2008 Toyota Camry Hybrid 4dr Sedan (2.4L 4cyl gas/electric hybrid CVT)
For people who want a full-sized car but also want to be environmentally responsible, this is for you. This is my first Toyota, and after owning it for a year and a half, I understand what others have been raving about. Driving around Pittsburgh where mountains abound, I can still get better than 40 mpg while having plenty of room for three passengers (three adults in the back is a little tight). Because the hills are steeper in town, I actually get slightly lower in-town mileage (low- to mid-30s; hybrids typically shine in town), but it's still better than other vehicles I've owned by 10+ mpg. I haven't had a single mechanical issue and have only done standard preventative maintenance.
With the leather package (which includes heated seats), automatic lights, 400W JBL stereo (which sounds great), Bluetooth phone hookup, and other bells and whistles, I feel very spoiled in the car. It's not Mercedes luxury, but then again, it's half the price of my parents' Mercedes.
Electric mode is only for *very* gentle driving; some drivers might have a tough time adjusting to this. A plug-in version would be nice. Built-in headrest DVD would allow the family to take this on long trips. Lithium battery might improve trunk space which is adequate but not stellar.