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Small cars make up a significant portion of the new-car market in Canada, so we get to drive a lot of them. What we like is when a manufacturer does ’small’ differently and brings something new to this lowest-priced segment, rather than saving all the good stuff for buyers with bigger budgets.

Take the 2007 Nissan Versa, for example. The exterior size difference between the Versa and its major competitors – cars like the Honda Fit, Hyundai Accent, Toyota Yaris et al – doesn’t look significant. The first clue that something different is going on is the Versa’s wheelbase. That’s the distance between the front and rear wheel hubs, and this is the exterior dimension where the Versa exceeds most other subcompacts. At 2,600 mm (102.4 in.), the Versa has more space between the front and rear axles than any other subcompact. The

2007 Nissan Versa. Click image to enlarge

Toyota Corolla and Matrix share this dimension, and they compete against larger, more expensive cars. Only the Yaris sedan comes close in terms of subcompacts, with a wheelbase of 2,550 mm (100.4 in.), and while that tiny Toyota’s not exactly cramped inside, the Versa feels more spacious, partly owing, we think, to the Versa’s extra headroom. The overall effect is a car that feels much bigger inside than it looks like it should from the outside.

Cargo space is good too, though the Versa doesn’t possess the cargo flexibility of the Honda Fit, for example. The major flaw with the Versa’s cargo hold – and this is a criticism we level against many cars – is that while the rear seats fold down, doing so produces a load floor that’s anything but flat. Bottom cushions that flop forward and out of the way would be helpful.

2007 Nissan Versa. Click image to enlarge

Interior fit and finish is very good, too, and the only issue we have is an aesthetic one: the all-black centre stack would do fine with a little relief; a little bit of the faux carbon-fibre trim found elsewhere on the dash would do the trick. Aside from that, while the interior doesn’t push any boundaries, all the controls are where we expected them to be, and the buttons and knobs are well-damped in their operation.

It’s safe to say the Versa made a good first impression on us, but we also noticed how much attention the Versa attracted from bystanders during its week with us. People hardly swarmed us in parking lots, but our Matador Red tester attracted at least as many glances and gazes as a $110,000 Audi A8L we drove a couple of weeks earlier.

The Versa impressed us with its on-road manners. The Versa idles so smoothly that it’s tough to tell if the car’s running or not without looking at the tachometer. There were a couple of times when we reached for the key to twist it again before we realized that the 1.8-litre, four-cylinder engine was already running.

2007 Nissan Versa. Click image to enlarge

Smooth and quiet also applies to how the Versa performs once underway. The long wheelbase and a well-tuned suspension makes for a ride that’s uncommonly smooth, with none of the annoying hobby-horse motions that large bumps tend to elicit in many small cars. Even with two people riding in the back, which causes bottoming out over bumps in many small cars, doesn’t upset the Versa’s ride. Handling is far from sports car-like, but the car certainly is tossable and quite fun when driven within its limits. The brakes, a disc-drum set-up on all models, are a little grabby at lower speeds but strong at higher velocities, and if the electrically-assisted steering is a little numb in terms of feedback, the feel is fitting with the pleasant – but not terribly sporty – driving experience.

2007 Nissan Versa. Click image to enlarge

We liked the Xtronic continuously variable transmission (CVT) that our tester came with. Despite our earlier reservations about this type of “gearbox” – especially in small cars – the one in the Versa suited the car just fine performance-wise. Acceleration is quite snappy, very unlike the sluggish performance that’s part and parcel of many small cars with automatic transmissions. Granted, some of that has to do with the 1.8-litre engine’s 122 horsepower, a figure that, again, is notable for a subcompact: most in this category make do with no more than 110. It’s enough to spin the wheels from a stop, something that can’t be said of some other automatic-equipped subcompacts.

Our tester, an upscale 1.8 SL version, came standard with nice stuff like air conditioning, remote keyless entry, power doors, locks and windows and anti-lock brakes, all features that cost extra on the basic 1.8 S model.

2007 Nissan Versa. Click image to enlarge

The CVT added $1,300 to the price and the Technology Package, which includes a Bluetooth hands-free phone system, a six-speaker, 280-watt stereo with a six-CD changer and subwoofer, an auxiliary audio input jack and a leather-wrapped steering wheel with audio controls, added another $1,000.

All those extras boosted our Versa’s as-tested price to $20,648 (including freight) – not a bad deal for the features included, perhaps, but out of the range many buyers might be willing to pay for a subcompact. The bigger seller will likely be the 1.8 S with the Value Option Package, which throws in the aforementioned comfort and convenience items for $1,400.

2007 Nissan Versa. Click image to enlarge

While a six-speed manual transmission (another standout feature in a subcompact) is the standard choice in both trim levels, the CVT can be had only in the 1.8 SL. 1.8 S buyers who opt for a self-shifter will have to make do with a comparatively vanilla four-speed automatic, though this more conventional transmission might hold more appeal with some buyers.