The Best Compact Cars in 2025
While they’ve lost some of their appeal over the last decade, compact cars still own a significant share of the Canadian market. And why wouldn’t they? These affordable vehicles are the answer to all those expensive SUVs out there.
Now, what are the best buys in the segment for Canadian drivers? The team at The Car Guide has analyzed all the various models available and identified the top three for 2025.
1. Toyota Corolla
Just like last year, the Toyota Corolla sits at the top of our compact car ranking. The fact that it’s available in two body styles (sedan and hatchback) and can be ordered with a hybrid powertrain and even all-wheel drive makes it a compelling option for a wide range of drivers.
Factor in the Corolla’s exceptional reliability and high residual value, and it’s no wonder this Japanese compact car remains the best buy in the segment for 2025.
Oh, and if you’re into performance and sporty driving, don’t miss the GR Corolla, which packs a 300-horsepower turbo engine and competent AWD system in a more aggressive-looking package.
2. Toyota Prius/Prius Plug-in Hybrid
The second step of the podium is also occupied by a Toyota, namely the Prius. A true icon of hybrid mobility for over 25 years, this car is a safe pick similar to the Corolla.
The regular Prius boasts a 196-horsepower system and proves far more dynamic than the previous generation, especially with standard all-wheel drive also in the mix. Meanwhile, the Prius Plug-in Hybrid (formerly known as Prius Prime) doesn’t have all-wheel drive, but it boosts output to 220 horsepower and can travel up to 72 km (or 64 km in XSE trim) without burning any fuel.
Planning to keep the car for as long as possible? High predicted reliability is another reason why the Prius duo represents a smart purchase.
3. Honda Civic
Once again the best-selling car in the country, the Civic remains one of the top picks in Canada. Similar to the Corolla, it is available as a sedan or hatchback. For 2025, Honda has added a powerful yet fuel-efficient hybrid system in a pair of models. On the other hand, you still cannot get the Civic with all-wheel drive. Maybe the next generation will change that.
If you’re looking for extra fun, consider the Civic Si sedan or Civic Type R hatchback. The former is suitable for all seasons but limited to 200 horsepower, while the latter is a hardcore, 315-horsepower machine with a high-revving engine but suffers from a stiff ride. It’s a joy to drive on a slick road or better yet on a track when the weather is nice, not so much when facing potholes and snow. By the way, unlike the GR Corolla, neither the Civic Si nor the Civic Type R comes with all-wheel drive.
For more information and ratings, don’t miss our Best Buys section.