That wave includes the new Toyota Yaris, Nissan Versa, and Honda Fit, along with all-new versions of the Chevrolet Aveo and Hyundai Accent. These subcompacts are smaller than compact cars, such as the Toyota Corolla and Honda Civic, but the newest subcompacts excel at space utilization and some are offering premium features.

Indeed, subcompacts have never been better and the new Kia Rio sedan and Rio5 hatchback are perfect examples. In addition to being inexpensive, they are stylish little cars with spacious interiors. They deliver sprightly performance, great fuel economy and agile handling. The Rio models come standard with six airbags, a safety feature normally associated with expensive luxury cars, not subcompacts.

The Rio is available as a smart-looking four-door sedan or the stylish Rio5 five-door hatchback.

The stigma attached to owning a small car in America is becoming a thing of the past and the latest iteration of the Kia Rio is among the reasons why that's happening. Kia has substantially improved the quality of its cars with the newest models, according to J.D. Power and Associates latest Initial Quality (IQS) numbers. The Rio is EPA-rated 32/35 mpg City/Highway.