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I'd say it all depends on what you are looking for. The Smart makes a great city car because of how easy it is to park. However, my choice in the Smart's price range wold be the Toyota Yaris. It is almost as good on gas (29 city) as the Smart but can seat 4 and has more cargo room. It also comes within 3 feet of the Smart's turning circle and has a much better transmission, best in class brakes and much better reliability. If all you want is the best fuel mileage bang for the buck in a used car, the best choice is an old Geo Metro with the 3 cylinder/5 speed drivetrain. Good ones go for as little as $800 to as much as $4-5k. For better mileage, but more money, the original 2 seat Insight is also a good choice. Plus, it is distinctive and futuristic looking even today if that is what you are looking for. However, they are not cheap as a good one can still run north of $10k, and a bad one will need quite a bit of sorting before it is usable.
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No green technology will ever make a substantive environmental impact until it is economically viable for most people to use it. This must be from a reduction in net cost of the new technology, not an increase in the cost of the old technology through taxation
(Note: the car sees 100% city driving and is EPA rated at 37 mpg city)
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