It seems that today, and more than ever, image is everything. When people prefer leasing BMWs than purchasing Hondas, part of the deciding factor is that you look better wearing a German luxury car.

The Aveo5's battleflag is its $9,994 cash purchase price promotion.

So, when people are considering a subcompact, how strong is the image criteria? And how do you think you'll look driving one of the lowest-priced cars on the market? Would you mind?

That's what the Chevrolet Aveo5 is. At just under $14,000, it's a little more expensive than the Hyundai Accent, the Kia Rio, the Toyota Yaris as well as the reigning lowest MSRP champion, the $12,498 Nissan Versa sedan. But the Aveo5's battleflag is its $9,994 cash purchase price promotion.

Room for four
As with most new subcompacts, the Aveo5 can easily sit four adults--the car's high roofline provides generous headroom, and the thin door panels leave sufficient width. In back, three people could snuggle up and figure out how to buckle their belts without pinching the others' posteriors, but there's no room for six shoulders.

In this market segment, you're either a people mover (like the Versa) or a cargo hauler (like the Fit), although almost every contestant can do both very well. In the Aveo5's case, consider it more as a people mover, since cargo space isn't all that great with the back seat up; it competes with the Yaris for the smallest cargo hold. It beats the Toyota in overall storage space when the seat is folded down, though.

Inside the little Chevy, fit and finish is actually not that bad, considering the car is basically a rebadged Korean Daewoo. The dashtop has a pleasing textured surface, and the switchgear is straightforward and sturdy, except for the two almost-bare turn-signal and wiper stalks.

Still, the driver's door wouldn't close properly unless it was slammed (although an adjustment at the dealer should fix this), and the car generally feels less substantial than a Fit or a Versa. The tinny sound of the doors closing reminds me of my old 1987 Corolla.

The cargo space isn't all that great with the back seat up.

Oh, and if you have kids or carpool on a daily basis, you might want to consider the Aveo LT which includes keyless entry; you'll go nuts opening, closing, locking and unlocking doors.

Inside the little Chevy, fit and finish is actually not that bad.

Got pep
Since its 2004 launch, the Aveo and its half-sisters, Pontiac Wave (renamed G3 this year) and Suzuki Swift+ earned a reputation for netting underwhelming fuel economy numbers; some owners averaged well over 10 L/100 km.

The 2009 model gets a new engine, but remains a 16-valve, 1.6-liter unit. It develops 106 hp and 105 lb-ft of torque, and it's mated to a 5-speed manual or the 4-speed automatic that our test car is equipped with. According to GM, fuel economy has improved. Our average of 9.1 L/100 km could be better, but we're testing the car during a very cold winter week, and the Aveo starts up fine even during -35C mornings.

The Aveo5 has enough power to get it moving along at a good pace, although four adults on board will obviously give an extra workout to the 4-cylinder mill and rear suspension. The car's ride isn't harsh but not soft either, and at 100 km/h on the highway, the tach needle is under 3,000 revs, so the cabin is fairly quiet.

Competition
The Aveo5 LS' MSRP is $13,770, and our test car is equipped with the automatic tranny ($1,050), 15-inch alloy wheels ($545) and the Security Package ($960) that includes ABS and front side airbags, which sums up to $15,780. By the way, you can't choose A/C and the automatic together in the LS. Huh?

The subcompact hatchback competition looks like this:
Honda Fit DX, 117 hp, $14,980
Hyundai Accent L 3-door, 110 hp, $13,595
Kia Rio5 EX, 110 hp, $13,995
Nissan Versa 1.8 S, 122 hp, $13,998
Pontiac G3 Wave 5-door, 106 hp, $13,770
smart fortwo pure, 70 hp, $14,990
Suzuki Swift+, 106 hp, $14,495
Toyota Yaris LE 5-door, 106 hp, $14,465

Its engine develops 106 hp and 105 lb-ft of torque.

In this group, only the Fit and Versa come standard with side and side-curtain airbags, while the Swift+ and smart includes the side airbags that are optional in this Aveo. Nissan's Versa 1.6 sedan, at $12,498, is aggressively priced, and Ford is bringing its Fiesta subcompact to Canada next year.

The Fit looks expensive here, but hold on for a minute. An Aveo5 LS with ABS and side airbags is only $250 cheaper than the base Fit that also includes power mirrors and windows. And only $70 from an optioned-up Versa 1.6 Sedan that adds A/C, power windows and mirrors as well as keyless entry. The Aveo really needs its year-round incentives.

The Aveo5 trails behind Honda and Nissan in terms of refinement and overall quality.

Conclusion
The Aveo, like its Pontiac and Suzuki half-sisters, isn't a bad car at all; it drives well, it's spacious and it's cheap to operate.

Stacked up to the competition, however, the Aveo5 trails behind Honda and Nissan in terms of refinement and overall quality. If you've got about $13,000 cash on hand, enough to cover taxes and freight charges, you can drive away from the dealer with a base 5-speed Aveo; that's cheap. But if you're looking to finance your next vehicle, this car isn't the cheapest one you can get, yet your neighbours will think it is.