Small cars do exist, a lot from Japanese brands, some stuff like the Chevy Spark, but bigger sedans do have their advantages, notably carrying capacity while still getting 30 ish mpg highway. All just depends on what you want it for. What's your situation? Do you have a lot of stuff to carry often?
Cars in general have become bigger because of pedestrian safety regulations and in some ways changes in styling. You will most likely have to go used market to find a good wagon.
I would suggest looking into a Honda Fit or an early generation Insight. I think the first gen Insight was the pinnacle of the best modern-ish technology put into the lightest weight chassis they could at the time. Honda actually sold them at a loss because of how much development went into them, as they were built at the same factory they made the S2000 in at their Suzuka factory. At least with safety regulations they can't make them as light as they used to anymore.
I like the Fit for a future buy. I have a long commute distance wise so MPG is key. I’ve liked what I’ve seen of the compact Japanese hatchbacks like the Mazda 3, Corolla, Civic but they somehow have less space than the Fit. Ford Focus hatches can be found cheap but you’re rolling the dice on that god awful transmission that drove that badge into the ground so hard over the last 10 years that Ford has pulled out of the sedan game entirely in the US market.
One must wonder if regulating away the compact and midsize classes so all that’s left is crossovers and SUV’s with higher curb weights is actually better for the environment, but there’s no denying American tastes are as much if not more to blame.
Personally, I like having space for hardware store runs, but a nearby family member has a truck and a trailer so it’s hard to justify driving around all that empty steel when I’d only use the space once every 2-3 months. I’d miss the flexibility of stopping by after work though.
For now, I ended up deciding to push my current wagon another few years. It gets about 25 mpg on my commute and needs suspension work, but it’s paid off, so as long as it’s still ticking in 48 months, it’ll be a wash.
The Prius V is promising, with as much space as an Outback while getting 42+ combined. But again, why do I have to risk an expensive hybrid battery replacement when gasoline engine wagons and compact MPV’s with similar dimensions are all over the fucking place in international markets getting 35.
I’ll look into the Insight, it seems reasonably priced used, but from what I’ve read it’s more likely to need a battery replacement at 150k miles than Toyota’s hybrid lineup.
