1. VW's first diesel engine to meet California's hyper-restrictive emissions standards, the TDI traps nitrogen oxides and incinerates foul exhaust before it reaches the tailpipe. The technology earned VW a Green Car of the Year award at the L.A. auto show. And because it runs so clean, the vehicle qualifies for a $1,300 federal tax rebate, à la hybrids. Wanna run even greener? Fill 'er up with B5 biodiesel.

2. Don't let the mileage estimates fool you; in many cases, we got much better, clocking an amazing 51 mpg at 70-plus miles an hour over 150 freeway miles. And unlike hybrids, or even the Jetta's gas-powered brethren, the two-liter, 140-horsepower turbo diesel's torque is unmitigated by high altitudes: Passing on a 10,000-foot mountain road, the TDI leaped to 90 mph with no hesitation.

3. Push this thing and you'll swear you're in a sports car, not a compact fuel sipper. Taut handling, relatively tight suspension, and autobahn-worthy brakes make driving a joy, and traction control keeps the TDI performing in any weather. Bonus: Fold down the rear seats to complement the spacious trunk, and you can fit a couple of skis, or a bike without removing the front wheel.
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