Driving.ca Editors pick the best cars in four key categories: compact and midsize sedans, hatchbacks, and wagons

Published Jul 16, 2026  •  Last updated Jul 16, 2026  •  13 minute read

Driving.ca Editors' Picks for Best Cars in Canada: Honda Civic Sedan, Toyota Camry, Honda Civic Hatchback, Subaru Outback, Honourable mentions: Hyundai Elantra, Honda Accord, Mazda3 Sport, Toyota Crown Signia

While cars have been playing second fiddle to crossovers in terms of sales, there’s a core of rides that are staples for those looking for urban-friendly, efficient transportation. You won’t find any sports cars, luxury cars, or those that need plugging in, here. No, what we’re running down here is the automotive equivalent of sensible shoes. Driving.ca’s team of experts has whittled down the list of sedans, hatchbacks, and wagons to arrive at the segment leaders and best alternatives in four key segments.

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The Honda Civic has been a perennial favourite for a number of reasons — it is practical, value-oriented, and it has better-than-average reliability. The combination is tough to beat! As it stands now, the Civic sedan is offered two basic ways. There are gas-powered models and hybrid versions. All use a 2.0L four-cylinder that drives the front wheels through a continuously variable transmission (CVT). It starts with the gas model, where the 2.0L four twists out 150 hp and 133 lb-ft of torque and has an average economy of 6.7 L/100 km. However, add the work ethic of Honda’s two-motor hybrid system and things get interesting. The gas-electric combination makes 200 hp and 232 lb-ft of torque. It delivers solid performance and an average economy of 4.9 L/100 km.

Jil McIntosh noted that, of the 2026 Honda Civic Sport Touring Hybrid sedan’s rivals, “the Toyota Corolla and Hyundai Elantra hybrids both rate 4.7 L/100 km, but they make 138 and 195 horsepower, respectively, along with much less torque; and so you get the Civic’s extra power with very little penalty in fuel efficiency.”

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The Civic is a city-friendly drive that has agile handling when the road starts to twist. In this regard, it is a cut above other small sedans when it comes to on-road refinement.

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The Civic’s cabin is a tale of screen sizes. All except the top Sport Touring Hybrid get a seven-inch dash panel and a seven-inch infotainment screen. Both work well, but with one big nit — Apple CarPlay and Android Auto must be wired to work. Move up to the Sport Touring and there’s a 10.2-inch instrumentation panel and a nine-inch infotainment screen. The larger screens run Android Auto wirelessly — sorry, Apple users still need the wire. Perhaps the Civic’s next update will bring all models up to scratch. The rest of the cabin is a blend of quality materials and surprising space — there is 950 mm of rear-seat legroom, which rivals a mid-sized sedan. The Civic sedan is an IIHS Top Safety Pick.

The Civic Sport Hybrid is the model of choice. It has more power and better economy than the gas model, making it a win-win drive.

Canadian MSRP: $28,340 (plus $1,830 freight/PDI)
Power: 2.0L four-cylinder with 150 hp and 133 lb-ft of torque
Average fuel economy/annual cost: 6.7 L/100 km / $2,010
Cargo capacity: 419 L

In the voting, the Hyundai Elantra and Kia K4 were very close. They are, after all, mechanical twins. While the K4 was new last year, it’s the Elantra that topped the poll and for one important reason: choice. Along with the regular and sporty N Line models, the Elantra has a hybrid option that’s missing from the K4. The Elantra arrives with a 2.0L four-cylinder engine in all models except the hybrid and N Line. It produces 147 hp and 132 lb-ft of torque, and drives the front wheels through a CVT. It delivers an average economy of 6.9 L/100 km.

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If you want more power, the N Line drops in a 1.6L turbo-four that twists out 201 hp and 195 lb-ft of torque. It works with a seven-speed twin-clutch transmission, which puts some real pop! in the drive and brings an average economy of 7.6 L/100 km. If you want fuel efficiency, the hybrid blends a 1.6L four-cylinder with an electric motor to twist out 139 hp and 195 lb-ft of torque. It drives the front wheels through a six-speed automatic and has an average economy of 4.7 L/100 km. The Elantra delivers a confident and composed driving feel that is amped up in the N Line.

Inside, the base models get a 4.2-inch screen for the instrumentation and an eight-incher for the infotainment. The smart money will invest in the Luxury model (hybrid or gas) — it gets the two 10.25-inch screens that add zing and functionality. Elantra is an IIHS Top Safety Pick.

Canadian MSRP: $22,999 (plus $1,900 freight/PDI)
Power: 2.0L four-cylinder with 147 hp and 132 lb-ft of torque
Average fuel economy/annual cost: 6.9 L/100 km / $2,070
Cargo capacity: 402 L

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Last year, the Toyota Camry went hybrid-only. At first blush, it seemed like a very risky move, but it turned out to be the right one, given the growing popularity of regular hybrids, or “self-charging hybrids,” to use Toyota’s term for those that do not need to be plugged in to charge and use the battery. Once famous for being the slow relation, that notion has changed for the better. The Camry hybrid starts with a 2.5L four-cylinder engine and electric motors. In the front-drive models, the fifth-gen hybrid twists out 225 hp. The all-wheel-drive (AWD) models add a rear electric motor, which bumps the output to 232 hp. In the case of the front-drive hybrid, it runs to 100 km/h in 6.9 seconds, and yet still manages to deliver an average economy of 5.0 L/100 km. The AWD units burn an extra 0.1 L/100 km, which is no penalty at all!

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Again, hybrids are typically not known for delivering a sporty drive. Testing a 2025 Camry, I said, “The Camry arrives with a responsive steering feel and surprisingly sorted handling. The XSE has sport-tuned springs and shocks along with thicker anti-roll bars front and rear, so it hunkers down with more authority than the plusher-riding XLE.”

Inside, the Camry is nattily attired. The base models arrive with a seven-inch screen for the instrumentation and an eight-incher for the infotainment system. The setup delivers the basics, but is left lacking when compared to the 12.3-inch digital dash and 12.3-inch infotainment touchscreen found in the XLE and XSE. The difference is visually dramatic and more functional because everything has more breathing space. The Camry also gets Toyota’s Safety Sense 3.0, which brings a suite a driver aids including lane-departure warning with keep assist and auto-emergency braking with vehicle, pedestrian, cyclist, and motorcyclist detection. It also gets blind-spot monitoring and Traffic Jam Assist. These aids and crash-test results make Camry an IIHS Top Safety Pick+.

If the head is buying, the model of choice is the SE upgrade with all-wheel drive; the heart would pick the XSE or XLE to get the fancier screens.

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Canadian MSRP: $35,075 (plus $1,860 freight/PDI)
Power: 2.5L four-cylinder hybrid with 225 hp
Average fuel economy/annual cost: 5.0 L/100 km / $1,500
Cargo capacity: 428 L

The Honda Accord continues to give the consumer choice, as it’s offered in both gas and hybrid models. It starts with the SE with a 1.5L turbo-four that pushes 192 hp and 192 lb-ft of torque through a CVT and the front wheels. The other two models arrive with Honda’s hybrid system, beginning with a 2.0L four-cylinder and two electric motors. The combination delivers a net output of 204 hp and 247 lb-ft of torque, which gives the hybrid a run to 100 km/h from zero in 6.8 seconds, an average economy of 5.3 L/100 km, and an annual fuel cost of $1,590 — that’s $600 a year less than the gas model.

On-road, the Accord offers a refined, balanced driving experience that’s equal measures of comfort and responsive fun. Body roll is limited, and the steering is quick to respond without feeling darty. Inside, a 10.2-inch digital dash works with a 12.3-inch infotainment touchscreen that’s faster and easier to use than before. It also works wirelessly with Apple CarPlay and Android Auto. The Honda Sensing collection of driving aids and crash-test results make the Accord an IIHS Top Safety Pick.

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The model of choice is the Accord Sport-L Hybrid — performance and economy in an accommodating sedan sums it up nicely.

Canadian MSRP: $38,500 (plus $1,830 freight/PDI)
Power:1.5L turbo-four with 192 hp and 192 lb-ft of torque
Average fuel economy/annual cost: 7.3 L/100 km / $2,190
Cargo capacity: 473 L

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If you need more functionality and an emphasis on cargo flexibility, a five-door hatchback is the solution. In many respects, a hatch acts as the bridge between a sedan and crossover. A perennial favourite is the Civic Hatchback, with gas and hybrid variants. In both cases, it starts with a 2.0L four-cylinder engine. In the gas model, the engine twists out 150 hp and 133 lb-ft of torque. Add Honda’s two-motor hybrid system to the mix and the output climbs to a meaningful 200 hp and 232 lb-ft of torque anywhere between 1,000 and 2,000 rpm. This delivers a perky punch in town and a solid mid-range when passing a slower vehicle. Best of all, the hybrid does this while delivering an average economy of 5.0 L/100 km. On an annual basis the hybrid burns $600 less fuel than the gas engine.

Brendan McAleer said of the Civic hybrid hatchback, “Pair this ultra-smooth power delivery with a delightful chassis and accurate steering, and the Civic hybrid absolutely nails its brief. It might even be – whisper it – more fun to drive than the Si sedan variant. There’s extra weight here because of the battery pack, but it’s imperceptible on the go.”

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Inside, the Hatchback mirrors the Civic sedan’s screen dilemma. All except the top Sport Touring Hybrid get a seven-inch dash display and a seven-inch infotainment screen — Apple CarPlay and Android Auto must be wired to work. Move up to the top Sport Touring and there’s a 10.2-inch instrumentation panel along with a nine-inch infotainment screen. The larger screens give more space for the information, and the infotainment side runs Android Auto wirelessly — sorry, Apple users still need to wire. It might be a deal-breaker were it not for the fact the rest of the Civic is a standout. The Civic Hatchback has 694L of space with the seats up and 1,302L with the seat folded. It is an IIHS Top Safety Pick.

The model of choice is the Sport Hybrid. The combination of power and economy is tough to pass up.

Canadian MSRP: $32,200 (plus $1,830 freight/PDI)
Power: 2.0L four-cylinder with 150 hp and 133 lb-ft of torque
Average fuel economy/annual cost: 7.0 L/100 km / $2,100
Cargo capacity (seats up/down): 694 L / 1,302 L

The Mazda3 Sport is one of the few cars that lives up to its nameplate — of the hatchbacks available, the Sport has a more honed and focused feel than its peers, and it manages this without beating the riders up in an urban environment. For 2026, the ride comfort has been improved while maintaining the Sport’s famed agility. The ride is also quieter thanks to upgraded insulation. Power starts with a 2.5L four-cylinder that pushes 186 hp and 186 lb-ft of torque through a six-speed automatic transmission and Mazda’s proactive iActiv all-wheel-drive system. The GT is available as a front-driver with a six-speed manual gearbox. If more power is wanted, there’s the GT Turbo. The 2.5L turbo-four cranks out 250 hp and 320 lb-ft of torque when fed premium fuel, and works with the six-speed automatic to drive all four wheels.

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Inside, there’s a new 10.25-inch infotainment display that works wirelessly with Apple CarPlay and Android Auto on all but the base GS — it gets an 8.8-inch screen and must be wired. The rest of the Sport is class all the way, with lots of rear-seat space and a cargo capacity that maxes out at 1,334L with the rear seat folded. The Sport’s extensive list of safety aids and crash-test results make it an IIHS Top Safety Pick.

The model of choice is the Mazda3 GT — it has ample power and those famed road manners.

Canadian MSRP: $26,000 (plus $2,095 freight/PDI)
Power: 2.5L four-cylinder with 186 hp and 186 lb-ft of torque
Average fuel economy/annual cost: 7.9 L/100 km / $2,370
Cargo capacity (seats up/down): 569 L / 1,334 L

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The only real alternative to a crossover is a wagon — it has the versatility, functionality, and room of a crossover, but with a lower centre of gravity that brings sharper handling and a crisper driving feel. In this regard, the leader of the pack is the Subaru Outback. It is the vehicle that spawned the whole jacked-up wagon craze that has included the likes of the Audi Allroad, Mercedes-Benz All-Terrain, and Volvo Cross Country. For 2026, the Outback has been completely rethought. From the looks to the cabin, everything has been massaged.

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The Outback Touring arrives with a 2.5L four-cylinder that twists out 180 hp and 178 lb-ft of torque. It delivers decent performance; however, the engine of choice is found in the Limited XT, Wilderness, and Premium XT models. These trims get an upgraded 2.4 turbo-four that pushes a much healthier 260 hp and 277 lb-ft. Yes, when compared to the base engine, the annual fuel cost goes up by $360, but that really is not much of a penalty given the performance transformation. All Outback models work with a CVT to drive all four wheels. As always, Subaru’s Symmetrical all-wheel-drive system is proactive, so it shuttles the power around before a problem arises. It also works with X-Mode. It improves traction and stability by tweaking the engine, transmission, and brakes to keep the wagon moving forward when the going gets tough. In this regard, the Outback offers surprising off-road ability.

Brian Harper said of the Outback’s handling, “The steering rack’s variable gear ratio has been tuned for better low-speed handling while maintaining optimal stability at higher speeds.” It proves versatility, functionality, and off-road ability does not always come with built-in vagueness!

Inside, the cabin is dominated by the 12.3-inch digital instrument cluster and 12.1-inch infotainment display. It’s a big improvement with the new infotainment touchscreen being faster and it has better customization. A vertical menu bar in the touchscreen allows easier access to the navigation, vehicle, and phone functions. Thankfully, Android Auto and Apple CarPlay connect wirelessly and the climate control functions have hard controls. The rest of the cabin is roomy — there’s 1,004 mm of rear-seat legroom and 2,141L of cargo space with the rear seat folded. The Outback has a full suite of safety aids and solid crash results, making it an IIHS Top Safety Pick+.

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If outright power is a secondary consideration, the Outback Touring is the right model. If it’s important go whole hog and enjoy the Premium XT.

Canadian MSRP: $40,895 (plus $2,295 freight/PDI)
Power: 2.5L four-cylinder with 180 hp and 178 lb-ft of torque
Average fuel economy/annual cost: 8.5 L/100 km / $2,550
Cargo capacity (seats up/down): 980 L / 2,141 L

The Toyota Crown Signia is a midsize ride that’s powered by a hybrid powertrain shared by many Lexus models, and has a cabin that would not be out of place in a Lexus. While Toyota calls the five-seat Crown Signia an SUV, the fact it replaces the Venza makes it more of a wagon. Anyway, unlike the sedan, the wagon arrives with a single hybrid powertrain. The system features a 2.5L four-cylinder engine, electric motors, a CVT, and on-demand all-wheel drive through a rear-mounted electric motor. The system generates 240 hp and drives the front wheels to improve efficiency, but can send up to 80% of power to the rear wheels whenever needed. In the end, the combination delivers an impressive average economy of 6.2 L/100 km and has the ability to tow up to 1,225 kg.

Inside, the level of content impresses with leather upholstery, heated and ventilated power front seats with driver’s seat memory, heated rear seats, and a heated steering wheel, along with a 12.3-inch digital dash and a 12.3-inch multimedia interface. The latest iteration is smarter and easier to use than before, and works wirelessly with Apple CarPlay and Android Auto as well as a soulful 11-speaker JBL sound system. The good news is there are physical controls for radio volume and climate control. There’s also lots of rear-seat space (942 mm) and 1,872L with the 60-40 seats flat. As mentioned, the cabin is several notches above the norm and very Lexus-like in its execution and feel.

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The Crown Signia comes two ways — the Limited and the Limited with the Advanced Tech package. Pick the latter!

Canadian MSRP: $58,555 plus $1,930 (freight/PDI)
Power: 2.5L four-cylinder hybrid with 240 hp
Average fuel economy/annual cost: 6.2 L/100 km / $1,860
Cargo capacity (seats up/down): 702 L / 1,872 L

*Editor’s Note: While the Outback and Crown Signia are both leaning into the crossover realm, Subaru classifies the Outback as a “wagon” on its own Build & Price tool, and the Crown Signia is even more wagon-esque in profile. Feel free to share your opinion about their wagon-ness or any other reactions in the comments below.