A very affordable hatchback which combines economy and versatility, the Volkswagen Rabbit has already surpassed the Mazda3 and is now the highest-rated car in small hatchback category.

Philip Powell of About.com said that the car is more than just another vehicle economy car lovers would adore. He said that the car is a family car and will surely be loved for being such.

Available in two-door and four-door versions, the vehicle is powered by a 2.5-liter, inline five-cylinder engine that now generates 170 horsepower and 177 pound-feet of torque (was 150hp/170tq in 2007). They come with a five-speed manual transmission or optional six-speed automatic. Safety features standard on all models include anti-lock brakes, traction control, side-impact airbags for front-seat passengers and side-curtain airbags among many others.

The Rabbit is a pleasant car to drive with a well-finished interior. Aside from that, the car is also priced competitively. Since the last test of its sibling, the Jetta sedan, its power has increased by 20 horsepower.

With four doors, usable backseats, and decent equipment levels, the cars in this small hatchbacks group do double duty as people haulers. What is more appealing about small hatchbacks is the fact that they are much more refined and more pleasant cars to live with than their forebears without losing any of their practicality. Interior quality is often on par with larger and more expensive models, yet they remain compact. This makes them easy to drive and park.

Hatchbacks are usually based on small sedan designs, and most are priced around $20,000. As gas prices continue to increase, small hatchbacks make sense for anyone used to the utility of an SUV but ready for a more affordable and efficient replacement.