High gasoline prices are fueling interest in small cars, and the 2008 Nissan Versa shows you don't have to give up passenger room in pursuit of more miles per gallon. The Versa offers spacious legroom and headroom in the front and back. The seats are surprisingly comfortable — luxurious, even — when you consider this little four-banger hatchback has a starting sticker price of less than $14,000.

Photo by Nissan (ENLARGE) Nissan Versa

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About the Nissan Versa:

Body style: Hatchback; four-door sedan

Trim lines: S, SL

Price: Base MSRP $13,450; test vehicle was $15,490

Drive: Front wheel

Seating: Two in front, three in back

Engine: 1.8-liter DOHC four-cylinder

Transmission: Six-speed manual, four-speed automatic or continuously variable transmission

Miles per gallon of fuel: EPA estimate 24 city, 32 highway

WHAT'S SPECIAL: The interior is more plush, more elegant than you would hope for in a car in this price range. The faux-suede cloth upholstery is soft to the touch. The dash, door panels and puzzle of parts that make up the trim are well-fitted. Nothing seems cheap inside this low-priced car.

WHAT WE LIKE: It's no hot-rod, but the Versa is sort of fun to drive. The 122-horsepower four-cylinder engine provides some pep. You won't blow anyone off the starting line, but you have enough juice to shoot the gaps in congested commuter traffic.

WHAT ISN'T THERE: An iPod jack. Can you believe it? The base hatchback tested had no way to plug in your tunes. While such a connection is standard in other cars in this class — the Honda Fit, the Scion XD — it's found only in the SL trim of the Versa.

YOU OUGHTA KNOW: If you want more sizzle with your economy car, Nissan offers a sports package for the Versa that includes rear spoiler, lower body side sill extensions and fog lights. Of course, you'll still have only 1.8 liters under the hood.

EXTRAS: The Versa is about as safe a small car as the laws of physics will allow, earning a five-star rating by the National Highway Safety Administration. Front seat side-impact air bags providing chest protection and roof-mounted curtain side air bags providing head protection are standard. A package that includes anti-lock brakes and brake assist was a $250 option on the test car. Other available options include XM satellite radio and a hands-free phone system.

AND ANOTHER THING: While there are safety belts in the back for three passengers, there really isn't hip room for three adults.

COMPETITORS: The Honda Fit, Scion XD, Chevrolet Aveo and Kia Rio are among the many competitors in a resurgent subcompact market that has been bolstered by high gas prices and consumers' increasing concerns about the environment. Also, urban drivers have taken to the vehicles because of their convenience. The Fit offers a powerful engine, despite its size, and the Rio has a great warranty.

ABOUT NISSAN: Strong sales of the Versa and its new Rogue crossover helped Nissan post a 6 percent gain in sales last month. The Rogue, which came out this fall and is based on the Sentra platform, posted sales of 5,650 units. The Altima sedan, coupe and hybrid recorded combined sales of 19,811, outpacing year-ago levels by 8.8 percent.