2027 Toyota Corolla Hatchback

The 2027 Corolla Hatchback is Toyota's budget-friendly compact runabout. The hatchback version has the sensible appeal of its sedan counterpart along with the added utility of a larger cargo area. Its rear seats fold down, permitting more storage than you'll get in the standard Corolla's trunk. Fuel economy, which is in the mid-30s combined, is respectable and well suited to this daily driver's relatively low cost of entry. 

Toyota sells the Corolla Hatchback in two trim levels. This isn't a car overflowing with personality, but it is a more attractive car than the Corolla sedan, especially when equipped with the XSE's 18-inch wheels. This year, both trims get a digital instrument cluster; the SE now comes with a 7-inch display, and the XSE gets the larger 12.3-inch cluster. The XSE also adds a larger 10.5-inch infotainment screen this year. If you're after a cost-effective and usable hatchback, the Corolla should be on your short list.

The Honda Civic hatchback, which is a nicer and more expensive car than the Corolla Hatchback, is likely its most direct competitor. From its interior finishes to its powertrain, the Honda is simply more refined. Another consideration is the Mazda 3 hatchback, which comes with a nice-looking interior, available all-wheel drive, and ample power from its optional turbocharged engine. But its back seat is small, and you'll pay more for it too. Subaru's Impreza is another budget-conscious option that includes standard all-wheel drive.