2020 Toyota Yaris Hatchback

The Toyota Yaris Hatchback briefly disappeared in 2019, with the artist formerly known as the Yaris iA taking over the sole duty of flying the Yaris flag. But the hatchback body style has made a return this year as an all-new subcompact hatchback, based on the Yaris sedan, which makes it fundamentally a Mazda 2 (a subcompact no longer on sale in the US) in Toyota drag. In this guise, the Yaris Hatchback enters its third generation, sharing a meager 1.5-liter four-pot engine with the Yaris Sedan that delivers outputs of 106 horsepower and 103 lb-ft of torque. The front-wheel-drive engine is mated to a six-speed automatic gearbox. Unfortunately, and unlike the Yaris Sedan, the Hatchback is not available with a manual gearbox at all. Even with most manufacturers pulling out of the subcompact class, the Toyota Yaris still faces stiff competition from the new Kia Rio5 and the highly respected Honda Fit.

The LE, which is considered a mid-spec Yaris model compared to the sedan lineup, starts things off with an affordable MSRP of only $17,750. This is followed by the top-spec XLE with a sticker price of $18,750. That makes the hatchback derivatives more or less the same price as their sedan counterparts. Those prices are, however, excluding Toyota's $955 destination and delivery charge as well as any tax, registration, or licensing fees.

Like most subcompact hatchbacks, the Yaris carries a penchant for the tight city streets. Its small size, light weight, and tight turning circle make it a somewhat nimble little hatch. Its Mazda-sourced chassis is soft-tuned to deliver a comfortable ride quality, and while most road imperfections and typical undulations are suitably absorbed, any slightly larger bumps will unsettle the chassis significantly. The Yaris exhibits plenty of body roll around corners and tight bends, too, because of its soft-tuned underpinnings, but there's still a good amount of composure, and the chassis seldom feels loose or unstable. However, it's a budget-oriented vehicle, which means balancing an optimally comfortable ride with hot-hatch handling dynamics would be a difficult feat regardless. On the plus side, the cabin is exceptionally quiet and devoid of vibrations, which is another advantage to using the Mazda platform.

Where Mazda's contribution benefits the Yaris the most is in its steering; an impressive level of feedback from the front end of the hatch is ceded through to the driver via the steering wheel, which is not a typical trait for vehicles in this class. The steering effort adjusts according to the speed the Yaris is traveling at, light at low speeds for easy maneuvering, and hefty at higher speeds for added control. The brakes provide suitable stopping power and the brake pedal is consistent and easy to modulate in everyday driving conditions.

The all-new Toyota Yaris is certainly better than what it used to be, in almost every way. It's still a super affordable entry-level vehicle offering a whole lot of value for money, and even as a budget-friendly vehicle, comes standard with a favorable array of features. The infotainment system is installed with full smartphone integration and with a boat-load of functionality, the stock sound system is decent, and there are plenty of device connectivity points. It's a reasonably comfortable car too. While to no extent a hot-hatch, it's a relatively fun city runabout. It's competent and nimble in the city streets and considerably fuel-efficient too. Though a true car enthusiast may be disappointed with the Yaris, it would make a great first car for most first-time drivers. It's practical enough for everyday use, whether hauling a few passengers to school or work, or just picking up groceries. The Yaris Hatchback could really have done with a manual gearbox just to make the most of an otherwise underwhelming engine, but aside from that, it's a great option as a starter car or affordable daily runabout.

Considering the top-spec XLE model is only $1,000 more than the mid-spec LE model, it's definitely our recommended pick from the two-strong Yaris lineup. The XLE's leather-wrapped steering wheel, gearshift knob, handbrake, and leatherette seating are a considerable improvement in comfort and quality to the cabin of the Yaris hatchback. The automatic climate control and steering mounted controls also improve the premium feel of things. It also comes with upgraded lighting systems including LED automatic headlights and DRL's. That's about it though as there are no notable packages or options to throw in, but as far as budget offerings go, it's a pretty solid subcompact.

The Honda Fit lineup comprises two more models than the Yaris's, including a base-spec model which offers far greater affordability, and a luxe model, which brings in features and value far beyond that of the top-spec Yaris. Some may find the base-spec Fit appealing for its super low-cost, and it's also more fuel-efficient than the Yaris, returning EPA estimates of 33/40/35 mpg when equipped with the CVT automatic. However, that's all it has going for it in its cheapest form, as it makes do with a tiny infotainment display, low-grade audio system, and no smartphone integration. The mid-spec Fit model has the option of a six-speed manual gearbox though, which - while less fuel-efficient - delivers a level of driver engagement that carries its own appeal to many. This model is also at the same level as the Yaris in terms of infotainment. But the higher you climb on the Fit hierarchy, the better it gets, with more practicality, more features, and higher levels of safety, thanks to Honda Sensing functionality. Apart from features, the Yaris and Fit both deliver a similar ride quality and levels of enjoyment, but the Fit takes the win for practicality, versatility, and for having a better engine with a manual gearbox.

The Toyota Corolla Hatchback is in a class of its own, literally; while the Yaris is classified as a subcompact hatchback, the Corolla is classified as a compact hatchback. It's a little bigger overall, which means more passenger room and greater cargo capacity. The Corolla is also equipped with a larger, more powerful engine that feels more competent at lugging the hatch around. The Corolla's engine, when equipped with the CVT automatic, is also a little more fuel-efficient on the highway. Furthermore, there's a six-speed manual gearbox available within the Corolla lineup, offering those who prefer some driving fun over fuel economy some added engagement. The Corolla is also more capable when it comes to handling dynamics, and it rides a little more comfortably too - the perks of being built on a newer, more expensive platform. The Corolla is the more enjoyable driver's car and comes outfitted with a few more features than the Yaris at the standard level; it is, however, $2,540 more than the Yaris, so some may find that the Yaris delivers greater value at its price. But overall, the Corolla is a better car and arguably worth the extra clams.