A good inexpensive car. Any suggestions?

[Thrifty Snail]

We are dumping our mercedes as repair costs are crazy.

 The wife has a short (5 mile) commute and i reduced mine from 115 miles a day to 30. We have agreed not to put any more money into the mercedes and have 3 months until the inspection is due. Of course, a check engine light is on, and the fix is $1200 from a reliable mechanic. This is the 4th problem it has had.

Parameters:

2 adult 2 kid family

Inexpensive used car

Efficient on gas

No major need for trunk space, towing, etc.

[newton]

Hyundai Elantra.  Can't go wrong.  Just sold my 2007 and purchased a 2016.  Didn't want to buy new but it was a great deal.

[RWD]

Will this be your family's only car? If not, what is your other car? Do you have any pets? Any recurring needs to transport more than people? What is your definition of inexpensive?

The usual recommendation would be small japanese cars. Honda Fit/Civic, Nissan Versa/Sentra, Toyota Yaris/Corolla, etc. If it fits your needs, an electric car or hybrid could be a good choice too. Nissan LEAF, Chevy Volt, Toyota Prius, etc.

[Spork]

Nothing wrong with any of the above.  I will add Toyota Matrix/Pontiac Vibe.  They're the same car under different badges.  It's effectively a Corolla hatchback.

I would say most 5+ year old Toyotas/Hondas are likely to fit.

And while it has some years on it... don't forget MMM's original article.  I suspect the general ideas found here won't change much.
http://www.mrmoneymustache.com/2012/03/19/top-10-cars-for-smart-people/

[Syonyk]

Electric bike for your wife and a Mazda 3 of the older body style but still SkyActiv motor.

[StartingEarly]

Older Mazdas tend to have electrical problems.

[Syonyk]

2010-12013 era?

[StartingEarly]

They're supposed to be average.

[RWD]

2010-2013 Mazda 3 looks fine for reliability:
http://www.truedelta.com/Mazda-Mazda3/reliability-170

You need at least the 2012, though, if you want the SkyActiv models.