The answer, I believe, lies in the Echo’s tall bodystyle. Though it’s about the same length and width as the Tercel, its roof is 125 mm (5.0 in.) taller, and the windshield is positioned farther forwards. Toyota claims that the Echo has as much interior room as the larger Corolla sedan. Front and rear seats are positioned higher, so that passengers sit in a more upright position and can slide in and out of them more easily. The higher seats increase legroom because passenger’s legs aren’t pushed out ahead of them. In addition, rear passengers have about six inches of vertical space under the raised front seats.

The tall Echo’s tall bodystyle also provides plenty of front and rear headroom, and improved outward visibility for the driver and passengers.

However, while there’s plenty of legroom and headroom, the Echo’s narrow body width limits the rear bench seat to two adult passengers, or possibly three in a squeeze.

I suspect that the Echo’s taller bodystyle also provides better crash protection. The front of the car is not as likely to slide under a taller vehicle in a head-on collision, and the higher door sides should provide increased side impact protection.

The Echo’s dash layout is also unique. The speedometer and auxiliary instruments are positioned in the centre of the dashtop rather than behind the steering wheel. Toyota claims this reduces eyestrain because the instruments are further away and the driver can refocus on the road more quickly. In addition, since the dashtop instruments are higher up, the driver’s eyes need drop only 17 degrees from the road rather than the usual 22 degrees.

It takes a while to get used to the central position of the dashtop gauges, but in the space of an hour, I found myself turning my head to the right instead of looking down. One important advantage of dashtop gauges is that they are not obscured by the steering wheel – in my experience, conventional instruments are often partially obscured by the steering wheel rim.

I had one complaint: a tachometer is not available, even as an option. Fortunately, the engine has a rev limiter to prevent over-revving in models equipped with the manual transmission.

Large rotary controls and buttons for the heater and stereo are found in the lower, centre dash area within easy reach of the driver’s right hand. For such a small car, the Echo has many storage compartments, including a split up/down glove box, two open bins on either side of the centre console, a storage tray under the passenger seat, an open bin near the steering wheel, two door pockets, and seatback pockets.

The Echo’s four cylinder engine is the same size as the Tercel’s, but has more power (108 vs 93), slightly better fuel economy, and is more technologically-sophisticated. The 1.5 litre four cylinder powerplant has twin overhead camshafts, four valves per cylinder, direct ignition, and VVT-I (variable valve timing with intelligence), a feature that adjusts intake valve timing to improve torque and reduce emissions.

With 108 horsepower and a curb weight of just 950 kg (2095 lb.), the Echo sedan (equipped with an optional 4-speed automatic transmission) zips from 0 to 100 km/h in 10.5 seconds – a quick time for a small car with an automatic transmission.

The Echo also gets great fuel economy: 7.0 l/100 km (40 mpg) in the city, and 5.5 l/100 km (51 mpg) on the highway.

Echos are available with two-doors or four-doors, and both have a trunk – a hatchback is not available. Two-door Echo’s start at $13,835 and four-door sedans at $14,175. Standard equipment on both models includes a five-speed manual transmission, AM/FM/cassette with four speakers, 60/40 folding rear seatbacks, tilt steering wheel, dual airbags, dual outside mirrors, black bumpers, and 13 inch tires. A four-speed automatic transmission is a $1000 option.

For $1,410, an optional Style Package includes 14 inch tires, colour bumpers, black lower bodyside cladding, rear spoiler, CD player, and intermittent wipers. The Style Package without the black bodyside cladding is available on four-door models for $665. Air conditioning is a port-installed $1,230 option. Fully equipped, four-door Echo’s top out at $16,815, plus freight.