I purchased a 06 Corolla. The Corolla, the 06 Yaris, the Matrix and a three non-Toyotas (Golf TDI, Jetta TDI and Civic) made my short list. After spending
3 weeks, 3 rental cars, 2 borrowed cars and a half a dozen test drives (some as long as an hour and a half) I ended up with the Corolla (although it was a tight race with the Jetta TDI and the Yaris).The Martix is a good sized car with a large truck and hatchback. If I was going to do mostly highway driving or had the family's dogs ( 2 labs & a mixed mut ), no question the Matrix.
The Yaris (RS 5 door) was a fantastic small car. If you are only doing city driving and need a hatchback, absolutely no question. I'd go with the 5 door, but that's a personal choice. I was told that my local dealership was almost out of 06's (this was Xmas 05) and that the new 07's would be in mid-February. Go for the RS !
I went with the Corolla simply because I do a mix of city and highway and I wanted a more "sedan-like" car. The Yaris just seemed a little too ... Fun... Young ...? (I'm an accountant, so that should explain that comment).
If I can make only one recommendation, try to find a rental car in that model and general year and really use the hell out of it. Try to compress everything you may do in the year into a day or two. As well, try a long drive 4 to 8 hours + (no breaks) to test out the seat, the location of the options and the general feel of the car. That's what sold me on the Corolla (10 days in a rental car and only 2 quips - CE's less than powerful engine ( better mpg ) and the location of the rear view mirror ... needs to be raised up an inch or two for my height). Spending the $50 a day, or so, will be worth it, if you can find a rental car.
As far as the cost difference, I'd spend the extra few grand if the car will be a better suit for you. Remember if you buy a Toyota, you may have the car for the next 20... 25 ... 30+ years.
Good luck, and happy shopping.
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