Economy car is a term mostly used in the United States for cars designed for low-cost purchase and operation. Typical economy cars are small, lightweight, and inexpensive to both produce and purchase. Stringent design constraints generally force economy car manufacturers to be inventive. Many innovations in automobile design were originally developed for economy cars, such as the Ford Model T and the Austin Mini.

Compact car is a vehicle size class—predominantly used in North America—that sits between subcompact cars and mid-size cars. "Small family car" is a British term and a part of the C-segment in the European car classification. However, before the downsizing of the United States car industry in the 1970s and 1980s, larger vehicles with wheelbases up to 110 in (2.79 m) were considered "compact cars" in the United States.