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For a lot of stop-and-go traffic, a hybrid. They way they are built makes them more efficient when you are braking more frequently (vs. on the highway, which is more efficient on regular combustion engines).
ETA: Hopefully you should be able to find a used hybrid out there--they've been out long enough at this point.
I drive a newer hyundai accent (2008) and it's great on gas. I sit thru a ton of congestion in downtown and on the parkway every single day. Plus it's tiny so I can squeak by other cars and park in small spaces. If I didn't have that car I'd seriously consider a hybrid.
I would go for a hybrid , or a small car like a honda fit , ford fiesta , nissan versa
I had a Hyundai Elantra, I hated it because it was small, I have an SUV now, but it was great on gas, was cheap to buy (I know they've gone up in price since then but I still think they're pretty cheap), and had a fabulous warranty.
you need xm satellite radio!
i have a hyundai which came with a built-in xm radio, and it's awesome for long trips. it's also pretty fuel efficient. i have the sonata which gets nearly 30 miles per gallon plus it has a big tank so i can drive 7 hours without stopping if needed.
i got the sonata because my fiance is tall and it snows alot here. but in texas you could probably get the elantra which would be even more fuel efficient.
I love my honda fit! Great on gas, suprisingling good pickup, and amazingly versitile!
I have a 2004 Toyota Echo hatchback... I don't think they sold them in the states then, but the same car is a 2006 or later Toyota Yaris. I drive very little, other than an odd highway trip and 10km or so to work. It's AMAZING! I fill up the gas tank pretty much never. I've also had it for 8 years, only had its oil changed 4 times in those 8 years (whoops!) and took it for a tune up recently... the guys told me it didn't even need a full tune up it was in such good shape. GREAT low maintenance car.
I'm crazy about fuel efficiency, so I've done some research on this. Hybrids are definitely cool, but from what I hear, you can usually get a Honda Civic to get very similar mpg as, say, a Prius. Granted, in stop-and-go traffic, a hybrid would probably have the edge, but try to think through the actual gas savings before you spend significantly more on a hybrid.
Some newer Hyundais also get 40 to the gallon, at least at highway speeds (which Civics and, I assume, Honda Fits can certainly get), so that might be worth looking into.
@Aure: Oh my god, I want a Fiat 500 so bad, it's ridiculous. They're just freakin' adorable. Though for the OP, although those get good mileage, it's probably not what you want as I bet you won't be able to get one used for a good while yet. 
I love my Toyota Yaris Hatchback. It's perfect! I drive it all over LA.
@TankGirl: Ah, the edit wasn't there when I posted. Alas.
In that case I agree with the VW suggestion.
I have a Fiat obsession. They use them for Taxis in Argentina and I love it!
I think buying a used hybrid would be a great investment!
My Mazda 2 is great on gas and super easy to drive, but it's new out this year so there probably aren't any used ones. Before that I had a 1993 Toyota Tercel which was also awesome on gas (almost the same as my new car) and I would totally recommend one.
I drive a Honda Fit and commute ~60 miles of traffic round trip every day. Right now it costs me around $30 to fill the tank (Gas is between $3.20-$3.30) and I only fill up once a week. Obviously the highway mileage is incredible but it does really well in traffic too.
I can warn you against a Mazda 3! That's what I have now and only get about 200-220 miles per 11.5gallon fill in Los Angeles traffic.
I have a 2007 Chevy Cobalt and I LOVE it. I get 32mpg average on the open highway, and around 28 mpg city driving. I do drive in congested traffic a decent amount. I'm not a car person but I'm so in love with my car it's ridiculous.
@LMD84: Hahaha. Love it.
Dream wise I wouldn't give up anything and I would get a Ford Escape Hybrid.
Although I'm leaning towards a honda civic hybrid. But I don't know where I should settle for how many miles it has. My current car only has 66k.
@accorn: What are the mileages out there? Anything under 50K has tons of life left--my sister's Honda (nonhybrid) Civic lasted 15 years, she got 140K out of it I believe. She probably could have gotten more too, she was in school most of that time and didn't drive a lot.
ETA-- That's not to say that over 50K is bad, but with a newer car like that a higher mileage probably means it was driven a whole lot in a relatively short period of time.
@MissPumpkinPie: I know! I want one so bad, but I can't bring myself to buy anything until my current car dies, and I am pretty sure it will never die... It is a '97 Honda Accord with 300,000 miles, and my mechanic says it will probably go up to 400,000. :(
I got my car for sitting in traffic too :)
Its a Toyota Yaris, which is the equivalent of a Honda Fit or a Nissan Versa. All of them are compact, funky, and have great gas mileage. If you want to buy American, the Chevy Aveo is a similar car, but I thought the inside looked cheap compared to the Honda and Toyota, and the warranty wasnt as good either.
I'm currently looking on Dallas craigslist and there is a 2008 honda civic hybrid with 112k on it and its 12k. I would love to find something with 50-65k miles.
My budget is small which does make this more difficult (okay maybe impossible).
The Yaris and Fit are under 15k brand new!! Hybrids are great, and I plan on buying one when I can afford it, but it takes about 10 years of ownership to save money on the cost of the purchase vs the cost of gas - which you won't get with a used one that already has 100k miles on it.
Love my Yaris Liftback
- so much that DH bought one, too (Sedan version)!
We live in the city and it's perfect for traffic and those tight parking spaces. I can park anywhere in town! :)
VWs get great gas mileage. We have 2 (a Jetta and a Passat)!
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Okay, so I only drive to and from work with an occassional 6 hour drive back to Texas. Everything else my FI drives to.
My drive home from work can be horrendous- it isn't very far from home but I just sit in traffic.
So I am thinking of selling my small SUV (2005 Chevy Equinox) and getting something more fuel efficient.
Edit: It would have to be a used car, I'm looking for a fairly lateral move.
What are your recommendations?