2008 Volkswagen Rabbit S 2dr Hatchback (2.5L 5cyl 5M)
I've owned my Rabbit now for a little over a month. Each and every day I look forward to the commute to work because the Rabbit is so much fun to drive. No problem merging onto the highway, or passing slower traffic. The ride is firm but smooth, and engine response is immediate. I test drove the Scion tC, Mazda-3, Toyota Matrix, Ford Focus, Subaru Impreza, and Chevy Cobalt. None of them could touch the Rabbit in terms of overall feel, and build quality. If you're looking for an inexpensive "fun" car, don't pass up test driving the Rabbit.
Torque! Also the Multi-function display, interior blue and red lighting at night, comfortable seats, theft deterrent system. Oh, and did I mention Torque!
My only complaint is that when you go around corners, water on the roof drips into the passenger compartment when the windows are cracked open.