Will there always be a place in the Canadian automotive market for the humble compact car? Recent statistics suggest this is less likely than it used to be: more than 85 percent of passenger vehicle sales in Canada are SUVs and trucks, with the remaining 15 percent being cars. This is why several American automakers have exited the compact car market, including Ford, Chevrolet, and Dodge. Still, we’d argue more people should consider cars today. They’re typically less expensive and more fuel-efficient than SUVs and trucks, albeit with less ground clearance and off-road capability.
If you’re interested in looking at compact cars as you shop for your next vehicle, take a look through this list of contenders for the best compact cars to buy in Canada in 2025. These cars have been selected for their blend of fuel economy, features, fuel economy, and overall value. A handful come with standard or available all-wheel drive (AWD), and a couple even offer manual transmissions and safety features like adaptive cruise control, blind spot monitoring, and rear cross-traffic alert. Believe it or not, choosing to buy a small commuter car instead of an SUV these days is a great way to save some money and stand out in a crowd.
Prices shown include manufacturer’s suggested retail price (MSRP) plus destination charges and dealer fees but not options or sales taxes. While they were accurate as of publication time, prices are subject to change.
What is a Compact Car?
Cars are sold in four size classes: subcompact, compact, midsize, and large. Compact cars are typically roomy enough for a family of four, more so than subcompact cars, but they’re not large enough to comfortably fit a family of five as larger cars would be. Examples of compact cars available today include the Honda Civic, Toyota Corolla, Nissan Sentra, and Hyundai Elantra.
With some exceptions to match consumer perceptions, we align our definition of compact cars with Natural Resources Canada. NRCan defines a compact car as having a total passenger volume of 2,830 to 3,115 litres.
The Best Compact Cars to Buy in Canada in 2024
- Acura Integra
- BMW 3 Series
- Genesis G70
- Honda Civic
- Hyundai Elantra
- Kia K4
- Lexus IS
- Mazda3
- Subaru Impreza
- Toyota Corolla
- Toyota Prius
- Volkswagen Golf
- Volvo S60
Acura Integra
If you appreciate the Honda Civic but are looking for a luxury car, the Acura Integra is the answer. This nameplate was revived for 2023 in a front-wheel drive (FWD) only package. Most trims include a 1.5-litre turbocharged four-cylinder engine (200 hp, 192 lb-ft) with a continuously variable transmission (CVT), averaging 7.4 litres per 100 kilometres combined. The Elite A-Spec trim optionally pairs this with a 6-speed manual transmission with a rev-matching system. In this trim, expect to burn 7.4 L/100 km combined with the CVT or 7.8 combined with the manual. Pricing for the 2024 Acura Integra starts in Canada at $42,602.
BMW 3 Series
Dollar for dollar, our current favourite luxury compact car is the BMW 3 Series. It’s offered as the base 330i with standard xDrive AWD and the mid-powered M340i xDrive. For those who want max gas power while it lasts, the BMW M3 and M3 Competition are additional options. The 2025 BMW 3 Series starts at a price of $60,157 in Canada but can climb well into six figures depending on your desires and budget. Fuel consumption is a similarly wide range, going anywhere from 8.0 L/100 km combined to 12.8 combined depending on the model. If you’re shopping for a performance coupe, the M4, M4 CS, and M4 Cabriolet are alternative options.
Genesis G70
The Genesis G70 has got to be one of the most underappreciated cars on the market. In Canada, the 2025 Genesis G70 has a starting price of $54,500, which includes delivery fees, at-home test drive and vehicle delivery, at-home maintenance pick-up and loaner drop-off, five years of scheduled maintenance, a five-year comprehensive warranty, and more. For that price, you’re getting a 2.5-litre turbocharged 4-cylinder engine with 300 hp and 311 lb-ft of torque, paired with an 8-speed automatic transmission and standard AWD. A 3.3-litre twin-turbocharged V6 with 365 hp and 376 lb-ft of torque is offered starting in the 3.3T Advanced trim for $59,500. With the smaller engine, you’ll need to buy 10.2 litres of fuel for every 100 kilometres of combined driving, while the V6 requests 12.7 L/100 km. It even has a relatively roomy rear seat.
Honda Civic
Now that Toyota Corolla production has moved to Mexico, the Honda Civic is the only Canadian-built car on this list. Well, the sedan models are, at least: the Honda Civic Hatchback is built in Indiana, and the Civic Type R is built in Japan. This list demonstrates how there are a great deal of options out there for interested Civic buyers. For 2025, the Civic sedan and Civic Hatchback are available with either a 2.0-litre four-cylinder engine or as the new Honda Civic Hybrid, which pairs that same engine with two electric motors and a battery. On these models, a continuously variable transmission (CVT) or eCVT is now the default. The Honda Civic Si keeps the 1.5-litre turbo four and pairs it with the traditional six-speed manual transmission. In the Honda Civic Type R, you’ll get a 2.0-litre four making 315 hp and 310 lb-ft of torque. What’s not available in any variant of the Civic is AWD. The 2025 Honda Civic starts in Canada at a price of $29,506 for the base LX sedan and climbs to $54,766 for the 2025 Honda Type R. On the frugal side of the fuel consumption equation, the most efficient Civic Hybrids average 4.9 L/100 km combined, while the Type R tops out at a still-reasonable 9.7 L/100 km.
Hyundai Elantra
If affordability is a primary concern for you as you shop for your next car, consider the Hyundai Elantra. Pricing for the 2025 Hyundai Elantra starts in Canada at $24,809. It comes with a solid list of features in its base Essential trim: heated front seats, an 8-inch infotainment system with wireless Apple CarPlay and Android Auto, and a full suite of safety features and driver assistance technologies. If you’ve got a little more money to spend, though, Hyundai offers an upgrade from a 2.0-litre four-cylinder engine with a CVT to a 1.6-litre turbo four and a 7-speed dual-clutch transmission in the Elantra N Line. There’s also a hybrid variant, which is the most fuel-efficient choice at 4.7 L/100 km combined. And if you want to add a little spice, go for the Hyundai Elantra N, where you’ll receive a 2.0-litre turbocharged four-cylinder producing 276 hp and 289 lb-ft with a six-speed manual transmission or an eight-speed dual-clutch transmission. The track-ready 2025 Hyundai Elantra N sells in Canada at a price starting from $42,409.
Kia K4
Kia retired a whole bunch its cars at the end of the 2024 model year, including the Kia Forte compact sedan, Kia Forte5 hatchback, and Kia K5 sedan. The all-new 2025 Kia K4 replaces all of them and is now Kia’s sole car offering in Canada. The 2025 Kia K4 has a Canadian starting price of $26,580. The base engine is a 2.0-litre four-cylinder engine producing 147 hp and 132 lb-ft of torque, paired with a CVT. The GT-Line Turbo grades come with a 1.6-litre turbocharged four-cylinder engine making 190 hp and 195 lb-ft, matched with an 8-speed automatic transmission. FWD is the default drivetrain. There’s plenty of unique styling and modern technology packed into this car, but its pillar-mounted rear door handle may be polarizing for some potential buyers.
Lexus IS
Here’s another premium compact sedan with an option for just about every need and budget. The Lexus IS is sold in rear-wheel drive (RWD) and AWD variants, and with three different engines including a 5.0-litre V8 making 472 hp and 395 lb-ft of torque. The latter comes in the 2025 Lexus IS 500, which starts at a price of $79,630 in Canada. If you want premium at a more affordable price, the 2024 Lexus IS 300 AWD carries a Canadian starting price of $51,598. That model includes a 2.0-litre four-cylinder engine producing 241 hp and 258 lb-ft of torque, averaging 10.8 L/100 km combined. Jump up to the in-between 2025 Lexus IS 350 AWD and the price tag in Canada is $61,738. You’ll see the same fuel ratings but enjoy a bump up to 311 hp. The RWD Lexus IS 300 was dropped going into 2024, meaning AWD is now standard on every model but the IS 500.
Mazda3
As far as balance between price and premium components goes, the Mazda3 is one of the best small cars on the market. It comes in sedan and hatchback body styles, the latter dubbed the Mazda3 Sport. It’s available with a manual transmission and with AWD—just not at the same time. There’s also a turbocharged 2.5-litre four-cylinder engine among the powertrain options, though you’ll need to skip shifting your own gears to get that as well. No matter—at least the stick is still there. Pricing for the 2025 Mazda3 sedan starts at $27,687 in Canada for the base GX model. For the 2025 Mazda3 Sport hatchback, pricing in Canada starts at $28,437 for the base GX trim. Fuel economy ranges from 7.5 to 8.9 L/100 km combined depending on the drivetrain combination.
Subaru Impreza
Thanks to Subaru making AWD standard on nearly all its models, the Subaru Impreza is one of the most affordable cars you can buy that drives all four wheels. For 2024, the Subaru Impreza and the related crossover, the Subaru Crosstrek, were redesigned. With the new generation came one significant change: a manual transmission is no longer offered in either model as Subaru focuses on making its EyeSight suite of driver assistance technologies more widely available. Two engine options are offered: a 2.0-litre with four horizontally opposed cylinders makes 152 hp and 178 lb-ft of torque, while a 2.5-litre boxer-four produces 182 hp and 178 lb-ft. The smaller engine averages 8.0 L/100 km combined, while the larger one consumes 8.2 L/100 km combined. Subaru also makes crash test ratings a high priority, which is seen here in the new Impreza’s Top Safety Pick+ ranking by the Insurance Institute for Highway Safety (IIHS). Pricing in Canada for the 2024 Subaru Impreza starts at $29,270. (2025 pricing is not yet available as of publication time.)
Toyota Corolla
The Toyota Corolla rained all over Honda’s parade by becoming the best-selling car in Canada back in 2022, busting the Civic’s sales rankings streak just a year short of its quarter-century mark. A lot of that came down to supply issues, especially as the Civic was transitioning between generations. But the Corolla’s lower starting price and the automaker’s reputation for reliability surely helped matters. Currently, the Corolla is offered in sedan form—which includes the Corolla Hybrid, offered in several trims with AWD—as well as in hatchback guise with more flexible cargo space, the latter also seen in the sporty GR Corolla. With so many variations, there’s a Corolla for just about any need or budget. Pricing on the 2025 Toyota Corolla starts as low as $26,565 in Canada. The most efficient Corolla Hybrid averages a very frugal 4.7 L/100 km combined.
Toyota Prius
With its 2023 redesign, the Toyota Prius went from dull to dazzling in one fell swoop. It’s better-looking and more powerful, yet as full of practicality and as easy on gas as ever. Its larger 2.0-litre engine and updated hybrid system gave horsepower a 60% boost to 196 hp and maximum torque by 16% to a total system output of 139 lb-ft. Two trims are offered, both with AWD. Pricing for the 2024 Toyota Prius starts in Canada at $40,645 for the well-equipped XLE entry grade. (2025 pricing is not available as of this writing.) Both trims average 4.8 L/100 km, which is an excellent fuel consumption rating with this amount of power and AWD. And don’t forget the Toyota Prius Plug-in Hybrid, formerly known as the Toyota Prius Prime. It has even more power at 220 hp, up to 72 kilometres of electric-only range, and an estimated 1.8 Le/100 km fuel consumption rating. The 2024 Toyota Prius Plug-in Hybrid was offered in three trims and started in Canada at a price of $42,545. The Toyota Prius Plug-in Hybrid qualifies for federal and provincial EV rebates, meaning it may be more affordable than the standard Prius in some parts of the country after incentives are considered.
Volkswagen Golf
Unfortunately, the Volkswagen Golf is no longer the “people’s car” since the more pedestrian TSI versions were dropped in North America in 2021. But the Volkswagen Golf GTI and Golf R live on, and both are strong alternatives for those who appreciate a sporty driving experience. The GTI’s 2.0-litre four-cylinder engine produces 241 hp and 273 lb-ft, and it comes with a 7-speed DCT (Volkswagen’s term is DSG or direct-shift gearbox). Sadly, the manual transmission option was dropped at the end of the 2024 model year. Prices for the 2024 Volkswagen Golf GTI started at $37,381 in Canada. (Pricing for 2025 is not yet available at publication time. Some updates are on the way for 2025, which is likely to affect pricing.) You’ll burn 8.5 L/100 km combined with the DCT. In the 2025 Golf R, you’ll receive standard AWD, power specs of 328 hp and 310 lb-ft with the DSG, and average 9.3 L/100 km combined. Prices for the 2024 Volkswagen Golf R started in Canada at $52,181 with the automatic transmission; 2025 pricing has not been announced as of this writing.
Volvo S60
With sleek styling and a total sleeper of a performance plug-in hybrid powertrain, the Volvo S60 is the affordable luxury compact car no one sees coming. Other forms of the Volvo S60 were discontinued at the end of the 2024 model year. The Volvo S60 Recharge lives on for now, though it’s not clear for how long. In the S60 T8 Plug-in Hybrid, power output totals 455 hp and 523 lb-ft of torque. This version can go 64 km on a single charge and averages 3.0 Le/100 km combined. Pricing for the 2025 Volvo S60 Recharge starts in Canada at $58,389. This qualifies for federal and provincial/territorial electric vehicle rebates, meaning the PHEV is more affordable than the gas version in some parts of Canada.
Frequently Asked Questions (FAQs):
What are considered compact cars?
Natural Resources Canada defines a compact car as having a total interior space of 2,830 to 3,115 litres. Examples include the Audi A4, Honda Civic, Kia Forte, Nissan Sentra, Toyota Corolla and Volkswagen Jetta.
What are the most fuel-efficient compact cars?
The most fuel-efficient compact cars in 2024 are the front-wheel drive Toyota Corolla Hybrid and the Hyundai Elantra Hybrid, which each average 4.7 litres per 100 kilometres combined according to Natural Resources Canada.
What are the most affordable compact cars?
For the 2024 model year, the most affordable compact new cars are the Honda Civic, Hyundai Elantra, Mazda Mazda3, Subaru Impreza and Toyota Corolla. These cars have a starting price of less than $30,000 in Canada including destination charges and fees.