What’s the Difference between a Compact Car and an Economy Car?

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A guide to economy and compact cars, including rental fees, fuel costs, and more

Co-authored by Jason Shackelford and Johnathan Fuentes

Last Updated: November 10, 2023 Fact Checked

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What’s the difference between economy and compact cars?

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Popular Economy & Compact Cars

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How to Pick a Good Rental Car

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Expert Interview

If you’re renting a car on a budget, you might be wondering: should you go with a compact car or economy car? Are these two categories the same? Not quite! Though they share some overlap, economy cars and compact cars differ in a few important ways. This article breaks down those differences in detail, and gives rationales for choosing one over the other. Keep reading to figure out whether renting an economy car or compact car is right for you.

Things You Should Know

Compact cars are usually larger than economy cars. Most compacts come with 4 doors, while economy cars come with 2-4 doors, depending on the model.
Economy and compact cars cost about the same to rent. Compacts are better for cities since they can weave through traffic and fit in tight parking spots.
Popular economy cars include the Ford Fiesta, Kia Soul, and Toyota Yaris. Popular compacts include the Toyota Corolla and Volkswagen Jetta.
Choose a car that suits your budget and has enough room for everyone you’re traveling with. Opt for a larger sedan or SUV if you want more space and comfort.

Section 1 of 3:

What’s the difference between economy and compact cars?

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The main difference between economy and compact cars is their size. Compacts are usually larger than economy cars. They come with 4 doors and seat up to 5 people—2 up front, 3 in the back, shoulder to shoulder—and their trunks fit 1-2 suitcases. Economy cars usually come with 2-4 doors and have a bit less room inside, plus a slightly smaller trunk.^{[1]
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- You can typically rent an economy or compact car for around $30/day.^{[2]
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  Research source} Most use regular fuel, so a full tank of gas will only cost you $30-60, depending on tank size and current gas prices.^{[3]
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- Economy cars get around 35 miles per gallon (6.7 L/100 km) or better. Most compacts get around 30 MPG (7.8 L/100 km).

Section 2 of 3:

Popular Economy & Compact Cars

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Economy: Ford Fiesta, Kia Soul, & Toyota Yaris.^{[4]
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Research source} The Kia Soul is particularly roomy on the inside and has enough cargo space for 7 carry-on suitcases, or 2-3 larger ones. ^{[5]
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Research source} The Ford Fiesta and Toyota Yaris have less cargo space, but they’re perfect for local driving and are easier to park due to their smaller sizes.^{[6]
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- You can fold the back seats down on these cars for extra cargo space. This is perfect for couples and individuals traveling with extra luggage—say, for a skiing trip.
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Compact: Toyota Corolla and Volkswagen Jetta.^{[7]
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Research source} The Corolla is the go-to rental car for many folks. It’s small, fuel-efficient, and has a fair amount of trunk space for a compact car.^{[8]
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Research source} The Jetta is even more roomy, fuel efficient, and has a bigger trunk, but it’s a bit slower than the Corolla.^{[9]
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- The Toyota Corolla is available as a hybrid. This makes it ideal for city driving since the engine wont run when you’re stopped in traffic, saving you money on fuel.

Section 3 of 3:

How to Pick a Good Rental Car

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Find a car that fits your budget. A road trip might be more fun in a convertible, but you might pay over $80 per day in rental fees alone. An economy or compact car will always be the cheapest option. Be sure to select “economy” or “compact” on your rental company’s website to be shown the most affordable cars in their inventory.^{[10]
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- Rental companies will sometimes give free upgrades if the car you originally rented is not available when you go to pick it up. This could be a great deal, but you might spend more money on fuel—especially if you’re taking a longer trip.
- Beware of unexpected fees and costs. Inspect the car when you first pick it up and note any visible damage so that you are not charged for it later. To avoid being charged for fuel, be sure to return the car with the same amount of fuel it had when you picked it up.^{[11]
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Choose a car with enough space for everyone in your group. Compacts and economy cars are great for solo travelers or couples with small children. But they’re not ideal for groups of adults or big families with lots of luggage. They don’t have much legroom either, so taller people might find economy and compact cars uncomfortable.^{[12]
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- If you’re traveling with multiple adults or older children, choose a bigger car with more interior room and cargo space.
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Rent economy cars for driving in cities. If you’re not used to driving in cities, you might be surprised by how stressful and difficult it can be—especially if you normally drive an SUV or truck. In urban areas, smaller is better. Economy cars can weave easily through city traffic and fit in parking spots that are too tight for other vehicles.
- In cities with lots of traffic and good public transit, renting a car may not be worth it. Opt for taking the bus or metro, or use a rideshare app instead.
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Don’t sacrifice comfort or safety, especially on longer trips. Economy cars and compacts will save you money, but they’re not as comfortable as higher-end cars. They may also lack certain safety features like advanced driver autopilot technology and blind spot detection.^{[13]
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- For short trips, a basic economy car might be all you need. But for long, multi-day driving trips, a more comfortable car with extra safety features could be worth the money.