Used 2006 Chevrolet Aveo Hatchback

Refined road manners and a spacious interior make the 2006 Chevy Aveo one of the better subcompacts on the market.

Chevrolet and General Motors as a whole have long known they do not have a credible offering in the low-priced subcompact segment. Enter the Chevrolet Aveo. The Aveo is the result of GM's acquisition of Daewoo Motor Company and is essentially a rebadged Daewoo Kalos, a car already on sale in other markets around the world.

Both a four-door sedan and five-door hatchback are offered in three levels of trim, with the least expensive model coming in around $10,000. Powered by a 103-horsepower, 1.6-liter, DOHC four-cylinder engine, the Aveo provides decent power, at least with the automatic transmission, and handles better than most cars in this class. Although the Aveo is the lowest rung on the Chevy ladder, it still offers an impressive list of amenities. Air conditioning (with air filtration), an MP3-capable audio, full power accessories and remote keyless entry are all standard equipment on the LT models, and the entry-level Special Value models offer basic amenities like power steering, an AM/FM radio and a rear defroster.

In terms of pricing, driving dynamics and amenities, the 2006 Chevrolet Aveo meets the competition head-on. But you won't get as long a warranty as you would with a Hyundai or Kia, nor does the Aveo promise the bulletproof reputation for reliability of the Toyota and Scion offerings. We recommend that you review your options carefully before spending your money on the Chevy Aveo: If financing options and a new-car warranty are important to you, it's certainly a viable choice. However, you may find that a gently used, larger car like a Civic will serve your needs even better.

The Chevrolet Aveo comes in four-door sedan and five-door hatchback configurations, and both are available in one of three trim levels -- Special Value, LS and LT. Special Value models come in at around $10,000 and offer basics like power steering, an AM/FM stereo, tilt steering wheel, split-folding rear seat, 14-inch steel wheels, tinted glass, body-color mirrors and door handles and, on hatchbacks, a rear wiper. LS models add air conditioning and carpeted floor mats, as well as the availability of major options such as ABS, CD/MP3 player, alloy wheels and an automatic transmission. The LT adds power windows and locks, a CD/MP3 player, remote keyless entry, cruise control, 15-inch alloy wheels and upgraded seat fabric.

The Chevy Aveo has a double-overhead cam, 1.6-liter, four-cylinder engine that delivers 103 hp and 107 lb-ft of torque. A five-speed manual transmission is standard, and there's also an optional four-speed automatic with an electronic "hold" feature for second-gear starts when driving on slippery surfaces. Fuel mileage estimates are 27 mpg in the city and 35 on the highway with the manual gearbox and 26/34 with the automatic -- comparable to the Hyundai Accent but less efficient than the Toyota Echo and Scion xA.

The Chevrolet Aveo comes with three-point seatbelts for all five passengers with pre-tensioners in the front. ABS is optional on LS and LT models, and it includes Electronic Brakeforce Distribution for shorter stopping distances. Side airbags are standard across the board for 2006. In NHTSA crash tests, the Aveo earned a five-star rating (the best possible) for its protection of front occupants in frontal impacts.

Subcompact cars have a well-deserved reputation for poor handling and wobbly rides. While the Chevrolet Aveo is certainly no thrill ride, it provides better overall vehicle dynamics than most of its competitors. The steering is direct, the suspension well tuned and the standard engine -- while loud and buzzy -- is adequate for day-to-day commuting. We normally recommend that buyers in this class opt for a manual transmission, but in the Aveo's case, the automatic is the better bet: The manual tranny's gear ratios are too wide, leaving the car underpowered on highway grades and ultimately compromising fuel economy.

Though bare-bones in appearance and feel, the interior has a user-friendly control layout and a few thoughtful features for a car in this price range. The back of each front headrest has a hook for holding a shopping bag, and the five-door hatch has a flip-forward rear seat that allows for a maximum cargo capacity of 42 cubic feet. Even the sedan comes with a 60/40-split-folding rear seat and offers a decent 11.7-cubic-foot trunk capacity.