MikefromAlberta 
2007 Toyota Matrix Hatchback XR 4dr Hatchback (1.8L 4cyl 4A)
GOOD CHOICE BUT ONE QUIRK
 We bought our second hand 07 Matrix XR in April of 07 and had it for almost 3 yrs. It has been very reliable. It has adequate power and is decent on fuel (about 42 miles/imperial gallon).It is extremely versatile and has great interior room.  With winter snow tires, traction is excellent and it has no problem handling our Canadian winters. It does have one quirk and I'm not sure if our car is unique. It has the standard 1.8 engine and an automatic transmission. I brought it in a couple of times to the dealership and mentioned that it did not upshift smoothly after slowing down in city traffic. They couldn't help but by accident I realize that burning higher octane fuel solved the problem.