Here’s the conundrum with economy cars: they’re too expensive.

Let me explain. If you shell out, let’s say, $15,000-plus for a Nissan Versa, a Toyota Yaris, or a Honda Fit, you’re getting a decent little car, but the same amount will get you an equally decent used sedan. For example, a five-year-old Honda Accord is in that neighbourhood, ditto a Toyota Camry, a Hyundai Sonata, or even a VW Passat. All of these have good reliability records, come well-equipped, and give more car for the money, hands down.

There are exceptions, of course. Nissan starts its Micra at a shade under 10 large, but if you want an econobox with even a modicum of mod cons, you’re in the $15,000-and-up neighbourhood, which kind of takes the fun out of it.

On the other hand, there’s no disputing the outstanding fuel economy of today’s breed of urban runabout. The Toyota Yaris, for example, returns a combined fuel economy of 7.1 litres per 100 kilometres, which, if you’re a commuter, definitely adds up over the long run.

In fact, of all the econoboxes on the market, the Yaris may offer one of the best combinations of versatility, thrift, amenities, and performance. It’s less roomy than a Honda Fit, yes, but not as rough around the edges as, say, the Nissan Versa. It’s definitely a cut above the Micra, and it makes models like the Chevy Spark look crude in comparison.

Available in three trim levels, the Yaris is powered by a 1.5-litre four-cylinder that develops 106 horsepower. When it comes to tough, small-displacement, fuel-efficient engines, Toyota takes a back seat to no one—with the possible exception of Honda. You can choose a five-speed manual or four-speed automatic transmission, and traction control, antilocking brakes with brake distribution system, and Toyota’s Smart Stop Technology all come standard. It’s interesting to note that the manual transmission seems to be an endangered species in other segments of the market—some manufacturers have done away with it altogether—but it’s alive and well in the econobox arena.

A word about Smart Stop. Responding, perhaps, to the spate of bad press it got back in 2009/2010 for unintended “runaway” acceleration, Toyota has fitted a system that takes effect “when the accelerator is depressed first and the brake pedal is pressed firmly for longer than one-half second when the vehicle is traveling more than five miles per hour”. This is standard equipment on all its models.

Anyway, the Yaris, because of its compact size, has surprisingly nimble performance. For darting around the city and dealing with the point-and-squirt conditions of traffic, it’s just about perfect. Prompt acceleration, ease of parking, good peripheral visibility, a nice sense of balance, and, to a point, decent highway manners all add up to a competent urban runabout. It’s certainly the equal of, oh, the Fit, the Versa, or even the VW Golf in terms of drivability. Where it falls a little short is in cargo capacity. It’s simply not as roomy as many of its competitors.

My tester, a five-door LE model, comes with 15-inch wheels and tires, which is a good thing from a manoeuvrability standpoint; the higher trim level SE has 16-inchers, which increases its turning circle and probably affects fuel economy slightly. Mod cons include air conditioning and cruise control, but no heated seats. Why the hell not? Just about everyone else in this end of the market has them, and if I were looking for this type of vehicle, this would be a deal-breaker for me.

About storage. The five-door Yaris (there’s also a three-door CE) will provide 286 litres of cargo space with the seats up. This is less than the Honda Fit or Nissan Versa and is really only suitable for carrying groceries. Seating capacity is said to be five, but the guys in the back seat will be on close terms. I’m also glad to see that they’ve done away with those strange cup holders in front of the ventilation ports.

Toyota redid the styling on the Yaris for 2015, focusing on the front-end treatment. This is part of its corporate “spindle” look—inspired by various Lexus models—and many Toyotas now feature it as well. Taste is a personal thing, but this is not a good look for the Yaris; it overwhelms and busies up what is essentially a small two-box design. This is the lower end of the market, and simplicity and functionality should take precedence over glitz and the whims of the company’s styling department.