Looking for an under-the-radar vehicle option that could save you a bundle of money? Consider a small car. While SUVs are extremely popular today, they’re also more expensive than their car counterparts. And since cars handle better and are more fuel-efficient than SUVs, they make a lot more sense for people who live in cities or suburbs and spend most of their time commuting.
If we’ve got your attention, take a look at this list of the best small cars to buy in Canada in 2025. The cars you’ll find here rank well for affordability, safety ratings and safety features such as blind spot monitoring and adaptive cruise control, fuel efficiency, tech functionality, comfort, and affordable price. You can even find a few of these best compact cars with manual transmissions if that’s your jam, and some also offer standard or available all-wheel drive (AWD). If you’re looking for the best compact SUVs/crossovers or the best electric vehicles (EVs) for 2025, we’ve covered those separately.
Prices includes manufacturer’s suggested retail price (MSRP) plus destination charges and dealership fees but not options or sales taxes. While current at time of publication, prices are subject to change.
Best Small Cars in Canada in 2025
- 2025 Acura Integra
- 2025 BMW 3 Series
- 2025 Genesis G70
- 2025 Honda Civic
- 2025 Hyundai Elantra
- 2025 Kia K4
- 2025 Lexus IS
- 2025 Mazda3
- 2025 Subaru Impreza
- 2025 Toyota Corolla
- 2025 Toyota Prius
- Honourable Mentions
2025 Acura Integra
If you’re a fan of the Honda Civic but have the budget for a luxury car, take a look at the Acura Integra. After more than 20 years on hiatus in North America, the Integra name returned for the 2023 model year. Like the Civic, it’s packaged with front-wheel drive (FWD) only. Most trims include a 1.5-litre turbocharged four-cylinder engine (200 horsepower, 192 pound-feet of torque) 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 2025 Acura Integra starts in Canada at $42,602.
The Acura Integra Type S was added to the line-up for the 2024 model year. It also comes with the manual transmission and equips a 2.0-litre turbo four-cylinder engine producing 320 hp and 310 lb-ft of torque. The 2024 Acura Integra Type S had a Canadian starting price of $58,329. (2025 pricing will be announced closer to when production begins in the spring.)
2025 BMW 3 Series
BMW’s churning out one hit after another these days. As far as compact cars are concerns, the current BMW 3 Series is among our favourites from the luxury set. It’s currently offered in three iterations. The base 330i comes with standard xDrive AWD and 255 hp. The mid-powered M340i xDrive ups the power ante to 386 hp. And if you’re ready to sign up for a peak driving experience, the venerable M3 comes in base manual and M3 Competition automatic versions, which vary in power from 473 to 523 hp.
The price range on the 2025 BMW 3 Series in Canada starts at $60,157 but can climb as high as $102,949 for the M3 Competition, and that’s before options. Fuel consumption is just as broad a spectrum, going from an average as low as 8.0 L/100 km combined up to 12.8 L/100 km for the M3 Competition. If you prefer a coupe, the BMW 4 Series follows much of these same conventions.
2025 Genesis G70
One of the more underappreciated cars on the market received a refresh for 2024. The Genesis G70 fitted a new base engine, going from a 252-hp 2.0-litre turbocharged 4-cylinder engine to a 2.5-litre four-cylinder producing 300 hp and 311 lb-ft of torque. The 3.3-litre twin-turbocharged V6 continues with its 365 hp and 376 lb-ft of torque. AWD and an 8-speed automatic transmission remain standard. Fuel consumption is 10.2 L/100 kilometres of combined driving with the new four-cylinder, while the V6 burns 12.7 L/100 km combined.
Pricing for the 2025 Genesis G70 starts at $54,500, which in in Canada includes at-home test drives, vehicle delivery, and service appointment concierge service, five years of scheduled maintenance and map updates, and more.
2025 Honda Civic
Many vehicles are built in Canada today. But as of 2025, only a small handful of them are cars, among them the Honda Civic Sedan and its performance variant, the Civic Si. (Civic Hatchbacks are built in Indiana, and the Civic Type R is built in Japan.) No matter where your Civic is built, you’ll have plenty of options while selecting it. Prices start at $29,806 for the 2025 Honda Civic Sedan in Canada. The first two trims come with a 2.0-litre four-cylinder engine producing 150 hp and 133 lb-ft of torque, matched to a CVT and consuming 6.7 to 6.9 L/100 km combined depending on the trim.
New for 2025 is the Civic Hybrid, which pairs that same engine with hybrid powertrain components to create a combined 200 hp and 232 lb-ft of torque. This version averages 4.9 L/100 km combined, one of the best fuel economy averages on the market in a vehicle without a plug. The 2025 Honda Civic Hybrid has a Canadian starting price of $35,562. The hatchback version, which offers a little more cargo space, is available with both the standard and the hybrid powertrain.
In the 2025 Honda Civic Si, you’ll also find a 1.5-litre turbo four, but this time it makes 200 hp and 192 lb-ft of torque, and it’s available only with a six-speed manual transmission where it consumes 7.7 L/100 km combined. In Canada, the 2025 Honda Civic Si is priced at $38,066.
Finally, the 2025 Honda Civic Type R’s 2.0-litre four-cylinder engine generates 315 hp and 310 lb-ft of torque, sent by default through a 6-speed manual transmission and consuming 9.7 L/100 km combined. The 2025 Honda Civic Type R is priced in Canada at $55,066, but good luck finding one: they’ve been all but sold out since launch. Every Civic, regardless of drivetrain, is available only with FWD.
2025 Hyundai Elantra
The Hyundai Elantra received a refresh in 2024 that brought design and technology enhancements to this already affordable compact sedan. Three powertrains are offered among the standard Elantra’s four trims, all of which are FWD. The base engine, equipped on the Essential, Preferred, and Luxury trims, is a 2.0-litre four-cylinder paired with a CVT that makes 147 hp and 132 lb-ft of torque and burns 6.5 to 6.9 L/100 km combined. The Luxury Hybrid offers a fuel-efficient combination of a 1.6-litre four-cylinder and an electric motor, good for a total system output of 139 hp and 195 lb-ft. Matched with a six-speed dual-clutch transmission (DCT), this engine averages just 4.7 L/100 km combined, making it one of the most fuel-efficient vehicles without a plug on the Canadian market. In the Elantra N-Line Ultimate, a 1.6-litre turbocharged four-cylinder produces 201 hp and 195 lb-ft of torque, sent to the front wheels through a 7-speed DCT.
The 2025 Hyundai Elantra comes with a great list of standard features in Canada such as heated front seats, a touchscreen infotainment system with wireless Apple CarPlay and Android Auto (though these are wired with the larger screen on upper models), and a full suite of safety and driver assistance features. Pricing for the 2025 Hyundai Elantra in Canada starts at an affordable price point of $24,809. And then there’s the 2025 Hyundai Elantra N, a genuinely track-ready performance car that offers either a DCT or a 6-speed manual transmission. Pricing on the 2025 Hyundai Elantra N starts in Canada at $42.409.
2025 Kia K4
There’s a whole slew of cars that Kia is replacing with the all-new 2025 Kia K4. The subcompact Kia Rio, compact Kia Forte and Kia Forte5, and midsize Kia K5 are all discontinued in Canada leaving the K4 as the sole car in the Korean brand’s line-up. New for 2025, it offers excellent sightlines, up-to-date technology, and respectable affordability, though it’s too early to say how safety and reliability stack up just yet.
Two powertrains are available at launch, both driven at the front wheels. The base 2.0-litre four-cylinder engine produces 147 hp and 132 lb-ft of torque, paired with a CVT and averaging 7.0 to 7.3 L/100 km combined depending on the trim. The upgrade engine is a 1.6-litre turbo four-cylinder with an 8-speed automatic transmission and paddle shifters, generating 190 hp and 195 lb-ft of torque and consuming 8.0 L/100 km combined. Pricing on the 2025 Kia K4 starts in Canada at $26,580.
2025 Lexus IS
If you’re looking for a luxury sedan with a version for every buyer, check out the Lexus IS. In Canada, Toyota’s premium brand sells its compact sedan with both RWD and AWD drivetrains, and with three different engines. The most powerful is the RWD 5.0-litre V8 making 472 hp and 395 lb-ft of torque found in the 2025 Lexus IS 500, which starts in Canada at a price of $79,630.
For a more affordable option, the 2025 Lexus IS 300 AWD starts at $51,598. That model includes a 3.5-litre V6 engine producing 260 hp and averages 10.8 L/100 km combined (as opposed to the 11.9 L/100 km combined in the IS 500). The mid-grade IS 350 AWD uses the same engine and has the same fuel economy estimates but ups the power output to 311 hp. Pricing on the 2025 Lexus IS 350 AWD has a Canadian price tag starting at $61,738.
2025 Mazda3
Don’t sleep on the Mazda3: dollar for dollar, it’s one of the best values on the automotive market today. It comes in sedan and hatchback variants, with the latter known in Canada as the Mazda3 Sport, and offers paint colours and interior finishes that approach the premium side of the market. You can option your Mazda3 with a manual transmission and AWD — but you’ll need to choose one or the other since they can’t be equipped together.
There’s also a turbocharged 2.5-litre four-cylinder engine among the powertrain options that bumps power output from 191 hp and 186 lb-ft of torque to 250 hp and 320 lb-ft, though it will require you to skip rowing your own gears. Fuel economy averages range from 7.5 to 8.9 L/100 km combined, depending on the body style and engine selected. Pricing for the 2025 Mazda3 in Canada starts at $27,687.
2025 Subaru Impreza
Subaru is known for equipping AWD as standard equipment on nearly every vehicle it sells. This means the Subaru Impreza compact sedan is packed with practicality as one of the most affordable cars with AWD you can buy. The Impreza was redesigned for the 2024 model year, and one of the casualties of the update is the manual transmission, which is no longer available. Sold as a hatchback with four trim levels, the Impreza offers two powertrains between them.
The base engine is a 2.0-litre with four horizontally opposed cylinders generating 152 hp and 145 lb-ft of torque, while the top two trims come with a 2.5-litre Boxer four-cylinder with 182 hp and 178 lb-ft. Both engines are paired with a CVT and Subaru’s symmetrical full-time AWD. The 2025 Subaru Impreza has a Canadian starting price of $30,270. The Subaru WRX ups the performance thrills on the same platform, starting from $36,174 (2024 pricing; 2025 prices were not available at publication time).
2025 Toyota Corolla
The Toyota Corolla was the best-selling car in Canada in 2023, making it the Honda Civic’s party pooper for the second year in a row. (The Civic has regained this title for 2024.) The Corolla’s lower starting price and Toyota’s overall reputation for reliability help this compact car to stand out. For 2025, the Corolla continues to be offered as a sedan—including with the Corolla Hybrid, which is offered in several trims with AWD—as well as in hatchback guise, the latter also seen in the GR Corolla.
Power output ranges from 169 hp in the base gas versions to 138 total hp in the hybrid and 300 hp in the GR Corolla, while fuel efficiency goes as low as 4.7 L/100 km in the FWD hybrid up to the GR Corolla’s 9.8 L/100 km, or 10.5 L/100 km with the automatic transmission. Pricing for the 2025 Toyota Corolla starts in Canada from $26,565 and rises to $50,810 for the Toyota GR Corolla.
2025 Toyota Prius
The glow-up from the Toyota Prius’s 2023 redesign might go down in history as one of the most dramatic automotive updates of all time. What was once the stereotype for boring is now better-looking, more powerful, and as fuel-sipping as ever. The 2.0-litre four-cylinder engine and updated hybrid system produce 196 hp and a total system output of 139 lb-ft of torque.
Two trims are offered in Canada, both with AWD, starting at $40,645 for the XLE grade (2024 pricing; 2025 prices were not available as of this writing). The hybrid Prius averages 4.8 L/100 km in combined driving, one of the best fuel consumption ratings in a vehicle without a plug. Plus, if you can take advantage of at-home charging, the Prius Plug-in Hybrid (PHEV) has 220 hp and up to 72 kilometres of electric-only range in its base trim. The 2024 Toyota Prius Prime was offered in three trims in Canada starting from $42,545 (2025 pricing has not been released at publication time), plus it qualifies for federal and provincial EV purchase rebates.
Honourable Mentions
The Volkswagen Golf GTI and Golf R are great options for those specifically seeking hatchback sports cars, starting at $37,381 and $50,781 respectively (2024 pricing; 2025 prices have not been announced as of this writing). The 2025 Volkswagen Jetta is also worth considering, priced from $28,381, though the base version could use more power to go with its sleek design.
The Nissan Versa is the most affordable new car in Canada in 2025 and the only subcompact sedan left on the market, starting at $23,405. The 2025 Nissan Sentra offers a manual transmission on two of its three trims and starts from $26,505. The 2025 Audi A3 ($46,850) and S3 ($58,450) and 2025 Mercedes-Benz C-Class (from $61,000 before fees) are alternative options for fans of German engineering.
Prices shown include destination charges and any declared dealer fees but exclude sales taxes. While pricing was current as of publication time, it is subject to change.