Driving off to college

A recent survey by the Independent Insurance Agents of America found that nearly 70 percent of college students have a car on campus these days. And while these are often older “beater” cars, many parents feel safer sending their kids off to school in new, albeit lower-cost, models that promise solid overall reliability, good fuel economy and a full array of the latest safety features.

While this is a major outlay that remains out of reach for most families, the federal government can help soften the financial blow by offering a tax deduction on state and local sales taxes through year’s end and by providing as much as a $4,500 subsidy for trading in a fuel-swilling older vehicle through the so-called “Cash for Clunkers” program.

The challenge, though, is to find a car that will not only run well and protect its precious occupants, but remains “cool” enough to satisfy a hard-to-please post-adolescent’s tastes. To that end, here’s a list of five of the latest models, ranked according to their base sticker prices, that we feel will please both parents and their young collegians alike.

Toyota Yaris. Offered as either a stylish two- or four-door hatchback or a more sedate-looking sedan, the Yaris is Toyota’s smallest and least-expensive model, with a base sticker price starting at just $12,205. It features a reasonably roomy interior that’s highlighted (for better or worse) by center-mounted dashboard gauges. A 1.5-liter four-cylinder engine generates just 106 horsepower, but it’s rated at 29-city/36-highway mpg. A five-speed manual transmission is standard, and recommended for wringing the most out of the smallish engine, with a four-speed automatic transmission optional. The hatchbacks can be fitted with a rear seat that slides, reclines, and folds to emphasize either passenger comfort or cargo space. Six air bags and antilock brakes are standard, though stability control isn’t offered.

Kia Soul. This “hip-to-be square” wagon-like vehicle is distinctively styled, roomy and is reasonably fuel-efficient. The base model packs a 122-horsepower 1.6-liter four-cylinder engine and achieves an estimated 26/31; elsewhere in the line a quicker 140-hp 2.0-liter powerplant gets a still-respectable 24/30 mpg. Its box-on-wheels shape affords a spacious cabin, with a fold-flat 60:40-split rear seat that creates a particularly large and square cargo area to easily accommodate an off-to-college move. It starts at $13,300, and that includes six air bags and standard stability control; avoid the pricey and rough-riding “Sport” version that’s more of a pretender than a competitor, however. Myriad dealer-installed accessories are offered for customization, but they’ll drive up the cost considerably and will likely add little to the car’s resale value.

Nissan Cube. Wildly popular in Japan and recently introduced stateside in what is its third generation, the Nissan Cube is another square-shaped youth-oriented wagon. It’s the most funky-looking of the lot, with muscular wheel arches and large round-cornered windows. The Cube’s interior features what (in hipster marketing lingo) Nissan calls “casual lounge” seating with an adjustable rear bench. A refrigerator-door-like rear hatch allows easy access to the Cube’s cargo hold, which can hold up to 58.1 cu. ft. of gear with rear seats folded. Front-side and side-curtain air bags and stability control are included. A 122-horsepower 1.8-liter four-cylinder engine comes mated to either a six-speed manual or a gearless CVT automatic transmission and gets a projected 28-city/30-highway mpg. Starting at $13,990, the Cube can be customized with an assortment of accoutrements.

Honda Fit. With several upgrades for 2009, the stylishly subcompact Fit could be the perfect campus cruiser – it gets 28-city/35-highway mpg, is reasonably priced at $14,750 and delivers sportier handling than most other cars in its class. A 1.5-liter four-cylinder engine produces a mere 117 horsepower, but it’s sufficiently peppy, particularly with the standard five-speed manual transmission (a five-speed automatic is optional). It’s roomier on the inside than its diminutive exterior might otherwise indicate – its tall-roofed hatchback design maximizes headroom – and its rear-seat folds flat into the floor to create a generous 57.3 cu. ft. cargo hold. It offers available stability control, though it only comes bundled with a navigation system in an $1,850 package on the top model. Expect good reliability and a reasonably high resale value down the road.

Honda Insight. While at $19,800 it’s the costliest car on our list, the new-for-2010 Honda Insight is the lowest-priced gas/electric hybrid car in North America and can save a mobile student big money at the pump with an estimated 40 mpg around town and 43 mpg on the open road. A 98-horsepower 1.3-liter four-cylinder gasoline engine teams with an electric motor/generator to power the front wheels via a gearless CVT automatic transmission. The engine shuts down select cylinders when not needed for greater fuel efficiency at highway speeds.