It was small-ish but I never remember it being so small I was intimidated on the highway. Max speed was about 85. One problem with the Paseo, I am sure, was that without airbags and some of the modern safety features it was more dangerous, but I never had an accident in it. The lack of safety equipment probably made it lighter, contributing to the high mileage.
My point is that a car that is now 18 years old still beats the best the bigs have to offer. Why? Why not take the Paseo out of mothballs? It was small, but there was a back seat and four people could squeeze into it. Manufacturers today seem enthralled with new technology, and ignore the old stuff that really worked.