EPA ratings mean nothing. Real world matters most. Honda Fits have typically been underrated by the EPA.
Heck, my mom's Prius and my Insight have the same EPA city rating (48 MPG), yet my car can easily get 20-50 MPG higher around town than the Prius.
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Regarding cheap beaters under $1500 though, found an Insight in Detroit for $500:
https://detroit.craigslist.org/mcb/c...920556491.html
*resists the urge to buy another Insight*