They'll haul a family of four in comfort, they'll sip regular unleaded and they'll put a smile on your face every time you get behind the wheel. Of course, we wouldn't have to be bothered with testing and reviewing these cars if they all did that; every car on the market forces a compromise or two.
Picking the top 10
To narrow the field, we looked only at cars that compete in the compact class. We're pragmatic, so we considered both sedans and hatchbacks, but we're also enthusiasts, so the availability of a manual transmission made some of these cars more appealing.
We set a budget of $20,000, give or take $1,000. But we looked at more than just base prices - some of these cars list for well under 20 g's, but they become even more appealing with some careful optioning. Others actually manage to turn us off the more loaded they get - and not just because they become more expensive.
Our editorial team has extensively sampled each of these cars over a variety of conditions - on race tracks, winding roads, highways, in parking lots and through our everyday slogging. We're confident that this list is representative of the best compact cars $20,000 will get you.
The 10 best $20,000 compact cars
1. Mazda3 Skyactiv. We've always liked the 3's driving dynamics, but not its fuel economy. Luckily, Mazda addressed the latter while retaining the former for 2012 with the introduction of its high-compression, low consumption Skyactiv 2.0-liter four-cylinder gas engine. With the automatic transmission that most buyers will order, so-equipped Mazda3 sedans easily net 40 mpg on the highway. Moreover, the 3 is a complete package with a fantastically balanced chassis, a classy interior and a lot of standard equipment.
2. Chevrolet Cruze. How has a Chevrolet become America's second-best selling compact? Sized like a compact but boasting a refined feel normally reserved for luxury cars, Cruze feels more premium than anything else in the segment. Cruze's torquey four-cylinder turbo engine isn't as fuel efficient in our testing as we'd hoped, but it does mate well with a revised-for-2012 automatic transmission or a widely available stick shift.
3. Ford Focus. We really do like Ford's delightfully tossable Focus, but it's a budget buster among compacts that nearly prices itself out of the segment unless it is ordered with hubcaps. And, frankly, we're not sure the Focus is worth the premium over some rivals when similarly optioned. Pick your options carefully, however, and you'll wind up with one of the world's most highly capable and grown up-feeling compacts.
4. Hyundai Elantra. Hyundai's shapely Elantra seems to exist on the opposite plane of the Focus; it offers unbeatable value with a wide range of desirable luxury features even within our budget, but the driving experience is ho-hum . Still, Hyundai offers an EPA-estimated 40 mpg on all models and a roomy cabin that feels even better thought-out than the automaker's hot Sonata mid-sizer.
5. Subaru Impreza. Consider the Impreza your default first place candidate if you live in a wintry climate. Its all-wheel-drive traction is unbeatable, and a new CVT gives it a solid 36 mpg highway figure that's not topped by any other four-wheel-drive car. Redesigned for 2012, Impreza is comfortable and sporty, and even though it doesn't make as much power as it used to, it's actually faster.
6. Kia Soul. Kia gets the toaster-on-wheels segment better than Scion, Nissan and Honda ever have, but its old powertrains were uninspiring at best. But new 1.6 and 2.0-liter four-cylinders, upgraded transmissions and a few other tweaks have made this a seriously desirable - and pleasingly quirky - compact offering for 2012.
7. Volkswagen Golf. Our Golf of choice is powered by the diesel TDI engine, but it's way above our intended budget. So you'll have to settle with VW's mediocre 2.5-liter five-cylinder, but that doesn't mean you won't enjoy this five-door. With a premium interior that recalls VW of yore, the roomy Golf is still Euro-chic.
8. Mitsubishi Lancer Sportback. A unique bodystyle and a high feature content (the 168-horsepower GTS is within our range if we stick with a manual transmission) make this Mitsubishi's most interesting car aside from its Evo cousin. Refinement isn't a high point, and its interior is a little low buck, but the Lancer is definitely worthy of serious consideration.
9. Kia Forte. Although it's starting to feel a little old compared to some rivals, the Forte helped bring Kia into the mainstream with its combination of Germanic style and high feature content. An upgraded model is just around the corner, but we find that there's plenty to keep liking about this high-value stylish contender.
10. Volkswagen Jetta. While the TDI is again priced out of our criteria, the standard Jetta 2.5 still boasts low vice driving dynamics and a roomy cabin despite some obvious decontenting over the old model. Despite the harder plastics and simpler beam-type rear suspension, Jetta is now more in line with rivals and, as the sales figures have proven, more appealing to buyers.
Promising newcomer: Dodge Dart. We haven't been able to hop inside the Detroit show-bound Dart yet, but its spec sheet and style promise to shake up the compact segment. Closely related to the highly-desirable Alfa Romeo Giulietta, the Dart will be nothing like its Al Bundy-approved namesake (although Al's real car was a Plymouth Duster).
Photos by Mark Elias, Andrew Ganz and courtesy manufacturers