I think Honda Civic didn't necessarily kicked the current 3's butt when it first arrived back in 06, most reviews will agree the Mazda 3 still competes even though it has its handicaps proof of this is that it consistently ranks in the top 5 in the US just behind the Civic and the Jazz/Fit, amazing feat for a 5 year old model. In fact I believe the only reason why Civic sells is its just the one that makes sense in terms of fuel economy. Honda had some poor judgment in terms of design and ergonomics of the Civic and I'm not a fan of the control panel as I'm a minimalist. And I think it would be too presumptuous to think the 2011-12 Civic will be that great at this point. The last model the FD followed for me sucked that's why the 3 got noticed indeed in 2003.
Going back to the main topic while budget is a concern, you should also think that buying a car at the very last year of its current model production life cycle is a very bad idea. First you are going to use it for the next 3-5 years and the devaluation by then would be very high. Even though you bought it in 2008 it is still an 04 model so take that into consideration. It's almost always nice to buy a car model in it's model mid life cycle. This is also the same logic in buying a car too early in it's model's release because it is almost certain to have some quirks and hiccups at the beginning.
So at this point the 1.8S or V variants of Civic (Despite of it's blandness in design and lack of excitement to drive) is right now the best choice for the everyday driver.



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